**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+------------------------------+
| In the Matter of                 | ) | CUID No. KY0078 (Corbin)     |
|                                  |   |                              |
| Falcon Community Cable, L.P.     | ) |                              |
|                                  |   |                              |
| Petition for Reconsideration     | ) |                              |
|                                  |   |                              |
|                                  | ) |                              |
|                                  |   |                              |
|                                  | ) |                              |
+----------------------------------+---+------------------------------+

ORDER ON RECONSIDERATION

# 

**Adopted: November 9, 2001** **Released: November 14, 2001**

By the Deputy Chief, Cable Services Bureau:

1\. In this Order we consider a petition for reconsideration
(\"Petition\") of our Order, DA 96-1082 (\"Prior Order\"),[^1] filed
with the Federal Communications Commission (\"Commission\") on August 5,
1996 by the above-referenced operator (\"Operator\"). Our Prior Order
resolved a complaint against Operator\'s April 1, 1996 cable programming
services tier (\"CPST\") rate increase. Operator also filed a refund
plan in response to our Prior Order. In this Order, we grant Operator's
Petition, amend our Prior Order and dismiss the refund plan as moot.

2\. Under the Communications Act, the Commission is authorized to review
the CPST rates of cable systems not subject to effective competition to
ensure that rates charged are not unreasonable.[^2] The Cable Television
Consumer Protection and Competition Act of 1992 (\"1992 Cable
Act\"),[^3] and our rules in effect at the time the complaint was filed,
required the Commission to review CPST rates upon the filing of a valid
complaint by a subscriber or local franchising authority (\"LFA\"). The
Telecommunications Act of 1996 (\"1996 Act\"),[^4] and our rules
implementing the legislation (\"Interim Rules\"),[^5] required that a
complaint against the CPST rate be filed with the Commission by an LFA
that has received more than one subscriber complaint. The filing of a
valid complaint triggers an obligation upon the cable operator to file a
justification of its CPST rates.[^6] If the Commission finds the rate to
be unreasonable, it shall determine the correct rate and any refund
liability.[^7]

3\. Operators must use the FCC Form 1200 series to justify rates for the
period beginning May 15, 1994.[^8] Cable operators may justify quarterly
rate increases based on the addition and deletion of channels, changes
in certain external costs and inflation, by filing FCC Form 1210.[^9]
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.[^10] Any
incurred cost that is not projected may be accrued with interest and
added to rates at a later time.[^11]

4\. In our Prior Order, we concluded that Operator did not submit
sufficient information for us to determine the reasonableness of its
April 1, 1996 CPST rate increase. In its Petition, Operator submits all
of the necessary information for us to review the CPST rate increase.
Based on our review of the material submitted with the Petition, we find
Operator\'s calculated maximum permitted rate (\"MPR\") of \$1.65 to be
reasonable, effective April 1, 1996. Because Operator\'s actual CPST
rate of \$1.70 exceeds its MPR, we find its actual rate to be
unreasonable.[^12] However, we find the total overcharges for the period
under review to be *de minimis* and it would not be in the public
interest to order a refund. We will amend our Prior Order to exclude any
refund liability and consequently, we will dismiss Operator\'s refund
plan as moot.

5\. Accordingly, IT IS ORDERED, pursuant to Section 1.106 of the
Commission\'s rules, 47 C.F.R. § 1.106, that Operator\'s Petition for
Reconsideration IS GRANTED TO THE EXTENT INDICATED HEREIN.

6\. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the
Commission\'s rules, 47 C.F.R. § 0.321, that In the Matter of Falcon
Community Cable, LP, DA 96-1082, 11 FCC Rcd 8027 (1996) IS AMENDED TO
THE EXTENT INDICATED HEREIN.

7\. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the
Commission\'s rules, 47 C.F.R. § 0.321, that Operators refund plan IS
DISMISSED AS MOOT.

FEDERAL COMMUNICATIONS COMMISSION

William H. Johnson, Deputy Chief

Cable Services Bureau

[^1]: In the Matter of Falcon Community Cable, LP, DA 96-1082, 11 FCC
    Rcd 8027 (1996).

[^2]: 47 U.S.C. §543(c) (1996).

[^3]: Pub. L. No. 102-385, 106 Stat. 1460 (1992).

[^4]: Pub. L. No. 104-104, 110 Stat. 56 (1996).

[^5]: *See* Implementation of Cable Act Reform Provisions of the
    Telecommunications Act of 1996, 11 FCC Rcd 5937 (1996).

[^6]: 47 C.F.R. §76.956.

[^7]: 47 C.F.R. §76.957.

[^8]: *See* Section 76. 922 of the Commission\'s Rules, 47 C.F.R. §
    76.922.

[^9]: *Id.*

[^10]: *Id.*

[^11]: *Id*.

[^12]: These findings are based solely on the representations of
    Operator. Should information come to our attention that these
    representations were materially inaccurate, we reserve the right to
    take appropriate action. This Order is not to be construed as a
    finding that we have accepted as correct any specific entry,
    explanation or argument made by any party to this proceeding not
    specifically addressed herein. Information regarding the specific
    adjustments made to Operator\'s FCC Forms can be found in the public
    files for the above-referenced community which are available in the
    FCC Reference Information Center, Portals II, 445 12th Street, SW,
    Room CY-A257, Washington, DC, 20554. This document may also be
    purchased from the Commission\'s duplicating contractor, Qualex
    International, Portals II, 445 12th Street, SW, Room CY-B402,
    Washington, DC, 20554, telephone 202-863-2893, facsimile
    202-863-2898, or via e-mail qualexint@aol.com.