******************************************************** 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 California, Inc. ) CUID Nos. CA0653 (Camarillo) ) CA0313 (City of Moorpark) Complaints Regarding ) Cable Programming Service Tier ) Rate Increases ) ORDER Adopted: March 14, 1997 Released: March 19, 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- captioned operator ("Operator") for its cable programming services tier ("CPST") in the above- referenced communities. We have already issued separate orders addressing the reasonableness of the rates prior to May 14, 1994. In CUID No. CA0653, we found the Operator's CPST rate to be reasonable while in CUID No. CA0313 we found the Operator's CPST rate to be unreasonable. Operator has chosen to justify the CPST rate increases occurring after May 15, 1994 for both communities, by using a single cost of service submission on FCC Form 1220. For CUID No. CA0313, Operator filed an FCC Form 1210, dated August 15, 1994, for the period April 1, 1994 to June 30, 1994, and an FCC Form 1210, dated May 1, 1996, for the period July 1, 1994 to December 31, 1995. On March 7, 1997, Operator filed an FCC Form 1210, dated April 29, 1996, for the period from July 1, 1994 to December 31, 1995, for CUID No. CA0653. We conclude that the CPST rate increases implemented by Operator 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 prior to May 15, 1994 must demonstrate that their CPST rates complied with the Commission's initial rules from the time the complaint was filed through May 14, 1994. Their rates must also comply with the revised rules from May 15, 1994 forward. Cable operators attempting to justify their rates for the period beginning May 15, 1994 through a cost of service showing must complete and file FCC Form 1220. 4. The first valid complaint filed in each of the communities was received by the Commission prior to February 28, 1994. Operator's FCC Form 1220 cost of service filing of August 15, 1994 seeks to establish that its CPST rate increases are justified based on its cost of providing regulated cable service. According to information provided by Operator in its cost of service showing, Operator's Ventura County system serves approximately 87,000 subscribers. In this review process, we analyzed Operator's rate justifications to ensure that the rate increases were not unreasonable. 5. Rate base and expense items have been evaluated to determine whether Operator should be permitted to recover those items. Where a certain rate base or expense element was not supported, was excessive, or was unrelated to providing regulated cable service, such cost was disallowed in whole or in part. Where reported costs were disallowed, we have made appropriate adjustments. Even with our adjustments and disallowances, however, we find that Operator's monthly CPST rates have been justified. 6. Based on our review of Operator's FCC Form 1220 and the FCC Forms 1210 filed, we find that Operator has justified the CPST rates of $9.05 for CUID No. CA0313 and $12.35 for CUID No. CA0653. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the monthly CPST rates of $12.35 and $9.05, for CUID No. CA0653 and CUID No. CA0313, respectively, beginning May 15, 1994, in the communities referenced above ARE NOT UNREASONABLE. 8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321, that the complaints against the monthly CPST rates of $12.35 and $9.05, for CUID No. CA0653 and CUID No. CA0313, respectively, effective May 15, 1994, in the communities referenced above ARE DENIED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division Cable Services Bureau