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

In the Matter of                )  
                                )  File No. EB-02-TC-020
Bresnan Communications Company  )  
                                )  CUID No. MI0118 (Hampton)
Complaint Regarding             )  
Cable Programming Services Tier Rates   )              
                                
                              ORDER

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

By the Chief, Enforcement Bureau:1

     1.    In this  Order we  consider  a 
complaint2 against  the  rates charged  by  the  above-referenced 
operator ("Operator")3 for  its cable  programming services  tier 
("CPST") in the  community referenced above.  The Cable  Services 
Bureau has already issued an  order ("Prior Order")4 in which  it 
found Operator's CPST rates in effect through May 14, 1994 to  be 
unreasonable.  In  the Prior  Order,  the Cable  Services  Bureau 
stated that  its  findings  "do  not  in  any  way  prejudge  the 
reasonableness of the prices for  CPS service after May 14,  1994 
under our new rate regulations."5  On February 17, 2000, Operator 
filed an amended refund plan in  response to our Prior Order.  In 
its refund plan, Operator calculated its refund liability through 
July 14, 1994.6  On February 15, 2002, the Cable Services  Bureau 
issued an  order accepting  Operator's  refund plan  as  modified 
therein.7  In this Order, we  address only the reasonableness  of 
Operator's CPST rates for the above-referenced community, for the 
period beginning July 15, 1994.

     2.   Under the provisions  of the  Communications Act8  that 
were in effect at  the time the  referenced complaint was  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  19929  ("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.10  The Operator has the burden of demonstrating  that 
the  CPST  rates  complained  about  are  reasonable.11   If  the 
Commission finds a  rate to be  unreasonable, it shall  determine 
the correct rate and any refund liability.12
     
     3.   Operators must use the FCC Form 1200 series to  justify 
rates for the  period beginning  May 15,  1994.13  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.14  Operators  may  justify  their 
rates on  an annual  basis  using an  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.15  Any 
incurred cost that is not projected may be accrued with  interest 
and added to rates at a later time.16    

     4.   Upon review of  Operator's FCC Form  1200, we  adjusted 
Line A1 (Channels per Tier as of 3/31/94) from 24 to 22, Line  A6 
(Monthly Charge per Tier  as of 3/31/94) to  $10.95, and Line  C1 
(Channels per  tier  as  of  3/31/94)  and  Line  C2  (Number  of 
Regulated Non-Broadcast Channels  per Tier) to  22 for the  CPST.  
All of these adjustments were made to conform Operator's FCC Form 
1200 to the  revised FCC Form  393 reviewed in  the Prior  Order.   
The adjustments reduced Operator's maximum permitted rate ("MPR") 
from $10.64 to $10.17.  Upon review of  Operator's FCC Form  1210 
covering the  period April  1, 1994  through June  30, 1994,  the 
Cable Services Bureau adjusted Line A1 (Transition Rate per Tier) 
to conform to Operator's revised FCC Form 1200.  This  adjustment 
reduced Operator's  FCC  Form 1210  MPR  from $11.20  to  $10.37.  
Because Operator's actual CPST rate of $11.44, effective July 15, 
1994 through October 31, 1994, exceeds its revised MPR of $10.37, 
we find Operator's actual CPST rate of $11.44, effective July 15, 
1994 through  October  31,  1994, to  be  unreasonable.   Because 
Operator's actual CPST rate of $11.20, effective November 1, 1994 
through December 31, 1994, exceeds its revised MPR of $10.37,  we 
find Operator's actual CPST rate of $11.20, effective November 1, 
1994 through December 31, 1994, to be unreasonable.

     5.   Upon review of  Operator's FCC Form  1210 covering  the 
period July  1,  1994  through December  31,  1994,  we  adjusted 
Operator's Line A1 to reflect the revised MPR of $10.37 from  its 
previous FCC Form 1210.   This adjustment reduced Operator's  MPR 
from $11.41 to  $10.98.  Because Operator's  actual CPST rate  of 
$11.20, effective January 1, 1995 through March 31, 1995, exceeds 
its revised MPR of $10.98, we find Operator's actual CPST rate of 
$11.20, effective January 1, 1995  through March 31, 1995, to  be 
unreasonable.

     6.   Upon review of  Operator's FCC Form  1210 covering  the 
period January 1, 1995 through March 31, 1995, we find Operator's 
actual CPST  rate  of $11.53,  effective  April 1,  1995,  to  be 
reasonable.
      
     7.   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  $11.44, charged by Operator in  the 
community referenced  above,  effective  July  15,  1994  through 
October 31, 1994, IS UNREASONABLE

     8.   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  $11.20,  charged  by  Operator  in  the 
community referenced above,  effective November  1, 1994  through 
March 31, 1995, IS UNREASONABLE.

     9.   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  $11.53,  charged  by  Operator  in  the 
community  referenced   above,  effective   April  1,   1995   IS 
REASONABLE.

.    10.  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 that portion  of the amount paid in  excess 
of the  maximum permitted  CPST rate  of $10.37  per month  (plus 
franchise fees), plus interest to the date of the refund, for the 
period July 15, 1994 through December 31, 1994.

     11.  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 that portion  of the amount paid in  excess 
of the  maximum permitted  CPST rate  of $10.98  per month  (plus 
franchise fees), plus interest to the date of the refund, for the 
period January 1, 1995 through March 31, 1995.
     
     12.  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.     13.  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 complaint referenced herein against the rates charged by 
Operator in the community referenced above IS 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 first valid complaint against Operator's CPST rate in the 
community referenced above was filed on January 10, 1994. There 
are no subsequent complaints on file.

3  The  term  "Operator"  includes  Operator's  predecessors  and 
successors in interest.
4 In the Matter of Bresnan Communications Company, DA 95-1380, 10 
FCC Rcd 7184 (CSB  1995); recon. den., In  the Matter of  Bresnan 
Communications Company, DA 97-2033, 13 FCC Rcd 13120 (CSB  1998); 
recon. granted in part and den. in part, In the Matter of Bresnan 
Communications Company, DA 98-1877, 13 FCC Rcd 19615 (CSB  1998); 
recon. den., In the Matter of Bresnan Communications Company,  DA 
99-1779 (CSB released September 7, 1999). 
5 Prior Order at n. 1.
6 The Commission's rules provide for a refund liability  deferral 
period, if timely  requested by the  Operator, beginning May  15, 
1994 and ending July 14, 1994, for any overcharges resulting from 
Operator's calculation of a new maximum permitted rate on its FCC 
Form 1200.  See 47 C.F.R.  76.922(b)(6)(ii). Operator elected to 
defer refund  liability.   However, Operator  will  incur  refund 
liability from May 15,  1994 through July 14,  1994 for any  CPST 
rates charged  above  the FCC  Form  393 maximum  permitted  rate 
approved by the Commission.  Operator included this period in its 
refund plan calculation approved by the Commission.
7 See In the Matter of Bresnan Communications Company, DA  02-340 
(CSB released February 15, 2002).
8 Communications  Act,  Section  623(c), as  amended,  47  U.S.C. 
543(c) (1996).
9 Pub. L. No. 102-385, 106 Stat. 1460 (1992).
10 See  Section 76.956  of the  Commission's rules,  47 C.F.R.   
76.956.
11 Id.
12 See  Section 76.957  of the  Commission's rules,  47 C.F.R.   
76.957.
13  See  Section  76.922 of  the  Commission's rules,  47  C.F.R. 
76.922.
14  Id.
15  Id.
16  Id.