In the Matter of 
Federal Communications Commission 
Before the 
Federal Communications Commission 
Washington, D.C. 20554 
) 
) 
) 
DA 96-2071 
Maryland Cable Partners, L.P. 
) CUID No. MD0172 (Prince George's County) 
) 
Complaints Regarding 
Cable Programming Services Tier 
Rate Increase 
Adopted: December 9, 1996 
By the Chief, Cable Services Bureau: 
) 
) 
) 
) 
ORDER 
Released: December 9, 1996 
1. In this Order we consider complaints concerning the rate increases of Mary land 
Cable Partners, L.P. ("Maryland Cable") for its cable programming services tier ("CPST") in 
Prince George's County, CUID No. MDOl 72. This Order addresses only the reasonableness of 
Maryland Cable's rates after May 14, 1994. We have already issued a separate order addressing 
the reasonableness of Maryland Cable's CPST rate in effect prior to that date. 1 Maryland Cable 
has attempted to justify its CPST rates through benchmark showings on FCC Form 1200, FCC 
Forms 1210 and FCC Form 1240. We conclude, for the reasons discussed below, that the rates 
charged by Mary land Cable are unreasonable. 
2. The Communications Act2 authorizes the Federal Communications Commission 
("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 and Consumer Protection 
and Competition Act of 1992, 3 (" 1992 Cable Act") required the Commission to review CPST 
' See Maryland Cable Partners, 11 FCC Red 2406 (1996), Erratum, 11 FCC Red 2406 (1996). (In this Order 
and its subsequent Erratum, the Commission determined that Maryland Cable' CPST rates in effect from September 
1993 to May 14, 1994 were reasonable. In a Memorandum Opinion and Order 10 FCC Red 2119 (1994), the 
Commission determined that an a la carte package which Maryland Cable had created in September 1993 could be 
treated as an New Product Tier (NPT). The channels associated with the NPT are not at issue in this case. We note, 
however, that Prince George's County, the Local franchise authority, has filed an Application for Review of the 
Commission Memorandum Opinion and Order regarding the a la carte issue and the treatment of the NPT. The 
decision in this case does not affect or prejudice the outcome of that proceeding, and is subject to the Commission's 
final determination in that case.) 
2 Section 623(c), as amended, 47 U.S.C. Section 543(c)(3) (1996). 
' Pub. L. No. 102-385, 106 Stat 1460 (1992). 
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Federal Communications Commission DA 96-2071 
rates upon the filing of a valid complaint by a subscriber. The Telecommunications Act of 19964 
(" 1996 Act") and our rules implementing the new legislation, 5 require that complaints against the 
CPST rates be filed with the Commission by a local franchising authority ("LFA") that has 
received subscriber complaints. An LFA may not file a CPST rate complaint unless it receives 
more than one subscriber complaint within 90 days after such increase becomes effective. The 
filing of a valid complaint triggers an obligation on behalf of the cable operator to file a 
justification of its CPST rates.6 If the Commission finds the rate to be unreasonable, it shall 
determine the correct rate and any refund liability.7 
3. The Commission's original rate regulations took effect on September 1, 1993.8 
The Commission revised its rate regulations effective May 15, 1994.9 Cable operators that have 
valid CPST complaints filed against them prior to May 15, 1994 must demonstrate that their 
CPST rates were in compliance with the Commission's initial rules from the time the complaint 
was filed through May 14, 1994. Cable operators must also demonstrate that their rates were in 
compliance with the revised rules from May 15, 1994 forward. 1° Cable operators attempting to 
justify their rates for the period beginning May 15, 1994 by a benchmark showing must use the 
FCC Form 1200 series. 11 Cable operators may also justify rate increases based on the addition 
and deletion of channels, changes in certain external costs, and inflation, by filing FCC Form 
1210.12 FCC Form 1210 must be filed at least 30 days before new rates are scheduled to go into 
effect when the Commission has found the cable programming service rate to be unreasonable 
less than one year prior to the filing. In addition, FCC Form 1210 may be filed where there is 
a pending complaint against the CPST rate. 13 
• Pub. L. No. 104-104, 110 Stat 56 (February 8, 1996). 
' See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Red 
5937 (1996) ("Interim Rules"). 
• 47 C.F.R. Section 76.956. 
' See 47 C.F.R. Section 76.957. 
' Order in MM Docket No. 92-266, Implementation of Sections of the Cable Consumer Protection and 
Competition Act of 1992: Rate Regulation, FCC 93-372, 58 Fed. Reg. 41042 (Aug. 2, 1993). 
• 47 C.F.R. Section 76.922(b); see also Second Order on Reconsideration, Fourth Report and Order, and Fifth 
Notice of Proposed Rulemaking, MM Docket No. 92-266, FCC 94-38, 9 FCC Red 4119, 4190 (1994) ("Second 
Order on Reconsideration"). 
lo Id. 
11 47 C.F.R. Section 76.922(b)(F)(6)(ii). 
12 47 C.F.R. Section 76.922(d). 
13 47 C.F.R. Section 76.960; supra note 12. 
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Federal Communications Commission DA 96-2071 
4. Operators may justify adjustments to 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. 14 Any incurred cost that is not projected may be accrued with interest and added to rates 
at a later time. 15 If actual and projected costs are different during the rate year a "true-up" 
mechanism is available to correct estimated costs with actual cost changes.16 The "true-up" 
requires operators to decrease their rates or alternatively permits them to increase their rates to 
make an adjustment for over or under estimations of ~ese cost changes. 
5. On April 13, 1995 and on September 20, 1995 valid complaints were filed against 
the May 1, 1995 and October 1, 1995 rate increases that were to be implemented by Mary land 
Cable in Prince George's County. In addition, pursuant to the 1996 Act, the local franchise 
authority, Prince George's County Government ("County") filed a valid17 complaint on July 30, 
1996, regarding Maryland Cable's rate increase. 
6. Upon review of Maryland Cable's FCC Form 1200, multiple FCC Forms 1210 and 
FCC Form 1240, we find that Maryland Cable charged in excess of its calculated maximum 
permitted rate or has not correctly calculated its maximum permitted rate beginning May 15, 
1994, as discussed in the paragraphs below .18 
7. FCC Forms 1200. 1210 and 1240 Filings: 19 On August 15, 1994, Maryland Cable 
filed its FCC Form 1200 to justify CPST rates in effect after May 14, 1994. Maryland Cable 
,. See In the Matter of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate 
Regulation, MM Docket No. 92-266, Thirteenth Order on Reconsideration ("Thirteenth Reconsideration Order"), 11 
FCC Red 388, 291 (1996). 
'$ Id. at 392. 
•• Id. 
11 See FCC Form 329 complaint filed by the County dated July 30, 1996 to Maryland Cable. The July 30, 1996 
complaint from the LF A triggers an obligation on behalf of the cable operator to file a justification of its CPST 
rat.es with the LFA. In response, on August 20, 1996, Maryland Cable filed an FCC Form 1240 with the County. 
On Sept.ember 9, 1996 the County filed its CPST rate increase complaint with the Commission along with Maryland 
Cable's FCC Form 1240. 
" This fmding is based solely on the representations of Maryland Cable. 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 fmding that we have accepted as correct any specific entry, explanation or argument. 
made by any party to this proceeding not specifically addressed herein. 
19 Information regarding the specific adjustments made to Maryland Cable's FCC Form 1200, FCC Forms 1210 
and FCC Form 1240 filings can be found in the public file for CUID No. MDOl 72 which is 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. 
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Federal Communications Commission DA 96-2071 
calculated a maximum permitted rate for the CPST of $9.01. However, Maryland Cable was 
actually charging $9.04 for its CPST. Thus Maryland Cable has failed to demonstrate that its 
rate for the CPST was not unreasonable. 
8. On September 1, 1994, Maryland Cable filed an FCC Form 1210 to justify a rate 
increase of $0.18 effective October 1, 1994. We find that Maryland Cable correctly calculated 
a maximum pennitted rate of $9.26 justifying the October 1, 1994 CPST charge of $9.22. 
9. On February 27, 1995 Maryland Cable filed an FCC Form 1210 to justify a CPST 
rate increase of $0.26 effective May 1, 1995. We find that Maryland Cable did not correctly 
calculate its maximum pennitted rate on this filing. Maryland Cable claimed previous pennitted 
charges of $9.37 for CPST on Line A2 of it FCC Form 1210 filing. The correct maximum· 
pennitted rate from its previous FCC Form 1210 was $9.26. We adjusted Line A2 to reflect the 
corrected previous pennitted rate to $9.26 for CPST. In addition, Maryland Cable did not bring 
forward the correct previous external cost amounts as filed on Line B 10 of its previous FCC 
Form 1210. In accordance with FCC Form 1210 instructions, we corrected Line B13 on the 
May 1, 1995 FCC Form 1210 filing to reflect the external costs recorded on Line BIO of the 
previous FCC Form 1210 filing. Our correction reduced the maximum pennitted rate for CPST 
from $9.45 to $9.33. Thus, Maryland Cable failed to demonstrate that its May 1, 1995 rate of 
$9.48 for its CPST was not unreasonable. 
10. On October 17, 1995, Maryland Cable filed its FCC Form 1210 to justify a CPST 
rate increase of $0.29 effective October 1, 1995. Upon review of the FCC 1210, we adjusted 
Module A, Line 2 to reflect our corrections to the maximum permitted rates on the previous FCC 
Form 1210. Finally, we adjusted Maryland Cable's inflation to conform with the FCC published 
rate for the 12 months ending June 30, 1995. These adjustments resulted in a reduction of the 
maximum pennitted rate for CPST to $9.61 from the rate of $9.74 filed by Maryland Cable. 
Thus, Maryland Cable failed to demonstrate that its October 1, 1995 rate of $9.77 for its CPST 
was not unreasonable. 
11. On April 30, 1996 Maryland Cable filed FCC Form 1240. We adjusted Module 
A, Line 1 of that Form to reflect the corrected maximum permitted rate of $9 .61 brought forward 
from the prior FCC FOrm 1210. In addition, we again adjusted Maryland Cable's inflation to 
conform with the FCC published rate. We also corrected Worksheet 8 and Line Hl to reflect 
the maximum pennitted rate corrections we made on FCC Forms 1210 for prior months included 
in the true-up period. As a result of our adjustments the maximum pennitted rate of $11.11 
calculated by Maryland Cable on its FCC Form 1240 for CPST has been corrected to $10.78. 
Thus, Mary land Cable failed to demonstrate that its June 1, 1996 rate of $11.13 for its CPST was 
not unreasonable. 
12. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's 
rules, 47 C.F.R. § 0.321, that the CPST rates charged by Maryland Cable in the Prince George's 
County, Maryland, CUID No. MD0172, from May 15,· 1994 to September 30, 1994, ARE 
. UNREASONABLE. 
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Federal Communications Commission DA 96-2071 
13. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's 
rules, 47 C.F.R. § 0.321, that the CPST rates charged by Maryland Cable in the Prince George's 
County, Maryland, CUID No. MD0172, from May 1, 1995 to the present, ARE 
UNREASONABLE. 
14. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's 
rules, 47 C.F.R. § 0.321, that the complaints against the CPST rates charged by Maryland Cable 
in Prince George's County, Maryland, CUID No. MD<?172 from May 15, 1994 to September 30, 
1994 ARE GRANTED TO THE EXTENT DISCUSSED HEREIN. 
15. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's 
rules, 47 C.F.R. § 0.321, that the complaints against the CPST rates charged by Maryland Cable 
in Prince George's County, Maryland, CUID No. MD0172 from May l, 1995 to the present ARE 
GRANTED TO THE ExTENT DISCUSSED HEREIN. 
16. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's 
rules, 47 C.F.R. § 76.961, that Maryland Cable shall refund to subscribers in CUID No. MD0172 
that portion of the amount paid in excess of the maximum permitted CPST rate of $9.01 per 
month (plus franchise fee), plus interest to the date of the refund, for the period from May 15, 
1994 to August 31, 1994. 
17. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's 
rules, 47 C.F.R. § 76.961, that Maryland Cable shall refund to subscribers in CUID No. MD0172 
that portion of the amount paid in excess of the maximum permitted CPST rate of $9.33 per· 
month (plus franchise fee), plus interest to the date of the refund, for the period from May 1, 
1995 to September 30, 1995. 
18. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's 
rules, 47 C.F.R. § 76.961, that Maryland Cable shall refund subscribers in CUID No. MDOl 72 
that portion of the amount of the CPST rate increase paid by subscribers that exceeded that the 
maximum permitted CPST rate of $9.61 per month (plus franchise fee), plus interest to the date 
of the refund for the period from October 1, 1995 to May 31, 1996. 
19. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's 
rules, 47 C.F.R. § 76.961, that Maryland Cable shall refund subscribers in CUID No. MDOl 72 
that portion of the amount of the CPST rate increase paid by subscribers that exceeded that the 
maximum permitted CPST rate of $10.78 per month (plus franchise fee), plus interest to the date 
of the refund for the period from June 1, 1996 to the day before Maryland Cable implements the 
maximum permitted CPST rate of $10.78. 
20. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 
47 C.F.R. § 0.321, that Maryland Cable Partners, L.P. in Prince George's County, CUID No. 
MOO 172, revise its calculation of its maximum permitted CPST rate in its next FCC Form 1240 
filing. 
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Federal Communications Commission DA 96-2071 
21. IT IS FURTHER ORDERED that Maryland Cable 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 within 60 days of Commission approval of the 
plan. 
FEDERAL COMMUNICATIONS COMMISSION 
Meredith J. Jones 
Chief, Cable Service Bureau 
20~95