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File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ************************************************************************* Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) InterMedia Partners ) CUID No. GA0293 (Palmetto) ) Cost of Service Showing to Support ) Basic Service Tier Rate ) Cable Programming Services Rate ) ORDER Adopted: August 16, 1996 Released: August 19, 1996 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: INTRODUCTION 1. On August 12, 1994, Robin Cable Systems d/b/a/ InterMedia Partners ("InterMedia"), filed a cost of service showing with its franchising authority, the City of Palmetto, Georgia ("City"), seeking to justify its Basic Service Tier ("BST") rate. Thereafter, on September 13, 1994, the City petitioned the Federal Communications Commission ("Commission"), to review the BST cost of service showing. On February 14, 1995, the Commission granted the City's request and agreed to review InterMedia's cost of service showing for the BST rate. 2. On April 25, 1996, InterMedia also filed a cost of service submission with the Commission in response to a complaint that alleges that InterMedia's cable programming services tier ("CPST") rate in the above-referenced franchise is unreasonable. InterMedia supplemented its filing in response to a request for additional information. 3. According to information provided by InterMedia in its cost of service showings, the franchise area comprised approximately 405 BST subscribers and 336 CPST subscribers at the time of the filings. InterMedia provides 12 BST channels and 18 CPST channels. In this review process, pursuant to the Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"), we analyzed InterMedia's BST and CPST cost of service showings to ensure that the rates charged were not unreasonable and to determine any associated refund liability. 4. In this review, we analyzed the BST rate charged for the period from September 1, 1993. Our review of InterMedia's BST rate included an analysis of its equipment and installation rates, as presented in its FCC Form 1205 (Equipment Form). InterMedia's cost of service filings seek to establish that its BST rate of $9.72 per month is justified based on its cost of providing regulated cable service on its BST. Our review of the record indicates that the BST rate that InterMedia was charging from the period beginning September 1, 1993, was justified under the Commission's rules. 5. We also analyzed the CPST rates charged for the period from September 1, 1993. InterMedia's cost of service filings seek to establish that its CPST rate of $13.18 per month for this period is justified based on its cost of providing regulated cable service. Our review of the record indicates that the CPST rate that InterMedia was charging as established in its FCC Form 1220 is justified under the Commission's rules. ADJUSTMENTS 6. Rate base and expense items have been evaluated to determine whether InterMedia should be permitted to recover those items. Where a certain rate base or expense element was not supported, was excessive, or was unrelated to providing regulated cable service, such cost was disallowed in whole or in part. Where reported costs were allowed, we have made appropriate adjustments. After adjustments and disallowances, we find that InterMedia's monthly BST rate of $9.72 and CPST rate of $13.18 for the period under review have been justified. 7. Equipment and Installation Rates: Our review of InterMedia's BST rate included an analysis of its equipment and installation rates. The 1992 Act requires that cable operators base their equipment and installation rates on their actual costs. We have reviewed InterMedia's cost of service showing and related FCC Form 1205 (Equipment Form) and find that the equipment and installation rates InterMedia charged in connection with its BST for the period under review are not unreasonable. CONCLUSION 8. Based on our review of InterMedia's cost of service filings and supplemental information, applying the Commission's most current rules, we find that, as discussed above, InterMedia has justified the monthly BST rate of $9.72 (plus franchise fee) and equipment and installation rate for the period after September 1, 1993. 9. Based on our review of InterMedia's cost of service filings and supplemental information, applying the Commission's most current rules, we find that, as discussed above, InterMedia has justified the monthly CPST rate of $13.18 (plus franchise fee) for the period September 1, 1993 through May 14, 1994. 10. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly BST rate of $9.72 and associated equipment and installation rates as stated in its FCC Form 1205 charged by InterMedia with respect to the above-referenced community for the period under review, ARE JUSTIFIED. 11. IT IS FURTHER ORDERED, pursuant to  76.933(d) of the Commission's rules, 47 C.F.R.  76.933(d), that this ruling on the rates InterMedia was charging for its BST and associated equipment and installation rates are binding on the local franchising authority, the City of Palmetto, and the cable operator, InterMedia. 12. IT IS FURTHER ORDERED that, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly CPST rate of $13.18 charged by InterMedia with respect to the above-referenced community for the period under review, IS JUSTIFIED. 13. IT IS FURTHER ORDERED that, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaint against the monthly CPS rate charged by InterMedia Partners with respect to the above-referenced CUID number IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau