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15 <br /> Table K <br /> FCC 1240.Inflation Adjustments <br /> Chapel Hill and Durham Systems,NC-0276 <br /> Amender!1996 FCC 1240 Filing; Amemded 1997 FCC 1240 Filing <br /> 1240 Segment True Up Projected True Up Projected <br /> Inflation Rate 4.10% 2.96% 2.39% 2.39% <br /> Inflation Periods 7/1194-6130/95 111/96-12/31/96 1/l/96-12/31/96 1/l/97-12/31/97 <br /> Claimed + <br /> 7/1/95-12/31/95 <br /> Table L <br /> FCC 1240 Inflation Adjustments <br /> Carrboro System,NC-0256 <br /> Amm11996 FGC 124 Fib: x.1997 FCC 12411-Firg <br /> 1240 Segment True Up Projected True Up Projected <br /> Inflation Rate 4.31% 2.96% 2.1901. 2.39% <br /> Inflation Periods 7/1/94-6130195 1/31/96-12/31/96 1131/96-12131196 111/97-12/31/97 <br /> Claimed + <br /> 7/1/95-12131/95 <br /> 10% Reduction on BST <br /> The Social Contract required Time Warner to reduce its BST by 10%during the first year(1996)of <br /> the five-year Social Contract with the FCC. But the operator was allowed to recover this lost revenue <br /> by increasing its CPSV rates a proportional amount. Time Warner was required to reduce its BST <br /> rates by 10°10 only during the first year of the Social Contract,not for any subsequent years. <br /> Franchise Related Costs <br /> Time Warner M n©t nwhude any franchise related costs in its rate base for either the true up periods or <br /> projected periods. Franchise related costs are those expenses the operator incurs in the course of <br /> 3CPST(Cable Progrrmming Service Tier)is the FCC term for FCC regulated cable tiers <br /> above the BST(Basic Service Tier),which is regulated by franchise authorities. "Tier Service"and <br /> "Standard Service"are brand names used by Time Wang Cable,however,both are upper tiers of <br /> cable services regulated by the FCC. <br /> 13 <br />