FOR FCC RECORD ONLY
$//KBLCOM, Incorporated, Orange County, CA, MO&O, DA 95-461//$
$76.922 Rates for Cable Programming Service tiers/$
$/benchmark cable rates/$

              Before the
                     Federal Communications Commission
                             Washington, D.C.

                                                                                           DA 95-461


In the Matter of     )
              )
KBLCOM, Incorporated )       CUID Nos. CA0750, CA0751, CA0752,   
              )                          CA0932                        
Orange County, California           )
              )
Benchmark Filing To Support         )
Cable Programming Service Price     )


                       Memorandum Opinion and Order

              Adopted:  March 10, 1995     Released:  March 13, 1995

By the Deputy Chief, Cable Services Bureau:


Introduction

       1.  Here we consider complaints about the price KBLCOM, Incorporated d/b/a
Paragon Cable ("Paragon") was charging for its cable programming service ("CPS") tier in
the communities designated by the CUID numbers referenced above in Orange County,
California.  Paragon has attempted to justify its price through a benchmark showing on FCC
Form 393.  This Order addresses the reasonableness of Paragon'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 complete and timely CPS complaint in each of the communities which
are the subject of this Order was completed and served on Paragon on December 10, 1993
and filed with the Commission on December 16, 1993.

       5.  Paragon attempted to justify its CPS prices for the communities which are the
subject of this Order through an FCC Form 393 filed on February 7, 1994. Paragon filed an 
amended FCC Form 393 on July 1, 1994 in response to a Cable Services Bureau Order
citing common deficiencies observed in benchmark filings generally.
  
     6.  Paragon also filed motions to dismiss complaints filed against its price in CUID
Nos. CA0750 (filed March 28, 1994), CA0751 (filed February 28, 1994), and CA0752 (filed
February 7, 1994).   In these motions, Paragon disputes the validity of complaints that were
received after the filing date of the first valid complaint in each franchise area on December
16, 1993.  Because we have accepted the earlier complaints as properly filed, we find it
unnecessary to rule on Paragon's objections to the later filed complaints.

Discussion

     7.  Paragon asserts that its monthly CPS tier price of $4.45 per subscriber is justified
by its benchmark filing because its price is lower than the maximum permitted charge as
calculated in the filing.  Upon review of Paragon's Form 393, we have found no apparent
errors that would require a recalculation of Paragon's maximum permitted CPS price.

Conclusions

     8.  Upon review of the record herein, we conclude that Paragon has demonstrated that
$4.45 (plus franchise fee) was a reasonable CPS tier price in CUID Nos. CA0750, CA0751,
CA0752, and CA0932 for the period from December 16, 1993 to May 14, 1994.

     9.  Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's
Rules, 47 C.F.R.  0.321, that the complaints filed on December 16, 1993 against the cable
programming service price charged by KBLCOM, Incorporated d/b/a Paragon Cable in
Westminster, California, CUID No. CA0750; Huntington Beach, California, CUID No.
CA0751; Fountain Valley, California, CUID No. CA0752; and Stanton, California, CUID
No. CA0932, and all other complaints in these franchise areas relating to the same price,
ARE DENIED TO THE EXTENT INDICATED HEREIN.

     10.  IT IS FURTHER ORDERED that the benchmark filing submitted by KBLCOM,
Incorporated d/b/a Paragon Cable with respect to Westminster, California, CUID No.
CA0750; Huntington Beach, California, CUID No. CA0751; Fountain Valley, California,
CUID No. CA0752; and Stanton, California, CUID No. CA0932, for the period from
December 16, 1993 to May 14, 1994, justifies a price of $4.45 per month (plus franchise
fee) for KBLCOM, Incorporated d/b/a Paragon Cable's cable programming service tier.

                         FEDERAL COMMUNICATIONS COMMISSION




                         Gregory J. Vogt
                         Deputy Chief, Cable Services Bureau