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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554
                                 
                              )
In the Matter of                   )    CUID No.  NJ0005 (Somers Point)
                              )         
Suburban Cable TV Co., Inc.             )    
                              )              
Complaint Regarding Cable Programming   )              
Services Tier Rates                )              
     

                              ORDER

     Adopted:  May 7, 1999              Released:  May 11, 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 a separate order in which we found Operator's rates in effect before
May 15, 1994 to be unreasonable ("Prior Order").  In our Prior Order, we stated that our findings "do not in
any way prejudge the reasonableness of the prices for CPS service after May 14, 1994 . . ."  This Order
addresses the reasonableness of Operator's CPST rates in effect after May 14, 1994, including the
reasonableness of Operator's November 1, 1998 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
February 24, 1999, against Operator's November 1, 1998 CPST rate increase from $13.94 to $15.53. The
LFA verified that it received more than one subscriber complaint and that the first valid complaint was
received by the LFA on November 17, 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 adjust their rates on an annual basis using FCC Form 1240.  Operator has attempted
to justify its CPST rates through benchmark justifications on FCC Form 1200, multiple FCC Form 1210s and
multiple FCC Form 1240s.  

     5.   Upon review of Operator's FCC Form 1200, we adjusted Operator's Line C2 (Number of
Regulated Non-Broadcast Channels per Tier) from 13 to 7 to reflect the number of non-broadcast channels
from Operator's channel line-up card.  Our adjustment reduced Operator's maximum permitted rate ("MPR")
to $10.35.  Operator elected to defer refund liability for overcharges associated with its FCC Form 1200,
for the period May 15, 1994 through July 14, 1994, pursuant to the Commission's Rules.  Operator included
its overcharges for the period May 15, 1994 through July 14, 1994 in the refund plan filed in response to our
Prior Order.  Therefore, Operator's refund liability for the FCC Form 1200 does not begin until July 15, 1994. 
Because Operator's actual CPST rate of $10.91, effective July 15, 1994 through July 31, 1994, exceeds its
revised FCC Form 1200 MPR of $10.35, we find Operator's actual CPST rate of $10.91, effective July 15,
1994 through July 31, 1994, to be  unreasonable.  Because Operator's actual CPST rate of $9.95, effective
August 1, 1994 through September 30, 1994, does not exceed its revised FCC Form 1200 MPR of $10.35,
we find Operator's actual CPST rate of $9.95, effective August 1, 1994 through September 30, 1994, to be 
reasonable.  Because Operator's actual CPST rate of $11.90, effective October 1, 1994 through December 31,
1994, exceeds its revised FCC Form 1200 MPR of $10.35, we find Operator's actual CPST rate of $11.90,
effective October 1, 1994 through December 31, 1994, to be  unreasonable.    
  
     6.   Upon review of Operator's FCC Form 1210 covering the period from April 1, 1994 through
December 31, 1994, we adjusted Operator's Module A to conform with our revised FCC Form 1200.  We
adjusted Operator's Line F10 to $1.00 rather than $1.20 because Operator only added five channels after May
14, 1994.  Our adjustment reduced Operator's MPR to $11.86, effective January 1, 1995.  Because
Operator's actual CPST rate of $11.90, effective January 1, 1995 through April 6, 1995 and actual CPST rate
of $12.67, effective April 7, 1995 through June 30, 1995, exceeds its revised MPR of $11.86, we find
Operator's actual CPST rate of $11.90, effective January 1, 1995 through April 6, 1995 and actual CPST rate
of $12.67, effective April 7, 1995 through June 30, 1995, to be  unreasonable.  Upon review of Operator's
FCC Form 1210 covering the period from January 1, 1995 through June 30, 1995, we adjusted Operator's
Module A to conform with our prior revised FCC Form 1210.  Our adjustment reduced Operator's MPR to
$12.58, effective July 1, 1995 through September 30, 1996.  Because Operator's actual CPST rate of $12.67,
effective July 1, 1995 through September 30, 1996, exceeds its revised MPR of $12.58, we find Operator's
actual CPST rate of $12.67, effective July 1, 1995 through September 30, 1996, to be  unreasonable.  

     7.   Upon review of Operator's FCC Form 1240 for the projected period October 1, 1996 through
September 30, 1997, we made adjustments to Operator's FCC Form 1240 to conform with our prior revised
FCC Form 1210.  Our adjustments reduced Operator's MPR to $12.08, effective October 1, 1996 through
September 30, 1997.  Because Operator's actual CPST rate of $13.71, effective October 1, 1996 through
September 30, 1997, exceeds its revised MPR of $12.08, we find Operator's actual CPST rate of $13.71,
effective October 1, 1996 through September 30, 1997, to be  unreasonable.  Upon review of Operator's FCC
Form 1240 for the projected period October 1, 1997 through September 30, 1998, we made adjustments to
Operator's FCC Form 1240 to conform with our prior revised FCC Form 1240.  We also adjusted Operator's
Worksheet 2 (Caps Method Projected Period, Tier 2), Line 202, column 4 to $0.00, because Operator did not
add a new channel pursuant to the Commission's rules.  Our adjustments reduced Operator's MPR to $11.77,
effective October 1, 1997 through September 30, 1998.  Because Operator's actual CPST rate of $13.94,
effective October 1, 1997 through September 30, 1998, exceeds its revised MPR of $11.77, we find
Operator's actual CPST rate of $13.94, effective October 1, 1997 through September 30, 1998, to be 
unreasonable.

     8.   Upon review of Operator's FCC Form 1240 for the projected period November 1, 1998
through October 31, 1999, we made adjustments to Operator's FCC Form 1240 to conform with our prior
revised FCC Form 1240.  Our adjustments reduced Operator's MPR to $13.06, effective November 1, 1998
through October 31, 1999.  Because Operator's actual CPST rate of $15.53, effective November 1, 1998,
exceeds its revised MPR of $13.06, we find Operator's actual CPST rate of $15.53, effective November 1, 
1998, to be  unreasonable.

     9.   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 $10.91, charged by Operator in the franchise area referenced above,
effective July 15, 1994 through July 31, 1994, IS UNREASONABLE.

     10.  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 $9.95, charged by Operator in the franchise area referenced above, effective
August 1, 1994 through September 30, 1994, IS REASONABLE.

     11.  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 $11.90, charged by Operator in the franchise area referenced above, effective
October 1, 1994 through April 6, 1995, IS UNREASONABLE.

     12.  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 $12.67, charged by Operator in the franchise area referenced above, effective
April 7, 1995 through September 30, 1996, IS UNREASONABLE.

     13.  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 $13.71, charged by Operator in the franchise area referenced above, effective
October 31, 1996 through September 30, 1997, IS UNREASONABLE.

     14.  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 $13.94, charged by Operator in the franchise area referenced above, effective
October 1, 1997 through September 30, 1998, IS UNREASONABLE.

     15.  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 $15.53, charged by Operator in the franchise area referenced above, effective
November 1, 1998, IS UNREASONABLE.

     16.  IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47
C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion of
the amount paid in excess of the maximum permitted CPST rate of $10.35 per month (plus franchise fees),
plus interest to the date of the refund, for the period July 15, 1994 through December 31, 1994.

     17.  IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47
C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion of
the amount paid in excess of the maximum permitted CPST rate of $11.86 per month (plus franchise fees),
plus interest to the date of the refund, for the period January 1, 1995 through June 30, 1995.

     18.  IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47
C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that portion of
the amount paid in excess of the maximum permitted CPST rate of $13.06 per month (plus franchise fees),
plus interest to the date of the refund, for the period beginning November 1, 1998 through the day before
Operator implements the maximum permitted CPST rate of $13.06.

     19.  IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.
0.321, that the complaints referenced herein against the CPST rates charged by Operator in the community
referenced above ARE GRANTED.

                              FEDERAL COMMUNICATIONS COMMISSION


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