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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 ) ) MetroVision of Livonia, Inc. ) CUID No. MI0795 (Livonia) ) ) Complaint Regarding ) Cable Programming Services Tier Rates ) ORDER Adopted: January 24, 1997 Released: January 29, 1997 By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints about the rates of MetroVision, Inc. ("MetroVision") for its cable programming services tier ("CPST") in Livonia, Michigan, CUID No. MI0795. MetroVision has attempted to justify its CPST rates through benchmark justifications on FCC Forms 1200 and 1210. We have already issued a separate order addressing the reasonableness of MetroVision's rates in effect before May 15, 1994. Accordingly, this Order addresses the reasonableness of MetroVision's CPST rates for the period beginning May 15, 1994. 2. Under the Communications Act, the Commission is authorized to review CPST rates of cable systems not subject to effective competition to ensure that rates charged are not unreasonable. If the Commission finds rates to be unreasonable, it shall determine correct rates 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. Generally, to justify their rates for the period beginning May 15, 1994 through 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. Our Memorandum Opinion and Order addressing the first valid complaint received by the Commission indicates that the filings in that review "do not in any way prejudice the reasonableness of the prices for CPS services after May 14, 1994." Consequently, the rates beginning May 15, 1994 are subject to Commission review and are addressed in this Order. 5. Upon review of MetroVision's FCC Form 1200, we have found that MetroVision incorrectly reported the monthly charge per subscriber and the number of regulated channels. Accordingly, we adjusted MetroVision's FCC Form 1200, Module G, Line G2 to reflect the correct monthly charge per subscriber. We also adjusted MetroVision's FCC Form 1200, Module H, Line H1 to reflect the correct number of regulated channels as 44. MetroVision admits by its own calculations, that its FCC Form 1200 does not justify its $11.80 CPST rate effective May 15, 1994. MetroVision's FCC Form 1200 and our review confirms a maximum permitted rate of $11.78. Thus MetroVision has failed to demonstrate on its FCC Form 1200 that the rate for its CPST was not unreasonable. However, because MetroVision reduced its actual rate to $11.78 effective July 14, 1994, we find that the total overcharge per subscriber is de minimis. Therefore, it would not serve the public interest to order a refund. 6. Upon review of MetroVision Cable's FCC Form 1210 for the period April 1, 1995 to June 30, 1995, we found that MetroVision used the incorrect inflation factor. Accordingly, we have adjusted MetroVision's FCC Form 1210, Module J, Line J5 to reflect the correct inflation factor of 1.0215. Notwithstanding this adjustment, MetroVision's CPST rate of $11.78 is reasonable and justified. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that CPST rate of $11.80 charged by MetroVision in Livonia, Michigan, CUID No. MI0795 during the period May 15, 1994 through July 13, 1994, IS NOT REASONABLE. 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 $11.78 charged by MetroVisiona in Livonia, Michigan during the period beginning July 14, 1994, 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 complaints referenced herein against the CPST rate charged by MetroVision in Livonia during the period under review, ARE GRANTED TO THE EXTEND INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau