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

In the Matter of                     )           CUID No.   
TX0514 (La Marque)
                                     )                 
TCI Cablevision of Houston           )                 
                                     )                 
                                     )           
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 a complaint against the June 1,
1997 rate increase of the above-
referenced operator ("Operator") for its cable programming
services tier ("CPST") in the community
referenced above.  We will address Operator's CPST rates and any
potential refund liability for the period
prior to June 1, 1997 in a separate order.  This Order addresses
only the reasonableness of Operator's June
1, 1997 CPST rate increase.        

  2.    Under the Communications Act, the 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 a rate to be 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 more
than one subscriber complaint. 

  3.     The LFA for the franchise area referenced above filed a
complaint with the Commission
on September 9, 1997.  The LFA verified that it received more
than one subscriber complaint and that
the first complaint was received by the LFA on June 5, 1997.  The
filing of a complete and timely LFA
complaint triggers an obligation upon the cable operator to file
a justification of its CPST rates.  The
Operator has the burden of demonstrating that the CPST rates
complained about are reasonable. 

  4.      To justify rates for the period beginning May 15, 1994
through a benchmark showing,
operators must use the FCC Form 1200 series.  Operators are
permitted to make changes to their rates
on a quarterly basis using FCC Form 1210.  Operators may
alternatively 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.  Operator filed FCC Form 1240 as justification
for its June 1, 1997 CPST rate increase. 
  
  5.     On February 23, 1996, the Commission granted Operator a
waiver of certain rate
adjustment requirements in its initial filing of the Commission's
annual rate adjustment form (FCC Form
1240) ("Waiver Order").  Specifically, the Waiver Order allowed
Operator, in its initial FCC Form 1240
filings, to include estimated changes in costs, inflation,
channels and subscriber information attributable
to the period between the last date for which actual cost data
was available and the effective date of the
new rates. In the Waiver Order, Operator was instructed to
include in its initial FCC Form 1240 filing
certain calculations, such calculations to be performed on FCC
Form 1240 (primarily in Module G), or
off FCC Form 1240, in an alternative showing done pursuant to the
Waiver Order's "General
Guidelines."  Operator chose to use an alternative showing rather
than perform its calculations directly
on FCC Form 1240.

  6.     To justify its CPST rate, effective June 1, 1997,
Operator submitted its second FCC Form
1240.  Upon review of this FCC Form 1240, for the projected
period June 1, 1997 to May 31, 1998, we
are unable to determine if Operator correctly adjusted this FCC
Form 1240 to take into account the
calculations performed in its initial FCC Form 1240's alternative
showing.  We will therefore order
Operator to refile its FCC Forms 1240 along with an explanation
detailing why its forms justify Operator's
current CPST rate of $16.70 in the community referenced above.

  7.     Accordingly, IT IS ORDERED, pursuant to Section 0.321 of
the Commission's  rules, 47
C.F.R.  0.321, that Operator shall file with the Chief, Cable
Services Bureau, within 30 days of the
release of this Order, the relevant FCC Forms 1240, and all
supporting documentation, to support the
monthly CPST rate of $16.70 implemented by Operator on June 1,
1997, in the community referenced
above.

  FEDERAL COMMUNICATIONS COMMISSION 



  Meredith J. Jones
  Chief, Cable Services Bureau