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

In the Matter of                   )    
                              )    CUID No. MD0269 (Baltimore)
TCI Communications of Baltimore         )              
                              )              
Complaint Regarding                )              
Cable Programming Services Tier Rates   )              

 
                             ORDER

     Adopted:  January 11, 1999         Released:  January 14, 1999  

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 change 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 change.

     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
November 30, 1998 against Operator's June 1, 1998 CPST rate change from $18.93 to $17.71.  The LFA
verified that it received more than one subscriber complaint and that the first valid complaint was received by
the LFA on June 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), Line 201 (Total CAPS
Adjustment) of Worksheet 2 (CAPS Method Projected Period) and Line I1 (CAPS Method Segment for
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 ("MPR") of $20.20.  Because
Operator's actual CPST rate of $17.71, effective June 1, 1998, does not exceed its MPR, we find Operator's
actual CPST rate of $17.71 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 $17.71, 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 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.     

     8.   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 CPST rate charged by Operator in the
community referenced above IS DENIED.


                              FEDERAL COMMUNICATIONS COMMISSION 



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