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Before the
Federal Communications Commission
Washington, D.C. 20554
In the Matter of ) File No. EB-02-TC-110
)
Marcus Cable Associates, LP ) CUID No. TX0761 (Lake
) Worth)
Complaint Regarding ) )
Cable Programming Services Tier )
Rates
ORDER
Adopted: June 14, 2002 Released: June 17,
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 95-309 ("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 Upon review of Operator's refund plan filed in
response to the Prior Order, the Cable Services Bureau calculated
Operator's refund liability through July 14, 1994.5 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.
Under the provisions of the Communications Act6 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
19927 ("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.8 The
Operator has the burden of demonstrating that the CPST rates
complained about are reasonable.9 If the Commission finds a rate
to be unreasonable, it shall determine the correct rate and any
refund liability.10
Operators must use the FCC Form 1200 series to justify rates for
the period beginning May 15, 1994.11 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.12 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.13 Any incurred cost that is
not projected may be accrued with interest and added to rates at
a later time.14
Upon review of Operator's FCC Form 1200, we accept Operator's
calculated MPR of $7.61. Because Operator's actual CPST rate of
$7.98, effective July 15, 1994 through December 31, 1994, exceeds
its calculated MPR of $7.61, we find Operator's actual CPST rate
of $7.98 to be unreasonable, effective July 15, 1994 through
December 31, 1994. Upon review of Operator's FCC Form 1210,
covering the period April 1, 1994 through December 31, 1994, we
find Operator's actual CPST rate of $7.98 to be reasonable,
effective January 1, 1995.
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 $7.98, charged by Operator in the community
referenced above, effective July 15, 1994 through December 31,
1994, 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 $7.98, charged by Operator in the community
referenced above, effective January 1, 1995, 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 $7.61 per month (plus franchise fees), plus interest
to the date of the refund, for the period July 15, 1994, through
December 31, 1994.
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 In the Matter of Sammons Communications, Inc., DA 95-309, 10
FCC Rcd 3852 (CSB 1995).
4 Id. at n. 1.
5 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. The
Cable Services Bureau included this time period in its refund
plan calculation for DA 95-303. See In the Matter of Marcus
Cable Associates, LP, DA 99-1906, 14 FCC Rcd 15865 (CSB 1999).
6 Communications Act, Section 623(c), as amended, 47 U.S.C. §
543(c) (1996).
7 Pub. L. No. 102-385, 106 Stat. 1460 (1992).
8 See Section 76.956 of the Commission's rules, 47 C.F.R. §
76.956.
9 Id.
10 See Section 76.957 of the Commission's rules, 47 C.F.R. §
76.957.
11 See Section 76.922 of the Commission's rules, 47 C.F.R. §
76.922.
12 Id.
13 Id.
14 Id.