Agenda - 06-05-1995 - V-D - Laserfiche WebLink

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r 3 Chapel Hill and Durham Headends: FCC-1210 In 1994 Time Warner Cable combined subscriber bases within the unincorporated areas of Orange County into two areas; approximately 200 subscribers from the Efland area were combined with the Chapel Hill subscriber base, according to Time Warner representatives. The Durham headend's service area within unincorporated Orange County consists of 29 subscribers. The area served by the Chapel Hill headend consists of approximately 5,421 subscribers. Following is the report on the FCC-1210 Updating of Maximum Permitted Rates filing submitted by Time Warner Cable, d/b/a Cablevision of Chapel Hi1UDurham. This submittal seeks to adjust the basic rates charged subscribers served by both headends based on external cost factors for the period of July 15, through December 31, 1994. Report Chapel Hill Headend: Time Warner Cable is requesting approval of a$.07 [cent] increase in basic tier rates attributable to external cost factors associated with programming costs. These expenses represent a penny-for-penny pass through to subscribers as allowed by the Federal Communications Commission. Though the County does not have regulatory authority over Tier II (Cable Programming Service), whose rate will decrease by $0.02; or Tier III, whose rate will increase by $32, it is recommended that the County acknowledge these rate changes. The FCC has jurisdiction over the second tier of service. Regulation of this tier is accomplished using a complaint-driven process through the FCC. Actual Rates: he actual rate charged subscribers will be $.04 [cents] higher than the one the County considers for approval, $7.93. This is because the FCC regulatory pass through charge is added to the approved rate set by the County. This pass-through fee is collected by the cable operator for the FCC and is assessed only to the basic tier of service. Franchise Related Costs: The operator reported no costs in this area for the this quarter. Such costs are usually associated with public, education, and government access television facilities. Inflationary A4justment: Cable operators are allowed to take an inflationary adjustment but once a year. Time Warner used an adjustment measurement figure of 1.021, based on the Gross National Product Price Index. The rate adjustment reflects a penny-for-penny pass through to subscribers. See the table below for a comparison between 1994 rates [with other items] and those proposed for the first quarter of 1995.