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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554
                                 
In the Matter of                   )    CUID No.       RI0021 (Narragansett)
                              )              RI0022 (North Kingstown)
Cox Communications, Inc.           )              RI0023 (South Kingstown)
                              )              RI0025 (Tiverton)
                                        )              RI0026 (Portsmouth)
                              )              RI0027 (Newport)
                              )              RI0028 (Middletown)
                              )              RI0029 (Little Compton)
                              )              RI0030 (Jamestown)
Complaints Regarding                    )              RI0039 (Exeter)
Cable Programming Services Tier Rates   )              RI0040 (West Greenwich)

                
ORDER
                        
     Adopted:  July 20, 1998            Released:  July 23, 1998  

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

     1.   In this Order we consider complaints against the November 1, 1997 rate increase of the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") and associated equipment
in the communities referenced above.  We have already resolved all pending complaints against  Operator's
CPST rates prior to November 1, 1997 in a separate order.  This Order addresses only the reasonableness of
Operator's November 1, 1997 CPST 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.  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 areas referenced above filed complaints with the Commission on
April 27, 1998.  The LFA verified that it received more than one subscriber complaint for each franchise area
referenced above. The filing of a complete and timely LFA 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.  The Operator responded to the LFA's complaint by filing an FCC
Form 1240.  The LFA also complained about the rate increase for certain equipment, specifically the increase
from $1.66 to $2.19 for the addressable converter and the increase from $0.11 to $0.17 for the remote
accompanying the converter.  Under Section 76.923(a) of the Commission's rules, all equipment used to
receive the basic service tier ("BST") is subject to rate regulation, regardless of whether it is used to receive
other tiers of regulated programming and/or unregulated services.  Such equipment rates are subject to
regulation by the LFA.  Because the equipment in question may be used to receive the BST, it is not subject
to our jurisdiction but to the LFA's jurisdiction. 

     4.    To justify rates for the period beginning May 15, 1994 through a benchmark showing,
operators must use the FCC Form 1200 series.  Operators are permitted to make changes to their rates on
a quarterly basis using FCC Form 1210.  Operators may alternatively 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 November 1, 1997
through October 31, 1998, we find Operator's actual CPST rate of $15.01 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 $15.01, charged by Operator in the franchise areas referenced above,
effective November 1, 1997,  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 referenced complaints ARE DENIED.


                              FEDERAL COMMUNICATIONS COMMISSION 



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