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

In the Matter of                        )    File Nos.      
CUID Nos.
                              )    EB-02-TC-021   SC0065 
(Laurens)
Cencom Cable Entertainment, Inc.        )    EB-02-TC-041   
SC0123 (Mauldin)         
Cencom Cable Television, Inc.           )    EB-02-TC-022   
MO0079 (Florissant)
                              )    EB-02-TC-076   CA0132 (La 
Canada)                                      )    EB-02-TC-
079  CA0875 (Alhambra)
                              )    EB-02-TC-027   CA0899 
(Walnut)
Complaints Regarding                    )    EB-02-TC-081   
CA1093 (Pasadena)
Cable Programming Services Tier Rates        )    EB-02-TC-
090  NC0024 (Lenoir)
and Petition for Reconsideration             )    EB-02-TC-
092  NC0148 (Lenoir)


                            ORDER

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

By the Chief, Enforcement Bureau:1

     1.   In  this   Order,  we  consider  a   petition  for 
reconsideration2  ("Petition")  of   Cable  Services  Bureau 
Order, DA  95-938 ("Prior  Order"),3 filed with  the Federal 
Communications  Commission  ("Commission")   by  the  above-
referenced operator ("Operator").4  The Prior Order resolved 
complaints filed  against the rates charged  by Operator for 
its  cable   programming  services  tier  ("CPST")   in  the 
communities referenced  above through May14, 1994.   In the 
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."5  Subsequently, the Cable Services Bureau 
issued orders  resolving complaints against  Operator's CPST 
rates beginning  May 15, 1994,  and found those rates  to be 
reasonable  in   the  communities  of   Pasadena,6  Walnut,7 
Alhambra8 and  La Canada.9  The Cable  Services Bureau found 
the CPST rates to be unreasonable in the community of Lenoir 
until January 1, 1995 ("Lenoir  Order").10  In this Order we 
deny  Operator's Petition  in part,  grant it  in part,  and 
address the  reasonableness of Operator's CPST  rates in the 
remaining communities beginning May 15, 1994.
 
             2.     Under    the     provisions    of    the 
Communications Act11  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")12  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"),13  and  the 
Commission's  rules implementing  the legislation  ("Interim 
Rules"),14 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.15  If the Commission 
finds the  rate to be  unreasonable, it shall  determine the 
correct rate and any refund liability.16 

     3.   During the  first phase  of rate  regulation, from 
September 1,  1993 until  May 15,  1994, the  benchmark rate 
analysis and comparison with an operator's actual rates were 
calculated using the FCC  Form 393.17  The benchmark formula 
was  revised,  effective  May  15,  1994.18   Systems  first 
becoming subject to rate regulation  after May 15, 1994 were 
required  to justify  their  initial  regulated rates  using 
forms in the  FCC Form 1200 series.19  Systems against which 
rate  complaints  were  still pending  when  the  Commission 
revised its  benchmark formula were required  to recalculate 
their benchmark rates as of May  15, 1994 using the FCC Form 
1200.20  The   Commission's  rules  provide  for   a  refund 
liability  deferral  period,  if   timely  requested  by  an 
operator, beginning May  15, 1994 and ending  July 14, 1994, 
for   any   overcharges   resulting  from   the   operator's 
calculation of a new maximum  permitted rate on its FCC Form 
1200.21  However, an  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.  
Cable  operators  may  update  the  initial  FCC  Form  1200 
benchmark rate  calculation by  filing an  FCC Form  1210 to 
justify quarterly  rate increases based on  the addition and 
deletion of channels, changes  in certain external costs and 
inflation.22
     
     4.   In  its  Petition,  Operator raises  a  number  of 
issues that have been addressed in previous orders. Operator 
first  argues  that the  Cable  Services  Bureau erred  when 
imputing normalized  taxes to Operator's  customer equipment 
costs  prior  to  unbundling  those  costs  from  Operator's 
service  rates.    The  Cable  Services   Bureau  previously 
addressed  this issue  at length  in Suburban  Cable.23  The 
discussion in that case is directly on point and need not be 
repeated here.  The Cable Services Bureau concluded that the 
benchmark  rate methodology  contemplates the  unbundling of 
normalized taxes and it  would be arbitrary and inconsistent 
for  the  Commission  to  build normalized  taxes  into  the 
pricing  of tier  offerings and  only unbundle  actual taxes 
attributable to  equipment costs.  We conclude  here, as the 
Cable Services Bureau did in Suburban Cable, that it was not 
error  for the  Cable Services  Bureau to  impute normalized 
taxes  to  Operator's  customer  equipment  costs  prior  to 
unbundling those costs from Operator's service rates.

     5.   The  remaining issues  raised by  Operator in  its 
Petition, concerning the adjustment of its inflation factor, 
offsetting of  overcharges, sufficiency of  the explanations 
of calculations  and allegations of  retroactive ratemaking, 
were all  thoroughly addressed  by the Commission  in Cencom 
Cable  Income Partners  ("Cencom").24  For  all the  reasons 
stated in that  order, which we do not need  to repeat here, 
we  reject  Operator's  arguments concerning  these  issues.  
However, as in  Cencom, we will allow  Operator an inflation 
adjustment period equal  to the number of  whole months from 
September 1992 to the date Operator was required to file its 
FCC  Form 393  in  each community,  in  accordance with  the 
public  notice issued  May 2,  1995.25  As  a result  of our 
adjustment, we find  the total overcharges for  the FCC Form 
393 review period  to be de minimis, and it  would not be in 
the public interest to order  refunds, in the communities of 
Laurens,  Mauldin,  Lenoir,  Florissant  and  Alhambra.   As 
Operator  filed  refund deferral  letters  in  all of  these 
communities, we will review the reasonableness of subsequent 
CPST rates in these communities  beginning July 15, 1994, to 
the extent  they have  not been  previously reviewed  by the 
Cable Services  Bureau, and modify  the Prior Order  and the 
Lenoir Order to be consistent with our review.

     6.   First, however, we address the FCC Form 393 period 
for the  remaining communities  where the  total overcharges 
were not de minimis.  Our adjustment to Operator's inflation 
adjustment  period for  each  community  results in  revised 
maximum  permitted rates  ("MPRs") and  refund liability  as 
follows, and we modify our Prior Order accordingly.26
               
Community/      Li-  Li-  Prior   Re-    Ac-   Monthly   Refund27 
CUID No.        ne   ne   MPR     vised  tual  Over-     Period   
               124  125          MPR     Rate    charge
La Canada/      15   15   $10.98  $11.-  $11.- $0.32     12/22/9-
CA0132                            08     40              3-
                                                        5/14/94
Walnut/         12   12   $10.98  $11.-  $11.- $0.39     9/3/93-
CA0899                            01     40              5/14/94

Pasadena/       16   15   $10.98  $11.-  $11.- $0.30     1/5/94-
CA1093                            10     40              5/14/94
                    
     7.   Next, we address  the reasonableness of Operator's 
CPST rates  beginning July  15, 1994  in the  communities of 
Laurens,  Mauldin, Lenoir  and Florissant.   In Laurens  and 
Maulden, our  review reveals that the  total overcharges for 
the FCC Form 1200 review period  are de minimis and it would 
not  be  in  the  public interest  to  order  refunds.   Our 
adjustment to  Operator's FCC Form  393 in the  community of 
Lenoir  did not  effect  the MPRs  calculated  by the  Cable 
Services Bureau  in the Lenoir Order.   Therefore Operator's 
refund liability  in that community beginning  July 15, 1994 
remains as follows:

Community/      Prior  Re-    Ac-    Monthly   Refund 
CUID No.        MPR    vised  tual   Over-     Period   
                      MPR      Rate     charge
Lenoir/         $15.-  $15.-  $16.-  $0.89     7/15/94-
NC0024      and 43     43     32               9/30/94
NC0148
               $15.-  $15.-  $16.-  $0.67     10/1/94-
               65     65     32               12/31/94


     8.   Finally, we address the reasonableness of the CPST 
rates in Florissant beginning July 15, 1994.  Upon review of 
Operator's  FCC  Form 1200,  we  adjusted  Line G2  (Monthly 
Charge per  Tier as of  9/30/92) of  the FCC Form  1200 from 
$12.15 to  $10.65 to match  Worksheet 2, Line 201,  Column B 
(Tier Charge (Monthly) - Tier 2) of the FCC Form 393 and the 
rate card  provided by Operator  for the September  30, 1992 
CPST rate.28   This resulted in  reducing the FCC  Form 1200 
MPR  from $11.46  to $10.85.    This adjustment  was carried 
through  to  each of  Operator's  subsequent  FCC Form  1210 
update filings, summarized as follows:

Com-       Form     Calculated  Re-    Ac-   Monthly  Refund 
munity/    1210     MPR          vised  tual  Over-    Period   
CUID No.    Period               MPR      Rate     charge
Floris-    4/1-     $11.85      $11.-  $11-  $0.61    7/15/94-
sant/      6/30                 24     .85            9/30/94
MO0079     1994
          7/1-     $12.01      $11.-  $12-  $0.61    10/1/94-
          9/30                 40     .01            12/31/94
          1994
          10/1-    $12.31      $11.-  $12-  $0.62    1/1/95-
          12/31                69     .31            3/31/95
          1994
          1/1-     $12.47      $11.-  $12-  $0.62    4/1/95-
          3/31                 85     .47            9/30/95
          1995
          4/1-     $13.35      $12.-  $13-  $1.17    10/1/95-
          9/30                 18     .35            12/31/95
          1995
          10/1-    $14.20      $13.-  $13-  none     none
          12/31                47     .35
          1995


Because  Operator's actual  CPST rates,  effective July  15, 
1994 through  December 31,  1995, exceed  its MPRs,  we find 
Operator's  actual  CPST  rates,  effective  July  15,  1994 
through  December 31,  1995,  to be  unreasonable.  We  find 
Operator's actual CPST rate  of $13.35, effective January 1, 
1996, to be reasonable. 
     
     9.   Accordingly,  IT IS  ORDERED, pursuant  to Section 
1.106 of the Commission's rules, 47 C.F.R.  1.106, that the 
petition for reconsideration filed by Operator is GRANTED IN 
PART AND DENIED IN PART TO THE EXTENT INDICATED HEREIN.

     10.  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 Cencom  Cable Entertainment, 
Inc. and  Cencom Cable Television,  Inc., DA 95-938,  11 FCC 
Rcd  2573 (CSB  1995)  and  In the  Matter  of Cencom  Cable 
Television, Inc.,  DA 97-1210, 12  FCC Rcd 23386  (CSB 1997) 
ARE MODIFIED TO THE EXTENT INDICATED HEREIN.

     11.  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  rates, charged  by  Operator in  the 
communities of La  Canada, CA (CUID No.  CA0132), Walnut, CA 
(CUID  NO.  CA0899)  and  Pasadena, CA  (CUID  NO.  CA1093), 
effective from the  date that the first  valid complaint was 
filed with the Commission for each community through May 14, 
1994, ARE UNREASONABLE.

     12.  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  rates, charged  by  Operator in  the 
community  of  Lenoir, NC  (CUID  Nos.  NC0024 and  NC0148), 
effective  July  15, 1994  through  December  31, 1994,  ARE 
UNREASONABLE.

     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  CPST  rates, charged  by  Operator in  the 
community of  Florissant, MO,  (CUID No.  MO0079), effective 
July 15, 1994 through December 31, 1995, ARE UNREASONABLE.
     14.  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 communities of La Canada, 
CA  (CUID No.  CA0132),  Walnut, CA  (CUID  NO. CA0899)  and 
Pasadena, CA (CUID  NO. CA1093), that portion  of the amount 
paid in excess of the maximum permitted CPST rates set forth 
in this order  for each community per  month (plus franchise 
fees),  plus interest  to the  date of  the refund,  for the 
period  from the  date that  the first  valid complaint  was 
filed with the Commission for each community through May 14, 
1994.
     15.  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  of Lenoir, NC 
(CUID Nos.  NC0024 and NC0148),  that portion of  the amount 
paid in excess of the maximum permitted CPST rates set forth 
in this order per month (plus franchise fees), plus interest 
to the date of the refund, for the period from July 15, 1994 
through December 31, 1994.

     16.  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 of Florissant, 
MO, (CUID  No. MO0079), that  portion of the amount  paid in 
excess of the maximum permitted CPST rates set forth in this 
order per month (plus franchise  fees), plus interest to the 
date  of the  refund,  for  the period  from  July 15,  1994 
through December 31, 1995.

     17.  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.

     18.  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 communities referenced 
above ARE GRANTED TO THE EXTENT INDICATED HEREIN.
     
                              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 Operator  originally filed its petition  as an application 
for  review.   However,  by  letter  dated  March  5,  2002, 
Operator  requested  that  we  treat its  application  as  a 
petition for reconsideration. 
3  See In The Matter of Cencom Cable Entertainment, Inc. and 
Cencom Cable  Television, Inc., DA  95-938, 11 FCC  Rcd 2573 
(CSB 1995). 
4  The term  "Operator" includes  Operator's successors  and 
predecessors in interest.
5 Prior Order at n. 2.
6 See In the  Matter of Charter Communications Entertainment 
II, LP, DA 98-463, 13 FCC Rcd 10573 (CSB 1998).
7 See In the  Matter of Charter Communications Entertainment 
II, LP, DA 98-452, 13 FCC Rcd 10551 (CSB 1998).
8 See In the  Matter of Charter Communications Entertainment 
II, LP, DA 98-462, 13 FCC Rcd 10570 (CSB 1998).
9 See In the  Matter of Charter Communications Entertainment 
II, LP, DA 98-8, 13 FCC Rcd 10171 (CSB 1998).
10 See  In the Matter  of Cencom Cable Television,  Inc., DA 
97-1210, 12 FCC Rcd 23386 (CSB 1997).
11 47 U.S.C. 543(c) (1996).
12 Pub. L. No. 102-385, 106 Stat. 1460 (1992).
13 Pub. L. No. 104-104, 110 Stat. 56 (1996).  
14 See Implementation of Cable  Act Reform Provisions of the 
Telecommunications Act of 1996, 11 FCC Rcd 5937 1996).
15 See Section  76.956 of the Commission's  rules, 47 C.F.R. 
76.956.
16 See Section  76.957 of the Commission's  rules, 47 C.F.R. 
76.957.
17 See  Implementation of  Sections of the  Cable Television 
Consumer  Protection  and  Competition  Act  of  1992:  Rate 
Regulation,  8  FCC  Rcd  5631,  5755-56,  5766-67,  5881-83 
(1993). 
18 See  Implementation of  Sections of the  Cable Television 
Consumer  Protection  and  Competition  Act  of  1992:  Rate 
Regulation, 9 FCC Rcd 4119 (1994).
19 See Section 76.922 of the Commission's rules, 47 C.F.R.  
76.922.
20 Id.
21 See 47 C.F.R.  76.922(b)(6)(ii).
22 Id.
23 In the Matter of Suburban  Cable TV, Inc., DA 97-2032, 13 
FCC  Rcd 13111  (CSB  1997).   See also,  In  the Matter  of 
Charter Communications,  DA 02-637  (CSB released  March 20, 
2002).
24 In the Matter of Cencom Cable Income Partners II, LP, FCC 
97-205, 12 FCC Rcd 7948 (1997).
25 See Public Notice "Cable Services Bureau Announces Policy 
Regarding  Inflation  Adjustment  on Form  393,"  DA  95-999 
(1995).
26 These findings are based solely on the representations of 
Operator.   Should information  come to  our attention  that 
these representations were materially inaccurate, we reserve 
the right to take appropriate  action.  This Order is not to 
be construed as  a finding that we have  accepted as correct 
any  specific entry,  explanation  or argument  made by  any 
party to this proceeding  not specifically addressed herein.   
Information  regarding  the  specific  adjustments  made  to 
Operator's FCC  Forms can be  found in the public  files for 
the above-referenced  community which  are available  in the 
FCC  Reference  Information  Center, Portals  II,  445  12th 
Street,  SW,  Room  CY-A257, Washington,  DC,  20554.   This 
document  may  also  be   purchased  from  the  Commission's 
duplicating  contractor, Qualex  International, Portals  II, 
445 12th  Street, SW,  Room CY-B402, Washington,  DC, 20554, 
telephone  202-863-2893, facsimile  202-863-2898, or  via e-
mail qualexint@aol.com.
27 The refund periods for the FCC Form 393 overcharges begin 
on the  date that the  first valid complaint was  filed with 
the Commission  against the  CPST rates charged  by Operator 
for each specific community.
28 Line 201, found on  Worksheet 2 ("Calculation of Rates in 
Effect on  September 30, 1992 and  Benchmark Comparison") of 
the  FCC Form  393 and  Line G2  of the  FCC Form  1200 both 
require the entry of the monthly tier charge as of September 
30, 1992.