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WHEREAS, Orange County is certified with the FCC to regulate basic service tier rates, <br />equipment and installation services provided by Time Warner Cable in franchise. <br />IT IS A FINDING: <br />THAT Time Warner Cable did not structure its 1997 true-up charges for the second through <br />fourth quarter on the FCC's currently available inflation factor of 1.77%; <br />THAT Time 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 maximum permitted <br />Basic Service Tier rate of $9.04 for the Carrboro System subscribers, based on past inflation and <br />current inflation indices; <br />THAT Time Warner requested maximum permitted BST rate ($9.04) for the Carrboro system <br />subscribers is determined to be unreasonable; <br />THAT, Time Warner has selected to charge the Basic Service Tier rate of $9.01 for the <br />Carrboro System subscribers during the 1998 calendar year in Orange County which exceeds the <br />justified MPR of $8.84; <br />THAT Time Warner Cable has not substantiated the adjustment of its proposed maximum <br />permitted Basic Service Tier rate of $8.20 for the Chapel Hill System subscribers, based on past <br />inflation and current inflation costs; <br />THAT Time Warner requested maximum permitted BST rate ($8.20) for the Chapel Hill <br />System subscribers is determined to be unreasonable; and <br />THAT, Time Warner has selected to charge the Basic Service Tier rate of $8.18 for the Chapel <br />Hill System subscribers during the 1998 calendar year in Orange County which exceeds the justified <br />MPR of $8.02. <br />IT IS THEREFORE ORDERED: <br />THAT Time Warner Cable's Basic Service Tier rates assessed subscribers shall not exceed the <br />maximum permitted rate of $8.84 for the Carrboro System subscribers and $8.02 for Chapel Hill <br />System subscribers during 1998, subject to modifications in subsequent findings by the franchise <br />authority; <br />THAT the County retains its authority to issue refunds or rate roll backs after the initial 90-day <br />review period with respect to the rates set out in the FCC 1240 filings, subject to subsequent findings <br />by the franchise authority; <br />