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15 <br />WHEREAS, Orange County is certif ed with the FCC to regulate basic service tier rates, equipment <br />and installation services provided by Time Warner Cable in franchise. <br />IT IS A FlivDlTiG: <br />THAT Time Warner Cable did not strucdure its 1997 true-up charges for the srcond through fourth <br />quarter on the FCC's currently available inflation factor of 1.77%; <br />THAT T'~me Warner Cable did not structure its 1998 projected charges for the period January <br />through December, 1998 on the FCC's currently available inflation factor of 1.77%; <br />THAT Time Warner Cable has not substantiated the adjustment of its mazintum permitted Basic <br />Service Tier rata of 59.04 for the Carrboro System subscribers, based on past inflation and cum~nt inflation <br />indices; . <br />THAT Time Warner requested inax3mmn pemnitted BST rate (59.04) for the Cairboro system <br />subsc~'bers is determined to be unreaaons-ble; <br />THAT, Time Warner has selected to charge the Basic Service Tier rate of 59.01 for the Carrboro <br />System subscribers during the 1998 calendar year in Orange County which exceeds the jastlfied MPR of <br />58.84; <br />THAT Time Warner Cable has not substantiated the adjustment of its proposed maximum permitted <br />Basic Service Tier rate of S8.20 for the Chapel Hill System subscribers, based on past inflation and cement <br />inflation costs; <br />THAT Time Warner requested maximum permitted BST rate (58.20) for the Chapel Hill System <br />subscribers is determined to be unreasonable; and <br />THAT, Time Warner has selected to charge the Basic Service Tier rata of S8.18 for the Chapel Hill <br />System subscribers during the 1998 calendar year in Orange County which exceeds the justified itiIPR of <br />S8.02. <br />IT IS THEREFORE ORDERED: <br />THa1T Time Warner Cabte's Basic Service Tian rates assassed subscribers shall not exceed the <br />maximum permitted rate of 58.8.1 for the Carrboro System subs~'ribers and 58.02 for Chapel Hilt System <br />subscribers during 1998, subject to modifications in subsequent findings by the franchise authority; <br />T)EL~T the County retains its authority to issue refunds or rate roil backs after the initial 90-day <br />re~~iew period with respect to the rates set out in the FCC 1240 filings, subject to subsequent findings by the <br />franchise authority; <br />THAT Time Warner must keep a full and accurate account of all revenues and costs associated with <br />the aforementioned cable rate adjustments; <br />