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                                Before the
                     Federal Communications Commission
                          Washington, D.C. 20554


In the Matter of            )
           )
Margate Video Systems, Inc.            )       
d/b/a TCI of North Broward, Inc.       )   CUID No.  FL0368 (City of Margate)
           )    
Complaint Regarding         )    
Cable Programming Services Tier        )
Rate Increase         )


                                      ORDER

     Adopted:  September 20, 1996            Released:  September 24, 1996   

By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:

     1.  In this Order we consider a complaint against the June 1, 1996 rate increase by 
Margate Video Systems, Inc. d/b/a TCI of North Broward, Inc. ("TCI") for its cable programming
services tier ("CPST") in the City of Margate, Florida, CUID No. FL0368.  We conclude that,
for the reasons discussed in this Order, the rate increase TCI began charging after June 1, 1996
is not  unreasonable.

     2.  Under the Communications Act, the Federal Communications Commission
("Commission") is authorized to review the CPST rates of cable systems not subject to effective
competition to ensure that rates charged are not unreasonable.  If the Commission finds the rate
unreasonable, it shall determine the correct rate and any refund liability. The 
Telecommunications Act of 1996 and our rules implementing the new legislation, require that
complaints against the CPST rates be filed with the Commission by a franchising authority that
has received subscriber complaints.  A franchising authority may not file a CPST rate complaint
unless, within 90 days after such increase becomes effective, it receives subscriber complaints.
This standard requires more than one subscriber rate complaint. The provisions under the 1996
Act became effective upon its enactment on February 8, 1996.

     3.  On June 26, 1996 the City of Margate ("City") filed a complaint against TCI's June
1, 1996 CPST rate increase.  The City has certified that it has received subscriber complaints
regarding the CPST rate increase within 90 days after the date of the increase first appeared on
the subscriber's cable bill.   On March 1, 1996, TCI submitted to the City an FCC Form 1240
to justify the rate increase that went into effect on June 1, 1996 in the above-captioned
community.  As required by our rules, the City's complaint also included a copy of the rate
justification that TCI submitted to the City.                                                                
    
     4.  To justify rates for the period beginning May 15, 1994 through a benchmark or cost
of service showing, operators must use the FCC Form 1200 series.  Operators may justify
adjustments to their rates on an annual basis using FCC Form 1240 to reflect reasonably certain
and quantifiable changes in external costs, inflation, and the number of regulated channels that
are projected for the twelve months following the rate change.  Any incurred cost that is not
projected may be accrued with interest and added to rates at a later time.  If actual and projected
costs are different during the rate year a "true-up" mechanism is available to correct estimated
costs with actual cost changes.  The "true-up" requires operators to decrease their rates or
alternatively permits them to increase their rates to make an adjustment for over or under
estimations of these cost changes.  
     
     5.  Upon review of the record before us, we find that TCI has provided sufficient evidence
to support a CPST rate increase of  $0.98.  

     6.  ACCORDINGLY, IT IS ORDERED, pursuant to Section 0.32l of the Commission's
Rules, 47 C.F.R. Section 0.321 that the monthly CPST rate increase of $0.98 charged by Margate
Video Systems, Inc. d/b/a TCI of North Broward, Inc. ("TCI") in CUID No. FL0368, City of
Margate, Florida, beginning June 1, 1996 IS JUSTIFIED.

     7.  IT IS FURTHER  ORDERED, pursuant to Section 0.32l of the Commission's Rules,
47 C.F.R. Section 0.321 that the City of Margate's complaint against the CPST rate, effective
June 1, 1996,  charged by Margate Video Systems, Inc. d/b/a TCI of North Broward, Inc. ("TCI") 
in CUID No. FL0368, City of Margate, Florida, IS DENIED.

     FEDERAL COMMUNICATIONS COMMISSION 



     Elizabeth W. Beaty
     Chief,  Financial Analysis and Compliance Division
     Cable Services Bureau