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is being asked to approve the rate setting only in the lowest tier of the basic cable and the equipment <br />add-on. <br />Bob Seppe, Attorney for Triangle J Council of Governments, said that there are three cable <br />TV systems all operated by Time Warner and each system has its own set of costs. He explained how <br />Time Warner calculated the rates and how it was different from what the County ordered. This resulted in <br />an increase of 13 cents for Carrboro subscribers, an increase of 76 cents for Hillsborough subscribers, <br />and a decrease of 26 cents for Durham subscribers. He explained the equipment add-on increases. He <br />said that the reason Time Warner had a problem with incorrect calculations was because they changed <br />Finance Officers in the middle of the process. Time Warner is going to recalculate the rates and bring <br />them back for Board approval. <br />Commissioner Brown asked about the automatic inflation increase and Bob Seppe said that it <br />was 1.35 cents for the latter part of the year, .78 cents for October through December, and 1.6 cents for <br />January through September. <br />Several Commissioners expressed their concern about the process of the automatic inflation <br />increase. <br />A motion was made by Commissioner Halkiotis, seconded by Commissioner Jacobs to adopt <br />and authorize the Chair to sign aresolution/order setting basic cable service rates for Time Warner Cable <br />as stated below: <br />STATE OF NORTH CAROLINA <br />ORANGE COUNTY <br />BEFORE THE BOARD OF COUNTY COMMISSIONERS <br />IN THE MATTER OF: <br />Review of FCC 1205, 1235, and 1240 <br />Annual Rate Adjustment Requests filed by <br />Time Warner Cable for NC-0256 and NC-0276 <br />ORDER FINDING TWC's 2000 <br />CABLE SERVICE FCC1240-1235 RATE <br />METHODOLOGY AS REASONABLE AND <br />ORDERING A RATE TRUE-UP FOR 2001. <br />BY THE BOARD OF COUNTY COMMISSIONERS <br />WHEREAS, Time Warner Cable submitted three FCC 1240 Updating Annual Maximum Permitted Rates <br />filings for Regulated Cable Services with the County. Time Warner's filing covers external costs, inflation, <br />and cable system upgrade costs for the true up period of October 1998 through September 1999 and the <br />projected period of January through December 2000; and <br />WHEREAS, Time Warner Cable submitted an FCC 1235 Abbreviated cost of Service For Cable Network <br />Upgrades with the County. Time Warner's filing covers capital expenses directly related to system <br />infrastructure improvements prior to January 1, 2000; and <br />WHEREAS, the County received a report stating that Time Warner's FCC 1205, 1235, and FCC 1240 <br />rate calculations comply with Federal Communications Commission rate making rules and that the <br />requested maximum permitted Basic Service Tier rate is reasonable; and <br />WHEREAS, the County received a report stating that Time Warner's FCC 1240 BST rate calculations <br />comply with Federal Communications Commission rate making rules, and that the requested monthly <br />maximum permitted Basic Service Tier rate is excessive by 15 cents for Carrboro System served <br />customers, 2 cents far Chapel Hill system served customers, and 40 cents for Durham System <br />served customers; and <br />