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                                Before the
                     Federal Communications Commission
                          Washington, D.C. 20554
                                     
                                     )     CUID Nos.   IL1254 (Village of Lynwood)
In the Matter of                     )                 IL1255 (Village of Glenwood)
                                     )                 IN0221 (Town of Highland)
East Arkansas Cablevision, Inc.      )                 IN0225 (Town of Griffith)
                                     )                 IN0226 (Town of Lowell)
Complaint Regarding                  )                 IN0332 (Town of Dyer)
Cable Programming Services Tier Rates)                 IN0334 (City of Lake Station)
                                     )                 IN0406 (City of Whiting)
                                     )                 IN0434 (Town of Cedar Lake)    
                                     )                 IN0435 (Town of St. John)
                                     )                 IN0494 (City of Hobart)
                                     )                 IN0495 (Town of Merrillville)

ORDER
                           
        Adopted:  May 18, 1998                     Released:  May 21, 1998  

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

  1.    In this Order we consider a complaint against the January 1, 1998 rate increase of the
above-referenced operator ("Operator") for its cable programming services tier ("CPST") in the
communities referenced above.  Operator's response includes benchmark justifications filed on FCC Form
1240.  Consequently, this Order addresses only the reasonableness of Operator's January 1, 1998 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 areas referenced above filed a complaint with the Commission
on February 25, 1998.  The LFA verified that it received more than one subscriber complaint from each
of the franchise areas.  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.
  
  5.    Upon review of Operator's FCC Form 1240 for the Projected Period January 1, 1998
through December 31, 1998, we find Operator's actual CPST rate of $15.25, effective January 1, 1998,
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 $15.25, charged by Operator in the franchise areas referenced above,
effective January 1, 1998,  IS REASONABLE.

  7.    IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the referenced complaint IS DENIED.


        FEDERAL COMMUNICATIONS COMMISSION 



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