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

In the Matter of                )
                                )
TCI Cablevision of Arlington, Inc.)     CUID No. TX0826 (Arlington)
                                )
Complaint Regarding             )            
Cable Programming Services Tier Rates   )


                             ORDER

   Adopted:  November 9, 1998                     Released:  November 13, 1998  

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

     1.   In this Order we consider a complaint against the June 1, 1998 rate increase of the above-
referenced operator ("Operator") for its cable programming services tiers ("CPSTs") in the rebuild and non-
rebuild areas of the community referenced above.  All prior complaints against Operator's CPST rate
increases have been resolved.  Accordingly, this Order addresses only the reasonableness of Operator's June
1, 1998 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.  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
September 8, 1998 against Operator's June 1, 1998 CPST rate increases from $8.03 to $9.10 in its non-
rebuild area and from $10.52 to $10.97 in its rebuild area.  The LFA also complained about Operator's Cable
Plus Service rate increase from $4.94 to $5.23 in its non-rebuild area.  The LFA verified that it received more
than one subscriber complaint for each area and that the first valid complaint was received by the LFA on
June 1, 1998.  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 1240s for the projected period June 1, 1998 through 
May 31, 1999, we find Operator's actual CPST rates of $9.10 for the non-rebuild area and $10.97 for the
rebuild area, effective June 1, 1998, to be reasonable.  We also find Operator's Cable Plus Service rate of
$5.23 for the non-rebuild area, effective June 1, 1998, 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 rates of $9.10 for the non-rebuild area and $10.97 for the rebuild area, and the
Cable Plus Service rate of $5.23 for the non-rebuild area, charged by Operator in the franchise area
referenced above, effective June 1, 1998, ARE 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 complaint IS DENIED.


                         FEDERAL COMMUNICATIONS COMMISSION 



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