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


In the Matter of)                                         
                                       )     CUID Nos. CO0051 (Arvada);                
                                             )    CO0077(Lakewood);CO0136(Adams); 
     )     CO0138 (Englewood); CO0139
TCI Cablevision of Colorado, Inc.)     (Greenwood);CO0140(Sheridan);CO0142
     )     (Aurora);CO0143(Aurora);CO0146
     )     (Westminster);CO0147(CommerceCity);
     )     CO0197(FitzsimonsArmy Med);CO0225 
     )     (Edgewater);CO0473(Arvada);CO0474
     )     (Westminster)
Complaint Regarding    )
Cable Programming Services Tier         )     
Rate Increases         )                                                              
                                              
 
                                      ORDER

 Adopted:  January 9, 1997   Released:  January 14, 1997

By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:
 
 1.   In this Order we consider a complaint concerning the June 1, 1996 rate increases
of TCI Cablevision of Colorado, Inc. ("TCI") for its cable programming services tiers ("CPST")
in the communities referenced above.  This Order addresses only the reasonableness of TCI's
rate increases of June 1, 1996.  We conclude that the June 1, 1996 rate increases of $3.13 for
the existing system and $4.18 for the rebuilt system are 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 ("1996 Act") and our rules implementing the new  legislation,
require that complaints against the CPST rates be filed with the Commission by a local
franchising authority ("LFA") that has received subscriber complaints.  An LFA may not file
a CPST rate complaint unless, within 90 days after such increase becomes effective, it receives 
more than one subscriber rate complaint.  

 3.   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.

 4.   On November 25, 1996, valid complaints were filed by Greater Metro Cable
Consortium ("County") regarding the June 1, 1996 increases in TCI's CPST rates in the above
referenced communities.  The valid complaints from the LFA triggers an obligation on behalf
of the cable operator to file a justification of its CPST rates with the LFA.  TCI filed FCC
Forms 1240 with the County as justification for its rate increases, as required by our rules. 
 
 5.   Upon review of TCI's FCC Form 1240, we find no apparent errors in TCI's
calculation of its CPST rate increase.  We conclude, however, that TCI's June 1, 1996 rate
increases of $3.13 for the existing system and $4.18 for the rebuilt system are justified.

 6.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's
Rules, 47 C.F.R.  0.321, that TCI Cablevision, Inc. of Colorado CPST rate increases of $3.13
for the existing system and $4.18 for the rebuilt system which went into effect on June 1, 1996
ARE NOT UNREASONABLE.

 7.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's
rules, 47 C.F.R.  0.321, that the complaints referenced herein against the June 1, 1996 CPST
rate increases charged by TCI Cablevision, Inc. of Colorado in the above referenced
communities, ARE DENIED.

      FEDERAL COMMUNICATIONS COMMISSION 



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