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


In the Matter of                  )
                                 )   File No. EB-02-TC-066
Time Warner Cable                 )   MA0048 (Medford County)                
                                 )
Petition   for   Reconsideration  )
and Refund Plan

                  ORDER ON RECONSIDERATION


     Adopted:  July 16, 2002                      Released:  
July 17, 2002

By the Chief, Enforcement Bureau:1

     1.   In  this   Order  we   consider  a   petition  for 
reconsideration  ("Petition")   of  Cable   Services  Bureau  
Order, DA  98-1839 ("Prior  Order").2   In the  Prior Order, 
the  Cable   Services  Bureau  found   the  above-referenced 
operator's ("Operator's")3 January 1, 1998 cable programming 
services tier ("CPST") rate increase in the above-referenced 
community  to  be  unreasonable. Operator  supplemented  its 
Petition with amended FCC Form 1240s and also filed a refund 
plan ("Refund  Plan").  In  this Order, we  grant Operator's 
Petition, reject  Operator's Refund Plan, and  order refunds 
consistent with this Order. 

     2.   Under  the provisions  of the  Communications Act4 
that were in  effect at the time the  complaints were filed, 
the 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 1992 
("1992 Cable Act")5 and  the Commission's rules required the 
Commission to review  CPST rates upon the filing  of a valid 
complaint  by a  subscriber or  local franchising  authority 
("LFA").  The Telecommunications Act  of 1996 ("1996 Act"),6 
and  the  Commission's  rules implementing  the  legislation 
("Interim Rules"),7  required that  a complaint  against the 
CPST rate  be filed with the  Commission by an LFA  that has 
received more than one  subscriber complaint.  The filing of 
a  valid complaint  triggers  an obligation  upon the  cable 
operator to file a justification of its CPST rates.8  If the 
Commission  finds  the rate  to  be  unreasonable, it  shall 
determine the correct rate and any refund liability.9 

     3.   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

     4.    In its Petition,  Operator asserts that the Prior 
Order  contained  a  clerical  error.   In  support  of  its 
assertion,  Operator submitted  amended forms  incorporating 
all of the adjustments made  by the Cable Services Bureau in 
the Prior  Order.  We  reviewed Operator's filing  and agree 
that a clerical  error was made in the Prior  Order. We find 
Operator's revised calculated maximum permitted rate ("MPR") 
of $19.66 to be reasonable,  effective February 2, 1998 (the 
date  the first  valid  complaint was  filed  with the  LFA) 
through  December 31,  1998 and  we modify  the Prior  Order 
accordingly. Because Operator's actual  CPST rate of $20.12, 
effective January 1, 1998 through December 31, 1998, exceeds 
its  revised calculated  MPR of  $19.66, we  find Operator's 
actual  CPST  rate of  $20.12,  effective  February 2,  1998 
through December 31, 1998, to be unreasonable.

     5.   Upon review  of Operator's Refund Plan,14  we find 
that the  Refund Plan does  not fulfill the  requirements of 
this Order.  Operator calculated  its refund liability based 
on the Prior Order's MPR  of $19.41, and calculated interest 
only for 1998.  We  calculate Operator's refund liability as 
follows:  For  the  period  from February  2,  1998  through 
December 31,  1998,15 we  calculate an overcharge  of  $0.46 
per month per subscriber.   Our total calculation, including 
three   percent  franchise   fees  plus   interest  on   the 
overcharges and franchise fees through July 31, 2002, equals 
$108,761.00.  We order Operator  to refund this amount, plus 
any additional  interest accrued to  the date of  refund, to 
its CPST subscribers  within 60 days of the  release of this 
Order.

     6.   Accordingly,  IT IS  ORDERED, pursuant  to Section 
1.106 of  the Commission's  rules, 47  C.F.R. §  1.106, that 
Operator's petition for reconsideration IS GRANTED.

     7.   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 In the Matter  of Time Warner Cable, DA 98-1839, 
13  FCC Rcd  19560  (CSB  1998) IS  MODIFIED  TO THE  EXTENT 
INDICATED HEREIN.

     8.   IT IS FURTHER ORDERED, pursuant to Sections 0.111, 
0.311 and  76.962 of  the Commission's  rules, 47  C.F.R. §§ 
0.111,  0.311 and  §76.962,  that Operator  shall refund  to 
subscribers in the franchise area referenced above the total 
amount  of $108,761.00,  plus any  additional interest  that 
accrues between July 31, 2002 and the date of refund, within 
60 days of the release of this Order.

     9.   IT IS FURTHER ORDERED, pursuant to Sections 0.111, 
0.311 and  76.962 of  the Commission's  rules, 47  C.F.R. §§ 
0.111, 0.311  and §76.962, that Operator  file a certificate 
of compliance with the  Chief, Enforcement Bureau, within 90 
days of the release of  this Order certifying its compliance 
with this Order.


                              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 In the Matter of Time Warner Cable, DA 98-1839, 13 FCC Rcd 
19560 (CSB 1998).
3  The term  "Operator" includes  Operator's successors  and 
predecessors in interest.
4 47 U.S.C. §543(c) (1996).
5 Pub. L. No. 102-385, 106 Stat. 1460 (1992).
6 Pub. L. No. 104-104, 110 Stat. 56 (1996).  
7 See Implementation  of Cable Act Reform  Provisions of the 
Telecommunications Act of 1996, 11 FCC Rcd 5937 1996).
8 See  Section 76.956 of  the Commission's rules,  47 C.F.R. 
§76.956.
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  Operator   calculated  a   total  refund   liability  of 
$131,622.03.

15 Operator's refund liability extends  from the date of the 
first valid  complaint, February  2, 1998,  through December 
31, 1998.