ADELPHIA'S REFUNDS ARE IN THE MAIL CREDITS IN THIS MONTH'S BILLS.

Byline: Rick Orlov Staff Writer

Los Angeles officials had some good news Thursday for 250,000 Adelphia Communications customers - the long-promised $6.1 million in credits are showing up on this month's cable TV bills.

Ordered by the Federal Communications Commission, refunds of $25 to $32 will be issued in the form of a credit to customers throughout the city, including Eagle Rock, Sherman Oaks and the east San Fernando Valley. In addition, monthly rates will drop $1.56 to $2.26.

``Adelphia has heard the message we will not tolerate shortchanging the city of Los Angeles,'' Mayor James Hahn said at a City Hall news conference. ``The basic cable rate increase imposed last year was unjustified and I am pleased to see ... Adelphia is issuing refunds.''

Adelphia spokesman Bob Gold said the credits are part of a commitment by the new management to work with the city.

``We want to provide our customers with the kind of service and technology they deserve and be a great partner with them and the city,'' Gold said.

The city began its battle with Adelphia in May, when city officials demanded that the company roll back a rate increase and return millions of dollars to its Los Angeles customers. At the time, Adelphia's owners were under investigation on federal charges of diverting funds for their personal use.

City Attorney Rocky Delgadillo said Adelphia's refund to consumers represented an unprecedented regulatory victory for the city and should give officials the assurance to now insist upon a formal hearing to determine whether the cable giant's franchise should be extended.

A franchise can only be terminated through a formal proceeding.

``It does mark a change,'' Delgadillo said. ``It's the first time in Los Angeles city's history the (FCC) has ruled in its favor and with Adelphia fighting it all the way.''

Delgadillo said he favors a formal procedure - rather than informal negotiations - to determine Adelphia's fitness to continue to hold a franchise, despite it being a longer, potentially more expensive and contentious process.

``This may give the city confidence the formal process is the way to go,'' he said, saying the city owes it to consumers. He added that the company's ``actions demonstrate they care little about the citizens of Los Angeles.''

Delgadillo said the city has signaled it is serious about holding the cable company accountable, which should enhance its position in future proceedings.

``We may get a modicum of respect out of Adelphia in the negotiations we (are going) to have,'' he said.

City Councilman Jack Weiss said it was a good sign the company was making the payments, but warned the city would be closely watching the company.

``Adelphia should know they are on a short leash,'' Weiss said. ``We will be following all they do.''

Staff Writer Beth Barrett contributed to this report.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com