NEWS Report No. CS 97-17                CABLE SERVICES ACTION              June  13, 1997

COMMISSION ADOPTS ORDER INVOLVING CENCOM CABLE'S  CPST RATE   FOR
JASPER, TX
 
     The Commission has affirmed the Cable Services Bureau's holding in DA 95-681
(released April 7, 1995) that the initial rate of $14.69 charged by Cencom Cable Income Partners
II, L.P. ("Cencom") for its Jasper, TX cable programming service tier ("CPST") was
unreasonable
and that Cencom must refund overcharges collected between November 16, 1993 and May 15,
1994.  The Commission set Cencom's maximum permitted CPST rate at $14.24 for this period.

     One point at issue in the proceeding was the Bureau's treatment of inflation data.  When
the operator prepared its rate justification in the period after the Commission's rate regulations
first became effective, only preliminary inflation data was available.  Therefore, the inflation
adjustment computed by the operator used an estimate of the inflation it experienced and could
recover in CPST rates.  Since the operator's rate was unreasonable on its face, the Bureau
recalculated the maximum permitted rate using the most accurate inflation information available
for the period at issue, rather than the earlier estimate.

     The Commission concluded that determining an operator's initial regulated rate as
accurately as possible is neither unlawful nor contrary to Commission policy.  Accurate
information, including accurate inflation information, is central to setting an initial regulated rate
that protects subscribers from unfair rates while also providing system operators with a fair
return.

     Another point was whether Cencom should receive credit for alleged undercharges for its
basic service tier ("BST") when determining refunds.  The Commission ruled that the
Communications Act sets up a dual regulatory structure for cable, giving local franchising
authorities jurisdiction over BST rates and the Commission jurisdiction over CPST rates. 
Because
the Commission's processes are not coordinated with local rate review processes, allowing
offsets
would create practical problems in determining the correct BST rates for offset purposes and
would be at odds with the dual regulatory structure Congress envisioned.  Furthermore,
Commission precedent providing for offsets within the BST does not establish any entitlement to
offsets between the BST and a CPST.  Therefore, the  Commission did not permit Cencom to
take credit for alleged BST undercharges.

     Action by the Commission June 6, 1997, by Order (FCC 97-205). Chairman Hundt,
Commissioners Ness and Chong with Commissioner Quello concurring and issuing a statement.
                                   -FCC-

     News Media contact: Morgan Broman at (202) 418-2358.
     Cable Services Bureau contact: Marjorie Reed Greene at (202) 418-7200.


           CONCURRING STATEMENT OF COMMISSIONER JAMES H. QUELLO

Re:  Cencom Cable Income Partners II, L.P.,
     CUID No. TX0061 (Jasper,TX)


     I am issuing this statement to address my concern regarding one aspect of our decision
in this case.  It has been the Bureau's practice to "refresh" the figures used for inflation
adjustment with more recent information when the Bureau determines that a rate is in error.
Varying inflation figures evolve for the same time period because revisions are made to the
figures as more refined information becomes available.  As our Order states, the Bureau's
practice of adjusting inflation figures with the most recent information ensures that the
corrected rate reflects the most accurate information.  My concern goes to those circumstances
where an operator, having made a good faith and diligent effort to comply with the newly
implemented rate regulations, makes an error in calculation or a simple mistake in filling out
the form. The Bureau's practice in these circumstances could subject a cable operator to
additional liability disproportionate to the error made because the inflation numbers are
refreshed.  Our decision today should not foreclose our ability to examine these
circumstances.