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

In the Matter of                   )    CUID Nos. NY0392 (Huntington)
                              )              NY0399 (Babylon Village)
Cablevision Systems                )              NY0423 (Babylon Town)
                              )              NY0453 (North Hempstead)
Complaints Regarding                    )              NY0454 (Hempstead Town)
Cable Programming Services Tier Rates   )              NY0489 (Oyster Bay)
                              )              NY0665 (Bayville)
                              )              NY0703 (Westbury Village)
                              )              NY0953 (Rockville Centre)


                              ORDER

     Adopted:  August 13, 1999           Released:  August 16, 1999  

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

     1.   In this Order we consider complaints against the January 1, 1999 rate increase of the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities
referenced above.  We have already issued orders in which we resolved all prior complaints against Operator's
CPST rates in the communities referenced above ("Prior Orders").  This Order addresses only the
reasonableness of Operator's January 1, 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.  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 LFA for the franchise areas referenced above filed complaints with the Commission on
June 29, 1999, against Operator's January 1, 1999 CPST rate increase to $22.27.  The LFA verified that it
received more than one subscriber complaint for each community referenced above.  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.    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.  Additionally, an Operator may file an FCC Form
1235 (Abbreviated Cost of Service Filing for Cable Network Upgrades).  The FCC Form 1235 allows cable
operators to justify rate increases related to significant capital expenditures used to improve rate-regulated
services.  This option is extended only in cases of significant upgrades requiring added capital investment, such
as bandwidth capacity and conversion to fiber optics, and for system rebuilds.  Normal improvements and
expansions of service remain subject to the usual rate adjustments allowed by filing FCC Form 1210s, 1220s
and 1240s.  Cable operators that incur increases in operating costs associated with a significant network
upgrade will be permitted to charge additional rates as justified by their FCC Form 1235 filing.
     
     5.  Upon review of Operator's FCC Form 1240, for the projected period January 1, 1999 through
December 31, 1999, and Operator's FCC Form 1235, we find Operator's actual CPST rate of $22.27, effective
January 1, 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 $22.27, charged by Operator in the communities referenced above,
effective January 1, 1999, IS REASONABLE.

     7.   IT IS FURTHER ORDERED, pursuant to Section 0.32l of the Commission's rules, 47 C.F.R.
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