*Pages 1--4 from  Microsoft Word - 10327*
 Federal  Communications  Commission  DA  00-  243 
 Before  the  Federal  Communications  Commission 
 Washington,  D.  C.  20554 


 In  the  Matter  of  )  CUID  No.  GA0088  (Chickamauga)  ) 
 Comcast  Cablevision  )  ) 
 Refund  Plan  and  Complaint  Regarding  )  Cable  Programming  Services  Tier  Rates  ) 


 REFUND  PLAN  AND  RATE  ORDER 
 Adopted:  February  8,  2000  Released:  February  10,  2000 
 By  the  Acting  Chief,  Financial  Analysis  and  Compliance  Division,  Cable  Services  Bureau: 
 1.  In  this  Order  we  consider  a  complaint  concerning  the  rates  the  above-  referenced  operator  ("  Operator")  1  was  charging  for  its  cable  programming  services  tier  ("  CPST")  in  the  community  referenced 
 above.  We  have  already  issued  an  order  ("  Prior  Order")  addressing  the  reasonableness  of  Operator's  CPST  rate  for  the  period  December  27,  1993  2  through  May  14,  1994.  3  In  our  Prior  Order,  we  stated  that  our 
 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  On  June  2,  1995,  Operator  filed  a  refund  plan  ("  Refund  Plan")  pursuant  to 
 our  Prior  Order.  This  Order  addresses  the  reasonableness  of  Operator's  CPST  rates  beginning  May  15,  1994  as  well  as  Operators  Refund  Plan. 


 2.  Under  the  Communications  Act,  5  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.  6  The  Cable  Television  Consumer  Protection  and 
 Competition  Act  of  1992  ("  1992  Cable  Act")  7  requires  the  Commission  to  review  CPST  rates  upon  the  filing 
 1  On  October  21,  1999,  the  Federal  Communications  Commission  received  notification,  pursuant  to  47  C.  F.  R.   
 76.400,  of  a  change  of  ownership  from  TeleScripps  Cable  Company  to  Comcast  Cablevision  of  the  South,  Inc.  The  term  "Operator"  includes  all  of  Operator's  predecessors  in  interest. 


 2  The  first  valid  complaint  against  Operator's  CPST  rate  in  the  community  referenced  above  was  filed  on  December 
 27,  1993.  No  further  complaints  were  filed  with  the  Federal  Communications  Commission. 
 3  See  In  the  Matter  of  Battlefield  Cable  Company,  DA  95-  1006,  10  FCC  Rcd  8160  (1995). 


 4  Id.  at  n.  1. 
 5  Communications  Act,  Section  623(  c),  as  amended,  47  U.  S.  C.  543(  c)  (1996). 
 6  See  Section  76.957  of  the  Commission's  Rules,  47  C.  F.  R.  76.957. 
 7  Pub.  L.  No.  102-  385,  106  Stat.  1460  (1992). 
1
 Federal  Communications  Commission  DA  00-  243 
 2 
 of  a  valid  complaint  by  a  subscriber  or  local  franchise  authority  ("  LFA").  The  Telecommunications  Act  of  1996  ("  1996  Act")  8  and  our  rules  implementing  the  new  legislation  ("  Interim  Rules"),  9  require  that, 
 beginning  February  8,  1996,  complaints  against  CPST  rates  be  filed  with  the  Commission  by  an  LFA  that  has  received  more  than  one  subscriber  complaint  .10 


 3.  Operators  must  use  the  FCC  Form  1200  series  to  justify  rates  for  the  period  beginning  May  15,  1994.  11  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.  12  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.  13  Any  incurred  cost  that  is  not  projected  may  be  accrued  with  interest  and  added 
 to  rates  at  a  later  time.  14 
 4.  Upon  review  of  Operators  FCC  Form  1200,  we  find  Operators  calculated  MPR  of  $11.14  to  be  reasonable.  The  Commission's  rules  provide  for  a  refund  liability  deferral  period,  if  timely  requested 
 by  Operator,  beginning  May  15,  1994  and  ending  July  14,  1994,  for  any  overcharges  resulting  from  Operator's  calculation  of  a  new  MPR  on  the  FCC  Form  1200.  15  Operator  elected  to  defer  refund  liability  for 
 overcharges  associated  with  its  FCC  Form  1200  pursuant  to  the  Commission's  Rules.  16  However,  Operator  will  incur  refund  liability  from  May  15,  1994  through  July  14,  1994  for  any  CPST  rates  charged  above  the 
 FCC  Form  393  MPR  approved  by  the  Commission.  17  In  our  Prior  Order,  we  found  that  Operator  had  justified  an  MPR  of  $12.13.  Because  Operator's  actual  CPST  rate  of  $12.46,  effective  May  15,  1994  through 
 June  30,  1994,  exceeds  its  FCC  Form  393  MPR,  we  find  Operator's  actual  CPST  rate  of  $12.46,  effective  May  15,  1994  through  June  30,  1994,  to  be  unreasonable.  Because  Operator's  actual  CPST  rate  of  $11.48, 
 effective  July  1,  1994,  exceeds  its  FCC  Form  1200  MPR  of  $11.14,  we  find  Operator's  actual  CPST  rate  of 


 8  Pub.  L.  No.  104-  104,  110  Stat.  56  (1996). 
 9  See  Implementation  of  Cable  Act  Reform  Provisions  of  the  Telecommunications  Act  of  1996,  11  FCC  Rcd  5937 
 (1996). 
 10  See  Communications  Act,  Section  623(  c),  as  amended,  47  U.  S.  C.  543(  c)  (1996). 


 11  See  Section  76.  922  of  the  Commission's  Rules,  47  C.  F.  R.    76.922. 
 12  Id. 
 13  Id. 
 14  Id. 
 15  See  47  C.  F.  R.  Section  76.922(  b)(  6)(  ii). 


 16  See  Letter  dated  June  13,  1994  from  Gary  M.  Steffen,  Staff  Accountant,  Scripps  Howard  to  the  Federal 
 Communications  Commission. 
 17  47  C.  F.  R.  76.922(  b)(  6)(  ii). 
2
 Federal  Communications  Commission  DA  00-  243 
 3 
 $11.48,  effective  July  1,  1994  through  December  31,  1995,  to  be  unreasonable.  18 
 5.  Upon  review  of  Operator's  FCC  Form  1210  covering  the  period  April  1,  1994  through  December  31,  1995,  we  find  Operator's  calculated  MPR  of  $12.13  to  be  reasonable.  Because  Operator's 
 actual  CPST  rate  of  $11.48,  effective  January  1,  1996  does  not  exceed  its  MPR,  we  find  Operator's  actual  CPST  rate  of  $11.48,  effective  January  1,  1996,  to  be  reasonable.  Upon  review  of  Operators  Refund  Plan 
 filed  pursuant  to  our  Prior  Order,  we  find  that  the  Refund  Plan  fulfills  the  requirements  of  the  Refund  Order,  provided  Operator  accrues  refund  interest  up  to  the  date  of  refund. 


 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  $12.46,  charged  by  Operator  in  the  community  referenced  above, 
 effective  May  15,  1994  through  June  30,  1994,  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  $11.48,  charged  by  Operator  in  the  community  referenced  above, 
 effective  July  1,  1994  through  December  31,  1995,  IS  UNREASONABLE. 
 8.  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  $11.48,  charged  by  Operator  in  the  community  referenced  above, 
 effective  January  1,  1996,  IS  REASONABLE. 
 9.  IT  IS  FURTHER  ORDERED,  pursuant  to  Sections  0.321  and  76.962  of  the  Commissions  rule,  47  C.  F.  R.    0.321  and    76.962,  that  Operators  Refund  Plan  IS  APPROVED,  provided  Operator 
 modifies  its  Refund  Plan  to  the  extent  indicated  herein,  and  that  Operator  implement  its  refund  plan  within  60  days  of  the  date  of  this  Order  and  file  a  certificate  of  compliance  with  the  Chief,  Cable  Services  Bureau, 
 within  90  days  of  the  release  of  this  Order  certifying  its  compliance  with  this  Order. 
 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  franchise  area  referenced  above  that  portion 
 of  the  amount  paid  in  excess  of  the  maximum  permitted  CPST  rate  of  $12.13  per  month  (plus  franchise  fees),  plus  interest  to  the  date  of  the  refund,  for  the  period  beginning  May  15,  1994  through  June  30,  1994. 


 11.  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  franchise  area  referenced  above  that  portion 
 of  the  amount  paid  in  excess  of  the  maximum  permitted  CPST  rate  of  $11.14  per  month  (plus  franchise  fees),  plus  interest  to  the  date  of  the  refund,  for  the  period  July  1,  1994  through  December  31,  1995. 


 18  These  finding  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,  NW,  Washington,  DC,  20036,  or  by  calling  ITS  at  (202)  857-  3800. 
3
 Federal  Communications  Commission  DA  00-  243 
 4 
 12.  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  with  60  days  of  Commission  approval  of  the  plan. 
 13.  IT  IS  FURTHER  ORDERED,  pursuant  to  Section  0.321  of  the  Commission's  rules,  47  C.  F.  R.    0.321,  that  the  complaint  referenced  herein  against  the  CPST  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 
4