FOR FCC RECORD ONLY
$//Warner Cable of Houston,Texas
MO&O, DA-95-422//$$/76.922 Rates for Cable Programming Service tier/$$/benchmark
cable rates/$

                                Before the
                     Federal Communications Commission
                             Washington, D.C.

                                                            DA 95-422




In the matter of                   )
                              )    
                              )         
The Houston Division of Time Warner     )
Entertainment Company L.P., dba         )    CUID Nos. TX0613 and TX0614
Warner Cable Communications       )          
Missouri City, Texas              )     
                                             )               
Benchmark Filing To Support       )     
Cable Programming Service Price         )


                       Memorandum Opinion and Order

Adopted:   March 3, 1995                                                   Released:  March 7, 1995

By the Deputy Chief, Cable Services Bureau:

Introduction

     1.   Here we consider complaints about the price The Houston Division of Time
Warner Entertainment Company L.P., dba Warner Cable Communications ("Warner Cable")
was charging for its cable programming service ("CPS") tier in Missouri City, Texas, CUID
Nos. TX0613 and TX0614.  Warner Cable has chosen to attempt to justify its price through
a benchmark showing on FCC Form 393.  This Order addresses the reasonableness of
Warner Cable'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 complaints were served on Warner Cable by
the local franchising authority on February 28, 1994. The Commission received the
complaints on that same date.

     5.  Warner Cable attempted to justify its CPS price through an FCC Form 393 filed
on March 28, 1994. 

Discussion

     6. Warner Cable asserts that its monthly CPS tier price of $10.63 per subscriber is 
justified by its benchmark filing because its price is less than the maximum permitted charge
of $10.66 as calculated in the filing.  Upon review of Warner Cable's Form 393, we have
found no apparent errors that would result in Warner Cable's CPS tier price exceeding its
maximum permitted price.

Conclusions

     7.  Upon review of the record herein, we conclude that Warner Cable's showing
supports a CPS tier price of $10.63 per month (plus franchise fee) for the period of February
28, 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 28, 1994 complaints against the cable
programming service price charged by The Houston Division of Time Warner Entertainment
Company L.P., dba Warner Cable Communications in Missouri City, Texas, CUID Nos.
TX0613 and TX0614, ARE DENIED TO THE EXTENT INDICATED HEREIN.





     9.  IT IS FURTHER ORDERED that the benchmark filing submitted by Warner
Cable with respect to CUID Nos. TX0613 and TX0614, for the period of February 28, 1994
to May 14, 1994, justifies a price of $10.63 per month (plus franchise fee) for The Houston
Division of Time Warner Entertainment Company L.P., dba Warner Cable Communication's 
cable programming service tier.

                         FEDERAL COMMUNICATIONS COMMISSION




                         Gregory J. Vogt
                         Deputy Chief, Cable Services Bureau