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

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~~ STATE OF NORTH CAROLINA ORANGE COUNTY NC-0256a, NC-0256b & NC-0276 BEFORE THE COUNTY BOARD IN THE MATTER OF: ) The Review of FCC1240 Annual Rate ) An Order Finding Time Warner Cable's 2003 FCC1240 Basic Service Tier and FCC1235 Cost of Adjustment Request, FCC1235 ) Service Rates are Reasonable and FCC1205 Abbreviated Cost of Service Rate Request, ) Installation Rates Comply with the FCC's Rules and FCC1205 Equipment and Installation ) and are Subject to the Conditions Stated Herein Rate Request filed by Time Warner ) . WHEREAS, in accordance with the provisions of the Cable Television Consumer Protection and Competition Act of 1992 (1992 Act), the Federal Telecommunications Act of 1996 (1996 Act), the County Code, and regulations adopted pursuant to that Code, the County Board is permitted to regulate rates for basic cable services and associated equipment; WHEREAS, Time Warner Cable ofRaleigh-Durham (Time Warner) submitted FCC 1240 Updating Annual Maximum Permitted Rates filings for Regulated Cable Services with the County. Time Warner's filings encompass external costs, inflation, and program costs for the True-up period of October 2001 through September 2002, and the projected period of January 2003 through December 2003; WHEREAS, the County received a report from its Consultant stating that Time Warner submitted its FCC1240 before the FCC published its October 2001 updated inflation factors; Time Warner's FCC1240 rate calculations comply with the FCC's rate-making rules; WHEREAS, Time Warner submitted a consolidated "Company" FCC 1205 Determining Regulated Equipment and Installation Costs filing with the County to set the regulated rate for the Hourly Service Charge, Installation Services and Equipment rental rates; WHEREAS, the FCC reversed the Town of Smithfield's 2002 Local Rate Order (FCC: DA 03-177) that found Time Warner's 2002 HSC as unreasonable because that while mathematical accuracy is a rate determinant, the magnitude of a rate increase (26+%) alone is insufficient evidence upon which to fmd a rate unreasonable; WHEREAS, the County had issued a 2002 Rate Order fmding TW's 2002 HSC unreasonable and the basis for this fmding was nullified by the FCC in its Smithfield decision. WHEREAS, the County received a report from its Consultant stating that although Time Warner was not able to justify assumptions underlying the Hourly Service Charge ($37.62), the FCC has said that while mathematical accuracy is a determinant, the magnitude of a rate increase (26+%) is insufficient justification to deem a rate unreasonable; WHEREAS, because of the FCC's ruling, The County Board rescinds that portion of its 2002 Local Rate Order that disapproved Time Warner's 2002 HSC; and WHEREAS, the County is certified with the FCC to regulate basic service tier rates provided by Time Warner in the County.