Federal Communications Commission DA 96-1643
Before the
Federal Communications Commission 
Washington, D.C. 20554
In the Matter of
TCI of Illinois, d/b/a/ 
Telenois, Inc.
Complaint Regarding
Cable Programming Services Tier
Rate Increase
CUID No. IL0841 (Village of Northbrook)
ORDER
Adopted: September 29,1996 Released: October 3, 1996
By the Chief, Financial Analysis and Compliance Division, Cable Services Bureau:
1. In this Order we consider a complaint concerning the June 1, 1996 rate increase 
of TCI of Illinois, d/b/a/ Telenois, Inc. ("Telenois") for its cable programming services tier 
("CPST") in the above-referenced community.1 This Order addresses only the reasonableness of 
Telenois' rate increase of $2.82 that became effective on June 1, 1996. We conclude that 
Telenois' June 1, 1996 CPST rate increase is not unreasonable.
2. Under the Communications Act,2 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 
unreasonable, it shall determine the correct rate and any refund liability.3 The 
Telecommunications Act of 19964 ("1996 Act") and our rules implementing the new legislation,5 
require that complaints against the CPST rates be filed with the Commission by a local 
franchising authority ("LFA") that has received subscriber complaints. An LFA may not file a
1 The Commission also received a valid CPST complaint dated February 24, 1995, which is incorporated in the 
TCI Communications, Inc. Resolution, and is therefore not necessary to address in this Order. See TCI 
Communications, Inc., FCC 96-187 (released April 26, 1996).
2 Communications Act, Section 623(c), as amended, 47 U.S.C. Section 543(c)(3) (1996).
3 See 47 U.S.C. Section 543(c) (1993).
4 Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (February 8, 1996) ("1996 Act").
5 See Implementation of Cable Act Reform Provisions of the Telecommunications Act of 1996, 11 FCC Red 
5937 ("Interim Rules").
Federal Communications Commission DA 96-1643
CPST rate complaint unless, within 90 days after such increase becomes effective, it receives 
subscriber complaints. This standard requires more than one subscriber rate complaint. The 
provisions under the 1996 Act became effective upon its enactment on February 8, 1996.6
3. The Village of Northbrook ("City") filed a complaint on July 26, 1996 regarding 
the June 1, 1996 increase in Telenois' CPST rate in the above-referenced community. In its 
complaint, the City asserts that it has received more than one subscriber complaint against 
Telenois's CPST rate increase, thereby triggering the Commission's jurisdiction to review this 
complaint. The valid complaint from the UFA triggers an obligation on behalf of the cable 
operator to file a justification of its CPST rates with the LFA.7 Telenois filed a FCC Form 1240 
with the City on July 11, 1996 as justification for this rate increase, as required by our rules. 
In its response, Telenois asserts that its June 1, 1996 rate increase is justified by the FCC Form 
1240 filed on July 11, 1996.
4. Upon review of Telenois' FCC Form 1240 we find that Telenois has miscalculated 
its maximum permitted rate for its CPST due to the insertion of an incorrect inflation factor on 
Line Cl. Telenois calculated its Average Inflation Factor for True-Up Period 1 on Worksheet 
1. In Attachment 5, Telenois calculated an inflation adjustment factor to adjust for inflation for 
the period July 1, 1994 through June 30, 1995 and for excess inflation previously included in 
rates. The Attachment 5 adjustment required the application of a factor of .9997 to the 
Worksheet 1 Average Inflation Factor, which would result in an Inflation Factor for True-Up 
Period 1 of 1.0106 on Line Cl. Telenois, however, included a factor of 1.0258 on Line Cl. 
Notwithstanding this error, however, Telenois has justified its CPST rate increase of $2.82 which 
went into effect on June 1, 1996. We conclude, therefore, that Telenois' rate increase of $2.82 
which went into effect on June 1, 1996 is justified.8 Telenois is directed, however, to correct its 
maximum permitted CPST rate for the excess inflation applied in its FCC Form 1240 calculation 
and to include this correction in its next filing of FCC Form 1240.
5. Accordingly, IT IS ORDERED, pursuant to Section 0-321 of the Commission's 
Rules, 47 C.F.R. § 0.321, that TCI of Illinois, d/b/a/ Telenois, Inc.'s CPST rate increase of $2.82 
which went into effect on June 1, 1996 IS NOT UNREASONABLE.
6 See Communications Act, Section 623(c), as amended, 47 U.S.C. Section 543(c)(3) (1996).
7 Id.
* This finding is based solely on the representations of Telenois in its rate filings. Should information come 
to our attention that these representations were materially inaccurate, we reserve the right to take appropriate action. 
This Order is not to be construed as a finding that we have accepted as correct any specific entry, explanation or 
argument made by any party to this proceeding not specifically addressed herein.
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Federal Communications Commission DA 96-1643
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 June 1, 1996 CPST rate 
increase charged by TCI of Illinois, d/b/a/ Telenois, Inc. in the community referenced above, IS 
DENIED.
FEDERAL COMMUNICATIONS COMMISSION
Elizabeth W. Beaty
Chief, Financial Analysis and Compliance Division
Cable Services Bureau
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