TCI TO HIKE CABLE'S BASIC SERVICE RATES $1.38 A MONTH

Cable television subscribers in Cape Girardeau and Jackson will pay $1.38 more a month for basic service under a rate increase formula allowed by federal law.

As a result, TCI Cablevision's 15,000 subscribers in this area will pay $10.55 a month for the 16-channel basic service. The rate hike will take effect by August, although some customers may see the increase on their July bill.

"We are on a cycle billing. All of our customers' bills don't hit at one time," Roger Harms, TCI manager explained.

Harms said the new charge is only a nickel higher than it was in 1991, even though basic service has been expanded. "I think that is a pretty good deal."

Harms said the charges had decreased for a time because of rollbacks mandated by the Federal Communications Commission.

But under the 1992 federal cable law, cable operators are allowed to adjust rates quarterly based on FCC guidelines.

"We stay within the benchmark guidelines to figure the rates," Harms said.

The $1.38 rate hike is actually two rate hikes combined.

TCI requested an 85-cent rate hike on basic service in February, but the city of Cape Girardeau held up the rate hike for 150 days and asked the FCC to review the matter.

During that time, the cable company saw its operating costs increase due to inflation. That resulted in its request for an added increase of 53 cents a month.

The city didn't review the second requested hike, Harms said.

He said the 85-cent hike will pay for the cost incurred in adding channels to basic service as well as other programming expenses.

City Attorney Warren Wells said the city has no control over basic rates.

"We have a voice in it, but we don't have any control," Wells said.

At least twice, the city has asked the FCC to review TCI's proposed rate hikes to see if they are appropriate. But the federal agency has never responded to the city's requests, Wells said.

He said federal law allows cable companies to raise rates to cover increased operating costs.

"The reason why we have asked the FCC to involve itself is we assume they do know in industrywide terms what reasonable increases in costs are. We just don't have the expertise," Wells said.

Harms said TCI's rate hikes are justified. "We are following the guidelines and doing everything in our power to do it the right way."