******************************************************** 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 ) ) TCI Cablevision of California, Inc. ) CUID Nos. CA0042 (City of Seaside) ) ) Complaint Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: March 14, 1997 Released: March 21, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider a complaint about the rates of the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator has attempted to justify its CPST rates through benchmark showings on FCC Form 1200 and multiple FCC Forms 1210. We have already issued a separate order which found that the Operator's rates in effect before May 15, 1994 were not unreasonable. Accordingly, this Order addresses the reasonableness of Operator's CPST rates in effect from May 15, 1994 to present. 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 ("LFA"). If the Commission finds the rate to be unreasonable, it shall determine the correct rate and any refund liability. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission revised its rate regulations effective May 15, 1994. Cable operators that have valid CPST complaints filed against them prior to May 15, 1994 must demonstrate that their CPST rates were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994. Cable operators must also demonstrate that their rates were in compliance with the revised rules from May 15, 1994 forward. Cable operators attempting to justify their rates for the period beginning May 15, 1994 by a benchmark showing must use the FCC Form 1200 series. Cable operators may also justify rate increases based on the addition and deletion of channels, changes in certain external costs, and inflation, by filing FCC Form 1210. FCC Form 1210 must be filed at least 30 days before new rates are scheduled to go into effect when the Commission has found the CPST rate to be unreasonable less than one year prior to the filing. In addition, FCC Form 1210 may be filed where there is a pending complaint against the CPST rate. 4. Our Memorandum Opinion and Order addressing the first valid complaint for the community referenced above indicates that the findings in that review "do not in any way prejudge the reasonableness of the prices for CPS service after May 14, 1994." Consequently, the rates beginning May 15, 1994, and subsequent rate increases, are subject to Commission review and are addressed in this Order. 5. In a letter filed June 15, 1994, Operator advised the Commission that it had elected, as provided in the Commission's rules, to take advantage of the refund liability deferral period from May 15, 1994 through July 14, 1994 for any overcharges resulting from the calculation of a new maximum permitted rate on the FCC Form 1200. Accordingly, the liability period for any CPST overcharges by Operator associated with its FCC Form 1200 filing did not begin to run until July 15, 1994. 6. FCC Forms 1200 and 1210 Filings: On August 15, 1994, Operator filed its FCC Form 1200 and its first FCC Form 1210 to justify CPST rates in effect from July 15, 1994 to September 30, 1994. On its FCC Form 1200, Operator calculated a maximum permitted rate ("MPR") for the CPST of $12.06. On its first FCC Form 1210, Operator calculated a MPR for the CPST of $12.25. On August 31, 1994, Operator filed its second FCC Form 1210 to justify a CPST rate of $13.08 effective October 1, 1994. On December 1, 1994, Operator filed its third FCC Form 1210 to justify a CPST rate of $13.77 effective January 1, 1995. On March 6, 1997, Operator filed its fourth FCC Form 1210 to justify a CPST rate of $13.98 effective May 1, 1996. Upon review of Operator's FCC Form 1200 and multiple FCC Forms 1210 for the period beginning July 15, 1994 to May 1, 1996, we find that Operator has demonstrated that its CPST rate is not unreasonable. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rates charged by Operator in the community referenced above, from July 15, 1994 to April 30, 1996 ARE NOT UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $13.98 charged by Operator in the community referenced above effective May 1, 1996 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 against the CPST rate 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