********************************************************    
                         NOTICE
********************************************************

This document was converted from
WordPerfect to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
WordPerfect version or Adobe Acrobat version, if available.

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


In the Matter of                )   
                                )  CUID Nos.:     MD0222 (Rockville)
                                )            MD0223 (Chevy Chase)
                                )            MD0224 (Silver Spring)
                                )            MD0225 (Washington Grove)
Prime Communications-Potomac    )            MD0226 (Takoma Park)
d/b/a Cable TV Montgomery       )            MD0227 (Somerset)
                                )            MD0228 (Poolesville)
                                )            MD0229 (Barnesville)
                                )            MD0230 (Brookville)
                                )            MD0231 (Garret Park)
                                )            MD0233 (Glen Echo)
                                )            MD0234 (Kensington)
                                )            MD0235 (Laytonsville)
                                )            MD0236 (Montgomery)
                                )            MD0274 (Chevy Chase)
                                )            MD0275 (Chevy Chase Sec IV)
                                )            MD0276 (Chevy Chase Sec V)
                                )            MD0277 (Chevy Chase VIII)
                                )            MD0340 (Germantown)
Complaints Regarding            )            MD0341 (Burtonsville)
Cable Programming Services Tier )            MD0342 (Potomac)
Rate Increase                   )            MD0343 (Boyds)
                                )            MD0344 (Wheaton)
                                )            MD0345 (Derwood)
                                )            MD0346 (Olney)
                                )            MD0347 (Cabin John)
                                )            MD0348 (Bethesda)
                                )            MD0349 (West Bethesda)


                             ORDER

   Adopted:   January 26, 1999          Released:  January 29, 1999    

By the Assistant Chief, Consumer Protection and Competition Division, Cable Services Bureau:

     1.   In this Order we consider complaints against the July 1, 1998 rate increase by the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities
referenced above.  We have previously resolved all prior complaints against Operator's CPST rates.  This
Order addresses only the reasonableness of Operator's July 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.  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 a complaint with the Commission on
December 30, 1998, for each community referenced above, against Operator's July 1, 1998 CPST rate increase
from $17.41 to $18.58.  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. 

     4.    To justify rates for the period beginning May 15, 1994 through a benchmark showing,
operators must use the FCC Form 1200 series.  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 July 1, 1998 through June
30, 1999, we find that Operator has justified its calculated maximum permitted rate ("MPR") of $18.58. 
Because Operator's actual CPST rate of $18.58 does not exceed its MPR, we find Operator's actual CPST
rate of $18.58 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 $18.58, exclusive of franchise and public access fees, charged by
Operator in the communities referenced above, effective July 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 complaints against the July 1, 1998 CPST rate increase, charged by Operator in the
communities referenced above, ARE DENIED.


                              FEDERAL COMMUNICATIONS COMMISSION 



                              Patrick A. Boateng, Assistant Chief
                              Consumer Protection and Competition Division
                              Cable Services Bureau