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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. GA0364 (City of Arlington) ) Cost of Service Showing to Support ) Basic Service Tier Rate and ) 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 November 23, 1994, Robin Cable Systems, L.P., d/b/a InterMedia Partners ("InterMedia") serving CUID Number GA0364, filed a cost of service showing with its local franchising authority, the City of Arlington, Georgia ("City"), seeking to justify its Basic Service Tier ("BST") rate. Thereafter, on December 16, 1994, the City petitioned the Commission to review the BST cost of service showing. On May 10, 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 11, 1995, InterMedia also filed a cost of service submission with the Federal Communications Commission ("Commission") in response to a complaint that alleged that InterMedia's cable programming services tier ("CPST") rates in the above-referenced franchise are unreasonable. On May 31, 1996, 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 237 BST subscribers and 139 CPST subscribers at the time of the November 23, 1994, filing, and approximately 235 BST subscribers and 140 CPST subscribers at the time of the April 11, 1995, filing. InterMedia provided 10 BST channels and 10 CPST channels at the time of both 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 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 BST rates charged for the period from September 1, 1993 to present. Our review of InterMedia's BST also includes an analysis of its equipment and installation rates, as presented on InterMedia's FCC Form 1205 filed with the City on November 23, 1994. InterMedia's cost of service filing seeks to establish that its rate of $11.79 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. 5. We also analyzed CPST rates charged after February 6, 1995. InterMedia's cost of service filing, on FCC Form 1220, seeks to establish that its CPST rate of $10.15 per month for the period February 6, 1995 to December 31, 1995, is justified based on its cost of providing regulated cable service. InterMedia has subsequently submitted an FCC Form 1210 filing to justify its CPST rate increase to its cost of service rate to reflect changes in channels, external costs and inflation, the most recent filing being for the period ending the third quarter of 1995. Our review of the record indicates that InterMedia's CPST rates, as established in its FCC Form 1220 and its subsequent FCC Form 1210 filing, are 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 disallowed, we have made appropriate adjustments. Even with our adjustments and disallowances, however, we find that InterMedia's monthly BST and CPST rates for the periods 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. 8. FCC Form 1210 Filings: InterMedia submitted a FCC Form 1210 filing to justify a subsequent increase to its cost of service rate to reflect changes in channels, external costs and inflation. InterMedia's FCC Form 1210 filing covers the period ending the third quarter of 1995. Prior to reviewing InterMedia's FCC Form 1210 filing, we carried over the maximum permitted rate as adjusted by staff on the InterMedia FCC Form 1220 filing. After making the appropriate adjustments, we find that the rates InterMedia charged pursuant to its FCC Form 1210 filing is not unreasonable. Thus, based on our review, we find that the subsequent rate of $10.78 is justified. CONCLUSION 9. 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 the monthly BST rate of $11.79 (plus franchise fee) and equipment and installation rates for the period after September 1, 1993. 10. 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 the monthly CPST rate of $10.15 (plus franchise fee) for the February 6, 1995, through December 31, 1995, period. 11. Based on our review of InterMedia's subsequent FCC Form 1210 filing, we find that the CPST rate of $10.78 (plus franchise fee) that InterMedia charged for the period covered by its FCC Form 1210 filing, is not unreasonable. 12. 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 $11.79 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. 13. 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 Arlington, Georgia, and the cable operator, InterMedia. 14. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly CPST rate of $10.15 charged for the period from February 6, 1995, through December 31, 1995, and the monthly CPST rate of $10.78 charged after January 1, 1996, by InterMedia Partners with respect to the above-referenced community, ARE JUSTIFIED. 15. IT IS FURTHER ORDERED that, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaints against the monthly CPST rates charged by InterMedia with respect to CUID No. GA0364, City of Arlington, Georgia, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau