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

In the Matter of                     )      
                                     )     CUID Nos.:  MD0222 (Rockville)
                                     )                 MD0223 (Chevy Chase)
                                     )                 MD0224 (Silver Spring)
                                     )                 MD0225 (Washington Grove)
SBC Media Ventures, Inc.             )                 MD0226 (Takoma Park)
d/b/a Montgomery Cable TV            )                 MD0227 (Somerset)
                                     )                 MD0228 (Poolesville)
                                     )                 MD0229 (Barnesville)
                                     )                 MD0230 (Brookville)
                                     )                 MD0231 (Garret Park)
                                     )                 MD0233 (Glen Echo)
                                     )                 MD0234 (Kensington)
                                     )                 MD0235 (Laytonsville)
                                     )                 MD0236 (Montgomery)
                                     )                 MD0274 (Chevy Chase)
                                     )                 MD0275 (Chevy Chase Sec
IV)
                                     )                 MD0276 (Chevy Chase Sec V)
                                     )                 MD0277 (Chevy Chase VIII)
                                     )                 MD0340 (Germantown)
Complaints Regarding                 )                 MD0341 (Burtonsville)
Cable Programming Services Tier      )                 MD0342 (Potomac)
Rate Increase                        )                 MD0343 (Boyds)
                                     )                 MD0344 (Wheaton)
                                     )                 MD0345 (Derwood)
                                     )                 MD0346 (Olney)
                                     )                 MD0347 (Cabin John)
                                     )                 MD0348 (Bethesda)
                                     )                 MD0349 (West Bethesda)

ORDER
                           
        Adopted:  January 12, 1998                 Released:  January 14, 1998    

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

  1.    In this Order we consider a complaint against the July 1, 1997 rate increase by the above-
referenced operator ("Operator") for its cable programming services tier ("CPST") in the communities
referenced above.  We have already issued separate orders in which we found that Operator's CPST rates
in effect prior to the July 1, 1997 rate increase were reasonable.  This Order addresses only the
reasonableness of Operator's July 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 November 3, 1997.  The LFA certified that it complied with the Interim Rules in the filing of its
complaint.  The filing of a complete and timely 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 may justify 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.

  5.     Upon review of Operator's FCC Form 1240 for the projected period July 1, 1997 through
June 30, 1998, we adjusted Operator's Worksheet 8 (True-Up Rate Charged), Lines 806 through 812
from $14.8457 to $14.85 to reflect the actual CPST rate charged.  This adjustment resulted in a revised
maximum permitted rate ("MPR") of $17.68 rather than Operator's MPR of $17.69.  Because Operator's
actual CPST rate of $17.41 does not exceed its revised MPR of $17.68, we find Operator's actual CPST
rate of $17.41 to be reasonable.  

  6.     Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the CPST rate of $17.41, exclusive of franchise and public access fees, charged
by Operator in the communities referenced above, effective July 1, 1997, IS REASONABLE.
 
  7.     IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that Operator take into account our FCC Form 1240 adjustment when calculating its
maximum permitted rate and performing the true-up calculation on its next FCC Form 1240.

  8.     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 July 1, 1997 CPST rate increase, charged by Operator in
the communities referenced above, IS DENIED.

  FEDERAL COMMUNICATIONS COMMISSION 



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