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

In the Matter of                   )  CUID Nos.   NJ0463 (Hillsborough)
                              )         NJ0491 (Lebanon)    
                              )         NJ0492 (Clinton)         
RCN Cable of New Jersey, Inc       )         NJ0493 (Readington)
                              )         NJ0494 (Clinton Township)
                              )         NJ0495 (Passaic/Longhill Township)
                              )         NJ0504 (Branchburg)
                              )         NJ0505 (Bernardsville)
                              )         NJ0506 (Flemington)
                              )         NJ0507 (Raritan)
                              )         NJ0509 (Chatham)
                              )         NJ0510 (Franklin)
                              )         NJ0565 (Mendham Township)
                              )         NJ0576 (Montgomery)
                              )         NJ0586 (West Amwell)
Petition for Reconsideration            )         NJ0591 (Franklin)


                     ORDER ON RECONSIDERATION

      Adopted:  August 30, 1999                             Released:  September 2, 1999

By the Deputy Chief, Cable Services Bureau:

     1. In this Order we consider a petition for reconsideration of an order concerning the April  26, 1998
rate increase of the above-referenced operator ("Operator") for its cable programming services tier ("CPST")
in the communities referenced above.  On October 26, 1998, we issued an order, DA 98-2130, which found
Operator's April 26, 1998 CPST rate increase to be unreasonable ("Prior Order").  On November 25, 1998,
Operator filed a petition for reconsideration of our Prior Order ("Petition") as well as a request for stay.  This
Order addresses Operator's Petition and dismisses Operator's request for stay as moot.

     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 adjusted Line C1 (Unclaimed Inflation: Operator switching from 1210 to
1240) to 1.00 rather than 1.0037 because this was not Operator's first FCC Form 1240 filing.  In its Petition,
Operator argues that it should have been allowed to recover unclaimed inflation for two months, July and
August 1996.  However, in its Prior FCC Form 1240 ("1997 1240"), Operator indicated that its True-Up
Period covered April 1, 1996 through August 31, 1996, which included those two months.  On March 31,
1999, we released an order resolving all complaints filed against Operator's CPST rates through January 31,
1998, in which we approved a maximum permitted rate ("MPR") of $10.95 through January 31, 1998.  Our
approval of Operator's MPR was based on our review of Operator's 1997 1240.  Operator's claim to inflation
for the months of July and August 1996 should have been included in the 1997 1240 filing.  We cannot now
go back and review a filing which has been resolved to determine if Operator could have claimed additional
inflation in that filing.

     5. Once an operator has filed FCC Forms and supporting documentation with the Commission, we
are entitled to act upon that information.  Moreover, once we have released an order concerning those FCC
Forms, we cannot ordinarily allow an operator to amend those FCC Forms on appeal with information that
should have been submitted in the original certification.  That is especially true in this case where the previous
filing was resolved in the context of a resolution which involved a waiver of Commission rules.  In the present
case, we relied on information that Operator provided, specifically, that Operator's True-Up Period for its 1997
1240 covered the period from April 1, 1996 through August 31, 1996.  We will not accept Operator's
submission that it did not intend, contrary to the FCC Form 1240 Instructions, to include the inflation
adjustment for that period of time in its 1997 1240.  Therefore, we affirm our Prior Order establishing refund
liability based on Operator's April  26, 1998 CPST rate increase.  Because we have resolved Operator's
Petition, we will dismiss Operator's request for stay as moot.
     
     6. 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 IS DENIED.

     7. IT IS FURTHER ORDERED, pursuant to Section 1.106 of the Commission's rules, 47 C.F.R.
1.106, that Operator's Request for Stay IS DISMISSED. 

     8. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.
0.321, that In the Matter of RCN Cable of New Jersey, Inc., DA 98-2130, 13 FCC Rcd 21788 (1998), IS
AFFIRMED.

     9. IT IS FURTHER ORDERED, pursuant to Sections 0.321 and 76.962 of the Commission's rules,
47 C.F.R. 0.321 and 76.962, that Operator shall promptly determine the overcharges to CPST subscribers
pursuant to DA 98-2130, and shall within 30 days of the release of this Order, file a report with the Chief,
Cable Services Bureau, stating the cumulative refund amount so determined (including franchise fees and
interest), describing the calculation thereof, and describing its plan to implement the refund within 60 days of
Commission approval of the plan. 


                              FEDERAL COMMUNICATIONS COMMISSION 



                              William H. Johnson
                              Deputy Chief, Cable Services Bureau