******************************************************** 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. MD0080 (Randallstown) ) MD0081 (Catonsville) Comcast Cablevision ) MD0082 (Pikesville) of Baltimore, Inc. ) MD0083 (Woodlawn) ) MD0084 (Arbutus) ) MD0085 (Lansdowne) ) MD0086 (Edgemere) ) MD0087 (West Baltimore County) ) MD0088 (Lutherville/Timonium) ) MD0089 (Reisterstown) ) MD0090 (North Baltimore County) ) MD0091 (Overlea) ) MD0092 (Owings Mills) ) MD0093 (Towson) ) MD0094 (Parkville) ) MD0095 (Perry Hall) ) MD0096 (Middle River) ) MD0097 (Rosedale) ) MD0098 (Essex) Refund Plan ) MD0099 (Dundalk) ) MD0100 (East Baltimore County) ORDER Adopted: July 21, 1998 Released: July 23, 1998 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider the revised refund plan filed by the above-captioned operator ("Operator") in the above-captioned communities pursuant to our order In the Matter of Comcast Cablevision of Baltimore, Inc. ("Refund Order "). Our review of Operator's refund plan reveals that the refund plan fulfills the requirements of the Refund Order. 2. In its refund plan, Operator shows a cumulative refund amount (including franchise fees and interest) that totals $117,077 for November 1, 1997 through July 31, 1998 for the non-rebuild area and $589,052 for the rebuild area. In addition, Operator described its calculation and described how it will implement the refund. 3. Operator has requested that we hold in abeyance our requirement that Operator implement its refund plan within sixty days of the release of this Order. Specifically, Operator contends that it will be entitled to recover certain "revenue deficiencies" pursuant to the United States Court of Appeals for the D.C. Circuit's recent decision in Time Warner Entertainment Co., L.P. v. FCC ("TWE v. FCC"). Operator states that "[t]hese revenue deficiencies will more than offset the refunds required by the [Refund] Order." The Commission filed a Petition for Rehearing and Suggestion for Rehearing In Banc of TWE v. FCC on July 6, 1998. 4. Granting Operator's request would require cable programming service tier ("CPST") subscribers in the communities referenced above to forgo refunds for the overcharges collected by Operator until the issues encompassed by TWE v. FCC are resolved. Beyond any further consideration by the Court of Appeals for the D.C. Circuit, is the need for the Commission to establish the standard by which the revenue deficiencies can be justified and evaluated by the Commission. We note that the revenue deficiencies are applicable to both the basic service tier ("BST") and CPST, requiring the standards and processes established to be implemented by both the Commission and local franchising authorities ("LFAs"). Contrary to Operator's submission, there is no "FCC Prescribed Gap Adjustment," created pursuant to TWE v. FCC, nor is there any clear delineation as to the number of months that Operator is entitled to recoup "unrecovered revenue" from its subscribers. 5. When Congress enacted the Telecommunications Act of 1996, it amended Section 623 of the Communications Act to require the Commission to issue a final order within 90 days of the filing of a CPST complaint by an LFA. The intent of the amendment was to bring about timely and final resolutions of CPST complaints for cable operators, LFAs and subscribers. We think that the refund process is an element of this premise. Operator has asserted an amount it is entitled to receive as a revenue deficiency. Yet, we are unable to determine if Operator's submission is justified as the standards have not been established. Moreover, there will be adequate opportunity afforded Operator to regain any revenue deficiencies it is entitled to. For these reasons, we deny Operator's request. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules, 47 C.F.R. Section 0.321, that Operator's request that its refund plan implementation be held in abeyance IS DENIED. 7. IT IS FURTHER ORDERED that Operator's Refund Plan IS APPROVED and IT IS ORDERED, pursuant to Section 76.962, of the Commission's Rules, 47 C.F.R. Section 76.962, that Operator implement its refund plan within 60 days of the date of this Order. 8. IT IS FURTHER ORDERED, pursuant to Section 76.962 of the Commission's Rules, 47 C.F.R. Section 76.962, that Operator file a certificate of compliance with the Chief, Cable Services Bureau, within 90 days of the release of this Order certifying its compliance with this Order. FEDERAL COMMUNICATIONS COMMISSION John E. Logan Deputy Chief, Cable Services Bureau