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


In the Matter of                )
                                )       
TCI Cablevision of Dallas, Inc. )   CUID No.  TX0762 (Dallas)    
                                )  
Complaint Regarding             )  
Cable Programming Services Tier )
Rate Increase                      )
 
                                  ORDER

     Adopted:  January 9, 1997               Released:  January 16, 1997     

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 TCI
Cablevision of Dallas, Inc. ("TCI") for its cable programming services tier ("CPST") in Dallas,
Texas, CUID No. TX0762.  In response, TCI filed its FCC Form 1240.  This Order addresses only
the reasonableness of TCI's rate increase of June 1, 1996.  We have already issued an order
addressing the reasonableness of the rates prior to that date.  We conclude that the CPST rate
increase of $5.50 that TCI began charging on 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 ("the 1996 Act") 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 more than one subscriber
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 29, 1996, the City of Dallas (the "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 the increase first appeared on the
subscribers' cable bills.  As required by our rules, the City's complaint also included a copy of TCI's
rate justification.

     5.   Upon review of the record before us, we find that TCI has provided sufficient
evidence to support a CPST rate increase of $5.50  We conclude, therefore, that TCI's CPST rate
increase of $5.50 which went into effect June 1, 1996 is justified.  

     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 $5.50 charged by TCI in CUID No.
TX0762, Dallas, Texas, beginning June 1, 1996 IS NOT UNREASONABLE.

     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 Dallas' complaint against the CPST rate increase, effective
June 1, 1996, charged by TCI in CUID No. TX0762, Dallas, Texas IS DENIED.

                              FEDERAL COMMUNICATIONS COMMISSION 



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