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Federal Communications Commission DA 01-2142 <br /> <br /> 3. An operator that wants to increase its BST rate has the burden of demonstrating that the <br />increase is in conformance with the Commission's rules2 In determining whether the operator's rates <br />conform with our rules, a franchising authority may direct the operator to provide supporting <br />information.6 After reviewing an operator's rate forms and any other additional information submitted, <br />the franchising authority may approve the operator's rate increases or issue a written decision explaining <br />why the operator's rates are not reasonable.7 If the franchising authority determines that the operator's <br />proposed rates exceed the maximum permitted rate ("MPR") as determined by the Commission's rules, it <br />may prescribe a rate different from the proposed rate or order refunds, provided that it explains why the <br />operator's rate or rates are unreasonable and the prescribed rate is reasonable.8 <br /> <br />II. DISCUSSION <br /> <br /> 4. TWC contends that the Commission should reverse the local rate decision because the <br />County has failed to provide a proper written explanation or documentation of its decision disapproving <br />the proposed rate increase, and because the Commission has repeatedly overruled local franchising <br />authorities that reject legitimate rate increases for improper reasons.~ <br /> <br /> 5. In a one-page letter, dated March 1, 2001, the Deputy County Manager notified TWC <br />that the County Board of Commissioners, at its February 19th meeting, did not approve Time Wamer's <br />proposed rate increases for 2001.~° The County declined to accept its consultant's recommendation to <br />approve the rate increase, and instead, voted 3-2 against granting the rate increase. The letter sent by the <br />County to TWC fails to demonstrate that the County's denial of TWC's rate increase is based on the <br />Commission's rules governing rates. <br /> <br /> 6. The County must follow the Commission's rate regulations when reviewing an operator's <br />rate filing.~ As we stated in Falcon Cable Media, if a local franchising authority does not dispute the <br />bases for the figures presented in a cable operator's rate forms and has not discovered any mathematical <br />errors in the forms, the LFA should approve the operator's rate as derived from those forms,n If an LFA <br />rejects an operator's proposed rates, it must issue a written decision affirmatively demonstrating why the <br />rates are unreasonable.~3 <br /> <br />5 47 C.F.R. § 76.937(a). <br /> <br />6 Rate Order' at 5718. <br /> <br />7 47 C.F.R. § 76.936; see Ultracorn of Marple Inc., 10 FCC Rcd 6640, 6641-42 (Cab. Serv. Bur. 1995). <br /> <br />~ See Century Cable of Southern California, 11 FCC Rcd 501 (Cab Serv. Bur. 1995); TCI oflowa, Inc., 13 FCC Rcd <br />12020, 12022 (Cab. Serv. Bur. 1998). <br />9 TWC Appeal at 1-3. <br /> <br />~°TWC Appeal, Exhibit A. <br /> <br />~ See TC1 of Southeast Mississippi, 10 FCC Rcd 8728 (Cab. Serv. Bur. 1995), reconsideration denied on other <br />grounds, 13 FCC Rcd 11080 (Cab. Serv. Bur. 1998); Century Cable of Southern California, supra. <br />~2 13 FCC Rcd 11996, 11998 para. 6 (Cab. Serv. Bur. 1998). <br /> <br />~3 47 C.F.R. § 76.936; Rate Order, 8 FCC Rcd at 5715-5716. <br /> <br /> <br />