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

In the Matter of                   )    
                              )  CUID Nos.   CA0161 (Long Beach)      
Long Beach Acquisition Corp.            )         CA0162 (Signal Hill)     
d/b/a Charter Communications            )         CA1478 (Los Angeles County)
                              )              
Complaints Regarding                    )              
Cable Programming Services Tier Rates   )              
 

                             ORDER

     Adopted:  February 16, 1999        Released:  February 18, 1999  

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

     1.   In this Order we consider complaints against the September 1, 1998 and October 1, 1998 rate
increases of the above-referenced operator ("Operator") for its cable programming services tier ("CPST") in
the communities referenced above.  All prior complaints against Operator's CPST rate increases in the above-
referenced communities have been resolved ("Prior Orders").  Accordingly, this Order addresses only the
reasonableness of Operator's September 1, 1998 and October 1, 1998 CPST rate increases.

     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 LFAs for the franchise areas referenced above filed complaints with the Commission
against Operator's CPST rate increase from $12.76 to $13.76.  The LFAs verified that they received more than
one subscriber complaint for each franchise area.  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 September 1, 1997
through August 31, 1998, we adjusted Operator's FCC Form 1240 to coincide with our previously revised FCC
Form 1240, approved by our Prior Orders.  Upon review of Operator's FCC Form 1240 for the projected
period September 1, 1998 through August 31, 1999, we adjusted Operator's FCC Form 1240 to coincide with
our previously revised FCC Form 1240.  We also adjusted Operator's Module H in accordance with the FCC
Form 1240 Instructions.  Despite our adjustments, we find Operator's actual CPST rate of $13.76, effective
September 1, 1998 and October 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 $13.76, charged by Operator in the communities referenced above,
effective September 1, 1998 and October 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
                              Acting Chief, Financial Analysis and Compliance Division
                              Cable Services Bureau