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


In the Matter of            )
           )       
TCI Great Lakes, Inc. d/b/a Telenois, Inc.         )   CUID Nos.   IL0555
(Bartlett)
           )    IL0556 (Des Plaines)
           )    IL0557 (Hanover Park)
           )    IL0559 (Park Ridge)
           )    IL0560 (Prospect Heights)
           )    
Complaints Regarding        )    
Cable Programming Services Tier        )
Rate Increase         )
 
                                      ORDER

     Adopted:  January 9, 1997         Released:  January 15, 1997   

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

     1.    In this Order we consider complaints against the June 1, 1996 rate increases by
TCI Great Lakes, Inc. d/b/a Telenois, Inc. ("TCI") for its cable programming services tier
("CPST") in the above-referenced communities.  We have already issued a separate order
addressing the reasonableness of the rates prior to that date.  We conclude that the CPST rate
increases of $2.82 TCI began charging on June 1, 1996 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 ("the 1996 Act") and our rules implementing the new
legislation, require that complaints against the CPST rates be filed with
the Commission by a franchising authority that has received subscriber complaints.  A
franchising authority may not file a CPST rate complaint unless, within 90 days after such
increase becomes effective, it receives more than one subscriber complaint.

      3.     On November 26, 1996, the Northwest Municipal Cable Council ("Northwest")
filed complaints against TCI's June 1, 1996 CPST rate increases in the communities referenced
above.  Northwest has certified that it has received subscriber complaints regarding the CPST
rate increases within 90 days after the date of the increase first appeared on the subscriber's
cable bill.  As required by our rules, Northwest's complaints also included a copy of TCI's rate
justification.
                                                                     
      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 the record before us, we find that TCI has provided sufficient
evidence to support a CPST rate increase of  $2.82  We conclude, therefore, that TCI's CPST
rate increases are justified.   

      6.     Accordingly, IT IS ORDERED, pursuant to Section 0.32l of the Commission's
rules, 47 C.F.R. Section 0.321 that the monthly CPST rate increases of $2.82 charged by TCI
in the communities referenced above beginning June 1, 1996 ARE NOT UNREASONABLE.

      7.     IT IS FURTHER  ORDERED, pursuant to Section 0.32l of the Commission's
rules, 47 C.F.R. Section 0.321 that Northwest Municipal Cable Council's complaints against the
CPST rate increase, effective June 1, 1996, charged by TCI in the communities referenced
above ARE DENIED.

      FEDERAL COMMUNICATIONS COMMISSION 



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