******************************************************** 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 ) ) Suburban Cable TV Co., Inc. ) CUID No. PA1582 (Uwchlan Township) ) Complaint Regarding ) Cable Programming Services Tier ) Rate Increase ) ORDER Adopted: February 26, 1997 Released: March 3, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint concerning the February 15, 1995 rate increase of Suburban Cable TV Co., Inc., ("Operator") for its cable programming services tier ("CPST") in Uwchlan Township, Pennsylvania, CUID No. PA1582. We conclude that the CPST rate of $14.33, exclusive of franchise fees, that Operator began charging on February 15, 1995, is not unreasonable. 2. Under the Communications 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 rates to be unreasonable, it shall determine correct rates and any refund liability. 3. A valid complaint was filed on March 15, 1995 against Operator's February 15, 1995 CPST rate increase in the above-referenced community. A valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rate. 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. 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. 5. Operator chose to justify its rates by filing with the Commission FCC Form 1200, multiple FCC Forms 1210 and FCC Form 1240. 6. Upon review of Operator's FCC Forms 1200 and 1210's, we find that Operator has not correctly calculated its maximum permitted rates and we make the appropriate adjustments in accordance with our rules. Notwithstanding the foregoing, we conclude that Operator's CPST rate increase to $14.33, exclusive of franchise fees, on February 15, 1995 and its subsequent CPST rate increase on April 1, 1996 to $15.25, exclusive of franchise fees, to be justified. We also find Operator's FCC Form 1240 MPR of $15.67 to be correctly calculated. We conclude, therefore, that Operator's CPST rates from February 15, 1995 to the present are justified. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that Operator's CPST rate of $14.33 from February 15, 1995 to March 31, 1996 in the above-referenced community IS NOT UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R.  0.321, that Operator's CPST rate of $15.25 from April 1, 1996 to the present in the above-referenced community IS NOT UNREASONABLE. 9. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaint referenced herein against the February 15, 1995 CPST rate increase charged by Operator in the community referenced above, IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau