**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+------------------------------+
| In the Matter of                 | ) | File No. EB-02-TC-060        |
|                                  |   |                              |
| CableOne                         | ) | CUID No. CA0901 (Union City) |
|                                  |   |                              |
| Complaint Regarding Cable        | ) |                              |
| Programming )                    |   |                              |
|                                  | ) |                              |
| Services Tier Rates and Refund   |   |                              |
| Plan                             | ) |                              |
|                                  |   |                              |
|                                  | ) |                              |
+----------------------------------+---+------------------------------+
|                                  |   |                              |
+----------------------------------+---+------------------------------+

ORDER

**Adopted: July 16, 2002** **Released: July 17, 2002**

By the Chief, Enforcement Bureau:[^1]

1\. In this Order we consider complaints filed against the rates charged
by the above-referenced operator (\"Operator\")[^2] for its cable
programming services tier (\"CPST\") in the community referenced above.
The Cable Services Bureau has already issued an Order, DA 95-2168
(\"Prior Order\"),[^3] which resolved complaints filed against
Operator\'s CPST rates in effect through May 14, 1994. In its Prior
Order, the Cable Services Bureau stated that its findings \"do not in
any way prejudge the reasonableness of the price for CPS service after
May 14, 1994 under our new rate regulations.\"[^4] Operator filed a
refund plan in response to the Prior Order. In this Order, we address
the reasonableness of Operator\'s CPST rates for the above-referenced
community beginning May 15, 1994 as well as Operator's refund plan.

2\. Under the provisions of the Communications Act[^5] that were in
effect at the time the referenced complaints were filed, 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 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\. Upon review of Operator\'s FCC Form 1200, we accept Operator\'s
calculated maximum permitted rate (\"MPR\") of \$11.12. Because
Operator's actual CPST rate of \$11.75, effective May 15, 1994 through
June 30, 1994, exceeds its calculated MPR of \$11.12, we find Operator's
actual CPST rate of \$11.75, effective May 15, 1994 through June 30,
1994, to be unreasonable,. Upon review of Operator's FCC Form 1210,
covering the period April 1, 1994 through June 30, 1994, we accept
Operator\'s calculated MPR of \$11.42. Because Operator's actual CPST
rate of \$11.75, effective July 1, 1994 through September 30, 1994,
exceeds its calculated MPR of \$11.42, we find Operator's actual CPST
rate of \$11.75, effective July 1, 1994 through September 30, 1994, to
be unreasonable. Upon review of Operator's FCC Form 1210, covering the
period July 1, 1994 through September 30, 1994, we accept Operator\'s
calculated MPR of \$11.65. Because Operator's actual CPST rate of
\$11.75, effective October 1, 1994 through December 31, 1994, exceeds
its calculated MPR of \$11.65, we find Operator's actual CPST rate of
\$11.75, effective October 1, 1994 through December 31, 1994, to be
unreasonable. Upon review of Operator's FCC Form 1210, covering the
period October 1, 1994 through December 31, 1994, we find Operator's
actual CPST rate of \$11.75, effective January 1, 1995, to be
reasonable.

5\. Our review of Operator's refund plan for Order, DA 95-2168, reveals
that Operator's total overcharges for the period under review are *de
minimis* and it would not be in the public interest to order refunds. We
dismiss Operator's refund plan for Order, DA 95-2168, as moot.

6\. Accordingly, IT IS ORDERED, pursuant to Sections 0.111 and 0.311 of
the Commission's rules, 47 C.F.R. §§ 0.111 and 0.311, that the CPST rate
of \$11.75, charged by Operator in the community referenced above,
effective May 15, 1994 through December 31, 1994, IS UNREASONABLE.

7\. IT IS FURTHER ORDERED, pursuant to Sections 0.111 and 0.311 of the
Commission's rules, 47 C.F.R. §§ 0.111 and 0.311, that the CPST rate of
\$11.75, charged by Operator in the community referenced above,
effective January 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 \$11.12 per month
(plus franchise fees), plus interest to the date of the refund, for the
period May 15, 1994, through June 30, 1994.

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 \$11.42 per month
(plus franchise fees), plus interest to the date of the refund, for the
period July 1, 1994, through September 30, 1994.

10\. 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 \$11.65 per month
(plus franchise fees), plus interest to the date of the refund, for the
period October 1, 1994 through December 31, 1994.

11\. 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,
Enforcement 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.

12\. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the
Commission\'s rules, 47 C.F.R. § 76.961, that Operator's refund plan for
Order, DA 95-2168, IS DISMISSED.

13\. IT IS FURTHER ORDERED, pursuant to Sections 0.111 and 0.311 of the
Commission's rules, 47 C.F.R. §§ 0.111 and 0.311, that the complaints
referenced herein against the CPST rates charged by Operator in the
community referenced above ARE GRANTED.

FEDERAL COMMUNICATIONS COMMISSION

David H. Solomon

Chief, Enforcement Bureau

[^1]: Effective March 25, 2002, the Commission transferred
    responsibility for resolving cable programming services tier rate
    complaints from the former Cable Services Bureau to the Enforcement
    Bureau. *See* *Establishment of the Media Bureau, the Wireline
    Competition Bureau and the Consumer and Governmental Affairs Bureau,
    Reorganization of the International Bureau and Other Organizational
    Changes*, FCC 02-10, 17 FCC Rcd 4672 (2002).

[^2]: The term \"Operator\" includes Operator's successors and
    predecessors in interest.

[^3]: *In the Matter of Post-Newsweek Cable, Inc.*, DA 95-2168, 10 FCC
    Rcd 11559 (CSB 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* Section 76.956 of the Commission\'s rules, 47 C.F.R. §
    76.956.

[^8]: *Id.*

[^9]: *See* Section 76.957 of the Commission\'s rules, 47 C.F.R. §
    76.957.

[^10]: *See* Section 76.922 of the Commission\'s rules, 47 C.F.R. §
    76.922.

[^11]: *Id.*

[^12]: *Id.*

[^13]: *Id*.