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                                Before the
                     Federal Communications Commission
                          Washington, D.C. 20554
                                     
                                     )
In the Matter of                     )     CUID No.    CA1151 (City of Chino Hills)
                                     )
Citizens Century Cable Television Venture)
                                     )
Complaint Regarding                  )
Cable Programming Services Tier Rates)
                                     )

                                     
                                  ORDER

        Adopted:  November 17, 1997                Released:  November 20, 1997 

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

  1.    In this Order we consider a complaint against the May 1, 1997 rate increase by the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") in the community
referenced above.  We have already issued a separate order in which we found that Operator's rates in
effect prior to May 15, 1994 were unreasonable.  Subsequently, we issued an Order in which we found
Operator's July 1, 1996 rate increase to be unreasonable.  We will address Operator's CPST rates and
any potential refund liability for the period May 15, 1994 through June 30, 1996 in a separate order. 
This Order addresses only the reasonableness of Operator's May 1, 1997 CPST rate increase.   

  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. 
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.     The LFA for the franchise area referenced above filed a complaint with the Commission
on September 23, 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 May 19, 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. 

  4.      To justify rates for the period beginning May 15, 1994 through a benchmark showing,
operators must use the FCC Form 1200 series.  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 May 1, 1997
through April 30, 1998, we find Operator's calculated maximum permitted rate ("MPR") of $15.08 to
be reasonable.  Because Operator's actual CPST rate of $15.08 for the projected period does not exceed
its MPR for the projected period, we find Operator's actual CPST rate of $15.08, effective May 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 $15.08 charged by Operator in the community referenced
above, effective May 1, 1997 through the present, 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 complaint against the May 1, 1997 CPST rate increase in the  community
referenced above,  IS DENIED.

  FEDERAL COMMUNICATIONS COMMISSION 



  Elizabeth W. Beaty
  Chief, Financial Analysis and Compliance Division            
  Cable Services Bureau