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


                                )
In the Matter of                )
                                )
  Comcast Cablevision of Middletown, Inc.)CUID Nos.CT0044 (Middletown)
                                   )       CT0045 (Middlefield)
   Complaints Regarding a          )
   Cable Programming Services Tier )
   Rate Increase                   )
                                )


                             ORDER

    Adopted:  July 14, 1997    Released:  July 16, 1997  

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

      1.   In this Order we consider complaints concerning the rates of the above-captioned operator
("Operator") for its cable programming services tier ("CPST") in the communities referenced above. 
Operator's response includes rate justifications filed on FCC Forms 1210 and 1240.  We have already
approved a resolution resolving complaints for the period from September 1, 1993 through July 14, 1994. 
We have also issued an order ("Prior Order") denying complaints against Operator's rates for the period July
15, 1994 through March 1, 1995.  This Order addresses the reasonableness of Operator's CPST rate increase
effective December 1, 1996.  We conclude that Operator's CPST rates are not unreasonable. 

     2.   The Communications Act, authorizes the Federal Communications Commission ("Commission")
to review the CPST rates of cable systems not subject to effective competition to ensure that rates charged
are not unreasonable.  The Telecommunications Act of 1996 ("1996 Act") and our rules implementing the
new legislation ("Interim Rules"), require that complaints against 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 it receives more than one subscriber complaint within 90 days after such
increase becomes effective.  If the Commission finds the rate unreasonable, it shall determine the correct
rate and any refund liability.

      3.   The Commission's original rate regulations took effect on September 1, 1993.  The
Commission subsequently revised its rate regulations effective May 15, 1994.  Cable operators must use
the FCC Form 1200 series to justify their rates through a benchmark showing for the period beginning May
15, 1994.  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 May 20, 1997, the LFA filed complaints against Operator's December 1, 1996 rate
increase.  The LFA certified that it has received more than one complaint in each of the communities
referenced above and that it has complied with the Interim Rules.  To justify its CPST rates effective after
the Prior Order, Operator submitted FCC Forms 1210 for the periods January 1, 1995 to November 30, 1995,
October 1, 1995 to December 31, 1995, and January 1, 1996 to June 30, 1996.  Operator filed an FCC Form
1240 to justify its CPST rate of $16.81 for the projected period December 1, 1996 through November 30,
1997.

      5.   Upon review of Operator's FCC Forms 1210 and 1240, we find that Operator has justified
its CPST rate of $16.81, implemented on December 1, 1996.  Therefore, we find that Operator's CPST rates
beginning December 1, 1996 in the communities referenced above are not unreasonable.

      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 $16.81, established for the period December 1, 1996 through November
30, 1997, in the communities referenced above 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 complaints referenced herein against the CPST rate charged by Operator in the
franchise areas referenced in the caption ARE DENIED.

     FEDERAL COMMUNICATIONS COMMISSION 



     Margaret M. Egler
     Acting Chief, Financial Analysis and Compliance Division
     Cable Services Bureau