******************************************************** 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 ) CUID Nos. MI0076 (Township of Battle Creek) ) MI0077 (City of Battle Creek) TCI Cablevision of Greater Michigan ) MI0078 (Township of Bedford) ) MI0079 (Township of Emmett) ) MI0080 (Township of Pennfield) ) MI0082 (City of Springfield) Complaints Regarding ) MI1216 (Township of Newton) Cable Programming Services Tier ) MI1475 (Township of Marshall) Rate Increase ) MI1476 (Township of Leroy) ORDER Adopted: January 17, 1997 Released: January 27, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints regarding the rate increase of TCI Cablevision of Greater Michigan, ("TCI") for the cable programming services tier ("CPST") in the communities designated above. TCI increased its CPST rate on February 1, 1995 in amount of $2.66. TCI has attempted to justify the CPST rate through a FCC Form 1200 and on FCC Form 1210 for the period April 1, 1994 to December 31, 1994. This order addresses only the reasonableness of the CPST rate increase of $2.66 that became effective on February 1, 1995. We conclude that the February 1, 1995 CPST rate increase is unreasonable. 2. The Communications Act authorizes the Federal Communications Commission ("Commission") to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. The Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act") requires the Commission to review CPST rates upon the filing of a valid complaint by a subscriber or local franchise authority. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rate. If the Commission finds the rate to be unreasonable, it shall determine the correct rate and any refund liability. 3. The Commission has received valid complaints regarding TCI's rate increase implemented on February 1, 1995 for each of the communities referenced above. Accordingly, these complaints trigger the Commission's jurisdiction to review TCI's CPST rates under the 1992 Cable Act. 4. 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. Cable operators may file a FCC Form 1210 to justify rate increases based on the addition and deletion of channels, changes in certain external costs, and inflation. The Operator must file FCC Form 1210, at least 30 days before new rates are scheduled to go into effect, where the Commission has found the cable programming service rate to be unreasonable less than one year prior to the filing, or where there is a pending complaint against the CPST rate. 5. Upon review of the record before us, we find that TCI has not justified its February 1, 1995 CPST rate of $12.53 until April 1, 1995. TCI incorrectly included $.16 per month for license fees for the first quarter of 1995 in its CPST rates before the end of that quarter. Accordingly, we adjusted TCI's maximum permitted rate to correct this error. As a result of this adjustment, we have calculated a maximum permitted rate for TCI's CPST of $12.37 until the end of the first quarter. We conclude, therefore, that TCI's CPST rate increase effective February 1, 1995 is not justified until April 1, 1995. However, we determine that the total overcharge per subscriber is de minimis. Therefore, it would not serve the public interest to order a refund. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the monthly CPST rates of $12.53 charged by TCI Cablevision of Greater Michigan in the communities referenced above, from February 1, 1995 to March 31, 1995 ARE 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 increase, effective February 1, 1995, charged by TCI Cablevision of Greater Michigan in the communities referenced above, ARE GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau