Agenda - 01-20-1998 - 5c - Laserfiche WebLink

Browse Search

rules, the company must use the "current" inflation figure when calculating its true-up and projected rate increase due to inflation. When the lower inflation rate was inserted into the rate caieulation, the BST, CPST and Standard Service Maximum Permitted Rates dropped. The consultants recalculated Time Warner Cable's charges attnbuted to inflation using currently available information3. This resulted in a reduction of the overall inflation for 1997 brom 2.7% to 2.0% and set the projected period (content) inflation figure to 1.77%. The projected period inflation figure is subject to correction in the agerator's subsequent FCC 1240 rate filing. Time Warner's FCC i240 rate filing did not reflect the true up inflation factor for the second quarter of 1997 released by the Commission on October I, 1997. Had the operator used the 1.77% value to calculate the true-up period'inflation rate instead to the previous quarter's value (2.7%), the Ma~cimum Permitted CPST rates would have been lower. Likewise, Time Warner applied the 2.7% rate to its 1998 cost projections which contributed to higher Maximum Permitted CPST rates. Apparently, Time Warner did not have this data available to it at the time it completed its FCC Form 1244 for 1998. A subscnber's total cable bill amount is inclusive of all tier rates below it. For elcarmple, a Standard Service tier subsenber's total monthly rate will include rates for the Basic plus Tier plus Standard Service. _ ~~ Rate Adjustments for Equipment and vnstallation Services Regional FCC 1205 In addition to the rate increases for cable services, Time Warner also adjusted its rates for leased customer egw'tgment and installation services. Pursuant to the Social Contract, Time Warner is allowed to aggregate equipment and installation costs on a regional basis. Time Warner submitted a regional FCC 1205 rate filing directly to the FCC for approval of equipment and installation service rates applicable to multiple franchises across North Carolina. Though the FCC 1205 filing is not submitted directly to relevant franchise authorities, federal rules explicitly state that it is the franchise authority's responsibility to review the rates to ensure their compliance with FCC rules.{ It is important to examine the rates established in the FCC 1205 filing (and those of other filings} match the rates displayed on subscribers' cable statements. See the following table for egtuptnent and installation service adjustments scheduled for January 1998. 3See FCC Form 1244 Instructions for Lice C3. ~"I'he local franchising authorities will be responsible for reviewing the rates (equipment and installation services) charged to ensure compliance with the rates approved by the Commission. If Tina Warner charges rates in excess of those permitted by the Commission, the local fiaactsising authority may order a refund." Paco. 37. Time Warner Cable Social Contract. Memorandum Opinion and Order. DA FCC 95-478. Released: vovember 30, 1995. lytuary 13.1998D:1WPDOCS111000~OR~iNGE11240\1998~ORGE~O.RPT