Federal Communications Commission DA 23-19 DA 23-19 Released: January 6, 2023 MEDIA BUREAU AND OFFICE OF ECONOMICS AND ANALYTICS ACTION THIRD QUARTER 2022 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC RATE REGULATION FORM 1240 NOW AVAILABLE This Public Notice is applicable to rate-regulated cable operators that use FCC Forms to justify their cable rates. 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. 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 chain-type price indexes were obtained from the BEA Table 1.7.4 (Price Indexes for Gross Domestic Product, Gross National Product, and Net National Product) Line 4 (Gross National Product) on December 23, 2022. Table 1.7.4 can be found at this link: https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDNdLCJkYXRhIjpbWyJjYXRlZ29yaWVzIiwiU3VydmV5Il0sWyJOSVBBX1RhYmxlX0xpc3QiLCI0MiJdXX0=. Operators filing FCC Form 1240 may make an adjustment based on quarterly figures. The third quarter 2022 inflation factor for operators using FCC Form 1240 is 4.37%. The adjustment factor of 4.37% is a measure of the annualized change in prices occurring over the period from July 1, 2022 to September 30, 2022. The inflation adjustment factor is calculated by dividing the GNP-PI for the third quarter of 2022 (128.248) by the GNP-PI for the second quarter of 2022 (126.885). 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. We then convert the calculation to an inflation adjustment factor by subtracting one. Operators calculating the Inflation Factor for a True-Up Period that includes some portion of the third quarter of 2022 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form 1240 as “0.0437.” Operators using this factor for calculating the Projected Period Inflation Segment of FCC Form 1240 should enter this number on Line C3 (January 1996 version), or Line C5 (July 1996 version) as “1.0437”. Each quarter the Commission releases a quarterly inflation factor for use with FCC Form 1240. The following table lists these factors beginning in 2017. For pre-2017 inflation figures see DA 17-646, 32 FCC Rcd 5479 (rel. Jul. 5, 2017), available at https://www.fcc.gov/general/inflation-updates-forms-1210-and-1240. Year Quarter Dates Covered Inflation Factor 2017 First Jan. 1, 2017 – Mar. 31, 2017 1.96% 2017 Second Apr. 1, 2017 – Jun. 30, 2017 1.01% 2017 Third Jul. 1, 2017 – Sep. 30, 2017 2.09% 2017 Fourth Oct. 1, 2017 – Dec. 31, 2017 2.33% 2018 First Jan. 1, 2018 – Mar. 31, 2018 2.20% 2018 Second Apr. 1, 2018 – Jun. 30, 2018 3.04% 2018 Third Jul. 1, 2018 – Sep. 30, 2018 1.81% 2018 Fourth Oct. 1, 2018 – Dec. 31, 2018 1.68% 2019 First Jan. 1, 2019 – Mar. 31, 2019 0.90% 2019 Second Apr. 1, 2019 – Jun. 30, 2019 2.42% 2019 Third Jul. 1, 2019 – Sep. 30, 2019 1.81% 2019 Fourth Oct. 1, 2019 – Dec. 31, 2019 1.28% 2020 First Jan. 1, 2020 – Mar. 31, 2020 1.41% 2020 Second Apr. 1, 2020 – Jun. 30, 2020 -1.82% 2020 Third Jul. 1, 2020 – Sep. 30, 2020 3.51% 2020 Fourth Oct. 1, 2020 – Dec. 31, 2020 2.04% 2021 First Jan. 1, 2021 – Mar. 31, 2021 4.32% 2021 Second Apr. 1, 2021 – Jun. 30, 2021 6.07% 2021 Third Jul. 1, 2021 – Sep. 30, 2021 5.95% 2021 Fourth Oct. 1, 2021 – Dec. 31, 2021 7.13% 2022 First Jan. 1, 2022 – Mar. 31, 2022 8.19% 2022 Second Apr. 1, 2022 – Jun. 30, 2022 9.00% 2022 Third Jul. 1, 2022 – Sep. 30, 2022 4.37% 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. For additional information, contact Jake Riehm, jake.riehm@fcc.gov, (202) 418-2166 or Kim Makuch, kim.makuch@fcc.gov, (202) 418-2252. –FCC– 2