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

In the Matter of                )
                                )
InterMedia Partners             )  CUID No. GA0017 (City of Gainesville)  
                                )
                                )
Cost of Service Showing         )
and FCC Form 1210 Filings to Support)
Basic Service Tier Rate         )


                              ORDER

     Adopted:  September 2, 1997                  Released:  September 4, 1997   

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

I.  INTRODUCTION

     1.   On August 14, 1994, the above-referenced operator ("Operator") serving the community
referenced above, filed a cost of service showing on FCC Form 1220 and FCC Forms 1210 with its local
franchising authority, the City of Gainesville, GA ("City"), seeking to justify its Basic Service Tier ("BST")
rate.  On September 13, 1994, the City petitioned the Commission to review its BST rate and associated
equipment and installation rates.  The Commission granted the City's request on February 14, 1995,  and
agreed to review Operator's BST rate.  We have already issued an order regarding the CPST complaint for
the community referenced above. 

     2.   According to information provided by Operator in its cost of service showing, the franchise
area comprised approximately 5,955 BST subscribers at the time of the filings.  Operator provided 11 BST
channels.  In this review process, pursuant to the Cable Television Consumer Protection and Competition
Act of 1992 ("1992 Cable Act"), we analyzed Operator's BST cost of service showing to ensure that the rate
charged was not unreasonable and to determine any associated refund liability.  

     3.   We analyzed the BST rate charged for the period from February 14, 1994 through September
30, 1995.  Operator's FCC Form 1220 and FCC Forms 1210 seek to establish that its BST rate of $8.72 per
month is justified based on its cost of providing service on its BST.  Our analysis indicates that the BST rate
that Operator was charging from February 14, 1994 to September 30, 1995 was justified under the
Commission's rules.
        
II.  ADJUSTMENTS

     4.   Rate base and expense items have been evaluated to determine whether Operator should be
permitted to recover those items.  Where a certain rate base or expense element was not supported, was
excessive, or was unrelated to providing regulated cable service, such cost was disallowed in whole or in
part.  Where reported costs were disallowed, we have made appropriate adjustments.  Even with our
adjustments and disallowances, however, we find that Operator's monthly BST rate for the periods under
review has been justified.  

III.  CONCLUSION    
                                                                                      
     5.   Based on our review of Operator's FCC Form 1220 filing and FCC Forms 1210 and upon
applying the Commission's most current rules, we find that, as discussed above, Operator has justified the
monthly BST rate of $8.72 (plus franchise fee) for the period after February 14, 1994. 

     6.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R. Section 0.321, that the monthly BST rate of $8.72 charged by Operator with respect to the above-
referenced community, effective February 14, 1994, IS JUSTIFIED. 
     
     7.   IT IS FURTHER ORDERED, pursuant to Section 76.933(d) of the Commission's rules, 47
C.F.R. Section 76.933(d), that this ruling on the rate Operator was charging for its BST is binding on the
local franchising authority, the City of Gainesville, and the cable operator, InterMedia Partners.

                         FEDERAL COMMUNICATIONS COMMISSION



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