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/--,-,7/- Y7 <br /> 77 9 ? 7- <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 COMMSSIONERS 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 <br /> cable system upgrade costs for the projected period of January 1, 1997 through December 31, 1997, <br /> and costs for the true up period of January 1, 1996 through December 31, 1996 for NC-0276;the filing <br /> for NC-0256 covers the true up period of February 1, 1996 through December 31, 1996, and the <br /> projected period of January 1, 1997 through December 31, 1997; <br /> WHEREAS, Time Warner Cable is permitted,pursuant to the Social Contract and Thirteenth <br /> Order on Reconsideration,to estimate and recover inflation, external costs, and cable system upgrade <br /> costs for the period of January 1, 1997 through December 31, 1997; <br /> WHEREAS, on January 8, 1997, the County received a report stating that Time Warner's FCC <br /> 1240 rate calculations are in compliance with Federal Communications Commission rate making rules,, <br /> and that the requested maximum permitted Basic Service Tier rates of$7.88 and $10.43 for NC-0276, <br /> and$8.81 for NC-0256 are reasonable; <br /> WHEREAS,FCC rules grant local franchise authorities an initial 90-day review period, <br /> measured from the date of receipt of the FCC 1240 filing by the franchise authority, to review the cable <br /> operator's rate filings. If said 90-day review period expires before the rates go into effect,'the franchise <br /> authority retains review and refund authority past the initial 90-day review period as long as all <br /> inquiries from the cable operator regarding said review are responded to in writing within 15 days of <br /> said inquiry; <br /> WHEREAS,Time Warner's rate filings include cost estimates for the calendar year of 1997, <br /> and said estimates may require adjustment (true up) in the cable operator's subsequent FCC 1240 rate <br />