FOR FCC RECORD ONLY
$//Paragon Communications, Mount Vernon, NY, MO&O, DA 95-504
$/76.922 Rates for Cable Programming Service tiers/$
$/benchmark cable rates/$

                                Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                             Washington, D.C.

                                                                       DA 95-504

In the Matter Of                   )
                              )
Paragon Communications             )         CUID No. NY0398
Mount Vernon, New York                  )              
                              )    
Benchmark Filing to Justify Cable       )
Programming Service Rates               )


                       MEMORANDUM OPINION AND ORDER

          Adopted:  March 15, 1995      Released:  March 17, 1995


By the Deputy Chief, Cable Services Bureau:

     1.   Here we consider complaints about the price Paragon Communications d/b/a
Paragon Cable ("Paragon") was charging for its cable programming service ("CPS") tier in
Mount Vernon, New York, CUID No. NY0398.  Paragon has chosen to attempt 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 complete and timely complaint.  The filing of a complete and
timely 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 complete and timely 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.

     4.  Paragon asserts that its monthly CPS price is justified by its benchmark filing
because this price is equal to the maximum permitted charge.  Upon review, we have found
no apparent errors that would require a recalculation of Paragon's maximum permitted CPS
price.

     5.  Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's
Rules, 47 C.F.R.  0.321, that the complaints referenced herein against the cable
programming service price charged by Paragon Communications d/b/a Paragon Cable in
Mount Vernon, New York, CUID No. NY0398 ARE DENIED TO THE EXTENT
INDICATED HEREIN.



                                                     FEDERAL COMMUNICATIONS COMMISSION



                                                     Gregory J. Vogt  
                                                     Deputy Chief, Cable Service Bureau