******************************************************** 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 Colorado, Inc. ) CUID Nos. CO0134 (Douglas County) ) CO0203 (Douglas County ) CO0204 (Douglas County) Complaints Regarding ) CO0207 (Douglas County Cable Programming Services Tier ) CO0208 (Douglas County Rate Increases ) CO0209 (Douglas County ) CO0356 (Douglas County ) CO0459 (Douglas County ) CO0205 (Parker) ) CO0210 (Castle Rock) ORDER Adopted: January 15, 1997 Released: January 23, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints concerning the June 1, 1996 rate increase of TCI Cablevision of Colorado, Inc. ("TCI") for its cable programming services tier ("CPST") in the above captioned communities. This Order addresses only the reasonableness of TCI's rate increase that became effective on June 1, 1996. We conclude that TCI's June 1, 1996 CPST rate increase is not unreasonable. 2. The Communications Act authorizes the Federal Communications Commission ("Commission") to review the CPST rates of cable systems not subject to effective competition. This is to ensure that rates charged are not unreasonable. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation, require that complaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA") that has received subscriber complaints. An LFA may not file a CPST rate complaint unless it receives more than one subscriber complaint within 90 days after such increase becomes effective. If the Commission finds the rate unreasonable, it shall determine the correct rate and any refund liability. 3. 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. 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. The "true-up" requires operators to decrease their rates or alternatively permits them to increase their rates to make an adjustment for over or under estimations of these cost changes. 4. The Greater Metro Cable Consortium on behalf of the jurisdictions serviced by Headend 1284B ("Consortium") filed a valid complaint for each of the captioned communities on Headend 1284B on November 25, 1996 regarding the June 1, 1996 increase in TCI's CPST rate in each community. The Consortium has certified that it has received subscriber complaints and has complied with the Interim Rules. TCI submitted an FCC Form 1240 for each of the captioned communities on Headend 1284B to justify the rate increase that went into effect June 1, 1996. 5. Upon review of the record before us, we find that TCI has provided sufficient evidence to support a CPST rate increase of $2.86 for each of the captioned communities . We conclude, therefore, that TCI's CPST rate increase which went into effect June 1, 1996 is justified. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that TCI Cablevision of Colorado, Inc.'s CPST rate increase of $2.86 in Douglas County, Colorado CUID Nos. CO0134, CO0203, CO0204, CO0207, CO0208, CO0209, CO0356, CO0459; Parker, Colorado CUID No. CO0205; and Castle Rock, Colorado CUID No. CO0210, which went into effect on June 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 the June 1, 1996 CPST rate increases charged by TCI Cablevision of Colorado, Inc. in Douglas County, Colorado, CUID Nos. CO0134, CO0203, CO0204, CO0207, CO0208, CO0209, CO0356, CO0459; Parker, Colorado, CUID No. CO0205; and Castle Rock, Colorado, CUID No. CO021 ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau