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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554
                                 
In the Matter of                   )    
                              )    CUID No.  CA0335 (City of San Diego)
Cox Communications San Diego, Inc.      )              
                              )
Complaint Regarding                )              
Cable Programming Services Tier Rates   )              
          

                             ORDER

     Adopted:  February 11, 1999        Released:  February 16, 1999  

By the Acting Chief, Financial Analysis and Compliance Division, Cable Services Bureau:

     1.   In this Order we consider a complaint against the November 15, 1998 rate increase by the
above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community
referenced above.  We have previously resolved all prior complaints filed against Operator's CPST rates.  This
Order addresses only the reasonableness of Operator's November 15, 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 area referenced above filed a complaint with the Commission on
January 14, 1999, against Operator's November 15, 1998 CPST rate change from $17.95 to $19.70.  The LFA
verified that it received more than one subscriber complaint and the first valid complaint was received by the
LFA on November 19, 1998.  The filing of a complete and timely LFA 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 are permitted to make changes to their rates on a
quarterly basis using FCC Form 1210.  Operators may justify adjustments to 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 periods October 1, 1996
through September 30, 1997, October 1, 1997 through September 30, 1998, and October 1, 1998 through
September 30, 1999, we find Operator's actual CPST rate of $19.70, effective November 15, 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 $19.70, charged by Operator in the franchise area referenced above,
effective November 15, 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 



                         Patrick A. Boateng, Acting Chief
                         Financial Analysis and Compliance Division
                         Cable Services Bureau