Agenda - 12-20-94 - IX-C - Laserfiche WebLink

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6 FCC-1205: Determining Regulated Equipment and Installation Costs. OBSERVATIONS: Time Warner Cable prepared and submitted a completed form FCC-1205. The operator recalculated the equipment basket [converters and remote control devices and installation ]rates. The rates are lower than the prior year's. Time Warner Cable is a limited partnership, as such the company is an entity which does not pay federal and North Carolina state income taxes; however, the partners pay 35% federal and 9% state rates respectively. The operator elected to use the maximum permitted rate of return [ROI] under the current benchmark rules of 11.25% System wide, Time Warner Cable reported 18,498 remote control units with a gross book value of$92,490 or$5.00 each; 25,615 converters in service with an aggregate gross book value of$2,210,126 or an average value of$86.28 each in service. System wide, the total number of converters [25,615] represents one converter for 1.33 subscribers. [Note: there are 19,125 TWC customers in the equipment pool.]. This is nearly a 1:1 proportion of converters to subscribers; thus, indicating that nearly all subscribers have a converter. FINDINGS: The operator's benchmark calculation for installation [labor] and equipment services are consistent with the benchmark requirements were established under the 1994 FCC-1200 benchmark rate. Recalculation by staff using the FCC1200/12.15 rules, TWC's and staff s calculations are as follows: TWC Staff Hourly Service Charge $20.28 $20.52 Remote Control-nonaddressable .22 .22 Converter-nonaddressable 2.16 2.16 The variation between the rates calculated by TWC and staff are due to data treatment rounding differences. The rates proposed by TWC conform with the benchmark rate rules and as such are valid.