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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 ) ) Tele-Media Company of Hopewell/ ) CUID No. VA0178 (City of Hopewell) Prince George ) ) Small System Filing to Support ) Cable Programming Services Rate ) ORDER Adopted: November 8, 1996 Released: November 13, 1996 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints filed with the Federal Communications Commission ("Commission") regarding the rate that Tele-Media Company of Hopewell/Prince George ("Tele-Media") was charging for its cable programming services tier ("CPST") on September 1, 1993 in the franchise area referenced above. This Order also addresses Tele- Media's CPST rate increases effective March 1, 1995 and May 1, 1996. On December 15, 1995 and August 26, 1996, Tele-Media filed with the Commission and the City of Hopewell, respectively, FCC Form 1230, seeking to justify its CPST rate through the simplified small system cost of service procedures under the Commission's Small System Order. In this Order we grant Tele-Media's request for small system relief under the Small System Order and, based on our review of both of Tele-Media's FCC Form 1230 filings, deny the pending CPST rate complaints and find the CPST rate to be not unreasonable. 2. Under the Communications Act, 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. If the Commission finds the rate unreasonable, it shall determine the correct rate and any refund liability. The Telecommunications Act of 1996 and our rules implementing the new legislation, changed the process by which the Commission reviews complaints concerning rates charged for a CPST. Under the 1992 Cable Act and our rules implementing it, subscribers, franchising authorities, or other relevant state or local government entities were permitted to file complaints concerning CPST rates directly with the Commission. Under the 1996 Act and our Interim Rules implementing the new legislation, complaints against the CPST rates may only be filed with the Commission by a local franchising authority that has received subscriber complaints. The Commission has received valid complaints triggering our jurisdiction under the 1992 Cable Act regarding Tele-Media's CPST rate in effect on September 1, 1993 and its subsequent CPST rate increase on March 1, 1995. In addition, the Commission has received a valid complaint triggering our jurisdiction under the 1996 Act with respect to Tele-Media's May 1, 1996 CPST rate increase. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission subsequently revised its rate regulations effective May 15, 1994. In a further effort to offer small cable companies administrative relief from rate regulation, the Commission amended the definition of small cable companies and small systems and introduced a simplified form of small system rate relief in the Small System Order. Cable systems serving 15,000 or fewer subscribers, and owned by a company having 400,000 or fewer subscribers, may elect to use the new small cable system rate mechanism in lieu of other Commission rate processes, provided the Commission has not reached a final resolution on the rate complaints filed against the system. Operators attempting to justify their rates through small system relief must file FCC Form 1230. FCC Form 1230 requires that the Operator Selected Per Subscriber Monthly Programming Rate Per Channel (FCC Form 1230, Line A11) not exceed the Per Subscriber, Per Channel Monthly Programming Costs (FCC Form 1230, Line A6). If the maximum rate established on FCC Form 1230 does not exceed $1.24 per channel, the rate shall be presumed reasonable. 4. On December 15, 1995 and August 26, 1996 Tele-Media filed FCC Form 1230s seeking to justify its CPST rates in the above-referenced community through the simplified small system cost of service procedures under the Commission's Small System Order. We find that Tele-Media is a company with fewer than 400,000 total subscribers and that the system in question serves fewer than 15,000 subscribers, making it eligible for small system relief. Further, Tele-Media's filing shows that its actual rates per channel for regulated cable service (FCC Form 1230, Line A11) in the franchise area do not exceed its per subscriber, per channel monthly programming costs (FCC Form 1230, Line A6) and the Maximum Permitted Rate on each Form (FCC Form 1230, Line A10) does not exceed $1.24. We, therefore, find the CPST rate in the above-referenced community to be not unreasonable. 5. Accordingly, IT IS ORDERED, pursuant to section 76.934 of the Commission's rules, 47 C.F.R.  76.934, that Tele-Media's request for small system relief IS GRANTED. 6. IT IS FURTHER ORDERED, pursuant to section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rates charged and the rate increase implemented by Tele-Media in the above-referenced CUID number during the period under review ARE NOT UNREASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaints against the CPST rate charged by Tele-Media during the period under review with respect to the above-referenced CUID numbers ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau