******************************************************** 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.NJ0162 (Livingston Township) )NJ0163 (West Caldwell Bor.) Comcast Cablevision of New Jersey, Inc.)NJ0164 (Irvington Town) )NJ0165 (West Orange Town) )NJ0186 (Fairfield Borough) )NJ0187 (Verona Borough) )NJ0188 (Maplewood Township) )NJ0189 (Harrison Town) )NJ0193 (Caldwell Borough) )NJ0194 (Roseland Borough) )NJ0202 (Orange City) )NJ0220 (Belleville Town) )NJ0221 (Bloomfield Town) )NJ0222 (Union Township) )NJ0223 (Hillside Township) )NJ0225 (Essex Falls Township) )NJ0246 (Millburn Township) )NJ0247 (Roselle Park Borough) )NJ0248 (Roselle Borough) )NJ0249 (Westfield Town) )NJ0250 (Linden City) )NJ0261 (Summit City) )NJ0272 (Springfield Towns.) )NJ0273 (Montclair Township) )NJ0323 (Berkeley Heights Bor.) )NJ0324 (New Providence Bor.) )NJ0325 (Secaucus Town) )NJ0329 (Woodbridge Township) )NJ0350 (Perth Amboy City) )NJ0351 (Kenilworth Borough) )NJ0352 (Scotch Plains Towns.) )NJ0353 (Clark Township) )NJ0354 (Rahway City) )NJ0358 (East Orange City) )NJ0360 (Cranford Township) )NJ0361 (Winfield Park Towns.) )NJ0369 (Fanwood) )NJ0378 (Garwood Borough) )NJ0396 (Mountainside Borough) )NJ0402 (Carteret Borough) Complaints Regarding )NJ0443 (South River Borough) Cable Programming Services Tier Rates)NJ0545 (Glen Ridge Township) ORDER Adopted: July 14, 1997 Released: July 16, 1997 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints concerning the rates of the above-captioned operator ("Operator") for its cable programming services tier ("CPST") in the 42 communities referenced above. 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. The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation ("Interim Rules"), require that complaints against 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. 2. 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 must use the FCC Form 1200 series to justify their rates through a benchmark showing for the period beginning May 15, 1994. 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. 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. 3. On April 20, 1997, the LFA filed complaints against Operator's November 1, 1996 rate increases. The LFA certified that it has complied with the Interim Rules. The LFA stated that it received its first valid subscriber complaint for seven of the above-referenced communities, each served by the Woodbridge and East Orange Headend ("Woodbridge and East Orange Communities"), on November 4, 1996. The LFA stated that it received its first valid subscriber complaint for each of the remaining 35 communities referenced above, all served by the Verona Headend ("Verona Communities"), on November 13, 1996. 4. Operator has filed two FCC Forms 1240 in response to the complaints, one for the Woodbridge and East Orange Communities and the other for the Verona Communities. We have previously issued separate orders addressing the reasonableness of Operator's rates for the period from September 1, 1993 through December 31, 1995 for all of the above-referenced communities in which complaints were pending against Operator. To justify an MPR of $12.75 for the Woodbridge and East Orange Communities, Operator filed an FCC Form 1210 for the period April 1, 1995 to December 31, 1995. Upon review of this FCC Form 1210, we find that Operator justified its MPR of $12.75. Since Operator actually was charging $12.74, we find that Operator's CPST rate was not unreasonable. Upon review of Operator's FCC Form 1240 for the projected period of November 1, 1996 to October 31, 1997, we find that Operator has justified its MPR of $15.09. Consequently, Operator's CPST rate of $15.09, effective November 1, 1996, is not unreasonable. 5. To justify an MPR of $13.28 for the Verona Communities, Operator filed an FCC Form 1210 for the period April 1, 1995 to December 31, 1995. Upon review of this FCC Form 1210, we find that Operator justified its MPR of $13.28. Since Operator actually was charging $13.27, we find that Operator's CPST rate was not unreasonable. Upon review of Operator's FCC Form 1240 for the projected period of November 1, 1996 to October 31, 1997, we find that Operator has justified its MPR of $15.09. Consequently, Operator's CPST rate of $15.09, effective November 1, 1996, is not unreasonable. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the monthly CPST rate of $15.09 charged by Operator in the communities referenced above, effective November 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 CPST rate charged by Operator in the franchise areas referenced in the caption ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau