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<br />SUMMARY <br />On October 1, 2002, Time Warner Cable submitted a FCC1240-Basic Cable Service Tier and <br />FCC 1205-Equipment and Installation charges to seek an upward adjustment in the rate charged <br />for basic cable television service, installation and equipment rental for the year. The consultant <br />evaluated the information Time Warner Cable (TWC) submitted, requested and received <br />supplemental information and evaluate ndent alcalat~ons to venfy the propos d rate tructure <br />rules. The Consultant performed mdepe <br />sought. <br />Orange County is composed of two federally identified cable television districts, NC-0276a, <br />NC0276b and a third federal district identified as NC-0256. The smallest federal district, NC- <br />0276, has 30 cable households and the other 5642 cable households. NC-0256 has 702 cable <br />households. <br />a. NC-0256a cable subscribers will be charged a "selected" monthly rate of $14.25 <br />for the Basic Service Tier (BST) in 2003. This rate includes the BST "selected" <br />charge of $10.40 plus the "Add-on" Cost of Service Network Upgrade Charge of <br />$2.11. <br />b. NC-0256b cable customers will be charged a "selected" monthly rate of $12.15 <br />for the Basic Service Tier (BST) in 2003. This rate includes the BST "selected" <br />charge of $10.34 plus the "Add-on" Cost of Service Network Upgrade Charge of <br />$1.81. For these customers, the "selected" rate is the Maximum Permitted <br />Combined Rate. <br />NC-0256 TWC cable households will be charged a "selected" monthly rate of <br />$11.74 for the Basic Service Tier (BST) in 2003. This rate includes the BST <br />"selected" charge of $11.70 plus the "Add-on" Cost of Service Network Upgrade <br />Charge of $1.45. For these customers, the "selected" rate is the Maximum <br />Permitted Combined Rate. <br />Time Warner customarily sets the monthly fee slightly less than the maximum permitted <br />combined rate. Time Warner set its selected 2003 "combined" rate slightly below or at the <br />Maximum Permitted "Combined" Rate for BST cable service.' <br />1 See Exhibit I, page 4 of each set of Federal CUID recalculations by Action Audits. <br />Action Audits, LLC Cable Rate, Franchise Fee, Utili Tax Auditin & Telecommunication Administration <br />101 Pocono Lane, Cary, North Carolina 27513-5316 Voice # 919.467.5392 Fax # 919.460.6868 <br />