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

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Now, Therefore, Orange County, North Carolina Makes the Following Findings of Fact and Conclusions of Law with Respect to the Proposed Rate to be Charged Time Warner Cable Customers: hereto; The County incorporates by reference all of the preamble set forth above; The County has reviewed the Report and incorporates by reference the Report, which is attached The County fmds that Time Warner Cable's Maximum Permitted Rate for Basic Tier Service ($10.26 for NC-0276a, $13.61 for NC-0276b, and $11.30 for NC-0256) as set forth in the form 1240 does comply with the FCC's rate regulations; The County finds that the initial "Add-on"Rate for Basic Tier Service contained in the form1235 does not comply with the FCC's Abbreviated Cost-of-Service Rules for system upgrades. Said rules require the upgrade cost allocation recovery fee based on channeUservice/bandwidth allocation which set an original "Add- on" rate of $1.81 for NC-0276a, $2.11 for NC-0276b, and $1.45 for NC-0256. Going forward, the FCC's Cost of Service rules require the operator to ensure that regulated service subscribers do not pay for unregulated service costs, and that the Company does not over recover the cost of its upgrade, by periodically recalculating its "Add-on" rate to accommodate such changes as the proportion of regulated bandwidth, the current customer count and capital cost recovery reductions attributed to accumulated depreciation; The continued reliance on the form 123 5 rate approved 5-years earlier does not comply with the FCC's Abbreviated Cost of Service Rules for system upgrades capital investment recovery; and The County finds that the Installation and Equipment rates set forth in the form 1205 comply with the FCC's rate regulations. Now, Therefore, Be it Ordered by Orange County, North Carolina, That: Time Warner Cable's Maximum Permitted Rate for Basic Tier Service rate contained in the form FCC 1240 does comply with the FCC's rate regulations and is hereby accepted; Time Warner Cable is permitted to implement its form 1240 ($10.26 for NC-0276a, $13.61 for NC- 0276b, and $11.30 for NC-0256) rate beginning January 1, 2005; Time Warner Cable's form 1235 $1.81 for NC-0276a, $2.11 for NC-0276b, and $1.45 for NC-0256 "Add-on" rate no longer complies with the FCC's Cost of Service rules and is rejected; Time Warner Cable is notpermitted nor authorized to recover its form 1235 $1.81 for NC-0276a, $2.11 for NC-0276b, and $1.45 for NC-0256 "Add-on" rate beginning January 1, 2005; Time Warner Cable must submit to the County within 30-days from the date of this Rate Order for approval a revised form 1235 that properly calculates the current Add-on rate using the FCC's Cost of Service Rules; Time Warner Cable is required to submit to the County within 30-days from the date of this Rate Order a financial statement showing the original upgrade investment (cost), accumulated depreciation by year, current residual value by year, the amount recovered to date by year, an estimate of the remaining cost recovery period and the customer count for each year since the Add-on rate has been in effect; Time Warner Cable's Installation and Equipment rates contained in the form 1205 comply with the FCC's rate regulations and are accepted; The County adopts the Report as its own;