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                           Before the
                Federal Communications Commission
                     Washington, D.C. 20554


In the Matter of                 )    File No. EB-02-TC-029
                                )
Marcus Cable Associates, LP      )    CUID No.  TX0589 (Cleburne)                
                                )
Complaint Regarding            ) )
Cable Programming Services  Tier )
Rates


                              ORDER


     Adopted:  May 6, 2002              Released:  May 8, 2002

By the Chief, Enforcement Bureau:1

In this  Order we  consider complaints  filed against  the  rates 
charged by the  above-referenced operator  ("Operator")2 for  its 
cable  programming  services  tier  ("CPST")  in  the   community 
referenced above. The Cable Services Bureau has already issued an 
Order, DA  95-301  ("Prior Order"),3  which  resolved  complaints 
filed against  Operator's CPST  rates in  effect through  May 14, 
1994. In its Prior Order,  the Cable Services Bureau stated  that 
its findings "do not  in any way  prejudge the reasonableness  of 
the price for CPS service after  May 14, 1994 under our new  rate 
regulations."4  This Order addresses  only the reasonableness  of 
Operator's CPST rates in effect beginning May 15, 1994.

Under the  provisions of  the Communications  Act5 that  were  in 
effect at  the time  the referenced  complaints were  filed,  the 
Federal Communications Commission ("Commission") is authorized to 
review the CPST rates of  cable systems not subject to  effective 
competition to ensure  that rates charged  are not  unreasonable.  
The Cable Television Consumer  Protection and Competition Act  of 
19926 ("1992 Cable Act") required  the Commission to review  CPST 
rates upon the  filing of a  valid complaint by  a subscriber  or 
local franchising authority  ("LFA").  The filing  of a  complete 
and timely  complaint  triggers  an  obligation  upon  the  cable 
operator to  file  a  justification  of  its  CPST  rates.7   The 
Operator has  the burden  of demonstrating  that the  CPST  rates 
complained about are reasonable.8  If the Commission finds a rate 
to be unreasonable, it shall  determine the correct rate and  any 
refund liability.9

Operators must use the FCC Form 1200 series to justify rates  for 
the period beginning May 15, 1994.10  Cable operators may file an 
FCC Form 1210 to  justify quarterly rate  increases based on  the 
addition and deletion  of channels, changes  in certain  external 
costs and inflation.11  Operators may  justify their rates on  an 
annual basis using  FCC Form 1240  to reflect reasonably  certain 
and quantifiable changes  in external costs,  inflation, and  the 
number of regulated  channels that are  projected for the  twelve 
months following the  rate change.12  Any  incurred cost that  is 
not projected may be accrued with interest and added to rates  at 
a later time.13

The Commission's rules  provide for a  refund liability  deferral 
period, if timely requested by  Operator, beginning May 15,  1994 
and ending  July 14,  1994, for  any overcharges  resulting  from 
Operator's calculation of a new maximum permitted rate ("MPR") on 
its FCC Form 1200.14  Operator elected to defer refund  liability 
pursuant to  the Commission's  rules.15  However,  Operator  will 
incur refund liability from  May 15, 1994  through July 14,  1994 
for any CPST rates charged above the FCC Form 393 MPR approved by 
the Commission.16 In the Prior  Order, the Cable Services  Bureau 
found that Operator  justified an MPR  of $8.67 on  its FCC  Form 
393.  Because Operator's actual CPST rate of $8.71, effective May 
15, 1994 through July 14, 1994,  exceeds its FCC Form 393 MPR  of 
$8.67, we  find  Operator's  actual  CPST rate  of  $8.71  to  be 
unreasonable. However, as in the  Prior Order, we determine  that 
the total overcharge for the  period under review is de  minimis, 
and it would not be in the public interest to order a refund.

Upon review of  Operator's FCC  Form 1200,  we accept  Operator's 
calculated MPR of $7.50. Because  Operator's actual CPST rate  of 
$10.42, effective July  15, 1994 through  June 30, 1995,  exceeds 
its calculated MPR of $7.50, we find Operator's actual CPST  rate 
of $10.42 to  be unreasonable,  effective July  15, 1994  through 
June 30, 1995.  

Upon review  of Operator's  FCC Form  1210, covering  the  period 
April 1,  1994  through  June  30,  1995,  we  accept  Operator's 
calculated MPR of $9.16.  Because Operator's actual CPST rate  of 
$10.42, effective July 1, 1995 through October 31, 1995,  exceeds 
its calculated MPR of $9.16, we find Operator's actual CPST  rate 
of $10.42  to be  unreasonable, effective  July 1,  1995  through 
October 31, 1995.  Because Operator's actual CPST rate of  $9.16, 
effective November  1, 1995,  does not  exceed its  MPR, we  find 
Operator's actual CPST rate of $9.16 to be reasonable,  effective 
November 1, 1995.  

Upon review of Operator's FCC Form 1240, for the projected period 
June 1, 1996 through May 31, 1997, we find Operator's actual CPST 
rate of $8.95, effective June 1, 1996, to be reasonable.

Accordingly, IT IS ORDERED, pursuant to Sections 0.111 and  0.311 
of the Commission's rules, 47 C.F.R. §§ 0.111 and 0.311, that the 
CPST  rate  of  $8.71,  charged  by  Operator  in  the  community 
referenced above, effective May 15,  1994 through July 14,  1994, 
IS UNREASONABLE.

IT IS FURTHER ORDERED, pursuant  Sections 0.111 and 0.311 of  the 
Commission's rules, 47 C.F.R. §§  0.111 and 0.311, that the  CPST 
rate of $10.42, charged by  Operator in the community  referenced 
above, effective  July  15, 1994  through  October 31,  1995,  IS 
UNREASONABLE.

IT IS FURTHER ORDERED,  pursuant to Sections  0.111 and 0.311  of 
the Commission's rules, 47  C.F.R. §§ 0.111  and 0.311, that  the 
CPST  rate  of  $9.16,  charged  by  Operator  in  the  community 
referenced above, effective November 1, 1995, IS REASONABLE.

IT IS FURTHER ORDERED,  pursuant to Sections  0.111 and 0.311  of 
the Commission's rules, 47  C.F.R. §§ 0.111  and 0.311, that  the 
CPST  rate  of  $8.95,  charged  by  Operator  in  the  community 
referenced above, effective June 1, 1996, IS REASONABLE.

IT  IS  FURTHER  ORDERED,  pursuant  to  Section  76.961  of  the 
Commission's rules,  47  C.F.R.  § 76.961,  that  Operator  shall 
refund to  subscribers in  the  community referenced  above  that 
portion of the  amount paid  in excess of  the maximum  permitted 
CPST rate of $7.50 per month (plus franchise fees), plus interest 
to the date of the refund, for the period July 15, 1994,  through 
June 30, 1995.

IT IS FURTHER ORDERED that Operator shall promptly determine  the 
overcharges to CPST subscribers for the stated periods, and shall 
within 30 days of the release  of this Order, file a report  with 
the Chief,  Enforcement  Bureau, stating  the  cumulative  refund 
amount so  determined (including  franchise fees  and  interest), 
describing the calculation  thereof, and describing  its plan  to 
implement the refund within 60 days of Commission approval of the 
plan.

IT IS FURTHER ORDERED,  pursuant to Sections  0.111 and 0.311  of 
the Commission's rules, 47  C.F.R. §§ 0.111  and 0.311, that  the 
complaints referenced herein  against the CPST  rates charged  by 
Operator in the community referenced above ARE GRANTED.

     
                              FEDERAL COMMUNICATIONS COMMISSION 



                              David H. Solomon
                              Chief, Enforcement Bureau
_________________________

1  Effective   March  25,   2002,  the   Commission   transferred 
responsibility for resolving cable programming services tier rate 
complaints  from  the  former   Cable  Services  Bureau  to   the 
Enforcement Bureau.  See Establishment  of the Media Bureau,  the 
Wireline Competition  Bureau and  the Consumer  and  Governmental 
Affairs Bureau, Reorganization  of the  International Bureau  and 
Other Organizational Changes, FCC 02-10, 17 FCC Rcd 4672 (2002).
2  The  term  "Operator"   includes  Operator's  successors   and 
predecessors in interest.
3 See In the Matter  of Sammons Communications, Inc., DA  95-301, 
10 FCC Rcd 3813 (CSB 1995).
4 Id. at n. 1.
5 Communications Act,  Section 623(c),  as amended,  47 U.S.C.  § 
543(c) (1996).
6 Pub. L. No. 102-385, 106 Stat. 1460 (1992).
7 See  Section 76.956  of  the Commission's  rules, 47  C.F.R.  § 
76.956.
8 Id.
9 See  Section 76.957  of  the Commission's  rules, 47  C.F.R.  § 
76.957.
10 See  Section 76.922  of the  Commission's rules,  47 C.F.R.  § 
76.922.
11 Id.
12 Id.
13 Id.
14  See  Section 76.922(b)(6)(ii) of  the Commission's rules,  47 
C.F.R. § 76.922(b)(6)(ii).
15  Operator filed  a refund liability  deferral letter with  the 
Commission dated May 18, 1994.
16 See  Section 76.922(b)(6)(ii)  of the  Commission's rules,  47 
C.F.R. §76.922(b)(6)(ii).