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

In the Matter of                   )    
                              )    CUID No.  PA0168 (State College)
TCI of Pennsylvania, Inc.               )              
                              )              
Complaint Regarding                )              
Cable Programming Services Tier Rates   )              

 
                             ORDER

     Adopted:  November 30, 1998        Released:  December 3, 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 tier ("CPST") in 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 29, 1998 against Operator's June 1, 1998 CPST rate increase from $16.49 to $17.94.  The LFA
verified that it received more than one subscriber complaint and that the first valid complaint was received
by the LFA on August 3, 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 1240 for the projected period June 1, 1998 through
May 31, 1999, we adjusted Operator's entries at Line D3 (Current CAPS Method Segment), I1 (CAPS
Method Segment for Projected Period) and Line 201 (Total CAPS Adjustment) of Worksheet 2 (CAPS
Method Projected Period) in accordance with the FCC Form 1240 Instructions for operators not subject to
regulation.  Our adjustments did not affect Operator's calculated maximum permitted rate ("MPR") of
$18.10 and we find Operator's actual CPST rate of $17.94, 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. Section 0.321, that the CPST rate of $17.94 charged by Operator in the community referenced above,
effective June 1, 1998, 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 complaint IS DENIED.


                              FEDERAL COMMUNICATIONS COMMISSION 


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