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<br />STATE OF NORTH CAROLINA <br />COUNTY OF HILLSBOROUGH <br />BEFORE THE BOARD OF COMMISSIONERS OF ORANGE COUNTY <br />1N THE MATTER OF: ) <br />Review of FCC 1240 Annual Basic ) <br />Service Tier Rate Adjustment Request ) <br />filed by Time Warner Cable for ) <br />Orange County, NC-0256 & NC- ) <br />0276. ) <br />Order Finding TWC's 1998 <br />Proposed $9.04 and $8.20 Basic <br />Service Tier Maximum Permitted <br />Rates as Unreasonable and Setting <br />the BST MPRs at $8.84 and $8.02 for <br />the Carrboro and Chapel Hill Cable <br />Television Systems <br />BY THE BOARD OF COMMISSIONERS <br />WHEREAS, on October 1, 1997, Time Warner Cable submitted two FCC 1240 Annual <br />Maximum Permitted Rate filing requests for Regulated Cable Services with Orange County, one for <br />the Chapel Hill system, the other for the Durham system. Both filings cover external costs, inflation, <br />and cable system upgrade costs for the projected period of January 1 through December 31, 1998; and <br />above stated costs for the true up period of January 1 through December 31, 1997; <br />WHEREAS, Time Warner Cable is permitted, pursuant to the Social Contract, to estimate and <br />recover anticipated inflation, external costs, and cable system 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 <br />rules, and that the proposed maximum permitted BST rates of $9.04 for the Carrboro System <br />subscribers (NC-0256) and $8.20 for Chapel Hill System subscribers (NC-0276) are unreasonable. <br />WHEREAS, FCC rules grant local franchise authorities an initia190-day review period, <br />measured from the date of receipt of the FCC 1240 filing by the franchise authority, to review the cable <br />operator's rate filings. If said 90-day review period expires before the rates go into effect, the franchise <br />authority retains review and refund authority past the initia190-day review period as long as all <br />inquiries from the cable operator regarding said review are responded to in writing within 15 days of <br />said inquiry; <br />WHEREAS, Time Warner's rate filings include cost estimates for the calendar year of 1998, <br />and said estimates may require adjustment (true up) in the cable operator's subsequent FCC 1240 rate <br />filings; and, <br />