FOR RECORD ONLY
$//Time Warner,Bellaire,Texas, MO&O, DA95436//$
$/76.922 Rates for Cable Programming Service tiers/$
$/benchmark cable rates/$

                                Before the
                     Federal Communications Commission
                             Washington, D.C.

                                                             DA 95-436




In the matter of                                       )
                              )    
                              )         
The Houston Division of Time Warner     )
Entertainment Company L.P., dba         )    CUID No. TX0302
Warner Cable Communications       )     
Bellaire, Texas                   )     
                                             )               
Benchmark Filing To Support       )     
Cable Programming Service Price         )


                       Memorandum Opinion and Order

     Adopted:  March 7, 1995            Released:  March 8, 1995  

By the Deputy Chief, Cable Services Bureau:


Introduction

     1.  Here we consider a complaint 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 Bellaire, Texas, CUID No.
TX0302.  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 complaint was served on Warner Cable on
December 16, 1993. The Commission received the complaint on December 22, 1993.

     5.  Warner Cable attempted to justify its CPS price through an FCC Form 393 filed
on January 18, 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 $11.44 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
December 22, 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 December 22, 1993 complaint against the cable
programming service price charged by The Houston Division of Time Warner Entertainment
Company L.P., dba Warner Cable Communications in Bellaire, Texas, CUID No. TX0302, 
IS DENIED TO THE EXTENT INDICATED HEREIN.








     9.  IT IS FURTHER ORDERED that the benchmark filing submitted by Warner
Cable with respect to CUID No. TX0302, for the period of December 22, 1993 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