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RECOh~NDATION <br />' Th'e' consultants recommend: <br />1. That the BST rate adjustmeata contained within the FCC 1240 filings for NC-0256 and NC- <br />0276submitted by Time Warner Cable be disapproved; <br />2. That the proposed maximum permitted BST rates of 59.03 for the Carrboro System <br />subscribers (NC-0256) and 58.20 for Chapel Hill System subscribers (NC-0276) be found <br />unreasonable. <br />3. That the County approve a Maximum Permitted BST rate of 58.84 for Carrboro System <br />subscribers (NC-0256) for the January 1 through December 1998 period and S8.02 for Chapel <br />Hill System subscribers (NC-0276). .. <br />4. That the County follow the FCC's rate complaint procedures and challenge Tfnre Warner <br />Cable's Proposed 1998, FCC 1240 Maximum Permitted Rates for the upper ~ services jor NC- <br />O2S6and NC-0276 acrd frle a FCC329~ rate complaint form challenging the CPST rates; <br />S. That the County direct Time Warner Cable to amend its 1998 FCC 1240 rate filing for NC- <br />0256 and NC-0276 and resubmit them to the County; and, <br />6. That the County request from Time Warner Cable its play for assigning bill credits, and or, <br />nfimds to subscribers. <br />The consultants recommend, and that the Board find that Time Warner Cable correctly applied <br />FCC rate making rules and procedures in calculaxing the maximum permitted Basic Service Tier <br />rates except that the "true-up" and "projected" inflation values used by the company wen not <br />current. Additionally, that the Board encourage Time Warner base subsequent FCC 1240 filings <br />upon inflation update statistics released by the FCC on each October 1 as opposed to submitting <br />its FCC 1240 filing on October 1 each year. <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 consultant's report as its own <br />and give the public an opportunity to offer comment on the matter. It is suggested that the public <br />comment period coincide with a regularly scheduled meeting. <br />6 The County may choose to enter into a joint TJ COG region CPST rate complaint. <br />I2 <br />lanu~ry l3, [998D:iWPDOCSITICOGIORANGE\1240~199810RGE-tO.RPT <br />