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Harding, Esq. Fleishman and Walsh, L.L.P. 1400 Sixteenth Street, NW Washington, DC 20036  Y -XxX` ` X Re:XFCC Form 1210 rate increases for Paragon Cable Manhattan, CUID No. NY0104(# Dear Mr. Harding: On March 10, 1995, Paragon Cable Manhattan ("Paragon") filed with the Cable Services Bureau a request for approval, on an expedited basis, of a proposed rate increase to its cable programming service (CPS) tier as computed on FCC Form 1210. Paragon states that the increase is necessary to allow it to provide its subscribers with new programming. Because we found Paragon's rates to be unreasonable, obligating it to pay refunds to its CPS  Y-subscribers, Y<ԍ#Xw PE37XP# See Order, DA 95250 (Cab. Serv. Bur., released Feb. 17, 1995). Paragon must obtain the Bureau's approval before it may increase its CPS tier  Y-rate. See FCC Form 1210, page 2.{ Y2<ԍ#Xw PE37XP# We note Paragon's argument that it submitted a supplemental filing in response to the Bureau's Public Notice of December 29 and should therefore be excused from the requirement of prior approval for a rate increase, but we reject that approach, and note that Paragon's filing in February 1995 concerned franchise areas other than the one in question here. This requirement allows us to monitor subsequent rate increases, once we have found rates unreasonable. Paragon states that the proposed programming and external cost increases are not dependent on the issues involved in the Bureau's Order imposing refund liabilities, and that approval should not be delayed on that account. To date, we have undertaken a full review of Paragon's rates only for the period prior to May 15, 1994, and have found those rates unreasonable. Our review of the reasonableness of Paragon's rates from May 15, 1994 to the present is currently underway. Paragon's current request for approval of FCC Form 1210 is for expenses incurred in the fourth quarter of 1994, and programming expenses to be accrued upon our approval. We have reviewed the Form 1210 filing before us, and find no patent defects. We believe" 0*0*0*!" that the impetus behind Paragon's request is to provide its subscribers with new programming in the abovenoted community, and that approval of Paragon's instant request will encourage this development. Our permitting the requested increases is on an interim basis only, and is subject to our determination of the reasonableness of Paragon's CPS rates for the period beginning May 15, 1994, including subsequent changes to the rates filed on Paragon's FCC Form 1200. Thus, although we allow the requested increase for new programming, the increased rate which Paragon may charge is potentially subject to refund if our review of its FCC Form 1200 and Form 1210 filings finds that Paragon~HFComcast's underlying CPS rate is unreasonable. x` `  hh@hSincerely, x` `  hh@hMeredith J. Jones x` `  hh@hChief, x` `  hh@hCable Services Bureau