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


In the Matter of  )
                  )
Marcus Cable Partners, L.P.                )     CUID Nos.   WI0066 (City of Hartford)
                  )      
                  )     
Complaints Regarding                       )
Cable Programming Services Tier Rates      )

ORDER
        
        Adopted:  July 18, 1997                    Released:  July 23, 1997  

By the Chief, Cable Services Bureau:

  1.    In this Order we consider a complaint concerning the rates the above-captioned operator
("Operator") was charging for its cable programming services tier ("CPST") in the community referenced
above.  Operator has attempted to justify its CPST rates through benchmark showings on FCC Form 1200,
multiple FCC Forms 1210, and FCC Form 1240.  We have already issued a separate order which found
that the Operator's rates in effect before May 15, 1994 were unreasonable ("Prior Order").  Accordingly,
this Order addresses the reasonableness of Operator's CPST rates in effect from May 15, 1994 to present.

  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 Cable Television Consumer Protection and Competition Act
of 1992 ("1992 Cable Act") requires the Commission to review CPST rates upon the filing of a valid
complaint by a subscriber or local franchise authority ("LFA").  If the Commission finds the rate to be
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 revised its rate regulations effective May 15, 1994.  Cable operators that have valid CPST
complaints filed against them prior to May 15, 1994 must demonstrate that their CPST rates were in
compliance with the Commission's initial rules from the time the complaint was filed through May 14,
1994.  Cable operators must also demonstrate that their rates were in compliance with the revised rules
from May 15, 1994 forward.  Cable operators attempting to justify their rates for the period beginning
May 15, 1994 by a benchmark showing must use the FCC Form 1200 series.  Cable operators may also
justify rate increases based on the addition and deletion of channels, changes in certain external costs, and
inflation, by filing FCC Form 1210.  FCC Form 1210 must be filed at least 30 days before new rates
are scheduled to go into effect when the Commission has found the CPST rate to be unreasonable less
than one year prior to the filing.  In addition, FCC Form 1210 may be filed where there is a pending
complaint against the CPST rate.

  4.    Operators may also 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.    Our Prior Order indicates that the findings in that review "do not in any way prejudge the
reasonableness of the prices for CPS service after May 14, 1994."  Consequently, the CPST rates
beginning May 15, 1994, and subsequent rate increases, are subject to Commission review and are
addressed in this Order.

  6.    In a letter dated June 10, 1994, Operator advised the LFA that it had elected, as provided
in the Commission's rules, to take advantage of the refund liability deferral period from May 15, 1994
through June 30, 1994 for overcharges resulting from the calculation of a new maximum permitted rate
("MPR") on the FCC Form 1200.  Accordingly, the liability period for any CPST overcharges by
Operator associated with its FCC Form 1200 filing did not begin to run until July 1, 1994.  Furthermore,
the MPR of $12.08 determined in our Prior Order governs the CPST rate during the period from May 15,
1994 through June 30, 1994.  Operator's actual CPST rate at that time was $12.38.  We find that
Operator's CPST rate of $12.38 for the period May 15, 1994 through June 30, 1994 exceeded its MPR
by $0.30.  Because we find that Operator's CPST rate was in excess of $12.08, Operator is still liable for
refunds for charging a CPST rate greater than $12.08 during the period of May 15, 1994 through June 30,
1994.    

  7.    Upon review of Operator's FCC Form 1200 and multiple FCC Forms 1210, we find that
Operator has provided sufficient evidence to support the CPST rates it charged beginning July 1, 1994
through May 31, 1996. 

  8.    We next reviewed Operator's FCC Form 1240 for the projected period June 1, 1996
through May 31, 1997.  We adjusted the inflation rate at Lines C1 and C3 to reflect the correct inflation
factor of 1.48% and 2.22% respectively.  These adjustments resulted in a revised MPR of $12.93 rather
than Operator's $13.05.  Thus, Operator has failed to demonstrate that its June 1, 1996 rate of $13.05
for its CPST was not unreasonable.   

  9.    Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the CPST rate charged by Operator in the community referenced above, from May
15, 1994 through June 30, 1994 IS UNREASONABLE TO THE EXTENT DISCUSSED HEREIN.

  10.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the CPST rates charged by Operator in the community referenced above, from July
1, 1994 through May 31, 1996 ARE NOT UNREASONABLE.

  11.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the CPST rate charged by Operator in the community referenced above, beginning
June 1, 1996 to present, IS UNREASONABLE.

  12.   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 $12.08 per month (plus franchise
fees), plus interest to the date of the refund, for the period from May 15, 1994 through June 30, 1994.

  13.   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 $12.93 per month (plus franchise
fees), plus interest to the date of the refund, for the period from June 1, 1996 to the day before Operator
implements the maximum permitted CPST rate of $12.93.
  
  14.   IT IS FURTHER ORDERED that Operator shall promptly determine the overcharges to
CPST subscribers for the stated period, 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. 

  15.   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 adjustments when calculating its
maximum permitted rate and performing the true-up calculation on its next FCC Form 1240.

  16.   IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R. Section 0.321, that the complaint against the CPST rate charged by Operator in the community
referenced above, IS GRANTED TO THE EXTENT INDICATED HEREIN.

        FEDERAL COMMUNICATIONS COMMISSION 



        Meredith J. Jones
        Chief, Cable Services Bureau