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~~~ y~~o 3 0 ~~ <br />9,h ~ <br />STATE OF NORTH CAROLINA <br />ORANGE COUNTY <br />NC-0256a, NC-0256b & NC-0276 <br />BEFORE THE COUNTS BOARD <br />IN THE MATTER OF: <br />The Review of FCC1240 Annual Rate <br />Adjustment Request, FCC1235 <br />Abbreviated Cost of Service Rate Request, <br />and FCC 1203 Equipment aad Installation <br />Rate Request filed by Time Warner <br />An Order Finding Time Warner Cable's 2003 <br />FCC1240 Basic Service Tier and FCG1235 Cost of <br />Service Rates are Reasonable and FCC1205 <br />Installation Rates Comply with the FCC's Rules <br />and are Subject to the Conditions Stated Herein. <br />W1dEREAS, in accordance with the provisions of the Cable Television Consumer Protection and <br />Competition Act of 1992 (1992 Act), the Federal Teleco~~nications Act of 1996 (1996 Act), the County Code, <br />and regulations adopted pursuant to that Code, the County Board is permitted to regulate rates for basic cable <br />services and associated equipment; <br />WHEREAS, Time Warner Cable of Raleigh Durham (Time Warner) submitted FCC1240 Updating <br />Annual Maximmn Permitted Rates filings for Regulated Cable Services with the County. Time Warner's filings <br />encompass external costs, inflation, and program costs for the True-up period of October 2001 through September <br />2002, and the projected period of January 2003 through December 2003; <br />WHEREAS, the County received a report from its Consultant stating that Time Warner submitted its <br />FCC1240 before the FCC published its October 2001 updated inflation factors; Time Warner's FCC1240 rate <br />calculations comply with the FCC's rate-making rules; <br />WHEREAS, Time Warner submitted a consolidated "Company" FCC1205 Det?rmining Regulated <br />Equipment and Installation Costs filing with the County to set the regulated rate for the Hourly Service Charge, <br />Installation Services and Equipment rental rates; <br />Vi~HEREAS, the FCC reversed the Town of Smithfield's 2002 Local Rate Order (FCC: DA 03-177) that <br />found Time Warner's 2002 HSC as unreasonable because that while mathematical accuracy is a rate determinant, <br />the magnitude of a rate increase (26+%) alone is insufficient evidence upon which to find a rate unreasonable; <br />WHEREAS, the County had issued a 2002 Rate Order finding TW's 2002 HSC unreasonable and the <br />basis for this finding was nullified by the FCC in its Smithfield decision. <br />WHEREAS, the County received a report from its Consultant stating that although Time Warner was not <br />able to justify assumptions underlying the Hourly Service Charge ($37.62), the FCC has said that while <br />mathematical accuracy is a determinant, the asagnitude of a rate increase (26+%) is insufficient justification to deem. <br />a rate unreasonable; <br />WHEREAS, because of the FCC's ruling, The County Board rescinds that portion of its 2002 Local Rate <br />Order that disapproved Time Warner's 2002 HSC; and <br />WHEREAS, the County is certified with the FCC to regulate basic service tier rates provided by Time <br />Warner in the County.. <br />