**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of ) )

Bresnan Communications Company ) CUID No. MN0001 (Marshall) )

Complaint Regarding Cable Programming )

Services Tier Rates )

**ORDER**

**Adopted: September 12, 2001 Released: September 14, 2001**

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

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level71. In this Order we consider a complaint filed against the
February 1, 1995 rate increase by the above-referenced operator
(\"Operator\")[^1] for its cable programming services tier (\"CPST\") in
the community referenced above. This Order addresses only the
reasonableness of Operator's CPST rates beginning March 7, 1995, the
date the complaint was filed with the Federal Communications Commission
(\"Commission\").

2\. Under the Communications Act,[^2] at the time the referenced
complaint was filed, the Commission was 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[^3] (\"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.[^4] The Operator has
the burden of demonstrating that the CPST rates complained about are
reasonable.[^5] If the Commission finds a rate to be unreasonable, it
shall determine the correct rate and any refund liability.[^6]

3\. Operators must use the FCC Form 1200 series to justify rates for the
period beginning May 15, 1994.[^7] Cable operators may justify rate
increases on a quarterly basis using FCC Form 1210, based on the
addition and deletion of channels, changes in certain external costs and
inflation.[^8] 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.[^9] Any incurred cost that is not projected may be accrued with
interest and added to rates at a later time.[^10]

4\. Upon review of Operator's FCC Form 1200,[^11] we adjusted Line G2
(Monthly Charge per Tier as of 9/30/92) from \$9.68 to \$9.10 based on
the rate card provided by Operator for that time period. We also
adjusted Line G6 to zero because the rate of \$9.10 did not include
franchise fees. Our adjustment reduced Operator's maximum permitted rate
(\"MPR\") from Operator's calculated MPR of \$13.23 to \$12.90. Upon
review of Operator's FCC Form 1210 covering the period July 1, 1994
through December 31, 1994, we adjusted Line A1 (Previous Transition
Rate) and Line A2 (Previous Full Reduction Rate) to coincide with
Operator's revised FCC Form 1200. Our adjustments reduced Operator's MPR
from \$13.49 to \$13.16. On February 6, 1995, Operator added six
channels under our CAPS methodology, raising its MPR to \$14.66. Because
Operator's actual CPST rate of \$15.09, effective March 7, 1995 through
March 31, 1995, exceeds its revised MPR of \$14.66, we find Operator's
actual CPST rate of \$15.09, effective March 7, 1995 through March 31,
1995, to be unreasonable. [^12]

5\. Upon review of Operator's FCC Form 1210 covering the period January
1, 1995 through March 31, 1995, we adjusted Line A2 to coincide with the
previous revised FCC Form 1210. Our adjustment reduced Operator's MPR
from \$15.09 to \$14.75. Because Operator's actual CPST rate of \$15.09,
effective April 1, 1995 through June 30, 1995, exceeds its revised MPR
of \$14.75, we find Operator's actual CPST rate of \$15.09, effective
April 1, 1995 through June 30, 1995, to be unreasonable. Upon review of
Operator's FCC Form 1210 covering the period April 1, 1995 through June
30, 1995, we adjusted Line A2 to coincide with the previous revised FCC
Form 1210. Despite our adjustment, we find Operator's actual CPST rate
of \$15.09, effective July 1, 1995, to be reasonable.

6\. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the
Commission's rules, 47 C.F.R. §0.321, that the CPST rate of \$15.09,
charged by the Operator in the community referenced above, effective
March 7, 1995 through June 30, 1995, IS UNREASONABLE.

7\. 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 \$15.09, charged by the
Operator in the community referenced above, effective July 1, 1995, IS
REASONABLE.

8\. 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 \$14.66 per month
(plus franchise fees), plus interest to the date of the refund, for the
period beginning March 7, 1995 through March 31, 1995.

9\. 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 \$14.75 per month
(plus franchise fees), plus interest to the date of the refund, for the
period beginning April 1, 1995 through June 30, 1995.

10\. 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.

11\. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the
Commission's rules, 47 C.F.R. §0.321, that the March 7, 1995 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 term \"Operator\" includes Operator's successors and
    predecessors in interest.

[^2]: Communications Act, Section 623(c), *as amended*, 47 U.S.C.
    §543(c) (1996).

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

[^4]: *See* Section 76.956 of the Commission\'s rules, 47 C.F.R.
    §76.956.

[^5]: *Id.*

[^6]: *See* Section 76.957 of the Commission\'s rules, 47 C.F.R. §
    76.957.

[^7]: *See* Section 76. 922 of the Commission\'s rules, 47 C.F.R. §
    76.922.

[^8]: *Id.*

[^9]: *Id.*

[^10]: *Id*.

[^11]: In response to the complaint, Operator requested that we review
    only the increase for the channels added on February 1, 1995.
    Operator claimed that the previous rate was not regulated, and
    Operator should be treated as an unregulated operator. (*See*
    Implementation of Sections of the Cable Television Consumer
    Protection and Competition Act of 1992: Rate Regulation, Thirteenth
    Order on Reconsideration, MM Docket No. 92-266, 11 FCC Rcd 388
    (1996) (\"Thirteenth Reconsideration Order\")). However, the
    Thirteenth Reconsideration Order applies only when an operator is
    responding to a complaint filed after November 6, 1995. The instant
    complaint was filed on March 7, 1995.

[^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
    Cable Services Bureau\'s public reference room, or through the
    Commission\'s copy contractor, International Transcription Services
    (ITS), 1231 20th Street N.W., Washington, DC, 20036, or by calling
    ITS at (202) 857- 3800.