**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

In the Matter of )

) CUID No. VA0255 (Leesburg)

Benchmark Acquisition Fund I LP ) CSR No. 4400-R

d/b/a Cablevision of Loudoun )

)

Cost of Service Showing to Support )

Basic Service Tier Rate )

**ORDER**

**Adopted: December 1, 1999 Released: December 3, 1999**

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

1\. On September 8, 1994, the above-referenced operator (\"Operator\")
filed a cost of service FCC Form 1220 with the local franchising
authority (\"LFA\") for the above-referenced community to justify its
rate for its basic service tier (\"BST\") in the community referenced
above. On October 5, 1994, the LFA filed a timely petition for special
relief with the Federal Communications Commission (\"Commission\"),
pursuant to the Commission's rules,[^1] requesting that the Commission
review the BST cost of service filing. This Order addresses only the
reasonableness of Operator\'s initial BST rate of \$10.76[^2] and the
BST rate of \$11.27, effective August 1, 1994.

2\. To justify rates for the period beginning May 15, 1994, operators
must use the FCC Form 1200 series.[^3] Cable operators attempting to
justify their rates through a cost of service showing must complete and
file FCC Form 1220.[^4] 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.[^5] Where reported costs are disallowed, we make appropriate
adjustments.

3\. Operator submitted its FCC Form 1220 to the Commission on October
14, 1994, requesting a maximum permitted rate (\"MPR\") of \$37.07 for
its BST. Subsequently, Operator submitted an amendment to its FCC Form
1220 reducing its request to an MPR of \$15.63. Upon review of
Operator\'s FCC Form 1220, we find Operator\'s MPR of \$15.63 to be
reasonable. Because Operator's actual initial BST rate of \$10.76, and
BST rate of \$11.27, effective August 1, 1994, do not exceed its MPR, we
find Operator's actual initial BST rate of \$10.76, and BST rate of
\$11.27, effective August 1, 1994, to be reasonable.[^6]

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
initial BST rate of \$10.76 and BST rate of \$11.27, effective August 1,
1994, charged by Operator in the franchise area referenced above, ARE
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 LFA and Operator.

FEDERAL COMMUNICATIONS COMMISSION

Kathleen F. Costello, Acting Chief

Financial Analysis and Compliance Division

Cable Services Bureau

[^1]: *See* Section 76. 933(d) of the Commission\'s Rules, 47 C.F.R.
    §76.933(d).

[^2]: The LFA initiated rate regulation on June 20, 1994. *See* Petition
    for Special Relief, CSR No. 4400-R at p. 4.

[^3]: *See* Section 76.922 of the Commission\'s Rules, 47 C.F.R.
    §76.922.

[^4]: *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\").

[^5]: 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\").

[^6]: 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.