*Pages 1--2 from Microsoft Word - 11481.doc* Federal Communications Commission DA 01- 2150 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) CUID No. WI0070 (Lake Geneva) Jones Intercable, Inc. ) ) Petition for Reconsideration ) ORDER ON RECONSIDERATION Adopted: September 13, 2001 Released: September 14, 2001 By the Deputy Chief, Cable Services Bureau: 1. In this Order we consider a petition for reconsideration (" Petition") of our Order, DA 97-1048 (" Prior Order"), 1 filed with the Federal Communications Commission (" Commission") by the above-referenced operator (" Operator"). Our Prior Order resolved all pending complaints against Operator's CPST rates in the above- referenced community beginning May 15, 1994, and found Operator's cable programming services tier (" CPST") rates to be unreasonable. In this Order, we grant Operator’s Petition in part and amend our Prior Order. 2. Under the Communications Act, 2 at the time the referenced complaints were 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, 1 In the Matter of Jones Intercable, Inc., DA 97- 1048, 12 FCC Rcd 23309 (1997). 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. 1 Federal Communications Commission DA 01- 2150 2 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. In its Petition, Operator raises two issues, only one of which is addressed herein. In our Prior Order, we adjusted Line A6 (Monthly Charge per Tier as of 3/ 31/ 94) and Line G2 (Monthly Charge per Tier as of 9/ 30/ 92) of Operator’s FCC Form 1200, to remove franchise fees included in the charges. In its Petition, Operator argues that this was a clerical error because any franchise fees included in the charges were already removed by Operator on Line A10 and Line G6 respectively. Upon review, we find Operator’s argument to be compelling and will grant that part of Operator’s Petition. Because our resolution of this issue disposes of Operator’s refund liability, we decline to address any other issue raised by Operator in its Petition and we will amend our Prior Order to exclude any refund liability. 5. Accordingly, IT IS ORDERED, pursuant to Section 1.106 of the Commission's rules, 47 C. F. R. § 1.106, that Operator's Petition for Reconsideration IS GRANTED IN PART TO THE EXTENT INDICATED HEREIN. 6. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C. F. R. § 0.321, that In the Matter of Jones Intercable, Inc., DA 97- 1048, 12 FCC Rcd 23309 (1997) IS AMENDED TO THE EXTENT INDICATED HEREIN. 7. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C. F. R. § 0.321, that the complaints referenced herein against the CPST rates charged by Operator in the community referenced above, ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION William H. Johnson, Deputy Chief Cable Services Bureau 8 Id. 9 Id. 10 Id. 2