*Pages 1--3 from Microsoft Word - 18820.doc* Federal Communications Commission DA 99- 158 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) Comcast Cable Communications, Inc. ) CUID No. CA0818 (Fullerton) ) ) Complaints Rega Cable Programming Services Tier Rates ) ORDER Adopted: January 12, 1999 Released: January 15, 1999 By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints concerning the rates of the above- captioned operator (" Operator") for its cable programming services tier (" CPST") in the community referenced above. 1 We have already issued a separate order (" Prior Order") addressing the reasonableness of Operator's rates from September 1, 1993 to July 14, 1994. 2 This Order addresses the reasonableness of Operator's rates for the period beginning July 15, 1994 as justified on Operator's FCC Forms 1200 and 1210 and dismisses the November 24, 1995 complaint as untimely filed. Operator has also filed a response requesting we dismiss the November 24, 1995 complaint. 3 2. Under the Communications Act, 4 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"), 5 and our rules in effect at the time the complaints were 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. 6 If the Commission finds the rate to be unreasonable, it shall determine the correct rate and any refund liability. 7 Our review reveals that the complaint filed against Operator asserts that it challenges an increase in the CPST rate. On November 24, 1995, the Commission received a complaint against the rate 1 The first valid complaint against the Operator's CPST rate in the community referenced above was filed on October 26, 1993. 2 See In the Matter of Comcast Cable Communications, Inc. Final Resolution, 11 FCC Rcd 4029 (1995). 3 Operator's response was filed with the Commission on November 25, 1998. 4 Communications Act, Section 623( c), as amended, 47 U. S. C. Section 543( c) (1996). 5 Pub. L. No. 102- 385, 106 Stat. 1460 (1992). 6 47 C. F. R. Section 76.956. 7 See 47 C. F. R. Section 76.957. 1 Federal Communications Commission DA 99- 158 2 increase that took effect on March 18, 1995. Pursuant to Section 76.953 of the Commission's rules in effect at the time the complaint was filed, a complaint must be filed within 45 days from the date the complainant receives a bill from the Operator that reflects a rate change. 8 The complainant asserts that he received his first bill reflecting the March 18, 1995 rate increase on October 24, 1995. In Operator's response, Operator asserts that the complainant received his first bill reflecting the March 18, 1995 rate increase on or about April 4, 1995. Our review reveals that the complainant indeed received his first bill reflecting the March 18, 1995 rate increase on or about April 4, 1995, allowing enough time to file a valid complaint with the Commission against the rate increase. Therefore, the complaint, which was received by the Commission on November 24, 1995, is untimely filed and must be dismissed. 3. The Commission's original rate regulations took effect on September 1, 1993. 9 The Commission subsequently revised its rate regulations effective May 15, 1994. 10 Cable operators with 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, and that their rates were in compliance with the revised rules from May 15, 1994 forward. 11 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. 12 Operators must use the FCC Form 1200 series to justify their rates for the period beginning May 15, 1994 using a benchmark showing. 13 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. 14 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. 15 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 8 47 C. F. R. Section 76.953. 9 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). 10 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 Rcd 4119, 4190 (1994) (" Second Order on Reconsideration"). 11 Id. 12 Id. 13 47 C. F. R. Section 76.922( b)( 6); 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). 14 47 C. F. R. Section 76.922( d). 15 47 C. F. R. Section 76.960. 2 Federal Communications Commission DA 99- 158 3 that are projected for the twelve months following the rate change. 16 Any incurred cost that is not projected may be accrued with interest and added to rates at a later time. 17 4. Upon review of Operator's FCC Forms 1200 and 1210, we find Operator's CPST rates, effective July 15, 1994 to December 31, 1994, to be reasonable. We also find Operator's CPST rate of $13.08, effective January 1, 1995, to be reasonable. 18 5. Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C. F. R. Section 0.321 that the monthly CPST rates charged by Operator in the community referenced above, from July 15, 1994 to December 31, 1994, ARE REASONABLE. 6. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C. F. R. Section 0.321 that the monthly CPST rate of $13.08 charged by Operator in the community referenced above, effective January 1, 1995, IS REASONABLE. 7. IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C. F. R. Section 0.321, that the complaints referenced herein against the CPST rates charged by Operator in the community referenced above, ARE DENIED. 8. IT IS FURTHER ORDERED, pursuant to Section 623( a)( 2)( A) and (B) of the Communications Act of 1934, as amended, 47 U. S. C. Section 543( a)( 2)( A) and (B), that the November 24, 1995 complaint against the CPST rate charged by Operator in the community referenced above, IS DISMISSED. 9. This action is taken pursuant to delegated authority under Section 0.321 of the Commission's rules, 47 C. F. R. § 0.321. FEDERAL COMMUNICATIONS COMMISSION Margaret M. Egler Acting Chief, Financial Analysis and Compliance Division Cable Services Bureau 16 47 C. F. R. Section 76.922( e). 17 Id. 18 This finding is based solely on the representations of Operator. Should information come to our attention that these representations were materially inaccurate, we reserve the right to take any 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. 3