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Before the
Federal Communications Commission
Washington, D.C. 20554
)
In the Matter of ) File Nos.
CUID Nos.
) EB-02-TC-049
NY0874 (Orchard Park) Adelphia Cable Communications
) EB-02-TC-050 NY1225 (Elma)
)
Petition for Reconsideration )
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 Order, DA 97-244 ("Prior
Order"),2 filed with the Federal Communications Commission
("Commission") by the above-referenced operator
("Operator").3 The Prior Order resolved a complaint against
Operator's August 1, 1996 cable programming services tier
("CPST") rate increase. In this Order, we grant Operator's
Petition in part, modify the Prior Order and dismiss
Operator's refund plan as moot.
2. Under the provisions of the Communications Act4
that were in effect at the time the complaint was 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
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 justify rate increases on a quarterly
basis using FCC Form 1210, 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 response to the complaint filed against its
August 1, 1996 CPST rate increase, Operator filed an FCC
Form 1240 ("1996 1240"). In the Prior Order, the Cable
Services Bureau made adjustments to Operator's 1996 1240 to
conform the entries to Operator's previously filed FCC Form
1220 and FCC Form 1210. Operator argues that the Cable
Services Bureau should have adjusted Operator's Line H14
(Amount of True-Up Claimed for this Projected Period) and
Line I8 (True-Up Segment for Projected Period) of Operator's
1996 1240 when the Cable Services Bureau made adjustments
that reduced Operator's calculated maximum permitted rate
("MPR"). We agree. Operator is entitled to its full MPR for
the period under review. Upon review of Operator's 1996
1240, amended to allow Operator to claim its full true-up
segment, we find Operator's actual CPST rate of $19.56,
effective August 1, 1996, to be reasonable. Because our
resolution of this issue disposes of Operator's refund
liability, we need not address any other issue raised by
Operator in its Petition. We modify the Prior Order to
exclude any refund liability and dismiss Operator's refund
plan as moot.
5. 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 IN PART
TO THE EXTENT INDICATED HEREIN.
6. 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 Global Acquisition Partners, Ltd.
d/b/a/ Adelphia Cable Communications, DA 97-244, 12 FCC Rcd
1503 (CSB 1997) IS MODIFIED TO THE EXTENT INDICATED HEREIN. 7. 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's refund plan is
DISMISSED.
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 Global Acquisition Partners, Ltd. d/b/a/
Adelphia Cable Communications, DA 97-244, 12 FCC Rcd 1503
(CSB 1997).
3 The term "Operator" includes Operator's predecessors and
successors 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.