RES-2005-036 Adoption of 2005 Rate Order for Cable Services in Unincorporated Orange County

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~~ ORANGE COUNTY NORTH CAROLINA Accepting the Rates Contained in the FCC Form 1240 and Form 1205 Filed by Time Warner Cable for 2005 and Rejecting the Form 1235 Rate Requested by Time Warner Cable Because the Form FCC1235 "Add-on" Rate No Longer Complies with the FCC's Cost of Service Rate Rules and Ordering That a Revised Form 1235 and Financial Upgrade Cost Recovery Summary Statement Be Presented to Orange County within 30-days from the Date of This Rate Order. Further, Orange County Adopts the Report Prepared by Action Audits, LLC., as its Own. WHEREAS, Orange County, North Carolina ("County") has initiated the regulation of rates and charges for the provision ofbasic service, equipment and installation of cable television pursuant to the Cable Television Consumer Protection and Competition Act of 1992; WHEREAS, the County is certified by the FCC to regulate basic service tier rates and permitted to regulate rates for basic cable service, equipment and installation; WHEREAS, Time Warner Cable is a duly franchised cable operator for the County and whose rates for basic service, equipment and installation are regulated by the County; WHEREAS, on September 30, 2004 the County received the following forms: 1240, 1235; and 1205 from Time Warner Cable; WHEREAS, the County has received and carefully considered a report from Action Audits, LLC (hereinafter referred to as "Report") which reviewed the forms 1240, 1235, and 1205; WHEREAS, the Report states that the form 1240 sets the regulated rate for the Basic Service Tier; WHEREAS, the Report states that the form 1240 rate calculations properly calculate inflation, programming, copyright fees; WHEREAS, the form 1235 sets the regulated rate for the Monthly Network Upgrade Add-on charge; WHEREAS, the Report states that continued reliance on the initial form 1235 rate calculation to properly recover upgrade costs is no longer valid; WHEREAS, the Report states that the form 1205 properly sets the regulated rate for Installation and Equipment rates; WHEREAS, after appropriate public notice, a public hearing was held for the purpose of allowing the public and interested parties to comment on the rates; WHEREAS, Time Warner Cable was given the opportunity to provide written and oral comments to the County with respect to the rates and the draft form of this Rate Order; and .WHEREAS, the County has carefully considered the materials, forms and statements submitted by Time Warner Cable.