Federal Communications Commission DA 96-1946
Before the
Federal Communications Commission 
Washington, D.C. 20554
In the Matter of )
) 
Suburban Cable Television Co. Inc. ) CUID No. PA1724 (Borough of Doylestown)
)
Complaint Regarding ) 
Cable Programming Services Tier ). 
Rate and Rate Increases )
ORDER 
Adopted: November 20, 1996 Released: November 26,1996
By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:
1. In this Order we consider complaints filed concerning the rates of Suburban Cable 
Television Co. Inc. ("Suburban") for its cable programming services tier ("CPST") in the Borough 
of Doylestown, Pennsylvania, CUID No. PA 1724 (the "Borough"). Suburban has attempted to 
justify its CPST rates through a cost of service showing on FCC Form 1220. This Order 
addresses the reasonableness of Suburban's CPST rates from September 1993 to present.
2. The Communications Act1 authorizes the Federal Communications Commission 
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 19922 ("1992 Cable Act") required the Commission to review CPST rates upon the filing of 
a valid complaint by a subscriber or local franchise authority ("LFA"). The Telecommunications 
Act of 19963 ("1996 Act") and our rules implementing the new legislation,4 require that 
complaints against the CPST rates be filed with the Commission only by an LFA that has 
received subscriber complaints. An LFA may not file a CPST rate complaint unless, within 90 
days after such increase becomes effective, it receives more than one subscriber complaint. The 
filing of a valid complaint triggers an obligation on behalf of the cable operator to file a 
justification of its CPST rate. If the Commission finds the rate to be unreasonable, it shall 
determine the correct rate and any refund liability.
1 47 U.S.C. Section 543(c)(3)(1996).
1 Pub. L. No. 102-235, 106 Stat. 1460 (1992).
3 Pub. L. No. 104-104, 110 Stat 56 (February 8, 1996).
4 See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Red 
5937 ("Interim Rules").
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3. The Commission has received valid complaints concerning Suburban's CPST rate 
in effect from September 1, 1993 through February 10, 1995,5 and against the CPST rate increase 
that Suburban implemented on the first billing after February 10, 1995.6 Accordingly, these 
complaints trigger the Commission's jurisdiction to review Suburban's CPST rates under the 1992 
Cable Act.
4. On August 28, 1996, the Borough filed a complaint with the Commission 
regarding Suburban's $0.73 CPST rate increase which was implemented on June 1, 1996 in the 
above-referenced franchise area. This complaint is therefore subject to the requirements of the 
1996 Act. The Borough asserts that it has received more than one complaint against Suburban's 
CPST rate increase, thereby triggering the Commission's jurisdiction to review this complaint. 
The complaint from the Borough also triggers an obligation on behalf of the cable operator to 
file a justification of its CPST rate increase with the Borough.7 Thus, in this case, Suburban is 
required to justify the increase in its CPST rate which is the subject of the Borough's complaint. 
In response to the Borough's complaint, Suburban submitted a letter stating that it was relying 
upon its previously filed FCC Form 1220 to justify its rates.8
5. Suburban's FCC Form 1220 filing seeks to establish that its CPST rate, including 
subsequent increases, is below the maximum permitted rate and is justified based on its cost of 
providing regulated cable service. According to information provided by Suburban in its FCC 
Form 1220 cost of service showing, the franchise area comprised approximately 2,409 CPST 
subscribers at the time of the October 21, 1994 filing. Suburban provided 23 CPST channels at 
that time. In this review process, we analyzed Suburban's CPST cost of service showing to 
ensure that the initial CPST rate, and subsequent rate increases, were not unreasonable and to 
determine any associated refund liability.
6. In reviewing the cost of service showing, fate base and expense items have been 
evaluated to determine whether Suburban should be permitted to recover those items. Where a 
certain rate base or expense element was not supported, was excessive, or was unrelated to 
providing regulated cable service, such cost was disallowed in whole or in part.9 Where reported
5 The Commission received the first valid complaint against Suburban on February 22, 1994.
6 The Commission received a complaint against Suburban's CPST rate increase on February 21, 1995.
7 47 C.F.R. Section 76.956.
' See Letter from Robert A. Pfeiffer, General Manager, Suburban Cable TV, to John H. Davis, Township 
Manager, Borough of Doylestown (July 31, 1996).
' 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 ("Rate Order"), 8 FCC Red 5631, 5794 n.619 (1993).
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costs were disallowed, we have made appropriate adjustments. Even with our adjustments and 
disallowances, however, we find that Suburban's monthly CPST rate has been justified.10
7. Based on our review of Suburban's cost of service filing, and applying the 
Commission's most current rules, we find that Suburban has justified the monthly CPST rate of 
$12.53 charged from September 1993 to February 10, 1995, the monthly CPST rate of $14.53 
charged from February 11, 1995 to May 31, 1996, and the monthly CPST rate of $15.26 
implemented on June 1, 1996.
8. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's 
rules, 47 C.F.R. Section 0.321, that the monthly CPST rate of $12.53 charged from September 
1993 to February 10, 1995, the monthly CPST rate of $14.53 charged from February 11, 1995 
to May 31, 1996, and the monthly CPST rate of $15.26 implemented on June 1, 1996, ARE NOT 
UNREASONABLE.11
9. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 
47 C.F.R. Section 0.321, that the complaints against the initial CPST rate, and the subsequent 
monthly CPST rate increases implemented by Suburban, with respect to CUID No. PA 1724, ARE 
DENIED.
FEDERAL COMMUNICATIONS COMMISSION
Elizabeth W. Beaty
Chief, Financial Analysis and Compliance Division
Cable Services Bureau
10 Information regarding the specific adjustments made to Suburban's filing for Asset Valuation, Capitalized 
Losses and Accumulated Amortization, Direct Assignments of Other Cable Revenues, Cost Allocations, Rate of 
Return and the basis for such adjustments, can be found in the public files for CUID No. PA 1724 which are available 
in the Cable Services Bureau's public reference room, or through the Commission's copy contractor, International 
Transcription Services ("ITS"), 1919 M Street, N.W., Washington, DC, 20554, or by calling ITS at (202) 857-3800.
" This finding is based solely on the representations of Suburban. 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.
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