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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. GA0362 (City of Edison) ) Cost of Service Showing to Support ) Basic Service Tier 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") serving CUID Number GA0362 filed a cost of service showing with its local franchising authority, the City of Edison, Georgia ("City"), seeking to justify its Basic Service Tier ("BST") rate. Thereafter, on September 13, 1994, the City petitioned the 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. On April 25, 1996, InterMedia supplemented and amended its response to a request for additional information. We have already issued a separate order and found InterMedia's January 1, 1996 CPST rate increase of $0.63 justified for the period from January 1, 1996 to December 31, 1996, as presented in its amended 1240 filed with the Commission on May 31, 1996. 2. According to information provided by InterMedia in its cost of service showing, the franchise area comprised approximately 220 BST subscribers at the time of the August 12, 1994 filing. InterMedia provided 10 BST channels at the time of the filings. In this review process, pursuant to the Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"), we analyzed InterMedia's BST showings to ensure that rates charged were not unreasonable and to determine any associated refund liability. 3. In this review, we analyzed BST rates charged for the period from September 1, 1993 to May 14, 1994. Our review of InterMedia's BST also included an analysis of its equipment and installation rates, as presented on InterMedia's FCC Form 1205 filed April 3, 1995. InterMedia's cost of service filing seeks to establish that its rate of $11.31 per month for this period is justified based on its cost of providing service on its BST. Our analysis indicates that the BST rate that InterMedia was charging from the period beginning September 1, 1993, was justified under the Commission's rules. ADJUSTMENTS 4. 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 disallowed, we have made appropriate adjustments. Even with our adjustments and disallowances, however, we find that InterMedia's monthly BST rate for the period under review has been justified. 5. 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 6. Based on our review of InterMedia's cost of service filing and supplemental information and applying the Commission's most current rules, we find that, as discussed above, InterMedia has justified its monthly BST rate of $11.31 (plus franchise fee) and equipment and installation rate for the period after September 1, 1993. 7. 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 $11.31 and associated equipment and installation rates, as stated on its FCC Form 1205, charged by InterMedia Partners with respect to the above-referenced community, for the period under review, ARE JUSTIFIED, and that no refund liability will be imposed. 8. IT IS FURTHER ORDERED, pursuant to Section 76.933(d) of the Commission's rules, 47 C.F.R. Section 76.933(d), that this ruling on the rates InterMedia was charging for its BST and associated equipment and installation are binding on the local franchising authority, the City of Edison, and the cable operator, InterMedia. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau