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



    In the Matter of)
     )
   TCI Cablevision of Hayward, Inc.)CUID No.  CA0972 (City of Alameda)
       )
           )
   Complaints Regarding )
   Cable Programming Services Tier )
    Rate Increases)


                             ORDER

        Adopted:  December 16, 1996  Released:  December 18, 1996  

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

      1.In this Order we consider complaints regarding the rate increases of TCI Cablevision
of Hayward, Inc. ("TCI") for its cable programming services tier ("CPST") in the City of Alameda,
California ("City"), CUID No. CA0972.  TCI increased its CPST rate on February 1, 1995 in the
amount of $1.48.  TCI increased its CPST rate again on June 1, 1996 in the amount of $3.24.  TCI
has attempted to justify its CPST rates through benchmark showings on FCC Forms 1200, 1210, and
1240.  The first valid complaint received by the Commission for this community is a complaint
regarding TCI's February 1, 1995 CPST rate increase.  Accordingly, this Order addresses only the
reasonableness of the CPST rate increase of $1.48 that became effective on February 1, 1995 and
the CPST rate increase of $3.24 that became effective on June 1, 1996.  We conclude that TCI's
February 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 franchising authority ("LFA").  The
Telecommunications Act of 1996 ("the 1996 Act") and our rules implementing the new legislation,
require that complaints against the CPST rate 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.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 rate
increases based on the addition and deletion of channels, changes in certain external costs, and
inflation, by filing FCC Form 1210.  FCC Form 1210 must be filed at least 30 days before new rates
are scheduled to go into effect where the Commission has found the CPST rate to be unreasonable
less than one year prior to the filing, or where there is a pending complaint against the CPST rate. 
Operators may also 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 Commission has received a valid complaint regarding TCI's CPST rate increase
implemented on February 1, 1995.  On October 2, 1996, the franchising authority, City of
Alameda, filed a complaint with the Commission with respect to TCI's June 1, 1996 CPST rate
increase.  As required by our rules, the City included with its complaint a copy of the rate
justification that TCI provided to the City.

      5.Upon review of the record before us, we find that TCI has provided sufficient
evidence to support its February 1, 1995 CPST rate increase of $1.48 and its June 1, 1996 CPST rate
increase of $3.24.

      6.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 $1.48 charged by TCI Cablevision of
Hayward, Inc. in the City of Alameda, CUID No. CA0972, beginning February 1, 1995 IS NOT
UNREASONABLE.  

      7.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 $3.24 charged by TCI Cablevision of
Hayward, Inc. in the City of Alameda, CUID No. CA0972, beginning June 1, 1996 IS NOT
 UNREASONABLE. 

      8.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the complaints referenced herein with respect to the City of Alameda, CUID
No. CA0972, against the February 1, 1995 CPST rate increase charged by TCI Cablevision of
Hayward, Inc., ARE DENIED.





      9.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the complaints referenced herein with respect to the City of Alameda, CUID
No. CA0972, against the June 1, 1996 CPST rate increase charged by TCI Cablevision of Hayward,
Inc., ARE DENIED.

     FEDERAL COMMUNICATIONS COMMISSION 



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