**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

)

Comcast SCH Holdings, Inc. ) CUID No. FL0616 (Umatilla)

)

Complaint Regarding Cable Programming )

Service Tier Rates )

**RATE ORDER**

**AND**

**REFUND PLAN**

**Adopted: October 18, 2000 Released: October 23, 2000**

By the Acting Chief, Financial Analysis and Compliance Division, Cable
Services Bureau:

1\. In this Order we consider a complaint[^1] concerning the rates
charged by the above-referenced operator (\"Operator\") for its cable
programming services tier (\"CPST\") in the community referenced
above.[^2] We have already issued a separate order in which we found
Operator's rates in effect prior to May 15, 1994 to be unreasonable
(\"Prior Order\").[^3] In our Prior Order, we stated that our findings
\"do not in any way prejudge the reasonableness of the prices for CPS
service after May 14, 1994 under our new regulations.\"[^4] On June 2,
1995, Operator filed a refund plan in response to our Prior Order
(\"1995 Refund Plan\"). This Order will address Operator's 1995 Refund
Plan and the reasonableness of Operator's CPST rates in effect beginning
May 15, 1994.

2\. Under the Communications Act,[^5] 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[^6] (\"1992 Cable Act\") required the
Commission to review CPST rates upon the filing of a valid complaint by
a subscriber or local franchising authority (\"LFA\"). The filing of a
complete and timely complaint triggers an obligation upon the cable
operator to file a justification of its CPST rates.[^7] The Operator has
the burden of demonstrating that the CPST rates complained about are
reasonable.[^8] If the Commission finds a CPST rate to be unreasonable,
it shall determine the correct rate and any refund liability.[^9]

3\. Operators must use the FCC Form 1200 series to justify rates for the
period beginning May 15, 1994.[^10] Cable Operators may file an FCC Form
1210 to justify quarterly rate increases based on the addition and
deletion of channels, changes in certain external costs and
inflation.[^11] Operators may justify 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.[^12] Any incurred cost that is not projected may be accrued with
interest and added to rates at a later time.[^13]

4\. We first review Operator's 1995 Refund Plan, filed in accordance
with our Prior Order. Our review reveals that the 1995 Refund Plan
fulfills the requirements of the Prior Order provided Operator accrues
interest up to the date of the refund.[^14]

5\. Upon review of Operator's FCC Form 1200, we find Operator's
calculated maximum permitted rate ("MPR") of \$13.73 to be reasonable.
Operator elected to defer refund liability for overcharges associated
with its FCC Form 1200, for the period May 15, 1994 through July 14,
1994, pursuant to the Commission's Rules.[^15] In our Prior Order, we
found that Operator had justified an FCC Form 393 MPR of \$14.20.
Because Operator's actual CPST rate of \$14.40, effective May 15, 1994
through July 14, 1994, exceeds its FCC Form 393 MPR of \$14.20, we find
Operator's actual CPST rate of \$14.40, effective May 15, 1994 through
July 14, 1994, to be unreasonable. Because Operator's actual CPST rate
of \$13.85, effective July 15, 1994 through December 31, 1994, exceeds
its FCC Form 1200 MPR of \$13.73, we find Operator's actual CPST rate of
\$13.85, effective July 15, 1994 through December 31, 1994, to be
unreasonable. Upon review of Operator's FCC Form 1210 covering the
period April 1, 1994 through December 31, 1994, we find Operator's
calculated MPR of \$15.50 to be reasonable. Because Operator's actual
CPST rate of \$13.85, effective January 1, 1995, does not exceed its
MPR, we find Operator's actual CPST rate of \$13.85, effective January
1, 1995, to be reasonable.

6\. Accordingly, IT IS ORDERED, pursuant to Sections 0.321 and 76.962 of
the Commission\'s rules, 47 C.F.R. §0.321 and §76.962, that Operator's
1995 Refund Plan IS APPROVED, provided Operator modifies its refund plan
to the extent indicated herein.

7\. IT IS FURTHER ORDERED, pursuant to Sections 0.321 and 76.962 of the
Commission\'s rules, 47 C.F.R. § 0.321 and § 76.962, that Operator
implement its refund plan within 60 days of the date of this Order.

8\. IT IS FURTHER ORDERED, pursuant to Sections 0.321 and 76.962 of the
Commission\'s rules, 47 C.F.R. § 0.321 and § 76.962, that Operator file
a certificate of compliance with the Chief, Cable Services Bureau,
within 90 days of the release of this Order certifying its compliance
with this Order.

9\. 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 \$14.40, charged by
Operator in the community referenced above, effective May 15, 1994
through July 14, 1994, IS UNREASONABLE.

10\. 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 \$13.85,
charged by Operator in the community referenced above, effective July
15, 1994 through December 31, 1994, IS UNREASONABLE.

11\. 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 \$13.85,
charged by the Operator in the community referenced above, effective
January 1, 1995, IS REASONABLE.

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 \$14.20 per month
(plus franchise fees), plus interest to the date of the refund, for the
period beginning May 15, 1994 through July 14, 1994.

13\. 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 \$13.73 per month
(plus franchise fees), plus interest to the date of the refund, for the
period beginning July 15, 1994 through December 31, 1994.

14\. 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 implement the refund within
60 days of Commission approval of the plan.

15\. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the
Commission's rules, 47 C.F.R. § 0.321, that the complaint referenced
herein against the rates charged by Operator in the community referenced
above, IS GRANTED.

FEDERAL COMMUNICATIONS COMMISSION

Kathleen F. Costello, Acting Chief

Financial Analysis and Compliance Division

Cable Services Bureau

[^1]: ^?^ The first valid complaint against Operator's CPST rate in the
    community referenced above was filed on February 28, 1994. No
    subsequent complaints were filed.

[^2]: ^?^ On December 2, 1996, the Federal Communications Commission
    received notification, pursuant to 47 C.F.R. § 76.400, of a change
    in operator to Comcast SCH Holdings, Inc.

[^3]: ^?^ *See* In the Matter of Lake County Cablevision, DA 95-957, 10
    FCC Rcd 9317 (1995).

[^4]: ^?^ *Id.* at n. 1.

[^5]: ^?^ Communications Act, Section 623 (c), as amended, 47 U.S.C. §
    543(c) (1996).

[^6]: ^?^ Pub. L. No. 102-385, 106 Stat. 1460 (1992).

[^7]: ^?^ *See* 47 C.F.R. § 76.956.

[^8]: ^?^ *Id*.

[^9]: ^?^ *See* 47 C.F.R. § 76.957.

[^10]: ^?^ *See* 47 C.F.R. § 76.922.

[^11]: ^?^ *Id*.

[^12]: ^?^ *Id*.

[^13]: ^?^ *Id*.

[^14]: ^?^ Operator's refund plan calculated a total refund liability of
    \$591.66.

[^15]: ^?^ The Commission's rules provide for a refund liability
    deferral period beginning May 15, 1994 and ending July 14, 1994, if
    timely requested by the Operator, for any overcharges resulting from
    Operator's calculation of a new MPR on the FCC Form 1200. *See* 47
    C.F.R. § 76.922(b)(6)(ii). However, Operator will incur refund
    liability for the period May 15, 1994 through July 14, 1994 for any
    CPST charges over the FCC Form 393 MPR approved by the Commission.
    *Id.*