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

In the Matter of  )
                  )
SVHH  Cable Acquisition, L.P.,)      CUID No.  SC0058 (Hilton Head Island)
d/b/a Adelphia Cable Communications        )            
                  )           
                  )     
Complaint Regarding           )                         
Cable Programming Services Tier Rates      )


                                   ORDER

      Adopted:  December 31, 1997                Released:  January 7, 1998    

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

      1.    In this Order we consider a complaint against the August 1, 1997 rate increase that the
above-captioned operator ("Operator") implemented for its cable programming services tier ("CPST") in
the community set forth above.  Operator has attempted to justify its CPST rate through a benchmark
showing on FCC Forms 1240.  We have already issued a separate order which resolved complaints filed
against Operator's CPST rates for the period from September 1, 1993 to December 31, 1995 ("Resolution
Order").  This Order addresses only the reasonableness of the Operator's CPST rate of $17.19 effective
August 1, 1997.

      2.     The Communications Act authorizes the Federal Communications Commission
("Commission") 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 the rate 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 subscriber
complaints.  An LFA may not file a CPST rate complaint unless, within 90 days after such increase
becomes effective, it receives more than one subscriber complaint.
                                                               
     3.    Cable operators may justify adjustments to 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.  If actual and
projected costs are different during the rate year a "true-up" mechanism is available to correct estimated
costs with actual cost changes.  The "true-up" requires Operators to decrease their rates or alternatively
permits them to increase their rates to make an adjustment for over or under estimations of these costs
changes.  

      4.     On November 4, 1997, the LFA filed a complaint regarding the August 1, 1997 increase
in Operator's CPST rate in the community referenced above.  In its complaint, the LFA asserts that it
has received more than one subscriber complaint against Operator's CPST rate increase, thereby
triggering the Commission's jurisdiction to review this complaint.  The valid complaint from the LFA
triggers an obligation by the cable operator to file a justification of its CPST rates with the LFA.  Thus,
in this case, Operator is required to justify the increase in its CPST rate which is the subject of the LFA's
complaint.  Operator submitted FCC Forms 1210 and 1240 for the community set forth above to justify
the rate increase that went into effect on August 1, 1997.

      5.     Upon review of Operator's FCC Form 1240 for the projected period August 1, 1996 to
July 31, 1997, pursuant to the Resolution Order, we find that Operator has correctly carried forward its
maximum permitted rate ("MPR") of $9.87 on Line A1 and that Operator has correctly calculated its
MPR of $13.80.  Upon review of Operator's FCC Form 1240 for the projected period August 1, 1997
to July 31, 1998, we find that Operator has incorrectly reported  its true-up period on Line 6. 
Therefore, we have revised Line 6 to reflect the correct true-up period of May 1, 1996 to April 30, 1997
reported on Worksheet 1 (True-Up Period Inflation).  Notwithstanding our adjustment, we find that
Operator has justified its CPST rate of $17.19 effective August 1, 1997.

     6.    Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that Operator's CPST rate of $17.19 effective August 1, 1997 in the community set
forth above, IS NOT UNREASONABLE.

 7.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the complaint referenced herein, IS DENIED.
 
      FEDERAL COMMUNICATIONS COMMISSION 


 
      Elizabeth W. Beaty
      Chief, Financial Analysis and Compliance Division
      Cable Services Bureau