FOR FCC RECORD ONLY
$//TCI Cablevision of Scottsdale, Scottsdale, AZ, MO&O, DA95-183//$
$/76.922 Rates for Cable Programming Service tier/$
$/benchmark cable rates/$

                                Before the
                     Federal Communications Commission
                             Washington, D.C.

                                                                                           DA 95-183

In the matter of:                            )
                                             )
TCI Cablevision of Scottsdale        )      CUID No. AZ0138
City of Scottsdale, Arizona                  )
                                             )
Benchmark Filing To Support          )
Cable Programming Service Price              )



                       Memorandum Opinion and Order

Adopted:  February  7, 1995                                 Released:  February  9, 1995

By the Chief, Cable Services Bureau:

Introduction

       1.      Here we consider a complaint about the price TCI Cablevision of Scottsdale
("TCI") was charging for its cable programming service ("CPS") tier in Scottsdale, Arizona,
CUID No. AZ0138.  TCI has attempted to justify its price through a benchmark showing on
FCC Form 393.  This order addresses the reasonableness of TCI's price only through May 14,
1994.  At a later time 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 valid CPS complaint was completed and served on TCI on
September 6, 1993.  The Commission received the complaint on September 13, 1993.

     5.   TCI attempted to justify its CPS price through an FCC Form 393 filed on
November 15, 1993.  TCI amended its justification on four occasions: first, on December 7,
1993; second, on May 16, 1994; third, on May 18, 1994; and finally on May 31, 1994.  The
May 31, 1994 amended FCC Form 393 was filed in response to a Cable Services Bureau
Order citing common deficiencies observed in benchmark filings generally.

Discussion

     6.    TCI asserts that its monthly CPS tier price of $8.86 per subscriber is justified
by its benchmark filing because its price is equal to the maximum permitted charge of $8.86
as calculated in its most recent amended filing, dated May 31, 1994.  Upon review of TCI's
May 31, 1994 amended Form 393, we have found no apparent errors that would require a
recalculation of TCI's maximum permitted CPS price.

Conclusions

     7.    Upon review of the record herein, we conclude that TCI Cablevision of
Scottsdale's showing supports a maximum reasonable CPS tier price of $8.86 per month (plus
franchise fee) for the period September 13, 1993 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 September 6, 1993 complaint against the cable
programming service price charged by TCI Cablevision of Scottsdale in Scottsdale, Arizona,
CUID No. AZ0138 IS DENIED TO THE EXTENT INDICATED HEREIN.
     
     9.    IT IS FURTHER ORDERED, that the benchmark filing submitted by TCI
Cablevision of Scottsdale with respect to Scottsdale, Arizona, CUID No. AZ0138, for the
period of September 13, 1993 to May 14, 1994, justifies a maximum price of $8.86 per
month (plus franchise fee) for TCI Cablevision of Scottsdale's cable programming service tier.

     FEDERAL COMMUNICATIONS COMMISSION




     Meredith J. Jones
     Chief, Cable Services Bureau