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

                                )
In the Matter of                )  CUID No.  TX0555 (City of Hurst)
                                )
Marcus Cable Associates, L.P.   )
                                )
Complaint Regarding             )
Cable Programming Services Tier Rates)
                                )
                                )


                             ORDER

     Adopted:  September 19, 1997       Released:  September 24, 1997 

By the Chief, Cable Services Bureau:

     1.   In this Order we consider a complaint against the June 1, 1997 rate increase of the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") in the community
referenced above.  Operator has attempted to justify its CPST rate by filing FCC Form 1240. 

     2.   Under the Communications Act, the Commission is authorized to review the CPST rates
of cable systems not subject to effective competition to ensure that rates charged are not unreasonable.  The
Telecommunications Act of 1996 ("1996 Act") and our rules implementing the legislation ("Interim
Rules"), require that a complaint against the CPST rate be filed with the Commission by a local franchising
authority ("LFA") that has received more than one subscriber complaint.  

     3.   The LFA for the franchise area referenced above filed a complaint with the Commission on
July 1, 1997.  The LFA verified that it received more than one subscriber complaint for the franchise area
and that the first valid complaint was received by the LFA on  June 2, 1997.  The filing of a complete and
timely 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.  If the
Commission finds a rate to be unreasonable, it shall determine the correct rate and any refund liability.  

     4.   Operators may justify 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 June 1, 1997 through
May 31, 1998, we find that Operator has not correctly calculated its maximum permitted rate ("MPR"). 
Operator included true-up adjustments for the the period March 1, 1996 through May 31, 1997.  However,
because this is Operator's first FCC Form 1240 filing with the Commission, and Operator was not previously
regulated by the Commission, Operator is not entitled to any true-up adjustment.  Therefore, we
recalculated Operator's FCC Form 1240 without the true-up adjustment in Module I, Line I8.  This resulted
in a revised MPR of $13.51 rather than Operator's MPR of $14.78.  Because Operator's actual CPST rate of
$14.62, effective June 1, 1997, exceeds its revised MPR, we find Operator's actual CPST rate of $14.62 to
be unreasonable.

     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 $14.62, charged by Operator in the franchise area referenced above,
effective June 1, 1997,  IS UNREASONABLE.

     7.   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 above that portion
of the amount paid in excess of the maximum permitted CPST rate of $13.51 per month (plus franchise fees),
plus interest to the date of the refund, for the period June 2, 1997 through the day before Operator
implements the maximum permitted CPST rate of $13.51.
     
     8.   IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to
CPST subscribers for the stated periods, 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. 

     9.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that Operator take into account our FCC Form 1240 adjustments when calculating its
maximum permitted rate and performing the true-up calculation on its next FCC Form 1240.  

     10.  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  GRANTED.

                              FEDERAL COMMUNICATIONS COMMISSION 



                              Meredith J. Jones
                              Chief, Cable Services Bureau