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

In the Matter of                   )    CUID Nos.      PA0693 (Borough of Baldwin)
                              )              PA0698 (Castle Shannon)
TCI of Pennsylvania, Inc.               )              PA0706 (Jefferson)
                              )              PA0889 (Whitehall)
Complaints Regarding                    )              PA1105 (Baldwin Township)
Cable Programming Services Tier Rates   )              PA1106 (Dormont)
                              )              PA1215 (Brentwood)
 

                             ORDER

     Adopted:  January 27, 1999         Released:  February 1, 1999  

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

     1.   In this Order we consider complaints against the June 1, 1998 rate increase of the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities
referenced above.  On April 26, 1996, the Federal Communications Commission ("Commission") adopted an
Order approving a Final Resolution ("Final Resolution") entered into between Operator and the Commission
which resolved all prior complaints filed against Operator's CPST rates from September 1, 1993 through
September 15, 1995.  Accordingly, this Order addresses only the reasonableness of Operator's June 1, 1998
CPST rate increase.

     2.   Under the Communications Act, the 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 areas referenced above filed complaints with the Commission on
November 27, 1998 against Operator's June 1, 1998 CPST rate increase from $18.50 to $19.30.  The LFA
verified that it received more than one subscriber complaint for each community.  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 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 $20.44 and we find
Operator's actual CPST rate of $19.30, 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 rate of $19.30, charged by Operator in the communities 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 complaints referenced herein against the CPST rate 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