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

In the Matter of                )  CUID Nos. CA0844 (Rancho Tierra Grande)
                                )            CA1049 (Laguna Seca)
Falcon Cable Systems            )
                                )            
                                )            
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 January 13, 1999 rate increase of the
above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities
referenced above.  We have previously resolved all prior complaints filed against Operator's CPST rates in
the communities referenced above.  This Order addresses only the reasonableness of Operator's January 13,
1999 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 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 areas referenced above filed a complaint with the Commission
on April 1, 1999 against Operator's January 13, 1999 CPST rate increase from $5.04 to $5.75.  The LFA
verified that it received more than one subscriber complaint for each franchise area and that the first valid
complaint for each franchise area was received by the LFA on the date listed in Appendix A attached hereto. 
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 alternatively justify adjustments to their rates on an annual basis using FCC Form
1240 to reflect reasonable certain and quantifiable changes in external cost, inflation, and the number of
regulated channels that are projected for the twelve months following their 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 December 1, 1998
through November 30, 1999, we find Operator's actual CPST rate of $5.75, effective January 13, 1999, 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 $5.75 charged by Operator in the communities referenced above,
effective January 13, 1999, IS REASONABLE.

     7.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R. Section 0.321, that the complaint against Operator's January 13, 1999 CPST rate increase in the
communities referenced above, IS DENIED.

                         FEDERAL COMMUNICATIONS COMMISSION 


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

CUID NO.            COMMUNITY      DATE FIRST VALID COMPLAINT    
                                        FILED WITH LFA

CA0844              Rancho Tierra Grande               1/19/99
CA1049              Laguna Seca                   2/15/99