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

In the Matter of                        )    File No.    EB-
02-TC-014
                              )         
Comcast Cablevision of the South        )    CUID        No.  
KY0640 (Hardin County)
                              )    
Petition for Reconsideration            )    


                            ORDER

     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  96-1843   ("Prior  Order"),2  filed  with   the  Federal 
Communications  Commission  ("Commission")   by  the  above-
referenced operator ("Operator").3  Operator also included a 
refund plan with  its petition.  The Prior  Order resolved a 
complaint  filed against  Operator's February  1, 1996  rate 
increase for its cable programming services tier ("CPST") in 
the  community referenced  above.   In this  Order we  grant 
Operator's Petition in part and modify the Prior 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  
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 
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.12  Any  incurred 
cost that is not projected  may be accrued with interest and 
added to rates at a later time.13   

     4.   In  the Prior  Order,  the  Cable Services  Bureau 
reduced  Operator's maximum  permitted rate  ("MPR") because 
Operator made  a clerical  error and claimed  external costs 
incurred in January  1996 in its FCC Form  1210 covering the 
period April 1, 1995 through December 31, 1995.  Because the 
Cable Services Bureau did not have the information necessary 
to determine what portion of the external costs increase was 
attributable  to  the period  under  review,  it denied  all 
external costs  increases for that period.  In its Petition, 
Operator provides a breakdown of its external costs increase 
and argues that it should  be entitled to the external costs 
increase attributable to the  period under review.  Operator 
made another clerical error when  it filed its FCC Form 1200 
and FCC Form 1210s to justify its February 1, 1996 CPST rate 
increase.   It   included  all   of  its   inflation  factor 
adjustments in the second FCC Form 1210.  The Cable Services 
Bureau  denied  part of  the  adjustment  as being  untimely 
taken.  Operator argues that it  could have included part of 
the adjustment in its first  FCC Form 1210, which would have 
been acceptable  because both FCC Form  1210s were generated 
to  support  the  February   1,  1996  CPST  rate  increase, 
Operator's CPST was not regulated prior to February 1996 and 
Operator's CPST rate in effect prior to the February 1, 1996 
increase  could have  included the  inflation adjustment  in 
issue.  We are persuaded  that the external costs adjustment 
and the inflation factor adjustment were clerical errors and 
not substantive errors and we find Operator's argument to be 
compelling on  both issues.  Therefore, we  grant Operator's 
Petition in part to that extent.

     5.   Upon  review  of  Operator's  FCC  Form  1200  and 
subsequent  filings,  taking  into  account  the  additional 
inflation  and external  costs adjustments,  we calculate  a 
revised  MPR  of $12.40  for  the  period February  1,  1996 
through March 31, 1996.  We will allow Operator to claim the 
additional external  costs increase beginning April  1, 1996 
and  we  find Operator's  calculated  MPR  of $12.99  to  be 
reasonable,  effective April  1,  1996.  Because  Operator's 
actual CPST rate of $13.09 exceeds its revised MPRs, we find 
Operator's actual  CPST rate  of $13.09 to  be unreasonable, 
effective  February 1,  1996 through  November 7,  1996 (the 
release date of the Prior  Order).  However, the Prior Order 
noted  that Operator  intended to  reduce its  CPST rate  to 
$12.99 effective  November 1,  1996, and  to refund  to CPST 
subscribers  $0.10 per  month plus  interest for  the period 
February 1, 1996  through October 31, 1996.    To the extent 
Operator reduced its  rates to $12.99 or  refunded $0.10 per 
month  per subscriber  or  both, Operator  may include  this 
calculation   in  its   refund   plan,   but  must   provide 
documentation of  its actual rate charged,  and certify that 
it  has provided  the refunds.   We modify  the Prior  Order 
accordingly.

     6.   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 TO THE EXTENT INDICATED HEREIN.

     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 Telescripps  Cable Company, DA 
96-1843,  11 FCC  Rcd 14518  (CSB 1996)  IS MODIFIED  TO THE 
EXTENT INDICATED HEREIN.

     8.    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 $13.09, charged by Operator in 
the community  referenced above, effective February  1, 1996 
through November 7, 1996 IS UNREASONABLE. 

     9.   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 $12.40  per  month  (plus 
franchise fees),  plus interest to  the date of  the refund, 
for the period February 1, 1996 through March 31, 1996.

     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  in  the community  referenced 
above  that portion  of the  amount  paid in  excess of  the 
maximum  permitted  CPST  rate  of $12.99  per  month  (plus 
franchise fees),  plus interest to  the date of  the refund, 
for the period April 1, 1996 through November 7, 1996.

     11.  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.


                              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  See  In The Matter  of Telescripps Cable Company,  DA 96-
1843, 11 FCC Rcd 14518 (CSB 1996). 
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.