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<br /> <br /> <br /> <br /> <br /> <br /> regulation, for equipment, and for any changes <br /> in the number of channels offered on the basic <br /> service tiers. <br /> (iii) If (1) the operator's per channel <br /> charge for the basic service tier and equip- <br /> ment in effect on the date of initial regula- <br /> tion is above the benchmark per channel <br /> charge, as adjusted forward for inflation from <br /> September 30, 1992, until the initial date of <br /> regulation, and (2) the operator's per channel <br /> charge for the basic service tier and equip- <br /> ment in effect on September 30, 1992, was <br /> below the benchmark per channel charge, then <br /> the permitted per channel charge is the <br /> benchmark rate per channel adjusted for <br /> inflation from September 30, 1992, to the <br /> initial date of regulation, for equipment, and <br /> for any changes in the number of channels <br /> offered on the basic service tier. <br /> (c) Subsequent Permitted Per Channel Charge. After the <br /> initial date of regulation, the permitted per channel charge <br /> for the basic service tier shall be, at the election of the <br /> cable operator, either: <br /> (1) A per channel rate determined pursuant to a <br /> cost-ot-service showing, or <br /> (2) The prior permitted per channel charge pre- <br /> viously approved by CITY, adjusted for inflation and <br /> external costs in accordance with the price cap require- <br /> ments set forth in paragraph (d) of the section. <br /> (d) Price cap requirements. <br /> <br /> (1) Inflation adjustments. Permitted per channel <br /> charges for the basic service tier may be adjusted <br /> periodically on account of inflation. Adjustments to <br /> permitted per channel charges on account of inflation <br /> shall be based on changes in the Grass National Product <br /> Price Index ("GNP-PI") published by the Bureau of <br /> Economic Analysis of the United States Department of <br /> Commerce. <br /> (2) External costs. Permitted per channel charges <br /> tor the basic service tier may also be adjusted for <br /> changes in external costs measured on a per channel per <br /> subscriber basis. To the extent external cost increases <br /> are greater or less than the GNP-PI for the relevant <br /> period, the per channel charge will be adjusted accord- <br /> ingly. Per channel charges may not be increased if <br /> external costs other than franchise fees increase at a <br /> rate less than inflation. Permitted per channel charges <br /> also shall be decreased on account of external costs to <br /> the extent such costs decrease from previous levels. <br /> (A) Categories. External costs shall consist <br /> of costs in the following categories: <br /> (i) State and local taxes applicable to <br /> provision of cable television service; <br /> (ii) Franchise fees; <br /> (iii) Costs of complying with franchise <br /> requirements, including costs of providing <br /> public, educational, and governmental access <br /> channels as required by CITY; <br /> <br /> <br /> Page 5 <br />