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

In the Matter of                     )
                                     )
Cablevision Systems                  )     CUID Nos.   NY0489
(Oyster Bay)  
                                     )             NY0703
(Village of Westbury)
                                     )             NY0635
(Massapequa Park)
                                     )             NY0454 (Town
of Hempstead)
                                     )              
                                     )                 
Complaint Regarding                  )
Cable Programming Services Tier Rates)


                                   ORDER

      Adopted:  November 26, 1997                Released: 
November 28, 1997    

By the Chief, Cable Services Bureau:

      1.    In this Order we consider complaints against the May
1, 1997 rate increase that the above-
captioned operator ("Operator") implemented for its cable
programming services tier ("CPST") in the
communities set forth above.  Operator has attempted to justify
its CPST rate through a benchmark
showing on FCC Forms 1210 and 1235.  We will address Operator's
CPST rates and any potential refund
liability for the period September 1, 1993 through April 30, 1997
in a separate order.  This Order
addresses only the reasonableness of the Operator's CPST rate of
$20.42 effective May 1, 1997.

      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.  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 ("Interim Rules"), 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,
within 90 days after such increase
becomes effective, it receives more than one subscriber
complaint.
                                                               
     3.    Cable operators attempting to justify rates for the
period beginning May 15, 1994 through
a benchmark showing must use the FCC Form 1200 series.  Cable
operators may also 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.
      
      4.     FCC Form 1235 is an abbreviated cost of service
filing used in cases of network upgrades. 
It allows cable operators to justify rate increases related to
significant capital expenditures used to improve
rate-regulated services.  This option is extended only in cases
of significant upgrades requiring added
capital investment, such as bandwidth capacity and conversion to
fiber optics, and for system rebuilds. 
Normal improvements and expansions of service will remain subject
to the usual rate adjustments allowed
by filings of FCC Forms 1210, 1220 and 1240.  Cable operators
that incur increases in operating costs
associated with a significant network upgrade will be permitted
to charge additional rates as justified by
their FCC Form 1235 filing.       

      5.     On September 3, 1997, the LFA filed complaints
regarding the May 1, 1997 increase in
Operator's CPST rate in the communities referenced above.  In its
complaints, the LFA asserts that it has
received more than one subscriber complaint against Operator's
CPST rate increase in each of the
communities set forth above, thereby triggering the Commission's
jurisdiction to review these complaints. 
The valid complaints from the LFA triggers an obligation by the
cable operator to file a justification of
its CPST rates with the LFA.  Thus, in this case, Operator is
required to justify the increase in its CPST
rate which is the subject of the LFA's complaints.  Operator
submitted FCC Forms 1210 and 1235 for
the communities set forth above to justify the rate increases
that went into effect on May 1, 1997.

      6.     Operator's May 1, 1997 rate increase reflects not
only the quarterly increase as reported
on FCC Form 1210, but also recovery of costs for its network
upgrade as reflected on FCC Form 1235. 
Operator initially filed its FCC Form 1235 on March 28, 1997 and
selected the pre-approval option. 
Operator also chose to allocate its Monthly Network Upgrade
Add-on (Section III, Lines 4 and 5) to both
its basic service tier ("BST") and its CPST rates.  On November
24, 1997, Operator notified the
Commission that "because the pre-approval requested in connection
with the initial filing has not yet been
provided," Operator was revising its FCC Form 1235 so that it
could recover the total Monthly Network
Upgrade Add-on through the CPST rate.  Such an election is
consistent with the FCC Form 1235
instructions.  Upon review of Operator's FCC Form 1210 for the
period October 1, 1996 to March 31,
1997, along with Operator's FCC Form 1235, as amended November
24, 1997, we have made
adjustments.  Despite these adjustments, we find that Operator's
CPST rate of $20.42, effective May 1,
1997, 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 Operator's CPST rate of $20.42 effective May
1, 1997 in the communities set forth
above, 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, ARE
DENIED.

   FEDERAL COMMUNICATIONS COMMISSION 



   Meredith J. Jones
   Chief, Cable Services Bureau