Before the
                     Federal Communications Commission
                          Washington, D.C. 20554
                                     
In the Matter of  )     
                  )     
Falcon Cablevision      )     CUID No.  GA0051 (Dalton)
d/b/a Falcon First, Inc.)
                  )
Complaint Regarding     )     
Cable Programming Services Tier Rates      )           
                  )     


ORDER
        
        Adopted:  May 18, 1998                     Released:  May 20, 1998  

By the Acting Chief, Cable Services Bureau:

  1.    In this Order we consider a complaint against the rate the above-referenced operator
("Operator") was charging for its cable programming services tier ("CPST") in the community referenced
above.  This Order addresses only Operator's October 1, 1997 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.  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 February 25, 1998 against Operator's October 1, 1997 CPST rate increase from $3.26 to $4.29.  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 October 3, 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 October 1, 1996
through September 30, 1997, we find that Operator has not correctly calculated its maximum permitted
rate ("MPR").  Operator included true-up adjustments for the period July 1, 1996 through June 30, 1997. 
However, because Operator filed its FCC Form 1240 with the Commission in response to a complaint,
and Operator was not subject to regulation by the Commission at the time the complaint was filed,
Operator is not entitled to any true-up adjustment.  Therefore, we adjusted Line D6 (Current True-Up
Segment) and Line D7 (Current Inflation Segment).  We also removed Operator's calculations in Module
H and Line I8 (True-Up Segment for Projected Period).  These adjustments required that we revise Line
C5 (Current FCC Inflation Factor) to 1.0143.  This resulted in a revised MPR of $3.84 for the projected
period rather than Operator's calculated MPR of $4.28 for the projected period.  Because Operator's actual
CPST rate of $4.29, effective October 1, 1997, exceeds its revised MPR of $3.84, we find Operator's
actual CPST rate of $4.29 (exclusive of franchise fees) 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 $4.29 (exclusive of franchise fees), charged by Operator in the
franchise area referenced above, effective October 1, 1997 through the present, 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 $3.84 per month (plus
franchise fees), plus interest to the date of the refund, for the period October 9, 1997, the date of the first
subscriber complaint, through the day before Operator implements the maximum permitted CPST rate of
$3.84
  
  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. Section 0.321, that the complaint referenced herein against the rates charged by Operator in the
community set forth above IS GRANTED.

       FEDERAL COMMUNICATIONS COMMISSION 



       John E. Logan
       Acting Chief, Cable Services Bureau