******************************************************** 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 ) ) Concord TV Cable ) CUID No. CA0441 (Contra Costa County) ) Complaints Regarding ) Cable Programming Services Tier ) Rate Increases ) ORDER Adopted: March 20, 1997 Released: March 24, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints concerning the rate increases of the above- referenced Operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. Operator's response include benchmark justifications filed on FCC Form 1200 and multiple FCC Form 1210's, the latest FCC Form 1210 filed for the period ending in the first quarter of 1996. This Order addresses the reasonableness of Operator's rates for the period after May 14, 1994. We have already issued a order in which we determined that Operator's CPST rate in effect prior to that date was unreasonable. We conclude that Operator's CPST rates after May 14, 1994 are 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. Under the Cable Television Consumer Protection and Competition Act of 1992, ("1992 Cable Act") the Commission must review CPST rates upon the filing of a valid complaint by a subscriber. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rates. 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 subsequently revised its rate regulations effective May 15, 1994. Cable operators with 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, and that their rates were in compliance with the revised rules from May 15, 1994 forward. To justify their rates for the period beginning May 15, 1994 using a benchmark showing Operators 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 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. 4. Upon review of Operator's FCC Form 1200 and FCC Forms 1210's, we conclude that Operator has justified its CPST rates charged during the period from May 15, 1994 to March 31, 1996. We also find that Operator has justified a maximum permitted CPST rate of $14.81 effective April 1, 1996. Therefore, we find that Operator's CPST rates in the community referenced above are justified and not unreasonable. 5. 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 the Operator in the community referenced above from May 15, 1994 to March 31, 1996 ARE NOT UNREASONABLE. 6. IT IS ALSO ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the CPST rate of $14.81 charged by the Operator in the community referenced above effective April 1, 1996 IS 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 CPST rates charged by Operator in the franchise area referenced in the caption ARE DENIED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau