Sec. 76.922  Rates for the basic service tier and cable programming 
          services tiers.

    (a) Basic and cable programming service tier rates. Basic service 
tier and cable programming service rates shall be subject to regulation 
by the Commission and by state and local authorities, as is appropriate, 
in order to assure that they are in compliance with the requirements of 
47 U.S.C. 543. Rates that are demonstrated, in accordance with this 
part, not to exceed the ``Initial Permitted Per Channel Charge'' or the 
``Subsequent Permitted Per Channel Charge'' as described in this 
section, or the equipment charges as specified in Sec. 76.923, will be 
accepted as in compliance. The maximum monthly charge per subscriber for 
a tier of regulated programming services offered by a cable system shall 
consist of a permitted per channel charge multiplied by the number of 
channels on the tier, plus a charge for franchise fees. The maximum 
monthly charges for regulated programming services shall not include any 
charges for equipment or installations. Charges for equipment and 
installations are to be calculated separately pursuant to Sec. 76.923. 
The same rate-making methodology (either the benchmark methodology found 
in paragraph (b) of this section, or a cost-of-service showing) shall be 
used to set initial rates on all rate regulated tiers, and shall 
continue to provide the basis for subsequent permitted charges.
    (b) Permitted charge on May 15, 1994. (1) The permitted charge for a 
tier of regulated program service shall be, at the election of the cable 
system, either:
    (i) A rate determined pursuant to a cost-of-service showing;
    (ii) The full reduction rate;
    (iii) The transition rate, if the system is eligible for transition 
relief; or
    (iv) A rate based on a streamlined rate reduction, if the system is 
eligible to implement such a rate reduction. Except where noted, the 
term ``rate'' in this subsection means a rate measured on an average 
regulated revenue per subscriber basis.
    (2) Full reduction rate. The ``full reduction rate'' on May 15, 1994 
is the system's September 30, 1992 rate, measured on an average 
regulated revenue

[[Page 569]]

per subscriber basis, reduced by 17 percent, and then adjusted for the 
following:
    (i) The establishment of permitted equipment rates as required by 
Sec. 76.923;
    (ii) Inflation measured by the GNP-PI between October 1, 1992 and 
September 30, 1993;
    (iii) Changes in the number of program channels subject to 
regulation that are offered on the system's program tiers between 
September 30, 1992 and the earlier of the initial date of regulation for 
any tier or February 28, 1994; and
    (iv) Changes in external costs that have occurred between the 
earlier of the initial date of regulation for any tier or February 28, 
1994, and March 31, 1994.
    (3) March 31, 1994 benchmark rate. The ``March 31, 1994 benchmark 
rate'' is the rate so designated using the calculations in Form 1200.
    (4) Transition rates.--(i) Termination of transition relief for 
systems other than low price systems. Systems other than low-price 
systems that already have established a transition rate as of the 
effective date of this rule may maintain their current rates, as 
adjusted under the price cap requirements of Sec. 76.922(d), until two 
years from the effective date of this rule. These systems must begin 
charging reasonable rates in accordance with applicable rules, other 
than transition relief, no later than that date.
    (ii) Low-price systems. Low price systems shall be eligible to 
establish a transition rate for a tier.
    (A) A low-price system is a system:
    (1) Whose March 31, 1994 rate is below its March 31, 1994 benchmark 
rate, or
    (2) Whose March 31, 1994 rate is above its March 31, 1994 benchmark 
rate, but whose March 31, 1994 full reduction rate is below its March 
31, 1994 benchmark rate, as defined in Sec. 76.922(b)(2), above.
    (B) The transition rate on May 15, 1994 for a system whose March 31, 
1994 rate is below its March 31, 1994 benchmark rate is the system's 
March 31, 1994 rate. The March 31, 1994 rate is in both cases adjusted:
    (1) To establish permitted rates for equipment as required by 
Sec. 76.923 if such rates have not already been established; and
    (2) For changes in external costs incurred between the earlier of 
initial date of regulation of any tier or February 28, 1994, and March 
31, 1994, to the extent changes in such costs are not already reflected 
in the system's March 31, 1994 rate. The transition rate on May 15, 1994 
for a system whose March 31, 1994 adjusted rate is above its March 31, 
1994 benchmark rate, but whose March 31, 1994 full reduction rate is 
below its March 31, 1994 benchmark rate, is the March 31, 1994 benchmark 
rate, adjusted to establish permitted rates for equipment as required by 
Sec. 76.923 if such rates have not already been established.
    (iii) Notwithstanding the foregoing, the transition rate for a tier 
shall be adjusted to reflect any determination by a local franchising 
authority and/or the Commission that the rate in effect on March 31, 
1994 was higher (or lower) than that permitted under applicable 
Commission regulations. A filing reflecting the adjusted rate shall be 
submitted to all relevant authorities within 30 days after issuance of 
the local franchising authority and/or Commission determination. A 
system whose March 31, 1994 rate is determined by a local franchising 
authority or the Commission to be too high under the Commission's rate 
regulations in effect before May 15, 1994 will be subject to any refund 
liability that may accrue under those rules. In addition, the system 
will be liable for refund liability under the rules in effect on and 
after May 15, 1994. Such refund liability will be measured by the 
difference in the system's March 31, 1994 rate and its permitted March 
31, 1994 rate as calculated under the Commission's rate regulations in 
effect before May 15, 1994. The refund liability will accrue according 
to the time periods set forth in Secs. 76.942, and 76.961 of the 
Commission's rules.
    (5) Streamlined rate reductions. (i) Small systems that are not 
owned by or affiliated with any other system (``independent systems''), 
and small systems owned by small multiple system operators (``small 
MSOs''), that have not already restructured their rates to comply with 
the Commission's rules may establish rates for regulated program 
services and equipment by making a streamlined rate reduction.

[[Page 570]]

``Small MSOs'' are those multiple system operators that:
    (A) Small systems that are owned by small cable companies and that 
have not already restructured their rates to comply with the 
Commission's rules may establish rates for regulated program services 
and equipment by making a streamlined rate reduction. Small systems 
owned by small cable companies shall not be eligible for streamlined 
rate reductions if they are owned or controlled by, or are under common 
control or affiliated with, a cable operator that exceeds these 
subscriber limits. For purposes of this rule, a small system will be 
considered ``affiliated with'' such an operator if the operator has a 20 
percent or greater equity interest in the small system.
    (B) The streamlined rate for a tier on May 15, 1994 shall be the 
system's March 31, 1994 rate for the tier, reduced by 14 percent. A 
small system that elects to establish its rate for a tier by 
implementing this streamlined rate reduction must also reduce, at the 
same time, each billed item of regulated cable service, including 
equipment, by 14 percent. Regulated rates established using the 
streamlined rate reduction process shall remain in effect until:
    (1) Adoption of a further order by the Commission establishing a 
schedule of average equipment costs;
    (2) The system increases its rates using the calculations and time 
periods set forth in FCC Form 1211; or
    (3) The system elects to establish permitted rates under another 
available option set forth in paragraph (b)(1) of this section.
    (C) Implementation and notification. An eligible small system that 
elects to use the streamlined rate reduction process must implement the 
required rate reductions and provide written notice of such reductions 
to subscribers, the local franchising authority and the Commission 
according to the following schedule:
    (1) Within 60 days from the date it receives the initial notice of 
regulation from the franchising authority or the Commission, the small 
system must provide written notice to subscribers and the franchising 
authority, or to the Commission if the Commission is regulating the 
basic tier, that it is electing to set its regulated rates by the 
streamlined rate reduction process. The system must then implement the 
streamlined rate reductions within 30 days after the written 
notification has been provided to subscribers and the local franchise 
authority or Commission.
    (2) If a cable programming services complaint is filed against the 
system, the system must provide the required written notice, described 
in paragraph (b)(5)(iii)(C)(1) of this section, to subscribers, the 
local franchising authority or the Commission within 60 days after the 
complaint is filed. The system must then implement the streamlined rate 
reductions within 30 days after the written notification has been 
provided.
    (3) A small system is required to give written notice of, and to 
implement, the rates that are produced by the streamlined rate reduction 
process only once. If a system has already provided notice of, and 
implemented, the streamlined rate reductions when a given tier becomes 
subject to regulation, it must report to the relevant regulator (either 
the franchising authority or the Commission) in writing within 30 days 
of becoming subject to regulation that it has already provided the 
required notice and implemented the required rate reductions.
    (ii) The stremlined rate for a tier on May 15, 1994 shall be the 
system's March 31, 1994 rate for the tier, reduced by 14 percent. A 
small system that elects to establish its rate for a tier by 
implementing this streamlined rate reduction must also reduce, at the 
same time, each billed item of regulated cable service, including 
equipment, by 14 percent. Regulated rates established using the 
streamlined rate reduction process shall remain in effect until:
    (A) Adoption of a further order by the Commission establishing a 
schedule of average equipment costs;
    (B) The system increases its rates using the calculations and time 
periods set forth in FCC Form 1211; or
    (C) The system elects to establish permitted rates under another 
available option set forth in paragraph (b)(1) of this section.
    (iii) Implementation and notification. An eligible small system that 
elects to use the streamlined rate reduction

[[Page 571]]

process must implement the required rate reductions and provide written 
notice of such reductions to subscribers, the local franchising 
authority and the Commission according to the following schedule:
    (A) Where the franchising authority has been certified by the 
Commission to regulate the small system's basic service tier rates as of 
May 15, 1994, the system must notify the franchising authority and its 
subscribers in writing that it is electing to set its regulated rates by 
the streamline rate reduction process. Such notice must be given by June 
15, 1994, and must also describe the new rates that will result from the 
streamlined rate reduction process. Those rates must then be implemented 
within 30 days after the written notification has been provided to 
subscribers and the local franchising authority.
    (B) Where the franchising authority has not been certified to 
regulate basic service tier rates by May 15, 1994, the small system must 
provide the written notice to subscribers and the franchising authority, 
described in paragraph (b)(5)(iii)(A) of this section, within 30 days 
from the date it receives the initial notice of regulation from the 
franchising authority. The system must then implement the streamlined 
rate reductions within 30 days after the written notification has been 
provided to subscribers and the local franchise authority.
    (C) Where the Commission is regulating the small system's basic 
service tier rates as of May 15, 1994, the system must notify the 
Commission and its subscribers in writing that it is electing to set its 
regulated rates by the streamlined rate reduction process. Such notice 
must be given by June 15, 1994, and must also describe the new rates 
that will result from the streamlined rate reduction process. Those 
rates must then be implemented within 30 days after the written 
notification has been provided to subscribers and the Commission.
    (D) Where the Commission begins regulating basic service rates after 
May 15, 1994, the small system must provide the written notice to 
subscribers and the Commission, described in paragraph (b)(5)(iii)(C) of 
this section, within 30 days from the date it receives an initial notice 
of regulation. The system must then implement the streamlined rate 
reductions within 30 days after the written notification has been 
provided to subscribers and the Commission.
    (E) If a complaint about its cable programming service rates has 
been filed with the Commission on or before May 15, 1994, the small 
system must provide the written notice described in paragraph 
(b)(5)(iii)(A) of this section, to subscribers, the local franchising 
authority and the Commission by June 15, 1994. If a cable programming 
services complaint is filed against the system after May 15, 1994, the 
system must provide the required written notice to subscribers, the 
local franchising authority or the Commission within 30 days after the 
complaint is filed. The system must then implement the streamlined rate 
reductions within 30 days after the written notification has been 
provided.
    (F) A small system is required to give written notice of, and to 
implement, the rates that are produced by the streamlined rate reduction 
process only once. If a system has already provided notice of, and 
implemented, the streamlined rate reductions when a given tier becomes 
subject to regulation, it must report to the relevant regulator (either 
the franchising authority or the Commission) in writing within 30 days 
of becoming subject to regulation that it has already provided the 
required notice and implemented the required rate reductions.
    (6) Establishment of initial regulated rates. (i) Cable systems, 
other than those eligible for streamlined rate reductions, shall file 
FCC Forms 1200, 1205, and 1215 for a tier that is regulated on May 15, 
1994 by June 15, 1994, or thirty days after the initial date of 
regulation for the tier. A system that becomes subject to regulation for 
the first time on or after July 1, 1994 shall also file FCC Form 1210 at 
the time it files FCC Forms 1200, 1205 and 1215.
    (ii) A cable system will not incur refund liability under the 
Commission's rules governing regulated cable rates on and after May 15, 
1994 if:
    (A) Between March 31, 1994 and July 14, 1994, the system does not 
change the rate for, or restructure in any fashion,

[[Page 572]]

any program service or equipment offering that is subject to regulation 
under the 1992 Cable Act; and
    (B) The system establishes a permitted rate defined in paragraph (b) 
of this section by July 14, 1994. The deferral of refund liability 
permitted by this subsection will terminate if, after March 31, 1994, 
the system changes any rate for, or restructures, any program service or 
equipment offering subject to regulation, and in all events will expire 
on July 14, 1994. Moreover, the deferral of refund liability permitted 
by this paragraph does not apply to refund liability that occurs because 
the system's March 31, 1994 rates for program services and equipment 
subject to regulation are higher than the levels permitted under the 
Commission's rules in effect before May 15, 1994.
    (7) For purposes of this section, the initial date of regulation for 
the basic service tier shall be the date on which notice is given 
pursuant to Sec. 76.910, that the provision of the basic service tier is 
subject to regulation. For a cable programming services tier, the 
initial date of regulation shall be the first date on which a complaint 
on the appropriate form is filed with the Commission concerning rates 
charged for the cable programming services tier.
    (8) For purposes of this section, rates in effect on the initial 
date of regulation or on September 30, 1992 shall be the rates charged 
to subscribers for service received on that date.
    (9) Updating Data Calculations.
    (i) For purposes of this section, if:
    (A) A cable operator, prior to becoming subject to regulation, 
revised its rates to comply with the Commission's rules; and
    (B) The data on which the cable operator relied was current and 
accurate at the time of revision, and the rate is accurate and justified 
by the prior data; and
    (C) Through no fault of the cable operator, the rates that resulted 
from using such data differ from the rates that would result from using 
data current and accurate at the time the cable operator's system 
becomes subject to regulation;

then the cable operator is not required to change its rates to reflect 
the data current at the time it becomes subject to regulation.
    (ii) Notwithstanding the above, any subsequent changes in a cable 
operator's rates must be made from rate levels derived from data [that 
was current as of the date of the rate change].
    (iii) For purposes of this subsection, if the rates charged by a 
cable operator are not justified by an analysis based on the data 
available at the time it initially adjusted its rates, the cable 
operator must adjust its rates in accordance with the most accurate data 
available at the time of the analysis.
    (c) Subsequent permitted charge. (1) The permitted charge for a tier 
after May 15, 1994 shall be, at the election of the cable system, 
either:
    (i) A rate determined pursuant to a cost-of-service showing,
    (ii) A rate determined by application of the Commission's price cap 
requirements set forth in paragraph (d) of this section to a permitted 
rate determined in accordance with paragraph (b) of this section, or
    (iii) A rate determined by application of the Commission's price cap 
requirements set forth in paragraph (e) of this section to a permitted 
rate determined in accordance with paragraph (b) of this section.
    (2) The Commission's price cap requirements allow a system to adjust 
its permitted charges for inflation, changes in the number of regulated 
channels on tiers, or changes in external costs. After May 15, 1994, 
adjustments for changes in external costs shall be calculated by 
subtracting external costs from the system's permitted charge and making 
changes to that ``external cost component'' as necessary. The remaining 
charge, referred to as the ``residual component,'' will be adjusted 
annually for inflation. Cable systems may adjust their rates by using 
the price cap rules contained in either paragraph (d) or (e) of this 
section. In addition, cable systems may further adjust their rates using 
the methodologies set forth in paragraph (n) of this section.
    (3) An operator may switch between the quarterly rate adjustment 
option contained in paragraph (d) of this section and the annual rate 
adjustment

[[Page 573]]

option contained in paragraph (e) of this section, provided that:
    (i) Whenever an operator switches from the current quarterly system 
to the annual system, the operator may not file a Form 1240 earlier than 
90 days after the operator proposed its last rate adjustment on a Form 
1210; and
    (ii) When an operator changes from the annual system to the 
quarterly system, the operator may not return to a quarterly adjustment 
using a Form 1210 until a full quarter after it has filed a true up of 
its annual rate on a Form 1240 for the preceding filing period.
    (4) An operator that does not set its rates pursuant to a cost-of-
service filing must use the quarterly rate adjustment methodology 
pursuant to paragraph (d) of this section or annual rate adjustment 
methodology pursuant to paragraph (e) of this section for both its basic 
service tier and its cable programming services tier(s).
    (d) Quarterly rate adjustment method--(1) Calendar year quarters. 
All systems using the quarterly rate adjustment methodology must use the 
following calendar year quarters when adjusting rates under the price 
cap requirements. The first quarter shall run from January 1 through 
March 31 of the relevant year; the second quarter shall run from April 1 
through June 30; the third quarter shall run from July 1 through 
September 30; and the fourth quarter shall run from October 1 through 
December 31.
    (2) Inflation Adjustments. The residual component of a system's 
permitted charge may be adjusted annually for inflation. The annual 
inflation adjustment shall be used on inflation occurring from June 30 
of the previous year to June 30 of the year in which the inflation 
adjustment is made, except that the first annual inflation adjustment 
shall cover inflation from September 30, 1993 until June 30 of the year 
in which the inflation adjustment is made. The adjustment may be made 
after September 30, but no later than August 31, of the next calendar 
year. Adjustments shall be based on changes in the Gross National 
Product Price Index as published by the Bureau of Economic Analysis of 
the United States Department of Commerce. Cable systems that establish a 
transition rate pursuant to paragraph (b)(4) of this section may not 
begin adjusting rates on account of inflation before April 1, 1995. 
Between April 1, 1995 and August 31, 1995 cable systems that established 
a transition rate may adjust their rates to reflect the net of a 5.21% 
inflation adjustment minus any inflation adjustments they have already 
received. Low price systems that had their March 31, 1994 rates above 
the benchmark, but their full reduction rate below the benchmark will be 
permitted to adjust their rates to reflect the full 5.21% inflation 
factor unless the rate reduction was less than the inflation adjustment 
received on an FCC Form 393 for rates established prior to May 15, 1994. 
If the rate reduction established by a low price system that reduced its 
rate to the benchmark was less than the inflation adjustment received on 
an FCC Form 393, the system will be permitted to receive the 5.21% 
inflation adjustment minus the difference between the rate reduction and 
the inflation adjustment the system made on its FCC Form 393. Cable 
systems that established a transition rate may make future inflation 
adjustments on an annual basis with all other cable operators, no 
earlier than October 1 of each year and no later than August 31 of the 
following year to reflect the final GNP-PI through June 30 of the 
applicable year.
    (3) External costs. (i) Permitted charges for a tier may be adjusted 
up to quarterly to reflect changes in external costs experienced by the 
cable system as defined by paragraph (f) of this section. In all events, 
a system must adjust its rates annually to reflect any decreases in 
external costs that have not previously been accounted for in the 
system's rates. A system must also adjust its rates annually to reflect 
any changes in external costs, inflation and the number of channels on 
regulated tiers that occurred during the year if the system wishes to 
have such changes reflected in its regulated rates. A system that does 
not adjust its permitted rates annually to account for those changes 
will not be permitted to increase its

[[Page 574]]

rates subsequently to reflect the changes.
    (ii) A system must adjust its rates in the next calendar year 
quarter for any decrease in programming costs that results from the 
deletion of a channel or channels from a regulated tier.
    (iii) Any rate increase made to reflect an increase in external 
costs must also fully account for all other changes in external costs, 
inflation and the number of channels on regulated tiers that occurred 
during the same period. Rate adjustments made to reflect changes in 
external costs shall be based on any changes in those external costs 
that occurred from the end of the last quarter for which an adjustment 
was previously made through the end of the quarter that has most 
recently closed preceding the filing of the FCC Form 1210 (or FCC Form 
1211, where applicable). A system may adjust its rates after the close 
of a quarter to reflect changes in external costs that occurred during 
that quarter as soon as it has sufficient information to calculate the 
rate change.
    (e) Annual rate adjustment method--(1) Generally. Except as provided 
for in paragraphs (e)(2)(iii)(B) and (e)(2)(iii)(C) of this section and 
Section 76.923(o), operators that elect the annual rate adjustment 
method may not adjust their rates more than annually to reflect 
inflation, changes in external costs, changes in the number of regulated 
channels, and changes in equipment costs. Operators that make rate 
adjustments using this method must file on the same date a Form 1240 for 
the purpose of making rate adjustments to reflect inflation, changes in 
external costs and changes in the number of regulated channels and a 
Form 1205 for the purpose of adjusting rates for regulated equipment and 
installation. Operators may choose the annual filing date, but they must 
notify the franchising authority of their proposed filing date prior to 
their filing. Franchising authorities or their designees may reject the 
annual filing date chosen by the operator for good cause. If the 
franchising authority finds good cause to reject the proposed filing 
date, the franchising authority and the operator should work together in 
an effort to reach a mutually acceptable date. If no agreement can be 
reached, the franchising authority may set the filing date up to 60 days 
later than the date chosen by the operator. An operator may change its 
filing date from year-to-year, but except as described in paragraphs 
(e)(2)(iii)(B) and (e)(2)(iii)(C) of this section, at least twelve 
months must pass before the operator can implement its next annual 
adjustment.
    (2) Projecting Inflation, Changes in External Costs, and Changes in 
Number of Regulated Channels. An operator that elects the annual rate 
adjustment method may adjust its rates to reflect inflation, changes in 
external costs and changes in the number of regulated channels that are 
projected for the 12 months following the date the operator is scheduled 
to make its rate adjustment pursuant to Section 76.933(g).
    (i) Inflation Adjustments. The residual component of a system's 
permitted charge may be adjusted annually to project for the 12 months 
following the date the operator is scheduled to make a rate adjustment. 
The annual inflation adjustment shall be based on inflation that 
occurred in the most recently completed July 1 to June 30 period. 
Adjustments shall be based on changes in the Gross National Product 
Price Index as published by the Bureau of Economic Analysis of the 
United States Department of Commerce.
    (ii) External costs. (A) Permitted charges for a tier may be 
adjusted annually to reflect changes in external costs experienced but 
not yet accounted for by the cable system, as well as for projections in 
these external costs for the 12-month period on which the filing is 
based. In order that rates be adjusted for projections in external 
costs, the operator must demonstrate that such projections are 
reasonably certain and reasonably quantifiable. Projections involving 
copyright fees, retransmission consent fees, other programming costs, 
Commission regulatory fees, and cable specific taxes are presumed to be 
reasonably certain and reasonably quantifiable. Operators may project 
for increases in franchise related costs to the extent that they are 
reasonably certain and reasonably quantifiable, but such changes are not

[[Page 575]]

presumed reasonably certain and reasonably quantifiable. Operators may 
pass through increases in franchise fees pursuant to Section 76.933(g).
    (B) In all events, a system must adjust its rates every twelve 
months to reflect any net decreases in external costs that have not 
previously been accounted for in the system's rates.
    (C) Any rate increase made to reflect increases or projected 
increases in external costs must also fully account for all other 
changes and projected changes in external costs, inflation and the 
number of channels on regulated tiers that occurred or will occur during 
the same period. Rate adjustments made to reflect changes in external 
costs shall be based on any changes, plus projections, in those external 
costs that occurred or will occur in the relevant time periods since the 
periods used in the operator's most recent previous FCC Form 1240.
    (iii) Channel Adjustments. (A) Permitted charges for a tier may be 
adjusted annually to reflect changes not yet accounted for in the number 
of regulated channels provided by the cable system, as well as for 
projected changes in the number of regulated channels for the 12-month 
period on which the filing is based. In order that rates be adjusted for 
projected changes to the number of regulated channels, the operator must 
demonstrate that such projections are reasonably certain and reasonably 
quantifiable.
    (B) An operator may make rate adjustments for the addition of 
required channels to the basic service tier that are required under 
federal or local law at any time such additions occur, subject to the 
filing requirements of Section 76.933(g)(2), regardless of whether such 
additions occur outside of the annual filing cycle. Required channels 
may include must-carry, local origination, public, educational and 
governmental access and leased access channels. Should the operator 
elect not to pass through the costs immediately, it may accrue the costs 
of the additional channels plus interest, as described in paragraph 
(e)(3) of this section.
    (C) An operator may make one additional rate adjustment during the 
year to reflect channel additions to the cable programming services 
tiers or, where the operator offers only one regulated tier, the basic 
service tier. Operators may make this additional rate adjustment at any 
time during the year, subject to the filing requirements of Section 
76.933(g)(2), regardless of whether the channel addition occurs outside 
of the annual filing cycle. Should the operator elect not to pass 
through the costs immediately, it may accrue the costs of the additional 
channels plus interest, as described in paragraph (e)(3) of this 
section.
    (3) True-up and Accrual of Charges Not Projected. As part of the 
annual rate adjustment, an operator must ``true up'' its previously 
projected inflation, changes in external costs and changes in the number 
of regulated channels and adjust its rates for these actual cost 
changes. The operator must decrease its rates for overestimation of its 
projected cost changes, and may increase its rates to adjust for 
underestimation of its projected cost changes.
    (i) Where an operator has underestimated costs, future rates may be 
increased to permit recovery of the accrued costs plus 11.25% interest 
between the date the costs are incurred and the date the operator is 
entitled to make its rate adjustment.
    (ii) Per Channel Adjustment. Operators may increase rates by a per 
channel adjustment of up to 20 cents per subscriber per month, exclusive 
of programming costs, for each channel added to a CPST between May 15, 
1994, and December 31, 1997, except that an operator may take the per 
channel adjustment only for channel additions that result in an increase 
in the highest number of channels offered on all CPSTs as compared to 
May 14, 1994, and each date thereafter. Any revenues received from a 
programmer, or shared by a programmer and an operator in connection with 
the addition of a channel to a CPST shall first be deducted from 
programming costs for that channel pursuant to paragraph (d)(3)(x) of 
this section and then, to the extent revenues received from the 
programmer are greater than the programming costs, shall be deducted 
from the per channel adjustment. This deduction will apply on a channel 
by channel basis. With respect to the per channel adjustment only, this 
deduction shall

[[Page 576]]

not apply to revenues received by an operator from a programmer as 
commissions on sales of products or services offered through home 
shopping services.
    (iii) If an operator has underestimated its cost changes and elects 
not to recover these accrued costs with interest on the date the 
operator is entitled to make its annual rate adjustment, the interest 
will cease to accrue as of the date the operator is entitled to make the 
annual rate adjustment, but the operator will not lose its ability to 
recover such costs and interest. An operator may recover accrued costs 
between the date such costs are incurred and the date the operator 
actually implements its rate adjustment.
    (iv) Operators that use the annual methodology in their next filing 
after the release date of this Order may accrue costs and interest 
incurred since July 1, 1995 in that filing. Operators that file a Form 
1210 in their next filing after the release date of this Order, and 
elect to use Form 1240 in a subsequent filing, may accrue costs incurred 
since the end of the last quarter to which a Form 1210 applies.
    (4) Sunset Provision. The Commission will review paragraph (e) of 
this section prior to December 31, 1998 to determine whether the annual 
rate adjustment methodology should be kept, and whether the quarterly 
system should be eliminated and replaced with the annual rate adjustment 
method.
    (f) External costs. (1) External costs shall consist of costs in the 
following categories:
    (i) State and local taxes applicable to the provision of cable 
television service;
    (ii) Franchise fees;
    (iii) Costs of complying with franchise requirements, including 
costs of providing public, educational, and governmental access channels 
as required by the franchising authority;
    (iv) Retransmission consent fees and copyright fees incurred for the 
carriage of broadcast signals;
    (v) Other programming costs; and
    (vi) Commission cable television system regulatory fees imposed 
pursuant to 47 U.S.C. Sec. 159.
    (2) The permitted charge for a regulated tier shall be adjusted on 
account of programming costs, copyright fees and retransmission consent 
fees only for the program channels or broadcast signals offered on that 
tier.
    (3) The permitted charge shall not be adjusted for costs of 
retransmission consent fees or changes in those fees incurred prior to 
October 6, 1994.
    (4) The starting date for adjustments on account of external costs 
for a tier of regulated programming service shall be the earlier of the 
initial date of regulation for any basic or cable service tier or 
February 28, 1994. Except, for regulated FCC Form 1200 rates set on the 
basis of rates at September 30, 1992 (using either March 31, 1994 rates 
initially determined from FCC Form 393 Worksheet 2 or using Form 1200 
Full Reduction Rates from Line J6), the starting date shall be September 
30, 1992. Operators in this latter group may make adjustment for changes 
in external costs for the period between September 30, 1992, and the 
initial date of regulation or February 28, 1994, whichever is 
applicable, based either on changes in the GNP-PI over that period or on 
the actual change in the external costs over that period. Thereafter, 
adjustment for external costs may be made on the basis of actual changes 
in external costs only.
    (5) Changes in franchise fees shall not result in an adjustment to 
permitted charges, but rather shall be calculated separately as part of 
the maximum monthly charge per subscriber for a tier of regulated 
programming service.
    (6) Adjustments to permitted charges to reflect changes in the costs 
of programming purchased from affiliated programmers, as defined in 
Sec. 76.901, shall be permitted as long as the price charged to the 
affiliated system reflects either prevailing company prices offered in 
the marketplace to third parties (where the affiliated program supplier 
has established such prices) or the fair market value of the 
programming.
    (7) Adjustments to permitted charges on account of increases in 
costs of programming shall be further adjusted to reflect any revenues 
received by the operator from the programmer. Such adjustments shall 
apply on a channel-by-channel basis.

[[Page 577]]

    (8) In calculating programming expense, operators may add a mark-up 
of 7.5% for increases in programming costs occurring after March 31, 
1994, except that operators may not file for or take the 7.5% mark-up on 
programming costs for new channels added on or after May 15, 1994 for 
which the operator has used the methodology set forth in paragraph 
(g)(3) of this section for adjusting rates for channels added to cable 
programming service tiers. Operators shall reduce rates by decreases in 
programming expense plus an additional 7.5% for decreases occurring 
after May 15, 1994 except with respect to programming cost decreases on 
channels added after May 15, 1994 for which the rate adjustment 
methodology in paragraph (g)(3) of this section was used.
    (g) Changes in the number of channels on regulated tiers.(1) 
Generally. A system may adjust the residual component of its permitted 
rate for a tier to reflect changes in the number of channels offered on 
the tier on a quarterly basis. Cable systems shall use FCC Form 1210 (or 
FCC Form 1211, where applicable) or FCC Form 1240 to justify rate 
changes made on account of changes in the number of channels on a basic 
service tier (``BST'') or a cable programming service tier (``CPST''). 
Such rate adjustments shall be based on any changes in the number of 
regulated channels that occurred from the end of the last quarter for 
which an adjustment was previously made through the end of the quarter 
that has most recently closed preceding the filing of the FCC Form 1210 
(or FCC Form 1211, where applicable) or FCC Form 1240. However, when a 
system deletes channels in a calendar quarter, the system must adjust 
the residual component of the tier charge in the next calendar quarter 
to reflect that deletion. Operators must elect between the channel 
addition rules in paragraphs (g)(2) and (g)(3) of this section the first 
time they adjust rates after December 31, 1994, to reflect a channel 
addition to a CPST that occurred on or after May 15, 1994, and must use 
the elected methodology for all rate adjustments through December 31, 
1997. A system that adjusted rates after May 15, 1994, but before 
January 1, 1995 on account of a change in the number of channels on a 
CPST that occurred after May 15, 1994, may elect to revise its rates to 
charge the rates permitted by paragraph (g)(3) of this section on or 
after January 1, 1995, but is not required to do so as a condition for 
using the methodology in paragraph (g)(3) of this section for rate 
adjustments after January 1, 1995. Rates for the BST will be governed 
exclusively by paragraph (g)(2) of this section, except that where a 
system offered only one tier on May 14, 1994, the cable operator will be 
allowed to elect between paragraphs (g)(2) and (g)(3) of this section as 
if the tier was a CPST.
    (2) Adjusting Rates for increases in the number of channels offered 
between May 15, 1994, and December 31, 1997, on a basic service tier and 
at the election of the operator on a cable programming service tier. The 
following table shall be used to adjust permitted rates for increases in 
the number of channels offered between May 15, 1994, and December 31, 
1997, on a basic service tier and subject to the conditions in paragraph 
(g)(1) of this section at the election of the operator on a CPST. The 
entries in the table provide the cents per channel per subscriber per 
month by which cable operators will adjust the residual component using 
FCC Form 1210 (or FCC Form 1211, where applicable) or FCC Form 1240.

                                                                        
------------------------------------------------------------------------
                                                             Per-channel
             Average No. of regulated channels                adjustment
                                                                factor  
------------------------------------------------------------------------
7..........................................................        $0.52
7.5........................................................         0.45
8..........................................................         0.40
8.5........................................................         0.36
9..........................................................         0.33
9.5........................................................         0.29
10.........................................................         0.27
10.5.......................................................         0.24
11.........................................................         0.22
11.5.......................................................         0.20
12.........................................................         0.19
12.5.......................................................         0.17
13.........................................................         0.16
13.5.......................................................         0.15
14.........................................................         0.14
14.5.......................................................         0.13
15-15.5....................................................         0.12
16.........................................................         0.11
16.5-17....................................................         0.10
17.5-18....................................................         0.09
18.5-19....................................................         0.08
19.5-21.5..................................................         0.07
22-23.5....................................................         0.06
24-26......................................................         0.05
26.5-29.5..................................................         0.04
30-35.5....................................................         0.03
36-46......................................................         0.02

[[Page 578]]

                                                                        
46.5-99.5..................................................         0.01
------------------------------------------------------------------------

    In order to adjust the residual component of the tier charge when 
there is an increase in the number of channels on a tier, the operator 
shall perform the following calculations:
    (i) Take the sum of the old total number of channels on tiers 
subject to regulation (i.e., tiers that are, or could be, regulated but 
excluding New Product Tiers) and the new total number of channels and 
divide the resulting number by two;
    (ii) Consult the above table to find the applicable per channel 
adjustment factor for the number of channels produced by the 
calculations in step (1). For each tier for which there has been an 
increase in the number of channels, multiply the per-channel adjustment 
factor times the change in the number of channels on that tier. The 
result is the total adjustment for that tier.
    (3) Alternative methodology for adjusting rates for changes in the 
number of channels offered on a cable programming service tier or a 
single tier system between May 15, 1994, and December 31, 1997. This 
paragraph at the Operator's discretion as set forth in paragraph (g)(1) 
of this section shall be used to adjust permitted rates for a CPST after 
December 31, 1994, for changes in the number of channels offered on a 
CPST between May 15, 1994, and December 31, 1997. For purposes of 
paragraph (g)(3) of this section, a single tier system may be treated as 
if it were a CPST.
    (i) Operators Cap Attributable to New Channels on All CPSTs Through 
December 31, 1997. Operators electing to use the methodology set forth 
in this paragraph may increase their rates between January 1, 1995, and 
December 31, 1997, by up to 20 cents per channel, exclusive of 
programming costs, for new channels added to CPSTs on or after May 15, 
1994, except that they may not make rate adjustments totalling more than 
$1.20 per month, per subscriber through December 31, 1996, and by more 
than $1.40 per month, per subscriber through December 31, 1997 (the 
``Operator's Cap''). Except to the extent that the programming costs of 
such channels are covered by the License Fee Reserve provided for in 
paragraph (g)(3)(iii) of this section, programming costs associated with 
channels for which a rate adjustment is made pursuant to this paragraph 
(g)(3) of this section must fall within the Operators' Cap if the 
programming costs (including any increases therein) are reflected in 
rates before January 1, 1997. Inflation adjustments pursuant to 
paragraph (d)(2) or (e)(2) of this section are not counted against the 
Operator's Cap.
    (ii) Per Channel Adjustment. Operators may increase rates by a per 
channel adjustment of up to 20 cents per subscriber per month, exclusive 
of programming costs, for each channel added to a CPST between May 15, 
1994, and December 31, 1997, except that an operator may take the per 
channel adjustment only for channel additions that result in an increase 
in the highest number of channels offered on all CPSTs as compared to 
May 14, 1994, and each date thereafter. Any revenues received from a 
programmer, or shared by a programmer and an operator in connection with 
the addition of a channel to a CPST shall first be deducted from 
programming costs for that channel pursuant to paragraph (f)(7) of this 
section and then, to the extent revenues received from the programmer 
are greater than the programming costs, shall be deducted from the per 
channel adjustment. This deduction will apply on a channel by channel 
basis.
    (iii) License Fee Reserve. In addition to the rate adjustments 
permitted in paragraphs (g)(3)(i) and (g)(3)(ii) of this section, 
operators that make channel additions on or after May 15, 1994 may 
increase their rates by a total of 30 cents per month, per subscriber 
between January 1, 1995, and December 31, 1996, for license fees 
associated with such channels (the ``License Fee Reserve''). The License 
Fee Reserve may be applied against the initial license fee and any 
increase in the license fee for such channels during this period. An 
operator may pass-through to subscribers more than the 30 cents between 
January 1, 1995, and December 31, 1996, for license fees associated with 
channels added after May 15, 1994, provided that the total amount 
recovered

[[Page 579]]

from subscribers for such channels, including the License Fee Reserve, 
does not exceed $1.50 per subscriber, per month. After December 31, 
1996, license fees may be passed through to subscribers pursuant to 
paragraph (f) of this section, except that license fees associated with 
channels added pursuant to this paragraph (3) will not be eligible for 
the 7.5% mark-up on increases in programming costs.
    (iv) Timing. For purposes of determining whether a rate increase 
counts against the maximum rate increases specified in paragraphs 
(g)(3)(i) through (g)(3)(ii) of this section, the relevant date shall be 
when rates are increased as a result of channel additions, not when the 
addition occurs.
    (4) Deletion of Channels. When dropping a channel from a BST or 
CPST, operators shall reflect the net reduction in external costs in 
their rates pursuant to paragraphs (d)(3)(i) and (d)(3)(ii) of this 
section, or paragraphs (e)(2)(ii)(A) and (e)(2)(ii)(B) of this section. 
With respect to channels to which the 7.5% mark-up on programming costs 
applied pursuant to paragraph (f)(8) of this section, the operator shall 
treat the mark-up as part of its programming costs and subtract the 
mark-up from its external costs. Operators shall also reduce the price 
of that tier by the ``residual'' associated with that channel. For 
channels that were on a BST or CPST on May 14, 1994, or channels added 
after that date pursuant to paragraph (g)(2) of this section, the per 
channel residual is the charge for their tier, minus the external costs 
for the tier, and any per channel adjustments made after that date, 
divided by the total number of channels on the tier minus the number of 
channels on the tier that received the per channel adjustment specified 
in paragraph (g)(3) of this section. For channels added to a CPST after 
May 14, 1994, pursuant to paragraph (g)(3) of this section, the 
residuals shall be the actual per channel adjustment taken for that 
channel when it was added to the tier.
    (5) Movement of Channels Between Tiers. When a channel is moved from 
a CPST or a BST to another CPST or BST, the price of the tier from which 
the channel is dropped shall be reduced to reflect the decrease in 
programming costs and residual as described in paragraph (g)(4) of this 
section. The residual associated with the shifted channel shall then be 
converted from per subscriber to aggregate numbers to ensure aggregate 
revenues from the channel remain the same when the channel is moved. The 
aggregate residual associated with the shifted channel may be shifted to 
the tier to which the channel is being moved. The residual shall then be 
converted to per subscriber figures on the new tier, plus any subsequent 
inflation adjustment. The price of the tier to which the channel is 
shifted may then be increased to reflect this amount. The price of that 
tier may also be increased to reflect any increase in programming cost. 
An operator may not shift a channel for which it received a per channel 
adjustment pursuant to paragraph (g)(3) of this section from a CPST to a 
BST.
    (6) Substitution of Channels on a BST or CPST. If an operator 
substitutes a new channel for an existing channel on a CPST or a BST, no 
per channel adjustment may be made. Operators substituting channels on a 
CPST or a BST shall be required to reflect any reduction in programming 
costs in their rates and may reflect any increase in programming costs 
pursuant to paragraphs (d)(3)(i) and (d)(3)(ii), or paragraphs 
(e)(2)(ii)(A) and (e)(2)(ii)(B) of this section. If the programming cost 
for the new channel is greater than the programming cost for the 
replaced channel, and the operator chooses to pass that increase through 
to subscribers, the excess shall count against the License Fee Reserve 
or the Operator Cap when the increased cost is passed through to 
subscribers. Where an operator substitutes a new channel for a channel 
on which a 7.5% mark-up on programming costs was taken pursuant to 
paragraph (f)(8) of this section, the operator may retain the 7.5% mark-
up on the license fee of the dropped channel to the extent that it is no 
greater than 7.5% of programming cost of the new service.
    (7) Headend upgrades. When adding channels to CPSTs and single-tier 
systems, cable systems that are owned by a small cable company and incur 
additional monthly per subscriber headend

[[Page 580]]

costs of one full cent or more for an additional channel may choose 
among the methodologies set forth in paragraphs (g)(2) and (g)(3) of 
this section. In addition, such systems may increase rates to recover 
the actual cost of the headend equipment required to add up to seven 
such channels to CPSTs and single-tier systems, not to exceed $5,000 per 
additional channel. Rate increases pursuant to this paragraph may occur 
between January 1, 1995, and December 31, 1997, as a result of 
additional channels offered on those tiers after May 14, 1994. Headend 
costs shall be depreciated over the useful life of the equipment. The 
rate of return on this investment shall not exceed 11.25 percent. In 
order to recover costs for headend equipment pursuant to this paragraph, 
systems must certify to the Commission their eligibility to use this 
paragraph, and the level of costs they have actually incurred for adding 
the headend equipment and the depreciation schedule for the equipment.
    (8) Sunset Provision. Paragraph (g) of this section shall cease to 
be effective on January 1, 1998 unless renewed by the Commission.
    (h) Permitted charges for a tier shall be determined in accordance 
with forms and associated instructions established by the Commission.
    (i) Cost of Service Charge. (1) For purposes of this section, a 
monthly cost-of-service charge for a basic service tier or a cable 
programming service tier is an amount equal to the annual revenue 
requirement for that tier divided by a number that is equal to 12 times 
the average number of subscribers to that tier during the test year, 
except that a monthly charge for a system or tier in service less than 
one year shall be equal to the projected annual revenue requirement for 
the first 12 months of operation or service divided by a number that is 
equal to 12 times the projected average number of subscribers during the 
first 12 months of operation or service. The calculation of the average 
number of subscribers shall include all subscribers, regardless of 
whether they receive service at full rates or at discounts.
    (2) A test year for an initial regulated charge is the cable 
operator's fiscal year preceding the initial date of regulation. A test 
year for a change in the basic service charge that is after the initial 
date of regulation is the cable operator's fiscal year preceding the 
mailing or other delivery of written notice pursuant to Section 76.932. 
A test year for a change in a cable programming service charge after the 
initial date of regulation is the cable operator's fiscal year preceding 
the filing of a complaint regarding the increase.
    (3) The annual revenue requirement for a tier is the sum of the 
return component and the expense component for that tier.
    (4) The return component for a tier is the average allowable test 
year ratebase allocable to the tier adjusted for known and measurable 
changes occurring between the end of the test year and the effective 
date of the rate multiplied by the rate of return specified by the 
Commission or franchising authority.
    (5) The expense component for a tier is the sum of allowable test 
year expenses allocable to the tier adjusted for known and measurable 
changes occurring between the end of the test year and the effective 
date of the rate.
    (6) The ratebase may include the following:
    (i) Prudent investment by a cable operator in tangible plant that is 
used and useful in the provision of regulated cable services less 
accumulated depreciation. Tangible plant in service shall be valued at 
the actual money cost (or the money value of any consideration other 
than money) at the time it was first used to provide cable service, 
except that in the case of systems purchased before May 15, 1994 shall 
be presumed to equal 66% of the total purchase price allocable to assets 
(including tangible and intangible assets) used to provide regulated 
services. The 66% allowance shall not be used to justify any rate 
increase taken after the effective date of this rule. The actual money 
cost of plant may include an allowance for funds used during 
construction at the prime rate or the operator's actual cost of funds 
during construction. Cost overruns are presumed to be imprudent 
investment in the absence of a showing that the overrun occurred through 
no fault of the operator.

[[Page 581]]

    (ii) An allowance for start-up losses including depreciation, 
amortization and interest expenses related to assets that are included 
in the ratebase. Capitalized start-up losses, may include cumulative net 
losses, plus any unrecovered interest expenses connected to funding the 
regulated ratebase, amortized over the unexpired life of the franchise, 
commencing with the end of the loss accumulation phase. However, losses 
attributable to accelerated depreciation methodologies are not 
permitted.
    (iii) An allowance for start-up losses, if any, that is equal to the 
lesser of the first two years of operating costs or accumulated losses 
incurred until the system reached the end of its prematurity stage as 
defined in Financial Accounting Standards Board Standard 51 (``FASB 
51'') less straight-line amortization over a reasonable period not 
exceeding 15 years that commences at the end of the prematurity phase of 
operation.
    (iv) Intangible assets less amortization that reflect the original 
costs prudently incurred by a cable operator in organizing and 
incorporating a company that provides regulated cable services, 
obtaining a government franchise to provide regulated cable services, or 
obtaining patents that are used and useful in the provision of cable 
services.
    (v) The cost of customer lists if such costs were capitalized during 
the prematurity phase of operations less amortization.
    (vi) An amount for working capital to the extent that an allowance 
or disallowance for funds needed to sustain the ongoing operations of 
the regulated cable service is demonstrated.
    (vii) Other intangible assets to the extent the cable operator 
demonstrates that the asset reflects costs incurred in an activity or 
transaction that produced concrete benefits or savings for subscribers 
to regulated cable services that would not have been realized otherwise 
and the cable operator demonstrates that a return on such an asset does 
not exceed the value of such a subscriber benefit.
    (viii) The portion of the capacity of plant not currently in service 
that will be placed in service within twelve months of the end of the 
test year.
    (7) Deferred income taxes accrued after the date upon which the 
operator became subject to regulation shall be deducted from items 
included in the ratebase.
    (8) Allowable expenses may include the following:
    (i) All regular expenses normally incurred by a cable operator in 
the provision of regulated cable service, but not including any lobbying 
expense, charitable contributions, penalties and fines paid on account 
of violations of statutes or rules, or membership fees in social, 
service, recreational or athletic clubs or organizations.
    (ii) Reasonable depreciation expense attributable to tangible assets 
allowable in the ratebase.
    (iii) Reasonable amortization expense for prematurely abandoned 
tangible assets formerly includable in the ratebase that are amortized 
over the remainder of the original expected life of the asset.
    (iv) Reasonable amortization expense for start-up losses and 
capitalized intangible assets that are includable in ratebase.
    (v) Taxes other than income taxes attributable to the provision of 
regulated cable services.
    (vi) An income tax allowance.
    (j) Network upgrade rate increase. (1) Cable operators that 
undertake significant network upgrades requiring added capital 
investment may justify an increase in rates for regulated services by 
demonstrating that the capital investment will benefit subscribers.
    (2) A rate increase on account of upgrades shall not be assessed on 
customers until the upgrade is complete and providing benefits to 
customers of regulated services.
    (3) Cable operators seeking an upgrade rate increase have the burden 
of demonstrating the amount of the net increase in costs, taking into 
account current depreciation expense, likely changes in maintenance and 
other costs, changes in regulated revenues and expected economies of 
scale.
    (4) Cable operators seeking a rate increase for network upgrades 
shall allocate net cost increases in conformance

[[Page 582]]

with the cost allocation rules as set forth in Sec. 76.924.
    (5) Cable operators that undertake significant upgrades shall be 
permitted to increase rates by adding the benchmark/price cap rate to 
the rate increment necessary to recover the net increase in cost 
attributable to the upgrade.
    (k) Hardship rate relief. A cable operator may adjust charges by an 
amount specified by the Commission for the cable programming service 
tier or the franchising authority for the basic service tier if it is 
determined that:
    (1) Total revenues from cable operations, measured at the highest 
level of the cable operator's cable service organization, will not be 
sufficient to enable the operator to attract capital or maintain credit 
necessary to enable the operator to continue to provide cable service;
    (2) The cable operator has prudent and efficient management; and
    (3) Adjusted charges on account of hardship will not result in total 
charges for regulated cable services that are excessive in comparison to 
charges of similarly situated systems.
    (l) Cost of service showing. A cable operator that elects to 
establish a charge, or to justify an existing or changed charge for 
regulated cable service, based on a cost-of-service showing must submit 
data to the Commission or the franchising authority in accordance with 
forms established by the Commission. The cable operator must also submit 
any additional information requested by franchising authorities or the 
Commission to resolve questions in cost-of-service proceedings.
    (m) Subsequent Cost of Service Charges. No cable operator may use a 
cost-of-service showing to justify an increase in any charge established 
on a cost-of-service basis for a period of 2 years after that rate takes 
effect, except that the Commission or the franchising authority may 
waive this prohibition upon a showing of unusual circumstances that 
would create undue hardship for a cable operator.
    (n) Further rate adjustments--Uniform rates. A cable operator that 
has established rates in accordance with this section may then be 
permitted to establish a uniform rate for uniform services offered in 
multiple franchise areas. This rate shall be determined in accordance 
with the Commission's procedures and requirements set forth in CS Docket 
No. -174.

[58 95 FR 29753 , May 21, 1993, as amended at  58 FR 46735 , Sept. 2, 1993;  59 FR 17957 , 17973, 17989, Apr. 15, 1994;  59 FR 53115 , Oct. 21, 1994;  59 FR 62623 , Dec. 6, 1994;  60 FR 4865 , Jan. 25, 1995;  60 FR 10514 , Feb. 27, 
1995;  60 FR 35864 , July 12, 1995;  60 FR 52113 , Oct. 5, 1995;  60 FR 54817 , Oct. 26, 1995;  61 FR 9367 , Mar. 8, 1996;  61 FR 45359 , Aug. 29, 
1996;  62 FR 6495 , Feb. 12, 1997;  62 FR 15121 , 15127, Mar. 31, 1997]

    Effective Date Notes: 1. At  60 FR 62633 , Dec. 6, 1994, in 
Sec. 76.922, paragraph (e) was revised. Paragraphs (e)(1) and (e)(2) 
contain information collection and recordkeeping requirements and will 
not become effective until approval has been given by the Office of 
Management and Budget.

    2. At  60 FR 52113 , Oct. 5, 1995, in Sec. 76.922, paragraphs (e) 
through (k) were redesignated as (g) through (m); (c), (d), and new (g) 
through new (m) were revised; a new (e) and a new (f) were added. This 
amendment contains information collection and recordkeeping requirements 
and will not become effective until 30 days after approval has been 
given by the Office of Management and Budget.

    3. At  61 FR 9367 , Mar. 8, 1996, in Sec. 76.922, paragraphs (i)(6)(i) 
and (i)(7) were revised; (i)(6)(ii) through (vii) were redesignated as 
(i)(6)(iii) through (viii); a new (i)(6)(ii) was added. This amendment 
contains information collection and recordkeeping requirements and will 
not become effective until approval has been given by the Office of 
Management and Budget.

    4. At  62 FR 6495 , Feb. 12, 1997, in Sec. 76.922, paragraph (f)(4) 
was revised. This amendment contains information collection and 
recordkeeping requirements and will not become effective until approval 
has been given by the Office of Management and Budget.

    5. At  62 FR 15127 , Mar. 31, 1997, paragraph (c)(2) was revised and 
paragraph (n) was added. This amendment contains information collection 
and recordkeeping requirements and will not become effective until 
approval has been given by the Office of Management and Budget.