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

                                     )
In the Matter of                     )     CUID Nos.   NJ0397 (East Windsor)
                                     )                 NJ0414 (Hightstown)      
Comcast Cablevision of               )           
Central New Jersey, Inc.             )
                                     )                 
Complaints Regarding                 )                 
Cable Programming Services Tier Rates)                 

       
   ORDER

        Adopted:  June 30, 1997                    Released:  July 3, 1997

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

  1.    In this Order we consider a complaint against the rates the above-referenced operator
("Operator") was charging for its cable programming services tier ("CPST") in the communities referenced
above.  Operator filed FCC Form 1240 to justify its CPST rate.  We have already issued a separate order
in which we determined Operator's refund liability and finally resolved all pending complaints against
Operator's CPST rates for the period September 1993 through December 1, 1995.  Accordingly, this
Order addresses only the reasonableness of Operator's January 1, 1997 CPST rate increase.

  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 a rate to be
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 ("Interim Rules"), require that
complaints against the CPST rates be filed with the Commission by a local franchising authority ("LFA")
that has received more than one subscriber complaint. 

  3.    A valid complaint was filed by the LFA for the franchise areas referenced above on May
20, 1997 against Operator's January 1, 1997 CPST rate increase from $15.59 to $18.79.  The LFA verified
that it received more than one subscriber complaint for each franchise area.  The first subscriber complaint
for the community of East Windsor, CUID No. 0397, was received by the LFA on January 13, 1997 and
the first subscriber complaint for the community of Hightstown, CUID No. 0414, was received by the
LFA on January 28, 1997.  The filing of a complete and timely LFA complaint triggers an obligation
upon the cable operator to file a justification of its CPST rates.  The Operator has the burden of
demonstrating that the CPST rates complained about are reasonable.  

  4.    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.
  
  5.    Upon review of Operator's FCC Form 1240 for the projected period January 1, 1997
through December 31, 1997, we find Operator's maximum permitted rate ("MPR") of $18.79 to be
reasonable.  Therefore, we find Operator's actual CPST rate of $18.79, effective January 1, 1997, to be
reasonable.  

  6.    Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the CPST rate of $18.79, charged by Operator in the franchise areas referenced above,
effective January 1, 1997, IS REASONABLE. 

  7.    IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the referenced complaint IS DENIED.

        FEDERAL COMMUNICATIONS COMMISSION 



        Margaret M. Egler
        Acting Chief, Financial Analysis and Compliance Division
        Cable Services Bureau