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14 <br /> STATE OF NORTH CAROLINA <br /> ORANGE COUNTY <br /> BEFORE ORANGE COUNTY <br /> IN THE MATTER OF: } <br /> Review of Basic Cable Service,Equipment and ) ORDER APPROVING <br /> Installation Rates and A La Carte Offerings } COST OF SERVICE RATE <br /> Filed by Cablevision Industries, } <br /> Inc., d/b/a CVL NC-0256 j <br /> BY ORANGE COUNTY <br /> WHEREAS,Orange County has been duly certified to regulate basic cable rates for CV1 <br /> within the municipal limits of Orange County;and, <br /> WHEREAS, on August 23, 1944, CVI filed its form FCC-1220/1205/1215 request for <br /> cable service,equipment and installation rate approval;and, <br /> WHEREAS,the current FCC benchmark rate for basic service for CV1 applicable in <br /> Orange County is$7.78,and CVrs current rate in effect in Orange County is$8.58; and, <br /> WHEREAS, CVrs Cost of Service rate Sling,if,in accordance with FCC rules,sound <br /> Cost of Service principles, and fully supported by appropriate underlying data.would justify a <br /> basic rate of$21.62; and, <br /> WHEREAS,Change County has retained the Triangle J Council of Governments,and the <br /> City of Rawsh, not itx rate,c,Qnsuhantt, and Naugle I Council of Governments and City of <br /> Raleigh filed a report which has evaluated CVrs,Cost of Service rate filing. Mthough CV1 has <br /> requested a rate of return of 15%, the FCC's current rules for Cast of Service rate filings create a <br /> presumption that only a 11.25%rate of return on the rate base is reasonable. CVrs intangible <br /> assets conaititute 78.71%of its Orange County rate base and may not be appropriately <br /> amoritiznd. TlwefoM CWs Ming nay not be justified for the III amount of its Cost of Service <br /> rate. However,after adjusd%for discr%xwcies,there appears to be adequate justification for a <br /> Cost of Service rate equal to CVrs current basic rate,and, <br /> WHEREAS,CV1 has indicated that it is only requesting a Cost of Service rate for its <br /> basic service at the same level as the current rate in eftct,and will retain said rate in effect for a <br /> minimum of two(2)years,except for adjustments for external expenses, such as program costs <br /> and inflation. <br />