Agenda - 02-14-2000 - 9d - Laserfiche WebLink

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4 Summary On October 2, 1999, Time Warner Cable notified the County that it intended to set the rate for basic service at $8.75, up from $8.47, a month for the 1115 Basic Tier Service customers on the Carrboro System, $$10.57, up from 10.44, a month for the 29 Basic Tier Service customers on the Durham System and $ 8.76, up from $7.98, a month for the 5972 Basic Service customers on the Chapel Hill System. The total number of cable customers served by Time Warner Cable in the unincorporated county number is 7116. Slight irregularities in the manner in which TWC calculated the Maximum Permitted Rate for Basic Cable Service contributed to a 15 cent error for Carrboro System subscribers, 40 cents for Durham system Subscribers, and 2 cents for Chapel Hill System customers. If uncorrected, the error would net TWC $3759.48' from its cable customers in extra revenues. Equipment & Installation Rates Pursuant to the Social Contract, Time Warner is allowed to aggregate equipment and installation casts on a regional basisZ. Time Warner will adjust rates for leased customer equipment by a modest amount. The maximum installation service charge will increase 1.6%, from $26.09 to $26.51 hourly. TWC currently discounts its installation fees for promotional and competitive reasons. Background In September 1995, the FCC adopted the 13th Report and Order, which, among other things, allowed cable operators to adjust their rates on an annual basis using the FCC 1240, taking into consideration past and anticipated future external costs. In November 1995, the FCC adopted the Time Warner Social Contract, which resolved hundreds of cable complaints against Time Warner Cable. Provisions of the Social Contract permit Time Warner to aggregate its leased subscriber equipment costs on a regional basis (using regional FCC 1205 filings) and assess uniform equipment rates based on these data. Also, Time Warner is allowed to include in its annual programming service rate filing (FCC 1240) past and future (estimated) costs, along with future costs attributable to cable system upgrades. The 13th Order requires Time Warner and other cable operators to submit their FCC 1240 filings ninety (90) days before the date of rate implementation. During this period, the franchise terror x # customers subscribers x 12 months for each system ZNorth Carolina is treated as a single region, TWC files a single FCC 1205 for North Carolina to establish uniform state wide rates for equipment and installation. The FCC has sole authority for the review of FCC 1205 rates.