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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 ) ) Citizens Century Cable Television Venture) CUID No. CA0954 (LaVerne) ) Complaints Regarding ) Cable Programming Services Tier Rates) ORDER Adopted: September 3, 1997 Released: September 8, 1997 By the Chief, 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 community referenced above. Operator's response includes benchmark justifications filed on FCC Forms 393, 1200 and 1210. This Order addresses the reasonableness of Operator's rates for the period September 1, 1993, through May 14, 1994, as justified on Operator's FCC Form 393 and for the period after May 14, 1994, as justified on Operator's FCC Forms 1200 and 1210. We have already issued an order which resolved complaints filed against Operator's CPST rate of $13.01 effective May 1, 1996. 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. The Cable Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"), and our rules in effect at the time the complaints were filed, required the Commission to 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 against them prior to May 15, 1994 must demonstrate that their CPST rates were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994, and that their rates were in compliance with the revised rules from May 15, 1994 forward. Cable operators attempting to justify their rates for the period prior to May 15, 1994 using a benchmark showing must complete and file FCC Form 393. Operators must use the FCC Form 1200 series to justify their rates for the period beginning May 15, 1994 using a benchmark showing. 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. Upon review of Operator's FCC Form 393 we find Operator's maximum permitted rate ("MPR") of $9.49 to be correct. Because Operator's actual rate of $10.01 is more than its MPR of $9.49, we find Operator's CPST rate of $10.01 for the period September 1, 1993 to February 28, 1994, to be unreasonable. Operator reduced its CPST rate to $9.20, effective March 1, 1994. Therefore, we find that Operator's CPST rate, effective March 1, 1994 through May 14, 1994, to be not unreasonable. 5. Upon review of Operator's revised FCC Form 1200 we find Operator's MPR of $9.10 to be correct. Because Operator's actual rate of $9.20 is more than its MPR of $9.10, which was effective May 15, 1994, we find Operator's CPST rate of $9.20, for the period May 15, 1994 to June 30, 1994, to be unreasonable. 6. Upon review of Operator's FCC Form 1210 for the period for the period April 1, 1994 through June 30, 1994, we find Operator's MPR of $9.28 to be correct. Because Operator's actual rate of $9.20 is less than its MPR of $9.28, we find Operator's CPST rate of $9.20, beginning July 1, 1994, to be reasonable. 7. Accordingly, IT IS ORDERED that the CPST rates charged by Operator in the community referenced above from September 1, 1993 to February 28, 1994, ARE UNREASONABLE. 8. IT IS FURTHER ORDERED that the CPST rate charged by Operator in the community referenced above from March 1, 1994 to May 14, 1994, IS NOT UNREASONABLE. 9. IT IS FURTHER ORDERED that the CPST rate charged by Operator in the community referenced above from May 15, 1994 to June 30, 1994, IS UNREASONABLE. 10. IT IS FURTHER ORDERED that the CPST rate of $9.20 charged by Operator in the community referenced above, effective July 1, 1994, IS NOT UNREASONABLE. 11. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $9.49 per month (plus franchise fees), plus interest to the date of the refund, for the period November 1, 1993 to February 28, 1994, 12. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion of the amount paid in excess of the maximum permitted CPST rate of $9.10 per month (plus franchise fees), plus interest to the date of the refund, for the period May 15, 1994 to June 30, 1994. 13. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of Commission approval of the plan. 14. 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 rates charged by Operator in the community referenced above ARE GRANTED TO THE EXTENT INDICATED HEREIN. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau