Orange County NC Website
Browse       Search
4 <br />Summary <br />On October 2, 1998, Time Warner Cable notified the County that it untended to set the rate for <br />basic service at $8.47 a month for the 1047 Basic Tier Service customers on the.Carrboro <br />System, $10.44 a month for the 32 Basic Tier Service customers on the Durham System and <br />$7.98 a month for the 5572 Basic Service customers on the Chapel Hill System. The total <br />number of cable customers served by Time Warner Cable in the unincorporated county number <br />is 6651. <br />Equipment & Installation Rates <br />In addition to the 1999 cable service rate increases, Time Warner will adjust rates for leased <br />customer equipment and installation services. Pursuant to the Social Contract, Time Warner is <br />allowed to aggregate equipment and installation costs on a regional basis'. Time Warner submits <br />a North Carolina regional FCC 1205 rate filing directly to the FCC for approval of equipment <br />and installation service rates applicable to multiple franchises across North Carolina. Until the <br />expiration of the Social contract, the franchise authority does not have the ability to review the <br />FCC 1205 filing. <br />Background <br />In September 1995, the FCC adopted the 13th Report and Order, which, among other things, <br />allowed cable operators to adjust their rates on an annual basis using the FCC 1240, taking into <br />consideration past and anticipated future external costs. <br />In November 1995, the FCC adopted the Time Warner Social Contract, which resolved hundreds <br />of cable complaints against Time Warner Cable. Provisions of the Social Contract permit Time <br />Warner to aggregate its leased subscriber equipment costs on a regional basis (using regional <br />FCC 1205 filings) and assess uniform equipment rates based on these data. Also, Time Warner <br />is allowed to include in its annual programming service rate filing (FCC 1240) past and future <br />(estimated) costs, along with future costs attributable to cable system upgrades. <br />The 13th Order requires Time Warner and other cable operators to submit their FCC 1240 filings <br />ninety (90) days before the date of rate implementation. During this period, the franchise <br />authority may review the reasonableness of the basic service tier rates and issue an order to either <br />approve or deny the rates. After ninety (90) days, the franchise authority retains refund authority <br />as long as it responds within 15 days to any inquiries from the cable operator regarding its review <br />of the company's FCC 1240 documents. <br />Time Warner's FCC 1240 rate adjustments reflect the following external cost elements: <br />1) External costs for True -up Period <br />'North Carolina is treated as a single region, TWC files a single FCC 1205 to establish uniform state wide <br />rates for equipment and installation. The FCC has sole authority for the review of FCC 1205 rates. <br />