NEWS                                                    December 13, 1994

         CABLE SERVICES BUREAU ACTS ON HARDSHIP RATE RELIEF CASE

     The Cable Services Bureau of the Federal Communications Commission has issued an
order granting a Petition for Hardship Rate Relief that was filed by Horizon Cable TV, Inc.
(Horizon) of California, which permits the system to increase its rates.  Horizon filed the
Petition  because of its difficulty in meeting its expenses and debt service.

     In February of 1994, the Commission adopted a Cost Order that made hardship rate relief
available for an operator that concludes that the benchmark or cost-of-service regulations
threaten its financial health or ability to provide cable service.  Included in hardship case
consideration is an examination of an operator's ability to meet costs, including cost associated
with capital improvement and debt service.

     Horizon is a small cable system operator; it purchased six cable systems, and began
service, in 1991, using a bank loan to effect the purchase.  By its petition, Horizon notified the
Bureau that it was in financial difficulty, and was in default of some of its loan covenants. 
Horizon stated that it had made cuts in its operating expenses, but was unable to meet its
expenses and debt service absent a rate increase.  The Bureau reviewed Horizon's showing,
including its loan agreements, capital improvements, and financial statements, and concluded that
Horizon's situation supports a rate increase based on a cost of service analysis.  The Bureau's
Order finds that Horizon is justified in raising rates in two service areas, Marin West and
Stinson Beach, from the current $18.50 level to $24.50.

     Cable Services Bureau Chief Meredith J. Jones stated, "This hardship case demonstrates
the flexibility built into the 1992 Cable Act.  This operator, working with the Bureau, and with
the support of the local franchising authority, presented facts that supported the grant of relief. 
We were pleased to be able to act in a timely fashion to resolve this matter."

     Action by the Chief, Cable Services Bureau, December 12, 1994, by Memorandum
Opinion and Order (DA 94-1447).

                                  - FCC -

     News Media contact: Morgan Broman (202) 416-0852; Cable Service Bureau contacts:
Jacky Spindler and Susan Cosentino at (202) 416-0800.