Federal Communications Commission DA 97-1679 In the Matter of International Cablevision, Inc. d/b/a Adelphia Cable Communications Complaint Regarding Cable Programming Services Tier Rates Before the Federal Communications Commission Washington, D.C 20554 CUID No. NY 1102 (Eden) ORDER Adopted: August 6,1997 Released: August 8,1997 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order, we consider a complaint concerning the rates of the above-captioned operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above.1 Operator's response includes benchmark justifications filed on FC£ Form 1200, FCC Form 1210's and FCC Form 1240. This Order addresses the reasonableness of Operator's rates for the period after May 14, 1994. We conclude that Operator's CPST rates after May 14, 1994 are not unreasonable. 2. Under the Communications Act,2 the Federal Communications Commission ("Commission") is 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 ("1992 Cable Act"),3 and our rules in effect at the time the complaint was filed, required the Commission to review CPST rates upon the filing of a valid complaint by a subscriber. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPST rates.4 If the Commission finds the rate to be unreasonable, it shall determine the correct rate and any refund liability.5 1 The first valid complaint against the Operator's CPST rates hi the community referenced above was filed on September 25, 1995. 2 Communications Act, Section 623(c), as amended, 47 U.S.C. Section 543(c) (1996). 3 Pub. L. No. 102-385, 106 Stat. 1460 (1992). 4 47 C.FJL Section 76.956. 5 See 47 C.F.R. Section 76.957. 23599 Federal Communications Commission DA 97-1679 3. The Commission's original rate regulations took effect on September 1, 1993.' The Commission subsequently revised its rate regulations effective May IS, 1994.7 Cable operators with valid CPST complaints filed against them prior to May IS, 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, and that their rates were in compliance with the revised rules from May IS, 1994 forward.* Cable operators attempting to justify their rates for the period prior to May 15, 1994 using a benchmark showing must complete and file FCC Form 393.9 Operators must use the FCC Form 1200 series to justify their rates for die period beginning May IS, 1994 using a benchmark showing.10 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." FCC Form 1210 must be filed at least 30 days before new rates are scheduled to go into effect where the Commission has found the cable programming service rate to be unreasonable less than one year prior to the filing, or where there is a pending complaint against the CPST rate.12 Operators may alternatively 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.13 Any incurred cost that is not projected may be accrued with interest and added to rates at a later time.14 4. Upon review of Operator's FCC Form 1200, FCC Form 1210's and FCC Form 1240, we conclude that Operator has justified its CPST rates charged during the period from September 1, 199S to July 31, 1996. We also find that Operator has justified its CPST rate of $17.95, effective August 1, 1996. 5. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. § 0.321, that the monthly CPST rates charged by Operator in <he community referenced above from September 1, 1995 to July 31, 1996, ARE NOT UNREASONABLE. 6 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). 7 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"'). « Id 9 Id. 10 47 C.F.R. Section 76.922(bX6); see Second Order on Reconsideration, supra at 4183, paras. 135-138; supra at 4190, n.136; see also Public Notice "Questions and Answers on Cable Television Rate Regulation" (April 26, 1994). 11 47 C.F.R. Section 76.922(d). 12 47 CJF.R. Section 76.960. 13 47 C.F.R. Section 76.922(e). 14 Id. 23600 Federal Communications Commission DA 97-1679 6. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. § 0.321, that the monthly CPST rate of $17.95 charged by Operator in the community referenced above, effective August 1, 1996, IS NOT UNREASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. § 0.321, that the complaint referenced herein against the CPST rates charged by Operator in the community referenced above IS DENIED. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau 23601