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

In the Matter of                   
                              )
Time Warner Cable                  )    CUID No.       NY0349    (Village of Newark)
                              )            
Petition for Reconsideration            )                             
                                   )


                         ORDER ON RECONSIDERATION

      Adopted:  January 24, 2000                            Released:  February 2, 2000   

By the Deputy Chief, Cable Services Bureau:

     1.   In this Order we consider a petition for reconsideration of a rate order concerning the
January 1, 1998 rate increase of the above-referenced operator ("Operator") for its cable programming
services tier ("CPST") in the community referenced above.  On September 21, 1998, we issued a rate order
concerning Operator's January 1, 1998 CPST rate increase ("Prior Order").  On October 21, 1998, Operator
filed a petition for reconsideration of our Prior Order ("Petition").  This Order addresses Operator's Petition. 


     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.   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. 

     3.   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.  

     4.   In our Prior Order, we found that Operator had not correctly calculated its maximum permitted rate
("MPR") on its FCC Form 1240s for the projected period January 1, 1998 through December 31, 1998 ("1998 1240s"). 
In its Petition, Operator argues that it erroneously deducted a 3 percent franchise fee instead of the actual 5 percent
applicable to the above-referenced community when entering its actual rate charged on Worksheet 8 of the forms. 
Operator overstated its actual rate charged which reduced its MPR.  In its Petition, Operator requests that we accept its
amended 1998 FCC 1240s which reflect the correct amount on Worksheet 8.  We find Operator's request to be
compelling. Our review reveals that Operator mistakenly deducted a 3 percent franchise fee cost when it actually paid
a 5 percent franchise fee.  Operator attached amended 1998 FCC Form 1240s to its Petition which included the
corrected Worksheet 8 as well as the adjustments required by our Prior Order.  Upon review of Operator's amended
1998 1240s, we find Operator's actual CPST rate of $19.46, effective January 1, 1998, to be reasonable. 
Therefore, we will grant Operator's Petition and amend our Prior Order.    

     5.   Accordingly, IT IS ORDERED, pursuant to Section 1.106 of the Commission's rules, 47
C.F.R. 1.106, that Operator's Petition for Reconsideration of In the Matter of Time Warner Cable, DA 98-
1882, 13 FCC Rcd 19630 (1998) IS GRANTED.

     6.   IT IS FURTHER ORDERED, pursuant to Section 1.106 of the Commission's rules, 47
C.F.R. 1.106, that In the Matter of Time Warner Cable, DA 98-1882, 13 FCC Rcd. 19630 (1998), IS
AMENDED TO THE EXTENT INDICATED HEREIN.

     7.   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 $19.46, charged by Operator in the community referenced above,
effective January 1, 1998, IS REASONABLE.
     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 



                              William H. Johnson
                              Deputy Chief, Cable Services Bureau