By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau: 1. In this Order we consider complaints concerning the June 1, 1996 rate increase of TCI Cablevision of Colorado, Inc. ("TCI") for its cable programming services tier ("CPST") in Wheat Ridge, Colorado. This Order addresses only the reasonableness of TCI's rate increase that became effective on June 1, 1996. We conclude that TCI's June 1, 1996 CPST rate increase is not unreasonable. 2. The Communications Act2 authorizes the Federal Communications Commission ("Commission") to review the CPST rates of cable systems not subject to effective competition. This is to ensure that rates charged are not unreasonable. The Telecommunications Act of 19963 ("1996 Act") and our rules implementing the new legislation, 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. If the See TCI Communications, Inc., FCC 96-187 (released April 26, 1996). 2 Section 623(c), as amended, 47 U.S.C. Section 543(c) (1996). 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 Rcd 5937 (1996) ("Interim Rules"). Commission finds the rate unreasonable, it shall determine the correct rate and any refund liability.5 3. To justify rates for the period beginning May 15, 1994 through a benchmark or cost of service showing, operators must use the FCC Form 1200 series. Operators are permitted to make changes to their rates on a quarterly basis using FCC Form 1210. 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. Any incurred cost that is not projected may be accrued with interest and added to rates at a later time.' 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. 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 these cost changes." 4. The Greater Metro Cable Consortium on behalf of The City of Wheat Ridge ("Consortium") filed a valid complaint for Wheat Ridge on November 25, 1996 regarding the June 1, 1996 increase in TCI's CPST rate. The Consortium has certified that it has received subscriber complaints and has complied with the Interim Rules. 10 TCI submitted FCC Form 1240 for Wheat Ridge to justify the rate increase that went into effect June 1, 1996. 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 Rcd 388, 391 (1995). 7 Id. at 392. 9 Id. Id. The Commission granted TCI a waiver to allow TCI, in its initial filing of FCC Form 1240, to include cost adjustments over the period of time between the last date for which actual cost data is available and the effective date of TCI's new rates. The cost adjustments included for this period are subject to a true-up at the same time that the required true-up is performed on TCI's initial Form 1240 Projected Period Rates. See In the Matter of Annual Rate Adjustment System for Cable Services Rates, Request for Waiver of Requirements Contained in the Thirteenth Order on Reconsideration, 11 FCC Rcd at 10235 (1996). 10 See FCC Form 329 complaint filed by the Consortium dated November 6, 1996. 5. Upon review of the record before us, we find that TCI has provided sufficient evidence to support a CPST rate increase of $2.14 in Wheat Ridge, Colorado, CUID No. CUID CO0251." We conclude, therefore, that TCI's CPST rate increase which went into effect June 1, 1996 is justified. 6. Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. § 0.321, that TCI Cablevision of Colorado, Inc.'s CPST rate increase of $2.14 in Wheat Ridge, Colorado, CUID No. CO0251, which went into effect on June 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 complaints referenced herein against the June 1, 1996 CPST rate increases charged by TCI Cablevision of Colorado, Inc. in Wheat Ridge, Colorado, CUID No. CO0251 ARE DENIED. FEDERAL COMMUNICATIONS COMMISSION Elizabeth W. Beaty Chief, Financial Analysis and Compliance Division "This finding is based solely on the representations of TCI. 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. 1. The Commission has before it the petition for rule making filed by C.C. Broadcasting Company ("petitioner"), proposing the allotment of Channel 282A at Chehalis, Washington, as the community's first local commercial FM transmission service. Petitioner states its intention to apply for the channel, if allotted. 2. In support of its proposal, petitioner states that Chehalis, the county seat, is located in Lewis County and has a 1990 U.S. Census population of 6,527 persons. Petitioner further states that the community has an airport and a local business core consisting of mining and food preparation. 3. We believe the proposal warrants consideration since the proposed allotment of Channel 282A at Chehalis, Washington, could provide the community with its first local commercial FM transmission service. An engineering analysis has determined that Channel 282A can be allotted to Chehalis in compliance with the Commission's minimum distance separation requirements with a site restriction of 1.4 kilometers (0.9 miles) south to avoid a short-spacing to the licensed site of Station KAFE(FM), Channel 282C, Bellingham, Washington. Since Chehalis is located within 320 kilometers (200 miles) of the U.S.-Canadian border, concurrence of the Canadian government has been requested. 'The coordinates for Channel 282A at Chehalis are North Latitude 46-38-57 and West Longitude 122-57-58. 4. Accordingly, we seek comments on the proposed amendment of the FM Table of Allotments, Section 73.202(b) of the Commission's Rules, for the community listed below, to read as follows: 5. The Commission's authority to institute rule making proceedings, showings required, cut-off procedures, and filing requirements are contained in the attached Appendix and are incorporated by reference herein. In particular, we note that a showing of continuing interest is required by paragraph 2 of the Appendix before a channel will be allotted. 6. Interested parties may file comments on or before March 10, 1997, and reply comments on or before March 25, 1997, and are advised to read the Appendix for the proper procedures. Comments should be filed with the Secretary, Federal Communications Commission, Washington, D.C. 20554. Additionally, a copy of such comments should be served on the petitioner, or its counsel or consultant, as follows: Henry E. Crawford, Esq. 1150 Connecticut Ave., N.W. Washington, D.C. 20036. 7. The Commission has determined that the relevant provisions of the Regulatory Flexibility Act of 1980 do not apply to rule making proceedings to amend the FM Table of Allotments, Section 73.202(b) of the Commission's Rules. See Certification That Sections 603 and 604 of the Regulatory Flexibility Act Do Not Apply to Rule Making to Amend Sections 73.202(b), 73.504 and 73.606(b) of the Commission's Rules, 46 FR 11549, February 9, 1981. 8. For further information concerning this proceeding, contact Sharon P. McDonald, Mass Media Bureau, (202) 418-2180. For purposes of this restricted notice and comment rule making proceeding, members of the public are advised that no ex parte presentations are permitted from the time the Commission adopts a Notice of Proposed Rule Making until the proceeding has been decided and such decision is no longer subject to reconsideration by the Commission or review by any court. An ex parte presentation is not prohibited if specifically requested by the Commission or staff for the clarification or adduction of evidence or resolution of issues in the proceeding. However, any new written information elicited from |