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


                                 
    In the Matter of)
     )
   International Cablevision, Inc.   )CUID No.  NY0354  
  d/b/a/ Adelphia Cable Communications) (New York Public Service Commission)
     )
           )
     
   Complaint Regarding)
   Cable Programming Services Tier)            
    Rate Increases)


                               ORDER

        Adopted:  December 13, 1996    Released:  December 18, 1996   

By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:

      1.In this Order we consider a complaint concerning the August 1, 1996 rate increases
of International Cablevision d/b/a/ Adelphia Cable Communications  ("Adelphia") for its cable
programming services tiers ("CPST") in the Town of Williamsville, New York and the Village
Williamsville, New York CUID No. NY0354.  This Order addresses only the reasonableness of 
Adelphia's rate increases of August 1, 1996.  We conclude that the August 1, 1996 rate increases of
$0.63 for the existing system and $0.93 for the rebuilt system are not unreasonable.

      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 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, 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 rate complaint.  

      3.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.

      4.On August 20, 1996, a valid complaint was filed by the State of New York
regarding the August 1, 1996 increases in Adelphia's CPST rates in Williamsville, New York.  The
valid complaint from the LFA triggers an obligation on behalf of the cable operator to file a
justification of its CPST rates with the LFA.  Adelphia filed FCC Forms 1240 with the State of
New York as justification for its rate increases, as required by our rules. 
     
      5. In a letter dated October 2, 1996, Adelphia transmitted to the Commission a response
to the State of New York's August 20, 1996 complaint.   In its response, Adelphia alleges that the
complaint should be denied because it failed to specify the service charges complained about and
because it attached copies of complaints from individual subscribers.  Adelphia further asserts that
the complaint fails to separate basic charges from cable programming service charges and maintains
that charges for "Cable Value" services are justified.  

      6.The State of New York refiled the FCC Form 329 on September 24, 1996 as a result
of discussion with FCC staff on September 13, 1996.   In response to Adelphia's allegations
regarding the sufficiency of the August 20, 1996 complaint, the State of New York refiled its
complaint again on November 26, 1996.  All refilings have been made within 180 days of the
effective date of the August 1, 1996 rate increases.  The  FCC Form 329 instructions specify that it
is the local franchising authority's responsibility to make an initial determination of whether a rate
increase pertains to the cable programming services tier.  The FCC Form 329 filed on November
26, 1996, specified that the CPST was the tier being complained about.  We find that the State of
New York has complied with our instructions and has operated in accordance with Commission
rules.  Further, we maintain that to the extent that this Order finds all CPST rates justified, "Cable
Value " services have also been found to be justified.  For these reasons, we deny Adelphia's request
 to dismiss the complaint.       
     
      7.Upon review of Adelphia's filings, we have made an adjustment to Module A, Line
A-1 of its FCC Forms 1240.  Adelphia was not subject to the Commission's jurisdiction prior to the
filing of the State of New York's complaint against the August 1, 1996 rate increases.  In the
calculation of its rates, Adelphia used the maximum permitted rate of $19.98 for the rebuild area and
$11.02 for the existing area.  Because Adelphia was not previously subject to the Commission's
jurisdiction, there were no prior rate justifications filed.  Therefore, Adelphia should have used the
actual rates of $18.03 for the rebuild area and $10.15 for the existing area.  We conclude, however,
that Adelphia's August 1, 1996 rate increases of $0.63 for the existing system and $0.93 for the
rebuilt system are justified.

      8.Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's Rules,
47 C.F.R.  0.321, that International Cablevision, Inc. d/b/a/ Adelphia Cable Communications' CPST
rate increases of $0.63 for the existing system and $0.93 for the rebuilt system which went into effect
on August 1, 1996 ARE NOT UNREASONABLE.

      9. IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's Rules,
47 C.F.R.  0.321, that International Cablevision, Inc. d/b/a/ Adelphia Cable Communications in
Williamsville, New York, CUID No. NY0354, revise its maximum permitted rate in its next FCC
Form 1240 filing according to the adjustments made herein concerning Module A, Line A-1.

      10.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the complaint referenced herein against the August 1, 1996 CPST rate
increases charged by International Cablevision, Inc. d/b/a/ Adelphia Cable Communications in
Williamsville, New York CUID No. NY0354, IS DENIED.

     FEDERAL COMMUNICATIONS COMMISSION 



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