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


In the Matter of                         )
                                    )
Century Communications                   )   CUID No.  CA1227 (City of Chino)
                                    )
Complaint Regarding                 )   
Cable Programming Services Tier               )
Rate Increase                            )

                                  ORDER

     Adopted:  April 21, 1997                 Released:  April 23, 1997   

By the Chief, Cable Services Bureau:

     1.   In this Order we consider a complaint against the June 1, 1996 rate increase of the
above-captioned Operator ("Operator") for its cable programming services tier ("CPST") in the
community referenced above.  In response, Operator filed its FCC Form 1240.  This Order addresses
only the reasonableness of Operator's CPST rate increase of June 1, 1996.  We conclude that the rate
increase of $3.93 to $14.44 that Operator began charging on June 1, 1996 is unreasonable.

     2.   Under the Communications Act, the Federal Communications Commission
("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 the 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,
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.   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.  

     4.   On July 22, 1996, the Commission returned as incomplete a complaint filed by the
LFA against Operator's June 1, 1996 CPST rate increase in the community referenced above.  The
Commission has no record of any subsequent filings by the LFA.  In a letter dated February 18,
1997, the LFA asserts that it refiled a timely complaint on August 12, 1996 against Operator's June
1, 1996 CPST rate increase.  With its letter, the LFA submitted a copy of the complaint and a
certified receipt verifying that the complaint was received by the Commission on August 12, 1996,
although it was not placed into the Commission's process for adjudication.  In its complaint, the LFA
has certified that it has received subscriber complaints regarding the CPST rate increase within 90
days after the date the rate increase first appeared on the subscribers' cable bills.  As required by
our rules, the LFA also included with its complaint a copy of the rate justification that Operator
provided to the LFA.  The LFA contends that its certified receipt verifies that the Commission
received the complaint and, therefore, the complaint was filed in a timely manner.  Consequently,
the LFA requests that we consider its August 12, 1996 complaint as valid and review the Operator's
June 1, 1996 CPST rate increase.   

     5.   We find that the LFA has adequately documented that it timely filed its complaint
as well as the information necessary to allow us to adjudicate the matter.  We therefore find it
appropriate to adjudicate the complaint that was submitted with the LFA's February 18, 1997 letter. 
Acceptance of the complaint will appropriately safeguard the interests of subscribers without
diminishing the rights of the Operator, who is aware of, and has responded to, the LFA's complaint. 
We also note that the above-captioned community is tied into Operator's headend along with the
Operator's system in the City of Chino Hills, California.  We have previously released an order
resolving an LFA complaint against Operator in the City of Chino Hills ("Prior Order").  In
response to that LFA complaint, Operator filed an FCC Form 1240 that incorrectly reported
Operator's current maximum permitted rate on Line A1.  In the Prior Order, we found that Operator's
error reduced the maximum permitted rate for the projected period.  Consequently, Operator has
been on notice that this error, which is the same error made on the FCC Form 1240 in this case, as
discussed below, will produce rates that are considered unreasonable by the Commission.   
     
     6.   Upon review of Operator's FCC Form 1240 to justify the CPST rate increase of $3.93
that went into effect on June 1, 1996 in the above-captioned community, we find that the Operator
has incorrectly calculated its projected period maximum permitted rate by using $10.56 as its current
maximum permitted rate in Line A1 instead of $10.51, the actual CPST rate it was charging prior
to the increase.  Therefore, we have adjusted Line A1 of Operator's FCC Form 1240 submission
to agree with its actual CPST rate at the time of its filing.  As a result, we have calculated Operator's
FCC Form 1240 maximum permitted CPST rate to be $14.26.  From June 1, 1996 to August 31,
1996, Operator was charging $14.44.  Effective September 1, 1996, Operator began charging $14.30. 
Thus, Operator has failed to demonstrate that the rate for its CPST was 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 June 1, 1996 CPST rate increase of $3.93 in the community
referenced above IS UNREASONABLE. 

     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 June 1, 1996 CPST rate increase charged by
Operator in the community referenced above IS GRANTED.
     
     9.   IT IS FURTHER ORDERED, pursuant to Section 76.961 of the Commission's rules,
47 C.F.R.  76.961, that Operator shall refund to subscribers in the community referenced above that
portion of the amount paid in excess of the maximum permitted CPST rate of $14.26 per month
(plus franchise fees), plus interest to the date of the refund, for the period from June 3, 1996 to the
day before Operator implements the maximum permitted CPST rate of $14.26.

     10.  IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges
to CPST subscribers for the stated periods, and shall within 30 days of the release of this Order, file
a report with the Chief, Cable Services Bureau, stating the cumulative refund amount so determined
(including franchise fees and interest), describing the calculation thereof, and describing its plan to
implement the refund within 60 days of Commission approval of the plan. 
     
     11.  IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules,
47 C.F.R.  0.321, that Operator is permitted to charge a monthly CPST rate increase not exceeding
$3.75 per month from June 1, 1996 until 30 days after it files its next FCC Form 1240.

     12.  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 adjustment in its true-up calculation in its next
FCC Form 1240.

                              FEDERAL COMMUNICATIONS COMMISSION 



                              Meredith J. Jones
                              Chief, Cable Services Bureau