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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) CUID Nos.OH0207 (Archbold) )OH0208 (Stryker) TCI Cablevision of Northwestern Ohio)OH0336 (Bryan) )OH0387 (Center Township) )OH0411 (Montpelier) )OH0508 (Edgerton) Complaints Regarding )OH0781 (Superior Township) Cable Programming Services Tier) OH0355 (Van Wert) Rate Increases)OH0485 (Paulding) ORDER Adopted: December 18, 1996 Released: December 18, 1996 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1.In this Order we consider complaints concerning the June 1, 1996 rate increases of TCI Cablevision of Northwestern Ohio ("TCI") for its cable programming services tier ("CPST") in the above captioned communities. This Order addresses only the reasonableness of TCI's rate increases that became effective on June 1, 1996. We conclude that TCI's June 1, 1996 CPST rate increases are not unreasonable. 2.The Communications Act authorizes the Federal Communications Commission ("Commission") to review the CPST rates of cable systems not subject to effective competition. This is to ensure that rates charged are not unreasonable. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation, require that complaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received subscriber complaints. An LFA may not file a CPST rate complaint unless it receives more than one subscriber complaint within 90 days after such increase becomes effective. If the Commission finds the rate unreasonable, it shall determine the correct rate and any refund liability. 3.To justify rates for the period beginning May 15, 1994 through a benchmark or cost of service showing, operators must use the FCC Form 1200 series. Operators are permitted to make changes to their rates on a quarterly basis using FCC Form 1210. Operators may alternatively justify adjustments to their rates on an annual basis using FCC Form 1240 to reflect reasonably certain and quantifiable changes in external costs, inflation, and the number of regulated channels that are projected for the twelve months following the rate change. Any incurred cost that is not projected may be accrued with interest and added to rates at a later time. If actual and projected costs are different during the rate year a "true-up" mechanism is available to correct estimated costs with actual cost changes. The "true-up" requires operators to decrease their rates or alternatively permits them to increase their rates to make an adjustment for over or under estimations of these cost changes. 4.The Telecommunications Commission of Northwest Ohio ("TCNO") filed a valid complaint for each of the captioned communities on September 19, 1996 regarding the June 1, 1996 increase in TCI's CPST rate in each community. TCNO has certified that it has received subscriber complaints and has complied with the Interim Rules. TCI submitted FCC Forms 1240 for each community to justify the rate increase that went into effect June 1, 1996. 5.Upon review of the record before us, we find that TCI has provided sufficient evidence to support a CPST rate increase of $.087 in the Village of Paulding, CUID No. OH0485; of $1.23 in the City of Van Wert, CUID No. OH0355; and of $1.97 in the remaining communities appearing in the caption. We conclude, therefore, that TCI's CPST rate increases which went into effect June 1, 1996 are justified. 6.Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that TCI Cablevision of Northwestern Ohio's CPST rate increase of $.087 in the Village of Paulding, CUID No. OH0485; of $1.23 in the City of Van Wert, CUID No. OH0355; and of $1.97 in the remaining communities appearing in the caption, which went into effect on June 1, 1996, 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 referenced herein against the June 1, 1996 CPST rate increases charged by TCI Cablevision of Northwest Ohio in the communities listed in the caption ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau