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• t <br />2 <br />Time Warner Cable <br />Orange County NC-0256 & NC-0276 <br />(Carrboro and Chapel Hill Cable System Subscribers) <br />Fcc 1240 Rate Review <br />for 1998 <br />January 13, 1998 <br />REPORT <br />TO: John Link; Manager, Orange County Q ~ <br />1~ <br />FROM: Robert Sege, City of Raleigh Information Access Manager and TJ-COG Cable <br />Television Regulatory Consultant <br />RE: Review of Annual Updating Maximum Permitted Rates filed by Time Warner <br />Cable (NC-0256 & NC-0276) -FCC Form 1240 <br />Consultants for Orange County have reviewed both of Time Warner Cable's FCC 1240 filings <br />and supporting documentation furnished by the cable operator, and have conducted fact-finding <br />discussions with the cable operator and Federal Communications Commission representatives. <br />The values stated in the filing are the responsibility of the cable operator's management. <br />Supplied data were reviewed to determine whether the operator calculated "updated" rates <br />consistent with the procedures prescribed by the FCC in accordance with the 13th Order on <br />Reconsideration, the Time Warner Social Contract, and the Telecommunications Act of 1996. <br />Original computations were performed by the consultants and compared against information <br />provided by Time Warner Cable. The consultants believe that the underlying cost data submitted <br />by the cable operator is free of material misstatements. However, the FCC 1240 rate filings <br />submitted to the County does rely upon old inflarion adjustment information, which if left <br />uncorrected will result in higher than normally occurring cable rates. 1 The accompanying report <br />provides a reasonable basis far the recommendations. <br />~ Time Warner may not have the latest inflation adjustment data available at the time it <br />prepared its FCC Form 1240 for 1998. <br />Jsnwvy 13, 1998D:\WpDOCS\TJCOG\ORANGE\1240\1998\ORGE-~W.RPT <br />