********************************************************    
                         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                )
                                )
     Suburban Cable TV Co., Inc. )CUID No.  PA0103 (Manor Township)
                                )
Complaint Regarding             )
Cable Programming Services Tier )
Rate Increase                   )


                             ORDER

      Adopted:  July 28, 1997   Released:  July 30, 1997  

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

      1.In this Order we consider complaints about the rates charged by the above-referenced
operator ("Operator") for its cable programming services tier ("CPST") in the community referenced above. 
Operator has chosen to attempt to justify its CPST rates through benchmark showings on FCC Form 1200,
multiple FCC Form 1210s and multiple FCC Form 1240s.  We have already issued a separate order in which
we dismissed for lack of jurisdiction complaints filed prior to May 14, 1994.  Accordingly, this Order
addresses only those complaints received after May 14, 1994.    

      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.  

      3.A valid complaint was filed with the Commission on February 21, 1995 against  Operator's
February 15, 1995 CPST rate increase from $11.98 to $14.31, exclusive of franchise fees.  The filing of a
complete and timely 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 or cost of
service showing, operators must use the FCC Form 1200 series.  Cable operators may file an FCC Form 1210
to justify rate increases based on the addition and deletion of channels, changes in certain external costs and
inflation.  In addition, Operators must file a Form 1210 at least 30 days before new rates are scheduled to
go into effect, where there is a pending complaint against the CPST rate.  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 Operator's FCC Form 1200 we find Operator's maximum permitted rate
("MPR") of $11.67 to be reasonable.  Upon review of Operator's FCC Form 1210 for the period April 1, 1994
through December 31, 1994, we find Operator's MPR of $12.69 to be reasonable.  

      6.Upon review of Operator's FCC Form 1210 for the period January 1, 1995 through March
31, 1995, we find Operator's MPR of $14.31 to be reasonable.  Because Operator's actual CPST rate of
$14.31, effective February 15, 1995, does not exceed its MPR, we find Operator's actual CPST rate of
$14.31, effective February 15, 1995 through December 31, 1995, to be reasonable.  

      7.Upon review of Operator's FCC Form 1210 for the period April 1, 1995 through June 30,
1995, we find Operator's MPR of $14.80 to be reasonable.  Because Operator's actual CPST rate of $14.59,
effective January 1, 1996, does not exceed its MPR, we find Operator's actual CPST rate of $14.59, effective
January 1, 1996 through March 31, 1996, to be reasonable.

      8.Upon review of Operator's FCC Form 1240 for the projected period April 1, 1996 through
March 31, 1997, we find Operator's MPR of $16.05 to be reasonable.  Because Operator's actual CPST rate
of $15.25, effective April 1, 1996, does not exceed its MPR, we find Operator's actual CPST rate of $15.25,
effective April 1, 1996 through March 31, 1997, to be reasonable.  

      9.Upon review of Operator's FCC Form 1240 for the projected period April 1, 1997 through
March 31, 1998, we adjusted Operator's inflation factor on Worksheet One and Lines C3 and C5 to reflect
the inflation data available at the time Operator filed its form.  We also adjusted Operator's Lines D3, D7,
D8 and F1 to coincide with Operator's previous revised FCC Form 1240, in accordance with instructions. 
These adjustments resulted in a revised MPR of $18.04 rather than Operator's MPR of $18.14.  Because
Operator's actual CPST rate of $16.95, effective April 1, 1997, does not exceed its revised MPR, we find
Operator's actual CPST rate of $16.95, effective April 1, 1996 through the present, to be reasonable.   
     
      10.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 $14.31, charged by Operator in the community referenced above,
effective February 15, 1995 through December 31, 1995, IS REASONABLE.

      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 of $14.59, charged by Operator in the community referenced above,
 effective January 1, 1996 through March 31, 1996, IS REASONABLE. 

      12.IT IS FURTHER 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 community referenced, effective
April 1, 1996 through March 31, 1997, IS REASONABLE.

      13.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the CPST rate of $16.95, charged by Operator in the community referenced above,
effective April 1, 1997 through the present, IS REASONABLE.

      14.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.

      15.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the complaints against the CPST rates charged by Operator in the community referenced
above ARE DENIED.

     FEDERAL COMMUNICATIONS COMMISSION 



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