FOR FCC RECORD ONLY
$//Time Warner Cable of Danville, Illinois, MO&O, DA- 95-164//$
$/76.922 Rates for Cable Programming Service tier/$
$/benchmark cable rates/$            

                                Before the
                     Federal Communications Commission
                             Washington, D.C.

                                                             DA 95-164




In the matter of                                       )
                              )    CUID No. IL0021
Time Warner Cable                 )
Danville, Illinois                )
                              )   
                                             )               
Benchmark Filing To Support       )     
Cable Programming Service Price         )


                       Memorandum Opinion and Order

     Adopted:  February 6, 1995         Released:  February 8, 1995

By the Chief, Cable Services Bureau:


Introduction

     1.  Here we consider complaints about the price Time Warner Cable ("Time
Warner") was charging for its cable programming service ("CPS") tier in Danville, Illinois,
CUID No. IL0021.  Time Warner has chosen to attempt to justify its price through a
benchmark showing on FCC Form 393.  This order addresses the reasonableness of Time
Warner's price only through May 14, 1994.  At a later date we will issue a separate order
addressing the reasonableness of the price after that date.

     2.  Under the Cable Television Consumer Protection and Competition Act of 1992,
and our rules implementing it, 47 C.F.R. Part 76, Subpart N, the Commission must review
CPS prices upon the filing of a valid complaint.  The filing of a valid complaint triggers an
obligation on behalf of the cable operator to file a justification of its CPS prices.  Under our
rules, an operator may attempt to justify its prices through either a benchmark showing or a
cost-of-service showing.  In either case, the operator has the burden of demonstrating that its
CPS prices are not unreasonable.

     3.  The Commission's original rate regulations took effect on September 1, 1993. 
The Commission subsequently revised its rate regulations effective May 15, 1994. 
Operators with valid CPS complaints filed against them prior to May 15, 1994 must
demonstrate that their CPS prices were in compliance with the Commission's initial rules
from the time the complaint was filed through May 14, 1994, and that their prices were in
compliance with the revised rules from May 15, 1994 forward.  Operators attempting to
justify their prices for the period prior to May 15, 1994 through a benchmark showing must
complete and file FCC Form 393.  Generally, to justify their prices for the period beginning
May 15, 1994 through a benchmark showing, operators must use the FCC Form 1200
series.


Procedural Matters

     4.  The first complete and timely CPS complaint was served on Time Warner on
February 24, 1994 . The Commission received the complaint on the same date.

     5.  Time Warner attempted to justify its CPS price through an FCC Form 393 filed
on March 15, 1994.  Time Warner amended its justification on June 21, 1994 in response to
a Cable Services Bureau Order citing common deficiencies observed in benchmark filings
generally. 


Discussion

     6. Time Warner asserts that its monthly CPS tier price of $11.05 per subscriber is 
justified by its benchmark filing because its price is less than the maximum permitted charge
of $11.08 as calculated in the filing.  Upon review of Time Warner's Form 393, we have
found no apparent errors that would result in Time Warner's CPS tier price exceeding its
maximum permitted price.


Conclusions

     7.  Upon review of the record herein, we conclude that Time Warner's showing
supports a CPS tier price of $11.05 per month (plus franchise fee) for the period of February
24, 1994 to May 14, 1994.

     8.  Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's
Rules, 47 C.F.R.  0.321, that the February 24, 1994 complaint against the cable
programming service price charged by Time Warner Cable in Danville, Illinois, CUID No.
IL0021, and all other complaints relating to the same price, ARE DENIED TO THE
EXTENT INDICATED HEREIN.

     9.  IT IS FURTHER ORDERED, that the benchmark filing submitted by Time
Warner Cable with respect to CUID No. IL0021, for the period of February 24, 1994 to
May 14, 1994, justifies a price of $11.05 per month (plus franchise fee) for Time Warner
Cable's cable programming service tier.

                         FEDERAL COMMUNICATIONS COMMISSION




                         Meredith J. Jones
                         Chief, Cable Services Bureau