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

In the Matter of                   )    
                              )    CUID No.  IN0126 (City of Fort Wayne)
Comcast Cable Communications, Inc.      )              
                              )              
Complaint Regarding                )              
Cable Programming Services Tier Rates   )              
 

                             ORDER

     Adopted:  February 25, 1999        Released:   March 3, 1999 

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

     1.   In this Order we consider a complaint against the November 1, 1998 rate increase of the
above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the community
referenced above.  We have already issued an order in which we resolved all prior complaints against
Operator's CPST rates in the community referenced above ("Prior Order").  This Order addresses only the
reasonableness of Operator's November 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 area referenced above filed a complaint with the Commission on
January 27, 1999, against Operator's November 1, 1998 CPST rate increase from $17.10 to $18.00.  The LFA
verified that it received more than one subscriber complaint and that the first valid complaint was received by
the LFA on November 2, 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, 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 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 November 1, 1998
through October 31, 1999, we adjusted Operator's Line A1 (Current Maximum Permitted Rate), Line D3
(Current Caps Method Segment), and Line D7 (Current Inflation Segment) to conform to the revised FCC
Form 1240 approved by our Prior Order.  We adjusted the Inflation Factors at Worksheet 1 (True-Up Period
Inflation) which adjusted Line C3 (Inflation Factor for True-Up Period 1) to 1.0117.  We also revised Line C5
(Current FCC Inflation Factor) to 1.0100.   We adjusted Operator's Line F2 (Markup Method Segment for
True-Up Period 1) to $0.00 and Line I2 to $0.00.  Operator is not entitled to claim an adjustment under the
"markup method" for channels added in 1998.  Our adjustments resulted in a revised maximum permitted rate
("MPR") of $18.02 for the projected period rather than Operator's calculated MPR for the projected period of
$18.10.  Because Operator's actual CPST rate of $18.00 does not exceed its MPR, we find Operator's actual
CPST rate of $18.00, effective November 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 $18.00, charged by Operator in the community referenced above,
effective November 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 MPR
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.  0.321, that the referenced complaint IS DENIED.


                              FEDERAL COMMUNICATIONS COMMISSION 



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