FOR FCC RECORD ONLY
$//New Channels Corporation, Oneonta, New York, MO&O, DA 95-328//$
$/ 76.922 Rates for the basic service tier and cable programming services tier/$
$/benchmark cable rates/$

                                Before the
                     Federal Communications Commission
                             Washington, D.C.

                                                                  DA 95-328


In the matter of                                       )
                              ) CUID Nos. NY0059, NY0921, NY1021,
NewChannels Corporation           )                NY1138, NY1139, NY1193,
Rome, New York                )              NY1378, NY1379 and                  
                                  )                 NY1380
                              )              
Benchmark Filing To Support       )               
Cable Programming Service Price         )          
          



                       Memorandum Opinion and Order

Adopted:  February 21, 1995               Released:  February 23, 1995

By the Deputy Chief, Cable Services Bureau:


Introduction

     1.  Here we consider complaints about the price NewChannels Corporation
("NewChannels") was charging for its cable programming service ("CPS") tier in ) CUID
Nos. NY0059, NY0921, NY1021, NY1138, NY1139, NY1193, NY1378, NY1379 and 
NY1380.  NewChannels has chosen to attempt to justify its price through a benchmark
showing on FCC Form 393.  This Order addresses the reasonableness of NewChannels'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 CPS complaint was completed and served on NewChannels on December
22, 1993.   The Commission received the complaint on January 3, 1994.

     5.  NewChannels attempted to justify its CPS price through FCC Form 393's filed 
on February 4, 1994.  NewChannels amended its justifications on July 5, 1994, in response
to a Cable Services Bureau Order citing common deficiencies observed in benchmark filings
generally,  and on February 7, 1995, in response to a Cable Services Bureau Public Notice
offering operators the opportunity to make optional supplemental filings. 

Discussion

     6.  NewChannels asserts that its monthly CPS tier price of $12.56 per subscriber is
justified by its benchmark filing because its price is equal to the maximum permitted charge 
of $12.56 as calculated in the filing.  Upon review of NewChannels's Form 393, we have
found no apparent errors that would require a recalculation of NewChannels's maximum
permitted CPS price.

Conclusions

     7.  Upon review of the record herein, we conclude that NewChannels has
demonstrated that $12.56 per month (plus franchise fee) was the maximum reasonable CPS
tier price for the period January 3, 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 December 22, 1993 complaint against the cable
programming service price charged by NewChannels Corporation in Rome, New York,
CUID Nos. NY0059, NY0921, NY1021, NY1138, NY1139, NY1193, NY1378, NY1379
and NY1380, 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
NewChannels Corporation with respect to Rome, New York CUID Nos. NY0059, NY0921,
NY1021, NY1138, NY1139, NY1193, NY1378, NY1379 and NY1380, for the period of
January 3, 1994 to May 14, 1994, justifies a maximum price of $12.56 per month (plus
franchise fee) for NewChannels Corporation's cable programming service tier.

                         FEDERAL COMMUNICATIONS COMMISSION




                         Gregory J. Vogt
                         Deputy Chief, Cable Services Bureau