********************************************************    
                         NOTICE
********************************************************

This document was converted from
WordPerfect to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
WordPerfect version or Adobe Acrobat version, if available.

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


In the Matter of                   )    CUID Nos.      MD0080 (Randallstown)
                              )              MD0081 (Catonsville)
Comcast Cablevision of Baltimore, Inc.  )              MD0082 (Pikesville)
                              )              MD0083 (Woodlawn)
                              )              MD0084 (Arbutus)
                              )              MD0085 (Lansdowne)
                              )              MD0086 (Edgemere)
                              )              MD0087 (West Baltimore County)
                              )              MD0088 (Lutherville/Timonium)
                              )              MD0089 (Reisterstown)
                              )              MD0090 (North Baltimore County)
                              )              MD0091 (Overlea)
                              )              MD0092 (Owings Mills)
                              )              MD0093 (Towson)
                              )              MD0094 (Parkville)
                              )              MD0095 (Perry Hall)
                              )              MD0096 (Middle River)
                              )              MD0097 (Rosedale)
                              )              MD0098 (Essex)
Complaint Regarding                )              MD0099 (Dundalk)
Cable Programming Services Tier Rates   )              MD0100 (East Baltimore County)
 
                                
                             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 for its rebuild and non-rebuild areas. 

     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 21, 1998, against Operator's November 1, 1997 CPST rate increase from $19.35 to $20.58 for its
rebuild area and $18.16 to $18.93 for its non-rebuild area.  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 the dates
listed in Appendix A attached hereto.  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 for both its rebuild and non-rebuild areas ("First Form 1240s") on March 31, 1998.  Upon review
of Operator's FCC Form 1240s for the projected period November 1, 1996 through October 31, 1997, we find
Operator's maximum permitted rates ("MPRs") to be reasonable for both its rebuild and non-rebuild areas.  

     6.   Upon review of Operator's FCC Form 1240s for the projected period November 1, 1997
through October 31, 1998 ("Second Form 1240s"), we adjusted Operator's Line A1 to $19.3426 for its rebuild
area and $18.0754 for its non-rebuild area to coincide with Line I9 of its prior FCC Form 1240s 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
1240s, from Line H13 (Total True-Up Adjustment) in its Second Form 1240s as required by the Waiver
Order.  Consequently, we recalculated Operator's Line H13 on Operator's Second Form 1240s and this
recalculation, performed pursuant to the Waiver Order, reduced Operator's Line H13 on both of its Second
Form 1240s.  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 $20.22
rather than Operator's calculated MPR for the projected period of $20.55 for the rebuild area.  Our adjustments
resulted in a revised MPR for the projected period of $18.44 rather than Operator's calculated MPR for the
projected period of $18.85 for the non-rebuild area.  Because Operator's actual CPST rates of $20.58 for the
rebuild area and $18.93 for the non-rebuild area exceed its revised MPRs, we find Operator's actual CPST
rates of $20.58 for the rebuild area and $18.93 for the non-rebuild area, 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 rates of $20.58 for the rebuild area and $18.93 for the non-rebuild area,
charged by Operator in the communities referenced above effective November 1, 1997, ARE
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 rates of $20.22 for the rebuild area and $18.44
for the non-rebuild area per month (plus franchise fees), plus interest to the date of the refund, for the period
beginning on the date listed on Appendix A for each community through the day before Operator implements
the maximum permitted CPST rates of $20.22 for the rebuild area and $18.44 for the non-rebuild area.

     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 

                           APPENDIX A  

CUID NO.       COMMUNITY      DATE FIRST VALID COMPLAINT
                                         FILED WITH LFA

MD0080          Randallstown                      1/13/98
MD0081          Catonsville                       11/3/97
MD0082          Pikesville                        11/7/97
MD0083          Woodlawn                     11/3/97
MD0084          Arbutus                      11/3/97
MD0085          Lansdowne                         11/3/97
MD0086          Edgemere                     11/3/97
MD0087          West Baltimore County             11/7/97
MD0088          Lutherville/Timonium                   11/3/97
MD0089          Reisterstown                      11/3/97
MD0090          North Baltimore County            11/10/97
MD0091          Overlea                      11/7/97
MD0092          Owings Mills                      11/7/97
MD0093          Towson                       11/6/97
MD0094          Parkville                         11/3/97
MD0095          Perry Hall                        11/3/97
MD0096          Middle River                      12/29/97
MD0097          Rosedale                     11/7/97
MD0098          Essex                             11/3/97
MD0099          Dundalk                      11/5/97
MD0100          East Baltimore County             11/3/97