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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554
                                 
In the Matter of                )
                                )
 Warner Cable of Greater Cincinnati)CUID No. OH0790 (Village of Evendale)
                                )
Complaints Regarding            )
Cable Programming Services Tier Rates)


                             ORDER

      Adopted:  August 7, 1997          Released:  August 8, 1997  

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

      1.In this Order, we consider complaints against the rate increase that the above-referenced
operator ("Operator") was charging for its cable programming services tier ("CPST") in the community
referenced above.  Operator  has attempted to justify its CPST rates, effective January 1, 1996, for its pre-
upgrade and upgrade areas through benchmark justifications filed on FCC Form 1240.  

      2.Under the Communications Act, the 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 a 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
("Interim Rules"), require that complaints against the CPST rates be filed with the Commission by a local
franchising authority ("LFA") that has received more than one subscriber complaint. 

      3.A valid complaint was filed with the Commission on February 2, 1996.  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 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.
     
      5.Operator offers two cable programming services tiers, hereinafter referred to as "CPST-2"
and "CPST-3".  Upon review of Operator's FCC Form 1240, we find that Operator has justified its CPST-2
rate of $5.59 and its CPST-3 rate of $2.95 effective July 1, 1996 in the pre-upgrade area.  We also find that
Operator has justified its CPST-2 rate of $12.43 and its CPST-3 rate of $4.23 effective September 1, 1996
in the upgrade area.

      6.Accordingly, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the rate of $5.59 for its CPST-2 and the rate $2.95 for its CPST-3 charged by Operator
in the pre-upgrade area of the community referenced above, effective July 1, 1996 ARE 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 rate of $12.43 for its CPST-2 and the rate of $4.23 for its CPST-3, charged by
Operator in the upgrade area of the community referenced above, effective September 1, 1996 ARE NOT
UNREASONABLE.  

      8.IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the referenced complaints ARE DENIED.

     FEDERAL COMMUNICATIONS COMMISSION 



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