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

                                )
In the Matter of                )
                                )
Jones Intercable, Inc.          )  CUID No. WI0070 (Lake Geneva)
                                )
Complaints Regarding            )
Cable Programming Services Tier )
Rate Increase                   )


                             ORDER

   Adopted:  May 16, 1997               Released:  May 20, 1997

By the Chief, Cable Services Bureau:

     1.   In this Order we consider complaints about the rates the above-captioned operator
("Operator") was charging for its cable programming services tier ("CPST") in the community
referenced above.  Operator has chosen to attempt to justify its rates through benchmark showings
on FCC Form 1200 and FCC Form 1210 for the period ending in the fourth quarter of 1994.  This
Order addresses only the reasonableness of Operator's rates in effect after May 14, 1994.  We have
already issued a separate order ("Prior Order") which found that Operator's CPST rate in effect prior
to May 15 1994 was not unreasonable.

     2.   Under the Cable Television Consumer Protection and Competition Act of 1992, and
our rules implementing it, 47 C.F.R. Part 76, Subpart N, the Commission must review CPST rates
upon the filing of a valid complaint.  The filing of a valid complaint triggers an obligation on behalf
of the cable operator to file a justification of its CPST rates.  Under our rules, an operator may
attempt to justify its rates through either a benchmark showing or a cost-of-service showing.  In
either case, the operator has the burden of demonstrating that its CPST rates are not unreasonable.

     3.   The Commission's original rate regulations took effect on September 1, 1993.  The
Commission subsequently revised its rate regulations effective May 15, 1994.  Operators with valid
CPST complaints filed against them prior to May 15, 1994 must demonstrate that their CPST rates
were in compliance with the Commission's initial rules from the time the complaint was filed
through May 14, 1994, and that their rates were in compliance with the revised rules from May 15,
1994 forward.  Operators attempting to justify their rates for the period prior to May 15, 1994
through a benchmark showing must complete and file FCC Form 393.  To justify their rates for the
period beginning May 15, 1994 through a benchmark showing, operators must use the FCC Form
1200 series.  Operators may also justify rate increases based on the addition and deletion of
channels, the changes in certain external costs, and inflation by filing FCC Form 1210.  Form 1210
must be filed at least 30 days before new rates are scheduled to go into effect where the Commission
has found the CPST rate to be unreasonable less than one year prior to the filing, or where there
is a pending complaint against the CPST rate.

     4.   Our Prior Order addressing the first valid complaint for the community referenced
above indicates that the findings in that review "do not in any way prejudge the reasonableness of
the prices for CPS service after May 14, 1994."  Consequently, the rates beginning May 15, 1994,
and subsequent rate increases, are subject to Commission review and are addressed in this Order.

     5.   In a letter filed June 13, 1994, Operator advised the Commission that it had elected,
as provided in the Commission's rules, to take advantage of the refund liability deferral period from
May 15, 1994 through July 14, 1994 for any overcharges resulting from the calculation of  a new
maximum permitted rate ("MPR") on the FCC Form 1200.  Accordingly, the rate submitted by
Operator on its FCC Form 393, which was approved in our Prior Order, governs the CPST rate
during the period from May 15, 1994 through July 14, 1994.  The liability period for any CPST
overcharges by Operator associated with its FCC Form 1200 filing did not begin to run until July
15, 1994.

     6.   Operator filed FCC Form 1200 on August 15, 1994, to justify its CPST rate of $8.59
effective July 15, 1994.  On January 31, 1995, Operator filed FCC Form 1210 for the period April
1, 1994 to December 31, 1994, to justify its CPST rate of $9.92 effective March 1, 1995.   
     7.   Operator asserts that its monthly CPST rates are justified by its FCC Form 1200 and
FCC Form 1210 benchmark filings because its rates were lower than or equal to the maximum
permitted charges as calculated in the filings.  Upon review of Operator's FCC Form 1200, we find
that Operator has not correctly calculated its MPR because it includes franchise fees on Lines A6(b)
and G2 of its calculations on the FCC Form 1200.  We adjusted Lines A6(b) and G2 of Operator's
FCC Form 1200 to exclude the 1.35% franchise fee.  These adjustments resulted in an MPR of $8.48
for the CPST.  However, Operator was actually charging $8.59 (plus franchise fees) for its CPST. 
Thus, Operator has failed to demonstrate that its July 15, 1994 rate of $8.59 was not unreasonable. 
   

     8.   Upon review of Operator's FCC Form 1210, we find that Operator has transferred
incorrect figures from its FCC Form 1200 to Line A2 (Full Reduction Rate per Tier), Line B11(c)
(Subscribers per Tier as of 3/31/94), Line B12(c) (Previous Number of Subscribers per Tier) and
Line B13 (Previous External Costs per Tier per Subscriber) of its FCC Form 1210.  Therefore, we
have adjusted those Lines to reflect data contained in Operator's FCC Form 1200.  These adjustments
resulted in an MPR of $8.39 for Operator's CPST.  However, Operator was actually charging $9.92
for its CPST.  Thus, Operator has failed to demonstrate that its March 1, 1995 rate was not
unreasonable. 
     

     9.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that CPST rates of $8.59 and $9.92 implemented by Operator on July 15, 1994
and March 1, 1995, respectively, in the community referenced in the caption ARE
UNREASONABLE.

     10.       Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the complaints referenced herein against the CPST rates of $8.59 and $9.92
implemented by Operator on July 15, 1994 and March 1, 1995, respectively, in the community
referenced in the caption ARE GRANTED TO THE EXTENT INDICATED HEREIN.

     11.       IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules,
47 C.F.R.  76.961, that Operator shall refund to subscribers in the franchise area referenced in the
caption that portion of the amount paid for cable programming service for the period from July 15,
1994 through February 28, 1995 which exceeded the maximum permitted rate of $8.48  per month
(plus franchise fee), plus interest to the date of the refund.

     12.       IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules,
47 C.F.R.  76.961, that Operator shall refund to subscribers in the franchise area referenced in the
caption that portion of the amount paid for cable programming service which exceeded the
maximum permitted rate of $8.39 for the period from March 1, 1995 through the day before it
implements a CPST rate of $8.39 (plus franchise fee), plus interest to the date of the refund.

     13.       IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges
to CPS subscribers for the stated period, and shall within 30 days of the release of this Order file a
report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined
(including franchise fees and interest), describing the calculation thereof, and describing its plan to
implement the refund within 60 days of Commission approval of the plan.

                    
                         FEDERAL COMMUNICATIONS COMMISSION 



                         Meredith J. Jones
                         Chief, Cable Services Bureau