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


                                 
    In the Matter of)
     )
  TCI Cablevision of Oregon, Inc.)
              )CUID No.  OR0004 (Portland)
                          )
   Complaint Regarding )
   Cable Programming Services Tier)            
     Rate Increase)


                              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 June 1, 1996 rate increase of TCI
Cablevision of Oregon, Inc. ("TCI") for its cable programming services tier ("CPST") in  Portland,
CUID No. OR0004.  This Order addresses only the reasonableness of TCI's rate increase of $3.28
that became effective on June 1, 1996.  We conclude that TCI's June 1, 1996 CPST rate increase
is 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.
This is to ensure that rates charged are not unreasonable.   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 it receives more than one
subscriber complaint within 90 days after such increase becomes effective.  If the Commission finds
the rate unreasonable, it shall determine the correct rate and any refund liability.

     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 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.  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.   The Mt. Hood Regulatory Commission ("Mt. Hood") filed a complaint on October 8,
1996 regarding the June 1, 1996 increase in TCI's CPST rate in Portland.  Mt. Hood has certified that
it has received subscriber complaints and has complied with the Interim Rules. TCI submitted FCC
Form 1240 to justify the rate increase that went into effect June 1, 1996. 

     5.   Upon review of the record before us, we find that TCI has provided sufficient evidence
to support a CPST rate increase of $3.28  We conclude, therefore, that TCI's CPST rate increase
of $3.28 which went into effect June 1, 1996 is justified.  

     6.    Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that TCI Cablevision of Oregon, Inc.'s CPST rate increase of $3.28 which went
into effect on June 1, 1996, in Portland, CUID No. OR0004, IS NOT UNREASONABLE.

     7.    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 June 1, 1996 CPST rate increase
charged by TCI Cablevision of Oregon, Inc. in Portland, CUID No. OR0004, IS DENIED.

     FEDERAL COMMUNICATIONS COMMISSION 



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