PUBLIC NOTICE Federal Communications Commission 445 12th St., S.W. Washington, D.C. 20554 News Media Information 202 / 418-0500 Internet: http://www.fcc.gov TTY: 1-888-835-5322 DA 17-949 MEDIA BUREAU ACTION October 2, 2017 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC FORMS 1210 AND 1240 NOW AVAILABLE This Public Notice is applicable to rate-regulated cable operators that use FCC Forms to justify their cable rates.1 Cable operators adjusting the non-external cost portion of their rates for inflation should follow the instructions provided with the applicable FCC Form. All inflation adjustment figures are based on changes in the Gross National Product Price Index (GNP-PI) published by the United States Department of Commerce, Bureau of Economic Analysis (BEA). The Media Bureau obtained the chain- type price indexes from the BEA news release dated September 28, 2017 (BEA 17-51) at Table 6 (Addenda: Gross National Product). FCC Form 1210 Operators filing FCC Form 1210 may make an annual adjustment based on inflation occurring from June 30 of the previous year to June 30 of the year in which the inflation adjustment is made. The inflation factor for the twelve months ended June 30, 2017 is 1.0159. Operators who wish to take this year’s inflation adjustment using FCC Form 1210 should enter the figure “1.0159” on Lines I5 and J5 of the form. This year’s inflation adjustment factor is calculated by dividing the second quarter 2017 GNP-PI (113.118) by the second quarter 2016 GNP-PI (111.348). Operators may take this year’s inflation adjustment between October 1, 2017 and August 31, 2018. FCC Form 1240 Operators filing FCC Form 1240 may make an adjustment based on quarterly figures. The second quarter 2017 inflation factor for operators using FCC Form 1240 is 1.0101%. The adjustment factor of 1.0101% is a measure of the annualized change in prices occurring over the period from April 1, 2017 to June 30, 2017. The inflation adjustment factor is calculated by dividing the GNP-PI for the second quarter of 2017 (113.118) by the GNP-PI for the first quarter of 2017 (112.834). The result of this calculation is converted from a quarterly change measurement factor to an annual change measurement factor by raising it to the fourth power. Operators calculating the Inflation Factor for a True-Up Period that includes some portion of the second quarter of 2017 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form 1240 as “0.0101.” Operators using this factor for calculating the Projected Period Inflation 1 Pursuant to 47 CFR § 76.922(d)(2) and § 76.922(e)(2) of the Commission’s rules, cable operators may adjust the non-external cost portion of their rates for inflation. 2Segment of FCC Form 1240 should enter this number on Line C3 (January 1996 version), or Line C5 (July 1996 version) as “1.0101”. To date, the Commission has released eighty-eight quarterly inflation factors for use with FCC Form 1240. The following table lists these factors beginning in 2013:2 Year Quarter Dates Covered Inflation Factor 2013 First Jan.1, 2013 – Mar. 31, 2013 1.24% 2013 Second Apr. 1, 2013 – Jun. 30, 2013 0.65% 2013 Third Jul. 1, 2013 – Sep. 30, 2013 1.97% 2013 Fourth Oct.1, 2013 – Dec. 31, 2013 1.56% 2014 First Jan. 1, 2014 – Mar. 31, 2014 1.28% 2014 Second Apr. 1, 2014 – Jun. 30, 2014 2.11% 2014 Third Jul. 1, 2014 – Sep. 30, 2014 1.42% 2014 Fourth Oct. 1, 2014 – Dec. 31, 2014 0.12% 2015 First Jan. 1, 2015 – Mar. 31, 2015 -0.03% 2015 Second Apr. 1, 2015 – Jun. 30, 2015 2.10% 2015 Third Jul. 1, 2015 – Sep. 30, 2015 1.32% 2015 Fourth Oct. 1, 2015 – Dec. 31, 2015 0.87% 2016 First Jan. 1, 2016 – Mar. 31, 2016 0.41% 2016 Second Apr. 1, 2016 – Jun. 30, 2016 2.30% 2016 Third Jul. 1, 2016 – Sep. 30, 2016 1.42% 2016 Fourth Oct. 1, 2016 – Dec. 31, 2016 2.07% 2017 First Jan. 1, 2017 – Mar. 31, 2017 1.96% 2017 Second Apr. 1, 2017 – Jun. 30, 2017 1.01% The Commission releases a new quarterly inflation factor for operators using FCC Form 1240 four times each year. The inflation factor for a given quarter is usually released between three and four months after the end of the quarter, depending on the schedule of the Department of Commerce. The release of a new factor is posted on the Commission’s Internet site at: https://www.fcc.gov/general/inflation-updates- forms-1210-and-1240. Media Contact: Janice Wise at (202) 418-8165 Media Bureau Contact: Kevin Green at (202) 418-2127 TTY: (202) 418-0432 or 1 (888) 835-5322 --FCC-- 2 For pre-2013 inflation figures see DA 13-2056, 28 FCC Rcd 14654 (rel. October 23, 2013), available at https://www.fcc.gov/general/inflation-updates-forms-1210-and-1240.