********************************************************    
                         NOTICE
********************************************************

This document was converted from
WordPerfect to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
WordPerfect version or Adobe Acrobat version, if available.

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

                                       

In the Matter of                     )
                                     )
TCI Cablevision of California, Inc.  ) CUID No. CA0258 (City of Calabasas)  
                                     )
                                     )
Cost of Service Showing to Support   )
Complaint Regarding                  )
Basic Service Tier Rate              )

     
                                     ORDER

     Adopted:  March 14, 1997           Released:  March 19, 1997  

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

I.  INTRODUCTION

     1.    On August 15, 1994, the above-referenced operator ("Operator") serving the
community referenced above, filed a cost of service showing on FCC Form 1220 and FCC
Forms 1210 with its local franchising authority, the City of Calabasas, California ("City"),
seeking to justify its Basic Service Tier ("BST") rate.  Operator supplemented its FCC Form
1220 on April 26, 1996.  On September 15, 1994, the City petitioned the Commission to
review the BST cost of service showing.   The Commission  granted the City's request on
April 28, 1995 and agreed to review Operator's cost of service showing for the BST rate.  
There have been no CPST complaints filed in this community.

     2.    According to information provided by Operator in its cost of service showing,
the franchise area comprised approximately 1,311 BST subscribers at the time of the filings. 
Operator provided 21 BST channels.  In this review process, pursuant to the Cable
Television Consumer Protection and Competition Act of 1992 ("1992 Cable Act"), we
analyzed Operator's BST cost of service showing and FCC Form 1210 to ensure that the
rates charged were not unreasonable and to determine any associated refund liability.  

     3.    We analyzed BST rates charged for the period from September 1, 1993 to
present.  Operator's FCC Form 1220 and 1210 seek to establish that its BST rate of $10.72
per month is justified based on its cost of providing service on its BST.   Our analysis
indicates that the BST rate that Operator was charging from September 1, 1993 was justified
under the Commission's rules.
        
II.  ADJUSTMENTS

     4.    Rate base and expense items have been evaluated to determine whether
Operator should be permitted to recover those items.  Where a certain rate base or expense
element was not supported, was excessive, or was unrelated to providing regulated cable
service, such cost was disallowed in whole or in part.  Where reported costs were
disallowed, we have made appropriate adjustments.  Even with our adjustments and
disallowances, however, we find that Operator's monthly BST rates for the periods under
review have been justified.  

III.  CONCLUSION    
                                                                                      
     5.    Based on our review of Operator's FCC Form 1220 and FCC Forms 1210
filings and supplemental information, applying the Commission's most current rules, we find
that, as discussed above, Operator has justified the monthly BST rate of $10.72 (plus
franchise fee) for the period after September 1, 1993. 

     6.    Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the
Commission's rules, 47 C.F.R. Section 0.321, that the monthly BST rate of $10.72 charged
by Operator with respect to the above-referenced community, effective September 1, 1993,
IS JUSTIFIED. 
     
     7.    IT IS FURTHER ORDERED, pursuant to Section 76.933(d) of the
Commission's rules, 47 C.F.R. Section 76.933(d), that this ruling on the rates Operator was
charging for its BST is binding on the local franchising authority, the City of Calabasas, and
the cable operator, TCI Cablevision of California, Inc.

     FEDERAL COMMUNICATIONS
COMMISSION



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