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




In the Matter of                   )
                              )
TCI of Pennsylvania, Inc.               )    CUID No.  PA0139 (Clairton)
                              )                             
                                   )              
Complaint Regarding           )                      
Cable Programming Services Tier         )
Rate Increase                      )

                             ORDER

   Adopted: February 26, 1997           Released: February 28, 1997  


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

     1.  In this Order we consider a complaint about the rate increase of the above-referenced
operator ("Operator") for its cable programming services tier ("CPST") in the community referenced
above.  Operator increased its CPST rate on November 1, 1995 and June 1, 1996.  Operator has
attempted to justify its CPST rate increases through benchmark justifications on FCC Forms 1210
and 1240.  

     2.  Under the Communications Act, the Commission is authorized to review CPST rates of
cable systems not subject to effective competition to ensure that rates charged are not unreasonable. 
If the Commission finds rates to be unreasonable, it shall determine the correct rates 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.  Generally, to justify
their rates for the period beginning May 15, 1994 through a benchmark showing, operators 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 where
the Commission has found the CPST rate to be unreasonable less than one year prior to the filing,
or where there is a pending complaint against the CPST  rate.  Operators may alternatively 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 differ
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.  Upon review of Operator's FCC Form 1210, filed to justify its CPST rate increase
effective November 1, 1995, we have found no apparent errors that would result in Operator's actual
permitted rate exceeding its maximum permitted rate.  Upon review of Operator's FCC Form 1240,
filed to justify its June 1, 1996 CPST rate increase, we have found that Operator used an incorrect
inflation factor on Module C, Line C1.  Accordingly, we have adjusted Operator's FCC Form 1240
Module C, Line C1 to reflect the correct inflation factor of 1.0109.  We find that Operator has
provided sufficient information to support its CPST rate increases of $.78 and $3.50 effective
November 1, 1995 and June 1, 1996, respectively, notwithstanding our adjustment to Operator's FCC
Form 1240.  Therefore, we find that Operator's CPST rates of $14.04 and $17.54, effective
November  1, 1995 and June 1, 1996, respectively, are not unreasonable and are justified. 

     5.  ACCORDINGLY, IT IS ORDERED, pursuant to Section 0.321 of the Commission's
rules, 47 C.F.R.  0.321, that the CPST rates of $14.04 and $17.54 charged by Operator in the
franchise area referenced above, effective November 1, 1995 and June 1, 1996, respectively, ARE
NOT UNREASONABLE.
          
     6.  IT IS FURTHER ORDERED, pursuant to Section 0.321 of the Commission's rules, 47
C.F.R.  0.321, that the complaint referenced herein against the CPST rate charged by Operator in
the franchise area referenced above, IS DENIED.

          .   
     
                    FEDERAL COMMUNICATIONS COMMISSION 




                    Elizabeth W. Beaty
                    Chief, Financial Analysis and Compliance Division
                    Cable Services Bureau