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

 In the Matter of               )
                                )       
 Cox Communications Pensacola, Inc.) CUID No. FL0001 (Escambia)
                                   )
   Order on Reconsideration        )
                                )
 
                        ORDER ON RECONSIDERATION 

         Adopted:  August 4, 1997 Released:  August 6, 1997     

By the Chief, Cable Services Bureau:

      1.We here reconsider on our own motion our decision in Cox Communications Pensacola, Inc.,
Escambia County, Florida, CUID No. FL0001 DA 97-1432 (Cable Services Bureau, released July 9, 1997)
("Order") pursuant to Section 1.108 of the Commission's Rules.  Specifically, we make corrections to the
review of the FCC Form 1210 covering the period January 1, 1995 to September 30, 1995 and the FCC Form
1240 for the projected period beginning November 1, 1996 filed by Cox Communications Pensacola, Inc
("Operator").  

      2.In the FCC Form 1210 referenced above, we previously corrected Operator's starting rate
on Line A1 to reflect the correct transitional rate of $12.80.  We now adjust Lines I5 and J5 to reflect an
inflation factor of 1.0511.  This adjustment results in a maximum permitted rate ("MPR") of $14.40.  We
adjusted Line A1 on Operator's first FCC Form 1240, for the projected period November 1, 1995 to October
31, 1996, to reflect the corrected MPR from the prior FCC Form 1210.  As in the Order, we reduced the true-
up inflation factor in Module C, Line C1 to 1.0019 from 1.0074 because Operator claimed only a one month
true-period rather than a four month true-up period.  Also, as in the Order, we corrected the current inflation
factor in Module C, Line C3 to 1.0239 instead of the 1.0296 used by Operator.  We find that these
adjustments result in a corrected MPR of 14.78, effective November 1, 1995.

      3.In its second FCC Form 1240, for the projected period November 1, 1996 to October 31,
1997, Operator claimed a twelve month true-up period and made true-up adjustments through to the effective
date of the rate increase.  This is incorrect.  The annual adjustment afforded by FCC Form 1240 allows
operators to project changes in external costs, inflation, and the number of regulated channels.  This structure
avoids the delay some operators experienced in recouping costs through multiple rate adjustments throughout
the year.  Because projections will not reflect the costs that actually occur, the Commission provided, as part
of the annual adjustment, a "true-up" to correct projected cost changes with the actual cost changes.  The
true-up data is intended to indicate real, not projected data.   Operator signed the second FCC Form 1240
on October 14, 1996.  Consequently, Operator could not have had actual data for all twelve months of the
true-up period.  We will order Operator to submit an FCC Form 1240 for the projected period November 1,
1996 to October 31, 1997 with a true-up period not to exceed eleven months, provided Operator has actual
data for all of the months used in the true-up.  We will also order Operator to use $14.78 as its beginning
rate on Line A1 of this FCC Form 1240.

      4.Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's rules, 47
C.F.R. Section 0.321, that Operator shall, within 30 days of the release of this Order, file with the Chief,
Cable Services Bureau, an FCC Form 1240 for the projected period November 1, 1996 to October 31, 1997
that incorporates our findings in this Order.

     FEDERAL COMMUNICATIONS COMMISSION 



     Meredith J. Jones
     Chief, Cable Services Bureau