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• 4 ATTACK ENT I <br /> FCC-1200 Series Benchmark Rate Review Report <br /> Time Warner Cable-County Wide <br /> Orange County, North Carolina <br /> BACKGROUND: <br /> Commensurate with the Cable Act of 1992, the Federal Communications Commission <br /> promulgated a set of rate determination rules for cable operators to apply in the absence <br /> of a competitive environment. The rules established a first year rate structure [FCC- <br /> 393] and second year [FCC-1200 series] to determine the maximum permitted rates for <br /> regulated programming services and equipment and certain aspects of a-la-carte <br /> program costs. <br /> METHODOLOGY: <br /> Time Warner Cable's submission to the County was evaluated to determine whether or <br /> not the operator calculated benchmark rates consistent with the procedures prescribed <br /> by the Federal Communication Commission. Data from work sheets provided by Time <br /> Warner Cable as its FCC-1200 series submission was entered into a computer program <br /> prepared by the Federal Communication Commission for this purpose. Original <br /> computations were performed and compared against those submitted by the company. <br /> FCC-1200: Setting maximum initial permitted rates for regulated cable services pursuant <br /> to rules adopted by the FCC on February 22, 1994. <br /> OBSERVATIONS: <br /> The benchmark rate for cable service was calculated by the Company in <br /> accordance with the FCC rules. <br /> The Company does not qualify as a small cable operator and as such this system <br /> is one of 352 Company properties. <br /> The basic service group of channels consists of 12 channels of which 5 are non- <br /> broadcast services. The expanded basic service tier is composed of 6 channels; <br /> all are non-broadcast services. The upper basic tier consists of 12 channels; all <br /> of which are non broadcast services. As a group, non-broadcast services can <br /> include any mix of bulletin board or character generator channels, PEG access, <br /> local origination, and satellite program services, depending upon the operator's <br /> preference and franchise requirements for local PEG access channel allocations. <br />