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Z4 <br />STATE OF NORTH CAROLIlYA <br />COUNTY OF HILLSBOROUGH <br />BEFORE THE BOARD OF COMMISSIONERS OF ORANGE COUNTY <br /> <br />1N THE MATTER OF: ) <br />Review of FCC 1240 Annual Basic ) <br />Service Tier Rate Adjustment Request ) <br />filed by Tune Warner Cable for Orange ) <br />County, NC-0256 & NC-0276. ) <br /> <br />BY THE BOARD OF COMMISSIONERS <br />Order Finding TWC'a 1998 Proposed <br />59.04 and 58.20 Basic Servfce Tier <br />ZVtarimwn Permitted Rates as <br />Unreasonable and Setting the'BST <br />MPRs at 58.84 and 58.02 for the <br />Carrboro and Chapel Hill Cable <br />Television Systems <br />WHEREAS, on October 1, 1997, Time Warner Cable submitted iwo FCC 1240 Annual Maximum <br />Permitted Rate filing requests far Regulated Cable Services with Orange County, one for the Chapel Hill <br />system, the other for the Durham system, Both filings cover exteznal costs, inflation, and cable system <br />upgrade costs for the projected period of January 1 through December 31, 1998; and above stated costs for <br />the true up period of January 1 through December 31, 1997; <br />WHEREAS, Time Warner Cable is pettnitted, pursuant to the Social Contract, to estimate and <br />recover arrticipateci inflation, external costs, and cable sysicm upgrade costs for the period of January <br />through December 31, 1998; <br />WHEREAS, the County received a report from its consultants stating that Time Warner's FCC <br />1240 rate calculations are not in compliance with Federal Communications Commission rate making rules, <br />and that the proposed ma.Yimuai permitted BST rates of $9.04 for the Carrboro System subscribers (NC- <br />0236} and 58.20 for Chapel Hill System ~bscribcrs (NC-0276) are unreasonable. <br />WHEREAS, FCC rules grant local franchise authorities an initia190-day review period, measured <br />fibm the date of receipt of the FCC 1240 filing by the franchise authority, to review the cable operator's rate <br />filings. If said 90-day review period expires before the rates go into effect, the franchise authority retains <br />review and refund authority past the initial 90-day review period as long as all inquiries from the cable <br />operator regarding said review are responded to in writing within 1 S days of said inquiry; <br />~YHEREAS, Time Warner's rate filings include cost estimates for the calendar year of 1998, and <br />said estimates may require adjustment (true up) in the cable operator's subsequent FCC 1240 rate filings; <br />and, <br />