******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Adelphia Cable Partners, L.P.) d/b/a Adelphia Cable Communications) CUID Nos.FL0237 (Homestead) )FL0401 (Florida City) ) ) Cost of Service Showing to Support) Cable Programming Services Tier) Rate and Rate Increases) ORDER Adopted: December 16, 1996 Released: December 19, 1996 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1.In this Order we consider complaints filed concerning the rates of Adelphia Cable Partners, L.P. d/b/a Adelphia Cable Communications ("Adelphia") for its cable programming services tier ("CPST") in the above-referenced communities. Adelphia has chosen to justify its CPST rates through a cost of service showing on FCC Form 1220, an FCC Form 1210, and an FCC Form 1240. This Order addresses the reasonableness of Adelphia's CPST rates from September 1993 to present. 2.Under the Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"), the Federal Communications Commission ("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 to be unreasonable, it shall determine the correct rate and any refund liability. 3.The Commission received valid complaints concerning Adelphia's CPST rates in effect from September 1, 1993 through September 30, 1995, and against the CPST rate increases that Adelphia implemented on October 1, 1995. Accordingly, these complaints trigger the Commission's jurisdiction to review Adelphia's CPST rates. 4.Adelphia's FCC Form 1220, 1210, and 1240 filings seek to establish that its CPST rate, including subsequent increases, is below the maximum permitted rate and is justified based on its cost of providing regulated cable service. According to information provided by Adelphia in its cost of service showing, the franchise area comprised approximately 60,435 CPST subscribers and Adelphia provided 33 CPST channels at the time of its filing. In this review process, we analyzed Adelphia's CPST cost of service showing, and FCC Form 1210 and 1240 filings, to ensure that the initial CPST rate, and subsequent rate increases, were not unreasonable and to determine any associated refund liability. 5.In reviewing the cost of service showing, rate base and expense items have been evaluated to determine whether Adelphia 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 Adelphia's monthly CPST rates have been justified. 6.Based on our review of Adelphia's cost of service filing and subsequent FCC Form 1210 and 1240 filings, applying the Commission's most current rules, we find that Adelphia has justified the monthly CPST rate of $12.75 charged from September 1993 through September 30, 1995, the monthly CPST rate of $13.52 charged from October 1, 1995 to May 31, 1996, and the CPST rate of $14.92 implemented on June 1, 1996. 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 CPST rate of $12.75 charged from September 1993 to September 30, 1995, the monthly CPST rate of $13.52 charged from October 1, 1995 to May 31, 1996, and the monthly CPST rate of $14.92 implemented on June 1, 1996, ARE NOT UNREASONABLE. 8.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaints against the initial CPST rate, and the subsequent rate increases implemented by Adelphia with respect to CUID Nos. FL0237 and FL0401, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau