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File pnmc5021 (.txt & .wp) is in directory \pub\Public_Notices\Miscellaneous. ***************************************************************** ******** FOR FCC RECORD ONLY $//Battlefield Cable Company, Chickamauga, Georgia, MO&O, DA-95-1006//$ $/76.922 Rates for Cable Programming Service tiers/$ $/benchmark cable rates/$ Before the Federal Communications Commission Washington, D.C. 20554 DA 95-1006 In the Matter of ) ) Battlefield Cable Company ) CUID No. GA0088, Chickamauga ) Benchmark Filing to Support ) Cable Programming Service Price ) Memorandum Opinion and Order Adopted: May 1, 1995 Released: May 5, 1995 By the Chief, Cable Services Bureau: 1. Here we consider a complaint about the price that the above-captioned operator ("Operator") was charging for its cable programming service ("CPS") tier in Chickamauga, Georgia. Operator has chosen to attempt to justify its price through a benchmark showing on FCC Form 393. This Order addresses the reasonableness of Operator's price only through May 14, 1994. At a later date we will issue a separate order addressing the reasonableness of the price after that date. 2. Under the Cable Television Consumer Protection and Competition Act of 1992, and our rules implementing it, 47 C.F.R. Part 76, Subpart N, the Commission must review CPS price upon the filing of a valid complaint. The filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification of its CPS price. Under our rules, an operator may attempt to justify its price through either a benchmark showing or a cost-of-service showing. In either case, the operator has the burden of demonstrating that its CPS price are not unreasonable. 3. The Commission's original rate regulations took effect on September 1, 1993. The Commission subsequently revised its rate regulations effective May 15, 1994. Operators with valid CPS complaints filed against them prior to May 15, 1994 must demonstrate that their CPS price were in compliance with the Commission's initial rules from the time the complaint was filed through May 14, 1994, and that their price were in compliance with the revised rules from May 15, 1994 forward. Operator is attempting to justify their price for the period prior to May 15, 1994 through a benchmark showing must complete and file FCC Form 393. Generally, to justify their price for the period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200 series. 4. The complaint was served on Operator on December 21, 1993 and received by the Commission on December 27, 1993. Operator filed FCC Form 393 in response. 5. In its benchmark filing, Operator calculated a maximum permitted CPS rate of $12.22 per month (plus franchise fee). Operator's actual monthly charge for its CPS tier was $12.46 (plus franchise fee). Thus, Operator has failed to show that its rate for the CPS tier was not unreasonable. Furthermore, upon review of Operator's Form 393 filing, we have found that it has not correctly calculated its maximum permitted price, and it is therefore appropriate to make the following adjustment to Operator's calculations in Form 393: In calculating its Inflation Adjustment Factor in Form 393, Part II, Worksheets 1 and 4, Operator did not rely on the most currently available data released by the U.S. Department of Commerce. Rather than relying on data released by the U.S. Department of Commerce on December 1, 1993, Operator relied on data released on August 31, 1993. We therefore must recalculate Operator's Inflation Adjustment Factor using the most accurate data currently available for the date for which Operator filed. On July 29, 1994, the U.S. Department of Commerce released corrected inflation data including Gross National Product Price Index ("GNP-PI") figures of 122.3 for the third quarter of 1992 and 126.5 for the fourth quarter of 1993. Using these GNP-PI figures, we calculate an Inflation Adjustment Factor through December 1993, the base date Operator used in justifying its rates, of 1.034. 6. Upon review of the record herein, and having incorporated the adjustment discussed above, we conclude that Operator's showing justifies a maximum reasonable CPS tier price of $12.13 per month (plus franchise fee) for the period from December 27, 1993 to May 14, 1994. 7. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.  0.321, that the complaint against the cable programming service price charged by Operator in Chickamauga, Georgia IS GRANTED TO THE EXTENT INDICATED HEREIN. 8. IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47 C.F.R.  76.961, that Operator shall refund to subscribers in Chickamauga, Georgia that portion of the amount paid for cable programming service for the period from December 27, 1993 to May 14, 1994 which exceeded $12.13 (plus franchise fee) per month, plus interest to the date of the refund. 9. IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to CPS subscribers for the stated period, 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. 10. IT IS FURTHER ORDERED, pursuant to Section 76.922(b)(4)(C) of the Commission's rules, 47 C.F.R.  76.922(b)(4)(C), that Operator shall, within 30 days of the release of this Order, revise its Form 1200 filing with respect to Chickamauga, Georgia for the period beginning May 15, 1994, to reduce the monthly charge per tier as of March 31, 1994 for Tier 2 (Line A6b) to equal $12.13 (plus franchise fee). 11. IT IS FURTHER ORDERED that Operator shall place into effect, within 30 days after its submission of the revised Form 1200 filing required above, a price that reflects the reduction in the CPS rate determined in this Order. FEDERAL COMMUNICATIONS COMMISSION Meredith J. Jones Chief, Cable Services Bureau