Agenda - 04-01-2003-9b - Laserfiche WebLink

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~a True-Up and Projected Periods The FCC1240 Form must be filed with the local franchise authority ninety (90) days before the rates are scheduled to take effect and maybe filed no om th equ~erly mmethod of updat ng cable Form 1240 rate filing method represents a departure fr q rates, in that it allows cable operators t o estimate their future costs over a 12-month period: this is referred to as the projected period. The FCC1240 form allows operators to recover prior period expenses, referred to as the true-up period. If a cable operator incorrectly estimates its costs for a projected period, it must correct those estimates by using the true-up process in the next FCC1240 rate filing. Time Warner's projected period covers the 12-month period of January 1, 2003 to December 31, 2003. The operator's true-up period covers the 12-month period of October 2001 through September 2002. Franchise Related Costs: Public Access Television Time Warner Cable reported no franchise related expenses for the past year. Franchise related costs incurred by the operator may include such expenses as public, government and education access facilities and equipment, signal transportation, headend accommodations as well as Institutional Network related expenses. Commission Regulatory Fees In August 2002, the Federal Communications Commission hiked the regulatory fee 8.2% charged cable operators to fund the FCC which is passed on to subscribers. The hike is intended to cover the FCC's $245 million budget. Cable operators will now pay 53 cents per subscriber, up 8.2% over last year's 50 cents per subscriber fee. It is interesting to observe that the FCC's regulatory fees are rising faster than retail cable rates. The FCC permits cable operators to internalize or externalize the regulatory fee. The fee (~$.53/year) is collected incrementally (~$.04 -.07/month) from it cable television subscribers. These revenues are not subject to franchise fees or other taxes and must be remitted to the federal government to compensate the FCC for Comcast cus omersdet rmbned the feeB ext rnal to the examination of the monthly bills sent to monthly BST rate, hence it is excluded from the rate treatment process. Orange County cable television subscribers served by Time Warner will contribute more than 1 IFCC 1210 Forms allow for the recovery of past costs, only, not future costs. Future costs are recoverable through the use of the FCC1240 Form only. Action Audits, LLC Cable Rate, Franchise Fee, Utili Tax Auditin & Telecommunication Administration 101 Pocono Lane,. Cary, North Carolina 27513-5316 Voice # 919.467.5392 Fax # 919.460.6868