Orange County NC Website
Browse       Search
7 <br />During this past year, the Federal Communications Commission issued two sets or rate orders, <br />one rolling back the CPST rate Time Warner Cable charged county subscribers and the other <br />remanding back to the County a BST rate order which found that TWC over charged its <br />customers because of the timing of the inflation adjustment. Time Warner submitted a refund <br />plan and an Amended FCC 1240 rate filing, which corrected true -up data submitted previously in <br />the 1998 rate filing. <br />When recalculating the maximum permitted rates for BST service, the consultant used the <br />current inflation values. In the interest of consumer protection, currently available information <br />was applied to the rate recalculation to eliminate overcharges which otherwise would be carried <br />forward into 2000. The BST rate recalculation did result in slightly lower monthly rates for the <br />Maximum Permitted Rate for Basic Service. <br />Cable System Upgrade Costs <br />Pursuant to the Social Contract, Time Warner is allowed to assess each CPST subscriber during <br />1999, $4.00 monthly to recover estimated expenses associated with a cable system upgrade. This <br />assessment is levied only on the CPST (Standard) tier and increases $1.00 during each of the five <br />(5) years of the Social Contract. This is the fourth year of the Social Contract. <br />Recommendation <br />The consultant staff recommends that the maximum permitted BST rate adjustment contained <br />within the three (3) FCC 1240 filing submitted by Time Warner Cable be found reasonable, and <br />be approved conditioned upon the understanding that any over /underage in the BST rate due to <br />the fourth quarter 1998 inflation factor be adjusted commensurate with the FCC 1240 filing for <br />2000. This treatment of any BST rate adjustment attributable to changing fourth quarter inflation <br />statistics is consistent with the FCC's ruling in such matters. <br />Proceeding <br />The franchise authority must either approve or deny the operator's BST FCC 1240 rate request, <br />finding the rate to be either reasonable, or not reasonable. This determination must be based <br />upon a finding of fact. The franchise authority should adopt the staff report as its own and the <br />public must be granted an opportunity to offer comment on the matter; it is suggested that the <br />public comment period coincide with a regular public meeting. <br />A rate order, conveying conditional approval is attached. To be valid, the order must be executed <br />following the conclusion of: <br />a. a public meeting where the commission grants interested parties an opportunity <br />to comment; and <br />4 <br />