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


                                     
In the Matter of)
     )
TCI Cablevision of Oakland County      )     CUID Nos. MI0987 and MI0988 
                      )     (Village of Lake Orion and  
Complaint Regarding              )       Orion Township)
Cable Programming Services Tier  )                 
Rate Increase   )


                                   ORDER

     Adopted:  January 9, 1997         Released:  January 14, 1997   

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

 1.   In this Order we consider complaints concerning the June 1, 1996 rate increase
of TCI Cablevision of Oakland County, ("TCI") for its cable programming services tier
("CPST") in the Village of Lake Orion and Orion Township, Michigan, CUID Nos. MI0987
and MI0988.  In response TCI filed identical FCC Forms 1240 for both communitiies.  We
have already issued  separate orders addressing the reasonableness of the rates prior to that
date.   We conclude for the reasons stated below that the CPST rate increase of $2.37 TCI
began charging on June 1, 1996 is 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.  

 3.   The Village of Orion and Orion Township filed valid complaints on
November 1, 1996 regarding the June 1, 1996 increase in TCI's CPST rate in the above-
referenced communities.  The valid complaints from the LFA trigger an obligation on behalf
of the cable operator to file a justification of its CPST rates with the LFA.  As required by
our rules, TCI filed FCC Forms 1240 with the franchising authorities as justification for this
rate increase. 
 
 4.   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.   
 
 5.     Upon review of TCI's FCC Forms 1210 and FCC Forms 1240, we find no
apparent errors in TCI's calculation of its June 1, 1996 rate increase.  We conclude,
therefore, that TCI's CPST rate increase of $2.37 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 Oakland County, Inc.'s
June 1, 1996 CPST rate increase of $2.37 in the Village of Lake Orion and Orion Township,
Michigan, CUID Nos. MI0987 and MI0988, 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 against the June 1, 1996 CPST
rate increase charged by TCI Cablevision of Oakland County, Inc. in CUID Nos. MI0987
and MI0988, in the Village of Lake Orion and Orion Township, Michigan, ARE DENIED.

 FEDERAL COMMUNICATIONS
COMMISSION 



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