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2 <br /> STATE OF NORTH CAROLINA <br /> ORANGE COUNTY <br /> BEFORE THE BOARD OF COMMISSIONERS OF ORANGE COUNTY <br /> IN THE MATTER OF: ) ORDER FINDING FCC 1240 <br /> Review of FCC 1240 Annual Basic ) BASIC SERVICE TIER <br /> Service Tier Rate Adjustment Request ) RATE ADJUSTMENT <br /> filed by Time Warner Cable/CVI/Alert ) REQUESTS TO BE <br /> for Orange County,NC-0276,and ) IN COMPLIANCE <br /> NC-0256 ) WITH FCC RATE MAKING <br /> RULES AND TO BE <br /> REASONABLE <br /> BY THE COMMISSIONERS OF ORANGE COUNTY: <br /> WHEREAS,on September 30, 1996,Time Warner Cable submitted three FCC 1240 Annual <br /> Maximum Permitted Rate filing requests for Regulated Cable Services with Orange County,two for <br /> NC-0276,the other for NC-0256. The two filings for NC-0276 cover external costs,inflation,and cable <br /> system upgrade costs for the projected period of January 1,-1997 through December 31, 1997,and costs for <br /> the true up period of January 1, 1996 through December 31, 1996 for NC-0276;the filing for NC-0256 <br /> covers the true up period of February 1, 1996 through December 31, 1996,and the projected period of <br /> January 1, 1997 through December 31, 1997; <br /> WHEREAS,Time Warner Cable is permitted,pursuant to the Social Contract and Thirteenth Order <br /> on Reconsideration,to estimate and recover inflation,external costs,and cable system upgrade costs for the <br /> period of January 1, 1997 through December 31, 1997; <br /> WHEREAS,on January 8, 1997,the County received a report stating that Time Wamer's FCC <br /> 1240 rate calculations are in compliance with Federal Communications Commission rate making rules, and <br /> that the requested maximum perrmitted Basic Service Tier rates of$7.88 and $10.43 for NC-0276,and <br /> $8.81 for NC-025*Am reasonable; <br /> WHERIUK FCC rules grant local franchise authorities an inithd 90-day review period,measured <br /> from the date of receipt of the FCC 1240 filing by the franchise authority,to review the cable operator's rate <br /> filings. If said 90-day review period expires before the rates go into effect,the franchise authority retains <br /> review and refund authority past the initial 90-day review period as long as all inquiries from the cable <br /> operator regarding said review are responded to in writing within 15 days of said inquiry; <br /> WHEREAS,Time Warner's rate filings include cost estimates for the calendar year of 1997,and <br /> said estimates may require adjustment(true up)in the cable operator's subsequent FCC 1240 rate filings; <br /> and, <br />