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6 <br />CHAPEL HILL SYSTEM SUBSCRIBERS -- NC-0276 <br />There are only three (3) cable service tiers on the Chapel Hill cable system, unlike the Carrboro <br />system that has two (2) tiers of service. If Time Warner's proposed raie structure is adopted, <br />subscribers who receive only the Basic Service Tier (BST) will see their proposed monthly BST <br />rate increase by 5.48, from $7.70 to $8.18. The proposed maximum permitted rates (NffRs) <br />would increase from $7.88 to $8.20. Time Warner proposes to charge a rate below the BST- <br />MPR <br />Current CPST Service subscribers will see their Tier rate increase by S1S2, from $7.95 to 59.47 <br />a month. Though the maximum permitted rate (lVLPR) will increase from 5839 to $9.49. Time <br />Warner proposes to charge a rate below the CPST-MPR <br />Current Standard Service tier subscribers will see their Standard Service tier rate increase by <br />$1.09, from 5935 to 510.44 a month. Though the maximum permitted rates (MPRs) will <br />increase from 59.57 to 510.46. Time Warner proposes to charge a rate below the CPST-MPR <br />Because of the inflation data discrepancy in Time Warner's FCC 1240 filing for 1998 (see <br />Discrepancies section), the ~Iaa3mam Permitted Rate which can be justified for the Basic <br />Service Tier (BST) is $8.02, 59.40 for the Cable Programming Service Tier (CPST), and $1035 <br />for the Standard Service Tier. Time Warner's BST, CPST, and Standard Service Selected Rates <br />are not acceptable in that they exceed the Maximum Permitted Rates which can be reasonably <br />justified <br />Table B <br />Basic Rate Overview <br />Chaeel Hill Svstem NC-0276 <br />Cable 1997 1998 Proposed 1998 1998 <br />Service Selected Selected ri;uc Justified <br />'>'ier ~ TWC TWC Permitted bII'R <br /> Rate Rate Rate <br />BS'T 57.70 S8.18 5820 58.02 <br />CPST 57.95 59.47 S9.49 S9.40 <br />Standard 59.35 S10.44 S10.46 510.35 <br />Inflation Adjustment Discrepancy in TtiVC's FCC 1240 Filings <br />Time Warner is claiming inflation adjustments in its true up and projected period segments of its <br />FCC 1240 rate filing. Time Warner used the FCC true ug period inflation figure of 2.70% for <br />the period January through December, 1997. However, on October 1, 1997 the FCC announced <br />that the true-up inflation .rate for March throu;h June was 1.77%. Pursuant to the FCC's rate <br />Januazy l3, 1998D:\WPDOCS\T1COG\ORANGE\I240\t998i0RGE~0.RPT <br />