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


In the Matter of                     )
                                     )
Cablevision of the Midwest, Inc.     )     CUID No.    OH0663 (City of Lyndhurst) 
and Telerama, Inc.                   )                 
d/b/a CSC/VTV Ohio                   )                 
                                     )              
                                     )                 
Complaints Regarding                 )
Cable Programming Services Tier Rates)


                                   ORDER

      Adopted:  February 26, 1998                      Released:  March 2, 1998     

By the Deputy Chief, Cable Services Bureau:

      1.    In this Order we consider complaints against the June and July, 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 cost of
service showing on FCC Form 1235.  This Order addresses only the reasonableness of Operator's CPST
rate of $17.18 that became effective in June and July, 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.     FCC Form 1235 is an abbreviated cost of service filing used in cases of network
upgrades.  It 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 will remain subject to the usual rate
adjustments allowed by filings of FCC Forms 1210, 1220 and 1240.  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.     

      4.     On December 10, 1997, the LFA filed a complaint regarding the June and July, 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 in the
community set forth above, thereby triggering the Commission's jurisdiction to review these complaints. 
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 Form 1235 for the community
set forth above to justify the rate increase that went into effect in June and July, 1997.

      5.     Operator's June and July, 1997 rate increase reflects the recovery of costs for its network
upgrade as reflected on FCC Form 1235.  Operator initially filed its FCC Form 1235 on April 21, 1997
and selected the pre-approval option for the FCC Form 1235.  Operator subsequently filed an amended
FCC Form 1235 on January 7, 1998.  On its amended FCC Form 1235, Operator chose to allocate its
Monthly Network Upgrade Add-on (Part III, Lines 4 and 5) to both its basic service tier ("BST") and its
CPST rates.  Such an election is consistent with the FCC Form 1235 instructions.  Upon review of
Operator's amended FCC Form 1235, we find that Operator has correctly calculated its CPST upgrade
increase of $4.14.

      6.     Therefore, when Operator's actual CPST rate of $14.18 is combined with the FCC Form
1235 MPR of $4.14, the combined MPR is $18.32.  Operator is actually charging a combined rate of
$17.18, effective June and July, 1997.  We conclude that the CPST rate of $17.18 is reasonable for the
upgraded system. 

      7.     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 $17.18 effective June and July, 1997 in the community
set forth above, IS NOT UNREASONABLE.

   8.     IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the complaints referenced herein ARE DENIED.

   FEDERAL COMMUNICATIONS COMMISSION 



   John E. Logan
   Deputy Chief, Cable Services Bureau