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


In the Matter of                   )    CUID Nos.      MD0077 (Howard County)
                              )              MD0156 (Ellicott)
Comcast Cablevision of             )              MD0157 (Columbia)
Howard County, Inc.                )              MD0299 (North Laurel)
                              )              MD0300 (Savage)
Complaint Regarding                )              MD0301 (Elkridge)
Cable Programming Services Tier Rates   )              
 
                                
                             ORDER

     Adopted:  April 14, 1998           Released:  April 17, 1998  

By the Acting Chief, Cable Services Bureau:

     1.   In this Order we consider a complaint against the November 1, 1997 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.  Accordingly, this Order addresses only the reasonableness
of Operator's November 1, 1997 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.  If the Commission finds a rate to be 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 more than one subscriber complaint. 

     3.   The LFA for the franchise area referenced above filed a complaint with the Commission on
January 20, 1998, against Operator's November 1, 1997 CPST rate increase from $16.09 to $17.53.  The LFA
verified that it received more than one subscriber complaint and that the first complaints for each community
were received by the LFA on November 3, 1997.  The filing of a complete and timely LFA 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. 

     4.    To justify rates for the period beginning May 15, 1994 through a benchmark showing,
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 alternatively 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.  

     5.   In response to a request made by Commission staff, Operator filed amended FCC Form 1240s
for the projected periods November 1, 1996 through October 31, 1997 and November 1, 1997 through October
31, 1998 on March 31, 1998.  Upon review of Operator's FCC Form 1240 for the projected period November
1, 1996 through October 31, 1997 ("First Form 1240"), we find Operator's maximum permitted rate ("MPR")
to be reasonable.  

     6.   Upon review of Operator's FCC Form 1240 for the projected period November 1, 1997
through October 31, 1998 ("Second Form 1240"), we adjusted Operator's Line A1 to $16.4395 to coincide with
Line I9 of its prior FCC Form 1240 in accordance with FCC Form 1240 Instructions.  We adjusted Operator's
Line D6 (Current True-Up Segment) to coincide with Line I8 of Operator's prior FCC Form 1240 filing, in
accordance with the FCC Form 1240 Instructions.  We adjusted Operator's Line D7 (Current Inflation
Segment) to include the amount from Lines I5 and G5 of its prior FCC Form 1240 per the FCC Form 1240
Instructions and pursuant to Annual Rate Adjustment System for Cable Service Rates ("Waiver Order"). 
Although Operator took advantage of the Waiver Order, Operator failed to fully remove its estimated true-up
amount, found on Lines H7 and H8 of its First Form 1240, from Line H13 (Total True-Up Adjustment) in its
Second Form 1240 as required by the Waiver Order.  Consequently, we recalculated Operator's Line H13
on Operator's Second Form 1240 and this recalculation, performed pursuant to the Waiver Order, reduced
Operator's Line H13 to $158,272.51.  These adjustments required us to adjust the Inflation Factors on
Operator's Worksheet 1 to reflect the most accurate inflation data currently available.  This resulted in an
adjustment to Operator's Line C1 (Inflation Factor for True-Up Period 1) to 1.0206.  We also adjusted
Operator's Line C3 (Current FCC Inflation Factor) to 1.0143.  Our adjustments resulted in a revised MPR
for the projected period of $17.17 rather than Operator's calculated MPR for the projected period of $17.49. 
Because Operator's actual CPST rate of $17.53 exceeds its revised MPR, we find Operator's actual CPST rate
of $17.53, effective November 1, 1997, to be unreasonable.  

     7.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R. Section 0.321, that the CPST rate of $17.53 charged by Operator in the communities referenced above,
effective November 1, 1997, IS UNREASONABLE.

     8.   IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules, 47
C.F.R.  76.961, that Operator shall refund to subscribers in the franchise areas referenced above that portion
of the amount paid in excess of the maximum permitted CPST rate of $17.17 per month (plus franchise fees),
plus interest to the date of the refund, for the period November 3, 1997 through the day before Operator
implements the maximum permitted CPST rate of $17.17.

     9.   IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to
CPST subscribers for the stated periods, 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. 

     10.  IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R.
 0.321, that Operator take into account our FCC Form 1240 adjustments when calculating its maximum
permitted rate and performing the true-up calculation on its next FCC Form 1240.     

     11.  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 GRANTED.

                              FEDERAL COMMUNICATIONS COMMISSION 



                              John E. Logan
                              Acting Chief, Cable Services Bureau