**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

) CUID No. MN0068 (City of Sleepy Eye)

Triax Midwest Associates, L. P. )

)

Complaint Regarding )

Cable Programming Services Tier Rates )

**ORDER**

**Adopted: October 28, 1999 Released: November 2, 1999**

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

1\. In this Order we consider a complaint against the February 1, 1996
rate increase by the above-referenced operator (\"Operator\") for its
cable programming services tier (\"CPST\") in the community referenced
above.[^1] This Order addresses only the reasonableness of Operator\'s
February 1, 1996 CPST rate increase.

2\. Under the Communications Act,[^2] 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. If the Commission finds a rate to be
unreasonable, it shall determine the correct rate and any refund
liability.[^3] The Cable Television Consumer Protection and Competition
Act of 1992 (\"1992 Cable Act\")[^4] requires the Commission to review
CPST rates upon the filing of a valid complaint by a subscriber or local
franchise authority (\"LFA\").

3\. To justify rates for the period beginning May 15, 1994, operators
must use the FCC Form 1200 series.[^5] Cable operators attempting to
justify their rates through a cost of service showing must complete and
file FCC Form 1220.[^6] 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.[^7] Where reported costs are disallowed, we make appropriate
adjustments.

4\. Upon review of Operator\'s FCC Form 1220, we find Operator\'s actual
CPST rate of \$14.78, effective February 1, 1996, to be reasonable.[^8]

5\. 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 \$14.78,
charged by Operator in the franchise area referenced above, effective
February 1, 1996, IS REASONABLE.

6\. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the
Commission\'s rules, 47 C.F.R. § 0.321, that the complaint referenced
herein against the CPST rate charged by Operator in the community set
forth above, IS DENIED.

FEDERAL COMMUNICATIONS COMMISSION

Patrick A. Boateng, Acting Chief

Financial Analysis and Compliance Division

Cable Services Bureau

[^1]: The term \"Operator\" as used in this Order includes Operator\'s
    predecessors in interest. On October 9, 1996, the Federal
    Communications Commission received notification, pursuant to Section
    76.400 of the Commission\'s rules, of a change in ownership from DD
    Cable Partners, L.P., to Triax Midwest Associates, L.P.

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

[^3]: *See* Section 76.957 of the Commission\'s Rules, 47 C.F.R.
    §76.957.

[^4]: Pub. L. No. 102-385, 106 Stat. 1460 (1992).

[^5]: *See* Section 76.922 of the Commission\'s Rules, 47 C.F.R.
    §76.922.

[^6]: *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\").

[^7]: 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\").

[^8]: 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.