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13 <br />STATE OF NORTH CAROLINA <br />ORANGE COUNTY NC -0276 & NC -0256 <br />BEFORE ORANGE COUNTY <br />IN THE MATTER OF: <br />) <br />Review of FCC 1240 Annual Rate <br />) <br />ORDER <br />Adjustment Request, FCC 1235 <br />) <br />FINDING TIME WARNER <br />Abbreviated Cost of Service Rate Request, <br />CABLE'S 2001 FCC 1240 BASIC <br />and FCC 1205 Equipment and Installation <br />) <br />SERVICE TIER, FCC 1235 COST <br />Rate Request, filed by Time Warner <br />) <br />OF SERVICE, AND FCC 1205 <br />Cable for ORANGE COUNTY <br />) <br />EQUIPMENT AND INSTALLATION <br />NC -0276 & NC -0256 <br />) <br />RATES REASONABLE <br />BY ORANGE COUNTY: <br />WHEREAS, Time Warner Cable submitted FCC 1240 Updating Annual Maximum Permitted <br />Rates filings for Regulated Cable Services with the County. These filings apply to franchises NC- 0276 <br />and NC -0256, and cover external costs, inflation, and cable system upgrade costs for the true up <br />period of October 1, 1999 through September 30, 2000, and the projected period of January 2001 <br />through December, 2001; <br />WHEREAS, Time Warner submitted to the County in 1999 FCC 1235 Abbreviated Cost of <br />Service Filings for Cable Network Upgrades; these filings established the cost of service upgrade <br />rates for only NC -0276; and these rates were carried forward and used as the upgrade rates for 2000 <br />and 2001; these rates were previously found to be reasonable by the County, and covered capital <br />expenses directly related to cable system upgrades prior to January 1, 2001; <br />WHEREAS, Time Warner submitted to the County in September of 2000 an FCC 1235 <br />Abbreviated Cost of Service Filing for Cable Network Upgrades, which established the cost of <br />service upgrade rate for only NC -0256, and covers capital expenses directly related to cable system <br />upgrades prior to January 1, 2001; <br />WHEREAS, Time Warner Cable submitted an FCC 1205 Equipment and Installation Costs <br />filing with the County, covering equipment and installation costs aggregated on a state -wide basis; <br />WHEREAS, the County received a report from its consultant stating that Time Warner submitted <br />FCC 1240, FCC 1235 and FCC 1205 rate filings on or about September 29, 2000, and also <br />submitted FCC 1235 filings for NC -0276 in September 1999; the FCC published an updated inflation <br />factor on October 4, 2000; Time Warner's FCC 1240s, FCC 1235s and FCC 1205 rate calculations <br />comply with FCC rate - making rules, and the requested maximum permitted Basic Service Tier, <br />Network Upgrade Cost of Service, and Equipment and Installation rates are reasonable; <br />