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

In the Matter of                   )    
                              )    CUID Nos. CO0077 (City of Lakewood)
TCI of Colorado, Inc.                   )              CO0142 (Aurora)
                              )              CO0143 (Aurora)
                              )              CO0146 (Westminster)
Complaint Regarding                )              CO0474 (Westminster)
Cable Programming Services Tier Rates   )              
 
                                
                             ORDER

     Adopted:  January 29, 1999         Released:  February 3, 1999  

By the Assistant Chief, Consumer Protection and Competition 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 rebuild and non-
rebuild areas of the communities 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 in its rebuild and non-rebuild areas.

     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 areas referenced above filed a complaint with the Commission
on November 30, 1998 against Operator's June 1, 1998 CPST rate increase from $15.43 to $15.89 for the
non-rebuild areas and from $17.07 to $17.80 for the rebuild areas in the communities referenced above.  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 1240s, for the projected period June 1, 1998 through
May 31, 1999, for both its non-rebuild and rebuild areas, we adjusted the Inflation Factor at Line C5 (Current
FCC Inflation Factor) to 1.0082.  Our adjustment resulted in a revised maximum permitted rate ("MPR")
of $16.03 for Operator's non-rebuild areas and an MPR of $18.03 for its rebuild areas.  Because Operator's
actual CPST rate of $15.89 for its non-rebuild areas, effective June 1, 1998, does not exceed its revised MPR
of $16.03, we find Operator's actual CPST rate of $15.89 for its non-rebuild areas, effective June 1, 1998,
to be reasonable.  Because Operator's actual CPST rate of $17.80 for its rebuild areas, effective June 1, 1998,
does not exceed its revised MPR of $18.03, we find Operator's actual CPST rate of $17.80 for its rebuild
areas, 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 $15.89, charged by Operator in the non-rebuild areas of 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 the CPST rate of $17.80, charged by Operator in the rebuild areas of the communities
referenced above, effective June 1, 1998, IS REASONABLE.

     8.    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 1240s. 

     9.   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 rates charged by Operator in
the non-rebuild and rebuild areas of the communities referenced above, IS DENIED.


                              FEDERAL COMMUNICATIONS COMMISSION 



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