**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of ) CUID No. GA9369 (Cumming)

) CSR No. 4350-R

Prestige Cable TV, Inc. )

)

Cost of Service Showing in Support )

Basic Service Tier Rate )

**ORDER**

**Adopted: February 14, 2001 Released: February 16, 2001**

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

1\. The above-referenced operator (\"Operator\")[^1] filed a cost of
service FCC Form 1220 with the local franchising authority (\"LFA\") for
the above-referenced communities to justify its rate for its basic
service tier (\"BST\") in the communities referenced above. On September
13, 1994, the LFA filed a petition for special relief (\"Petition\")
with the Federal Communications Commission (\"Commission\"), pursuant to
the Commission's rules,[^2] requesting that the Commission review the
BST cost of service filing. Operator's Petition was granted on February
10, 1995.[^3] This Order addresses only the reasonableness of
Operator\'s BST rate of \$8.27, effective May 15, 1994.

2\. To justify rates for the period beginning May 15, 1994, operators
must use the FCC Form 1200 series.[^4] Cable operators attempting to
justify their rates through a cost of service showing must complete and
file FCC Form 1220.[^5] In reviewing an operator\'s FCC Form 1220 cost
of service showing, we evaluate the operator\'s rate base and expense
elements to determine whether the operator should be permitted to
recover those items. Where a certain rate base or expense element is not
justified under our

rules, such cost is disallowed in whole or in part.[^6] Where reported
costs are disallowed, we make appropriate adjustments.

3\. Upon review of Operator\'s FCC Form 1220, we find Operator\'s actual
BST rate of \$8.27 effective May 15, 1994, to be reasonable.[^7]

4\. Accordingly, IT IS ORDERED, pursuant to Sections 0.321 and 76.933(d)
of the Commission\'s rules, 47 C.F.R. § 0.321 and § 76.933(d), that the
BST rate of \$8.27 charged by Operator in the franchise areas referenced
above, effective May 15, 1994, IS REASONABLE.

5\. IT IS FURTHER ORDERED pursuant to Sections 0.321 and 76.933(d) of
the Commission\'s rules, 47 C.F.R. § 0.321 and § 76.933(d), that this
Order is binding on the community referenced above and Operator.

FEDERAL COMMUNICATIONS COMMISSION

Kathleen F. Costello, Acting Chief

Financial Analysis and Compliance Division

Cable Services Bureau

[^1]: On July 6, 2000, the Federal Communications Commission received
    notification, pursuant to 47 C.F.R. § 76.400, of a change of
    ownership to Highland Prestige of Georgia, Inc.

[^2]: 47 C.F.R. §76.933(d).

[^3]: *See* Letter dated February 10, 1995 from Jacqueline Spindler,
    Deputy Chief, Consumer Protection Division, Cable Services Bureau.

[^4]: *See* Section 76.922 of the Commission\'s Rules, 47 C.F.R.
    §76.922.

[^5]: *See* Section 76.922(l) of the Commission\'s Rules, 47 C.F.R.
    §76.922(l). *See also*, Second Report and Order, First Order on
    Reconsideration, and Further Notice of Proposed Rulemaking, MM
    Docket No. 93‑215 and CS Docket No. 94‑28, FCC 95‑502, 11 FCC Rcd
    2220 (1996) (\"Final Cost Order\").

[^6]: The Commission made clear that the fact that an operator has
    incurred costs does not necessarily establish its right to recover
    those costs from subscribers. *See* Implementation of Sections of
    the Cable Television Consumer Protection and Competition Act of
    1992: Rate Regulation, MM Docket No. 92-266, Report and Order and
    Further Notice of Proposed Rulemaking, 8 FCC Rcd 5631, 5794 at n.
    619 (1993) (\"Rate Order\").

[^7]: This finding is 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.