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

                                 
In the Matter of                   )
                              )
Continental Cablevision, Inc.      )    CUID No.  MA0082 (Lowell)
                                        )              
Complaint Regarding           )
Cable Programming Services Tier         )               
Rate Increase                      )


                               ORDER

     Adopted:  April 21, 1997                     Released:  April 23, 1997   

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

     1.   In this Order we consider a complaint concerning the October 1, 1996 rate increase
of the above-captioned Operator ("Operator") for its cable programming services tier ("CPST") in
the community referenced above.  We have already issued a separate order which found that
Operator CPST rates prior to May 15, 1994 were not unreasonable.  Our amended Social Contract
with Operator resolved the remaining complaints filed prior to the October 1, 1996 increase.  Upon
review of the most recent complaint, referenced above, we conclude that the CPST rate increase of
$3.87 effective October 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 ("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.   The LFA filed a valid complaint on March 28, 1997 regarding the October 1, 1996
increase in Operator's CPST rate in the above-referenced community. The valid complaint from the
LFA triggers an obligation on behalf of the cable operator to file a justification of its CPST rates
with the LFA.  As required by our rules, Operator filed an FCC Form 1240 with the LFA as
justification for this rate increase. 
     
     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 Operator's FCC Form 1240, we find no apparent errors in Operator's
calculation of its CPST rate increase.  We conclude, therefore, that Operator's CPST rate of $12.25
which went into effect on October 1, 1996 is justified.

     6.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules,
47 C.F.R.  0.321, that Operator's CPST rate of $12.25 which went into effect on October 1, 1996 
IS 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 complaint referenced herein against the October 1, 1996 CPST rate
increase charged by Operator in the community referenced above IS DENIED.

                         FEDERAL COMMUNICATIONS COMMISSION 



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