********************************************************    
                         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                 )
                              )  CUID No.  KS0079 (City of Topeka)
TCI Cablevision of Kansas, Inc.         )              
                                        )                   
                              )            
Complaint Regarding           )
Cable Programming Services Tier         )               
Rate Increase                    )

                              ORDER

     Adopted:  January 24, 1997                   Released:  January 29, 1997  
   
By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:

     1.   In this Order we consider a complaint concerning the June 1, 1996 rate increase of
TCI of Cablevision of Kansas, Inc. ("TCI") for its cable programming services tier ("CPST") in the
City of Topeka ("City").  This Order addresses only the reasonableness of TCI's rate increase of
$2.23 that became effective on June 1, 1996.  We conclude that TCI's June 1, 1996 CPST rate
increase is not unreasonable.

     2.   The Communications Act authorizes the Federal Communications Commission to
review the CPST rates of cable systems not subject to effective competition to ensure that rates
charged are not unreasonable.  The Cable Television Consumer Protection and Competition Act of
1992 ("1992 Cable Act") required the Commission to review CPST rates upon the filing of a valid
complaint by a subscriber or local franchise authority ("LFA").  The Telecommunications Act of
1996 ("1996 Act") and our rules implementing the new legislation, require that complaints against
the CPST rates be filed with the Commission only by an 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.  The filing of a valid complaint
triggers an obligation on behalf of the cable operator to file a justification of its CPST rate.  If the
Commission finds the rate to be unreasonable, it shall determine the correct rate and any refund
liability.   

     3.   The City of Topeka, the LFA, filed a complaint on November 27, 1996, regarding
the June 1, 1996 increase in TCI's CPST rate in the community designated above.  The LFA has
certified that it has received subscriber complaints and has complied with the Interim Rules.  TCI
submitted an FCC Form 1240 to justify the rate increase that went into effect on June 1, 1996.  As
required by our rules, the LFA's complaint also included a copy of the rate justification that TCI
submitted to the LFA.  

     4.   To justify rates for the period beginning May 15, 1994 through a benchmark or cost
of service showing, operators must use the FCC Form 1200 series.  Operators may 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.  If actual and projected costs are
different during the rate year a "true-up" mechanism is available to correct estimated costs with
actual cost changes.  The "true-up" requires operators to decrease their rates or alternatively permits
them to increase their rates to make an adjustment for over or under estimations of these cost
changes.     

     5.   Upon review of the record before us, we find that TCI has provided sufficient
evidence to support a CPST rate increase of $2.23.

     6.   Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the monthly CPST rate increase of $2.23 charged by TCI Cablevision of
Kansas, Inc. in the community referenced above, beginning on June 1, 1996 IS NOT
UNREASONABLE. 
 
     7.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that the City of Topeka's complaint against the CPST rate increase, effective on
June 1, 1996, charged by TCI Cablevision of Kansas, Inc. in the community referenced above, IS
DENIED. 

                              FEDERAL COMMUNICATIONS COMMISSION 



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