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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No. Z -C- <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: February 6, 1995 <br /> SUBJECT: Cablevision Industries Cost of Service Rate Approval <br /> -------------------------------------------------------------------- <br /> DEPARTMENT: County Manager PUBLIC HEARING YES: NO: X <br /> -------------------------------------------------------------------- <br /> ATTACHMENT(S) : INFORMATION CONTACT: Albert Kittrell <br /> Rate Review TELEPHONE NUMBER- <br /> Hillsborough -732-8181 <br /> Chapel Hill -968-4501 <br /> Mebane -227-2031 <br /> Durham -688-7331 <br /> -------------------------------------------------------------------- <br /> PURPOSE: <br /> To consider approving basic cable TV rates for Cablevision <br /> Industries. <br /> BACKGROUND: <br /> In August, 1994 the two cable TV operators in the unincorporated <br /> areas of the County, Time Warner (Cablevision) and Cablevision <br /> Industries (CVI) submitted cable rate information for review as <br /> required by the Federal Communications Commission (FCC) . TJCOG <br /> Consultant, Bob Sepe, reviewed the rate information on behalf of the <br /> County. On December 20, 1994, the Board approved the basic cable <br /> rates for Time Warner as recommended by the consultant. The basic <br /> rates were consistent with the FCC benchmark rates. Time Warner has <br /> approximately 5,489 cable subscribers in the unincorporated areas of <br /> the county. <br /> The consultant has completed the review of the other cable operator, <br /> CVI. CVI filed their basic cable rate review under the cost of <br /> service approach rather than the benchmark filing Time Warner <br /> selected. The cost of service approach is used by cable operators <br /> when they believe the maximum permitted rate under the benchmark <br /> formula will not enable the operator to recover costs reasonably <br /> incurred for providing cable services. The cost of service filing <br /> enables the cable operator to justify charges for regulated cable <br /> service based on actual costs of providing such services. It <br /> provides for: 1) the recovery of all expenses necessary to deliver <br /> the services, including operating expense and the depreciation on <br /> property, plant and equipment; and 2) a return on investment for <br /> property, plant, and equipment used to deliver the services. CVI has <br /> 629 subscribers in the unincorporated area of the County. <br />