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


                                 
  In the Matter of                )CUID Nos.OR0064 (Lake Oswego)
                                   )OR0242 (Aloha-Reedville)
                                   )OR0283 (Beaverton)
                                   )OR0288 (Tigard)
   TCI Cablevision of Oregon       )OR0289 (Forest Grove)
                                   )OR0290 (Hillsboro)
                                   )OR0304 (Lake Oswego)
                                   )OR0317 (King City)
                                    )OR0318 (Cornelius)
     
                                   )OR0326 (Durham)
                                   )OR0328 (Tualatin)
   Complaints Regarding            )OR0330 (Rivergrove)
   Cable Programming Services Tier )OR0331 (Wilsonville)
   Rates and Rate Increases        )OR0332 (Wilsonville) 


                              ORDER

       Adopted:  December 6, 1996      Released:  December 11, 1996  
   
By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:

      1.In this Order we consider complaints regarding the rate increases of Columbia Cable of
Oregon ("Columbia"), and Columbia's successor TCI Cablevision of Oregon ("TCI"), for the cable
programming services tier ("CPST") in the communities designated above.  Columbia increased its
CPST rate on March 1, 1995 in amount of $0.95.  TCI increased its CPST rate on June 1, 1996 in
the amount of $3.76.  TCI has attempted to justify the CPST rate through a cost of service showing
on FCC Form 1220 and on FCC Form 1240.  We have already issued an order addressing the
reasonableness of the CPST rates in effect before May 15, 1994 in the communities for which valid
complaints were filed.  Accordingly, this order addresses only the reasonableness of the CPST rate
increase of $0.95 that became effective on March 1, 1995 and the CPST rate increase of $3.76 that
became effective on June 1, 1996.  We conclude that the March 1, 1995 and June 1, 1996 CPST rate
increases are not unreasonable.

      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.  The Cable Television Consumer Protection and
Competition Act of 1992 ("1992 Cable Act") required the Commission to review CPST rates upon
the filing of a valid complaint by a subscriber or local franchise authority ("LFA").  The
Telecommunications Act of 1996 ("1996 Act") and our rules implementing the new legislation,
require that complaints against the CPST rates be filed with the Commission only by an 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.  The
filing of a valid complaint triggers an obligation on behalf of the cable operator to file a justification
of its CPST rate.  If the Commission finds the rate to be unreasonable, it shall determine the correct
rate and any refund liability.   

      3.The Commission has received valid complaints regarding Columbia's rate increase
implemented on March 1, 1995.  Accordingly, these complaints trigger the Commission's
jurisdiction to review Columbia's CPST rates under the 1992 Cable Act.  

      4.On September 23, 1996, the LFA filed a consolidated complaint, for all 19 communities
in its jurisdiction, with respect to TCI's $3.76 CPST rate increase which was implemented on June
1, 1996.  The LFA subsequently filed individual FCC Form 329 complaints for thirteen of its
communities, and did not file individual complaints for the remaining six communities because
the LFA received "fewer than two consumer complaints from each ... during the prescribed ninety-
day consumer complaint window."  The complaints filed by the LFA are subject to the
requirements of the 1996 Act.  The LFA asserts that it has received more than one complaint against
TCI's CPST rate increase in the thirteen communities for which the LFA filed complaints, thereby
triggering the Commission's jurisdiction to review these complaints.  The complaints from the LFA
also trigger an obligation on behalf of the cable operator to file a justification of its CPST rate
increase with the LFA.  Thus, in this case, TCI is required to justify the increase in its CPST rate
which is the subject of the LFA's complaints.  In response to the LFA's complaints, TCI submitted
an FCC Form 1240 for each community to justify its June 1, 1996 CPST rate increase.  As required
by our rules, the LFA included with its complaints copies of the FCC Form 1240 rate justification
that TCI provided to the LFA.    
      5.To justify rates for the period beginning May 15, 1994 through a benchmark or cost of
service showing, operators must use the FCC Form 1200 series.  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 cost changes.     

      6.Columbia's FCC Form 1220 filing seeks to establish that its CPST rate, including its
CPST rate increase on March 1, 1995, is below the maximum permitted rate and is justified based
on its cost of providing regulated cable service.  According to information provided by Columbia
in its FCC Form 1220 cost of service showing, the franchise area comprised approximately 65,174
CPST subscribers at the time of the August 15, 1994 filing.  Columbia provided 36 CPST channels
at that time.  In this review process, we analyzed Columbia's CPST cost of service showing to ensure
that the CPST rate, and March 1, 1995 CPST rate increase, were not unreasonable and to determine
any associated refund liability.

      7.In reviewing the cost of service showing, rate base and expense items have been
evaluated to determine whether Columbia should be permitted to recover those items.  Where a
certain rate base or expense element was not supported, was excessive, or was unrelated to providing
regulated cable service, such cost was disallowed in whole or in part.  Upon review of Columbia's
FCC Form 1220 filing, we find that Columbia's monthly CPST rate, and March 1, 1995 CPST rate
increase, has been justified.  

      8.Upon review of the record before us, we find that Columbia has provided sufficient
evidence to support its March 1, 1995 CPST rate increase of $0.95.

      9.Upon review of the record before us, we find that TCI has provided sufficient evidence
to support its June 1, 1996 CPST rate increase of $3.76.

      10.Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the monthly CPST rate increase of $0.95 charged by Columbia Cable of
Oregon in the communities referenced above, beginning March 1, 1995 IS NOT
UNREASONABLE.  

      11.Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the monthly CPST rate increase of $3.76 charged by TCI Cablevision of
Oregon in the communities referenced above, beginning June 1, 1996 IS NOT UNREASONABLE. 


      12.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the complaints against the CPST rate increase, effective March 1, 1995, charged
by Columbia Cable of Oregon in the communities referenced above, ARE DENIED. 

      13.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the Metropolitan Area Communications Commission's complaints against the
CPST rate increase, effective June 1, 1996, charged by TCI Cablevision of Oregon in the
communities referenced above, ARE DENIED. 

     FEDERAL COMMUNICATIONS COMMISSION 



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