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6 <br /> Regulation of the CPST is scheduled to sunset in 1999, though regulation of the BST by <br /> local franchise authorities (counties, cities.,.etc.) is not scheduled to expire. <br /> On November 8, 1996, Time Warner Cable notified Orange County that the company will <br /> adjust its cable service rates and equipment and installation service rates on January 1, <br /> 1997. The County administers two franchises: <br /> a. NC-0276 represents two different Time Warner systems, one group of subscribers <br /> are served from the Chapel Hill headend, the other from the Durham headend. <br /> b. NC-0256 represents the forme CVI/Alert system, whose subscribers are served <br /> from <br /> Carrboro headend. <br /> Discrepancies <br /> The consultants performed original spreadsheet computations using the data for all three rate <br /> filings submitted by Time Warner to the County. While performing earlier rate reviews in <br /> other TJCOG CATV consortium communities, the consultants identified several calculation <br /> errors in Time Warner's rate filings. The company subsequently rectified these errors, and <br /> performed similar recalculations in FCC 1240 rate filings for other TJCOG communities, <br /> including Orange County. Discussions with Time Warner representatives and further <br /> calculations involving the FCC 1240 spreadsheets resolved these concerns: <br /> a. NC-0276 (Chapel Hill system): the operator was required to reduce its 1997 MPR <br /> by$.06, from $7.94 to$7.88. The operator elected to reduce its planned selected rate <br /> by$.24, from $7.94 to$7.70. These recalculations can be attributed to errors in the <br /> operator's H3 and H4 cells in the original FCC 1240 form. <br /> b. NC-0276(Durham system): the operator was required to increase its 1997 MPR by <br /> $.01, from $10.45 to$10.46. However,the operator elected to reduce its planned <br /> selected rate by$.05, from$10.45 to$10.40. These recalculations can be attributed <br /> to errors in the operator's H3 and H4 cells in the original FCC 1240 form. <br /> c. NCB(Carrboro system): the operator was not required to change its 1997 <br /> MPR; it elected to decrease its selected rate by$.15, from $8.80 to$8.65. These <br /> recam"Wo can be attributed to errors in the operator's inflation adjustment figures. <br /> RATE ADJUSTMENT <br /> Chapel Hill Systern,Original Tines Warner System, NC-0276 <br /> Subscribers receiving the Basic Service Tier(BST)will see no change in their monthly BST <br /> rate. The rate will remain the same, $7.70. However, the maximum permitted rates (MPRs) <br /> will increase by$.06, from $7.82 to$7.88. Time Warner has chosen to charge a rate below <br /> 3 <br />