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STATE OF NORTH CAROLINA <br />ORANGE COUNTY <br />BEFORE THE BOARD OF COUNTY COMNUSSIONERS <br />IN THE MATTER OF: <br />Review of FCC 1240 Annual Basic <br />Service Tier Rate Adjustment Request <br />filed by Time Warner Cable for <br />NC -0256 & NC -0276 <br />BY THE BOARD OF COUNTY COMMISSIONERS: <br />9 <br />Order Finding TWC's 1999 <br />Proposed Selected Basic <br />Service Tier Rates as <br />Reasonable and Providing <br />Conditional Approval. <br />WHEREAS, Time Warner Cable submitted three FCC 1240 Updating Annual Maximum <br />Permitted Rates filings for Regulated Cable Services with the County. Time Warner's filing covers <br />external costs, inflation, and cable system upgrade costs for the true up period of October 1, 1997 <br />through September 30, 1998, and the projected period of January 1, 1999 through December 31, 1999; <br />WHEREAS, Time Warner Cable is permitted, pursuant to the Social Contract and Thirteenth <br />Order on Reconsideration, to estimate and recover anticipated inflation, external costs, and cable <br />system upgrade costs for the period of January 1, 1999 through December 31, 1999; <br />WHEREAS, on January 3, 1999, the County received a report from its consultant stating that <br />Time Warner's FCC 1240 BST rate calculations are in compliance with Federal Communications <br />Commission rate making rules, and that the requested maximum permitted Basic Service Tier Selected <br />rate was calculated in compliance with the FCC's rate making rules; <br />WHEREAS, FCC rules grant local franchise authorities an initial ninety (90) day review <br />period, measured from the date of receipt of said filing by the franchise authority, with which to review <br />the cable operator's FCC 1240 rate filing. If said ninety (90) -day review period expires before the rates <br />go into effect, the franchise authority retains review and refund authority past the initial ninety (90) day <br />review period as long as all inquiries from the cable operator regarding said review are responded to in <br />writing within fifteen (15) days of said inquiry; <br />WHEREAS, Time Warner's rate filing includes cost estimates for the calendar year of 1999, <br />and said estimates shall require adjustment (true up), due to changes in the fourth quarter 1998 <br />inflation factor which effected the 1999 BST MPR, in the cable operator's subsequent FCC 1240 rate <br />filing for 2000; and <br />WHEREAS, the County is certified with the FCC to regulate basic service tier rates provided <br />by Time Warner Cable in franchise NC -0256 and NC 0276. <br />