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14 <br />WHEREAS, the consultant's report stated that Time Warner used in its 2001 FCC 1240 filings an <br />inflation factor of 3% for the second, third and fourth quarters of 2000, and for the 2001 projected <br />period; the FCC published the updated 2.4% inflation figure on October 4, 2000, five days after Time <br />Warner completed its rate filings, it would be in the public interest if Time Warner amends its FCC <br />1240 rate filing prior to completing its next FCC 1240 rate filing in September 2001 for 2002; and that <br />this amended FCC 1240 will incorporate updated inflation figures for the second, third and fourth <br />quarters of 2000 and the projected period of 2001; <br />WHEREAS, FCC rules grant local franchise authorities an initial ninety (90) day review period, <br />measured from the date of receipt of said filing by the franchise authority, with which to review the <br />cable operator's FCC 1240 rate filing. If said ninety (90) day review period expires before the rates go <br />into effect, the franchise authority retains review and refund authority past the initial ninety (90) day <br />review period as long as all inquiries from the cable operator regarding said review are responded to in <br />writing within fifteen (15) days of said inquiry; and <br />WHEREAS, the County is certified with the FCC to regulate Basic Service Tier rates provided by <br />Time Warner Cable in franchises NC -0276 and NC -0256. <br />IT IS A FINDING: <br />THAT Time Warner Cable's Basic Service Tier rate assessed subscribers for franchise NC -0276 <br />shall not exceed the maximum permitted rate of $9.91 and $11.92, for the Chapel Hill and Durham <br />systems, respectively, and shall not exceed $10.62 for franchise NC -0256, during the projected period, <br />subject to modifications by subsequent findings of the cable operator or franchise authority; <br />THAT Time Warner's FCC 1235 add -on cost of service upgrade charge shall not exceed $1.81 and <br />$2.11, monthly, per subscriber, for franchise NC- 0276, Chapel Hill and Durham systems, <br />respectively; and Time Warner's FCC 1235 add -on cost of service upgrade charge shall not exceed <br />$1.45 for franchise NC -0256, during the projected period, subject to modifications by subsequent <br />findings of the cable operator or franchise authority; <br />THAT Time Warner's FCC 1205 Equipment and Installation Hourly Service Charge shall not <br />exceed $28.39; <br />THAT Time Warner Cable may charge a Basic Service Tier rate below the approved maximum <br />permitted rate, but not above it; <br />THAT Time Warner may charge a cost of service Network Upgrade Charge rate below the <br />approved maximum permitted upgrade rate, but not above it; <br />THAT Time Warner Cable has substantiated the other adjustments to its cable service rates based <br />on past and estimated cost elements; and <br />