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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 ) ) TCI Cablevision ) CUID No. NV0004 (Carson City) of Nevada, Inc. ) ) Complaint Regarding ) Cable Programming Services Tier ) Rate Increase ) ORDER Adopted: November 26, 1997 Released: November 28, 1997 By the Chief, Cable Services Bureau: 1. In this Order we consider a complaint against the June 1, 1997 rate increase that the above-captioned operator ("Operator") implemented for its cable programming services tier ("CPST") in the community referenced above. Operator has attempted to justify its CPST rate increase through a benchmark showing on FCC Forms 1240. We have already issued a separate order ("Prior Order") which resolved Operator's CPST rates from September 1, 1993 through December 31, 1995. Accordingly, this Order addresses the reasonableness of Operator's CPST rate effective June 1, 1997. 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. If the Commission finds the rate unreasonable, it shall determine the correct rate and any refund liability. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation, requires that complaints against CPST rates be filed with the Commission by a franchising authority that has received subscriber complaints. A franchising authority may not file a CPST rate complaint unless, within 90 days after such increase becomes effective, it receives more than one subscriber complaint. 3. Cable operators attempting to justify their rates for the period beginning May 15, 1994 using a benchmark showing must complete and file 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. Cable operators may 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. 4. On September 4, 1997, the local franchising authority ("LFA") filed its complaint against Operator's June 1, 1997 CPST rate increase. In its complaint, the LFA asserts that it has received more than one subscriber complaint against Operator's CPST rate increase, thereby triggering the Commission's jurisdiction to review this complaint. The valid complaint from the LFA triggers an obligation on behalf of the cable operator to file a justification of its CPST rates with the LFA. Thus, in this case, Operator is required to justify the increase in its CPST rate which is the subject of the LFA's complaint. As required by our rules, Operator filed FCC Forms 1240 with the LFA as justification for this rate increase. 5. On February 23, 1996, the Commission granted Operator a waiver of certain rate adjustment requirements in its initial filing of the Commission's annual rate adjustment form (FCC Form 1240) ("Waiver Order"). Specifically, the Waiver Order allowed Operator, in its initial FCC Form 1240 filings, to include estimated changes in costs, inflation, channels and subscriber information attributable to the period between the last date for which actual cost data was available and the effective date of the new rates. In the Waiver Order, Operator was instructed to include in its initial FCC Form 1240 filing certain calculations, such calculations to be performed on FCC Form 1240 (primarily in Module G), or off FCC Form 1240, in an alternative showing done pursuant to the Waiver Order's "General Guidelines." Operator chose to use an alternative showing rather than perform its calculations directly on FCC Form 1240. 6. To justify its CPST rate, effective June 1, 1997, Operator submitted two FCC Forms 1240. Upon review of Operator's FCC Forms 1240, we are unable to determine if Operator correctly adjusted its second FCC Form 1240 to take into account the calculations performed in its initial FCC Form 1240's alternative showing. We will therefore order Operator to refile its FCC Forms 1240 along with an explanation detailing why its forms justify Operator's current CPST rate of $16.82 in the community referenced above. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that Operator shall file with the Chief, Cable Services Bureau, within 30 days of the release of this Order, the relevant FCC Forms 1240, and all supporting documentation, to support the monthly CPST rate of $16.82 implemented by Operator on June 1, 1997, in the community referenced above. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau