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STATE OF NORTH CAROLINA <br />ORANGE COUNTY, NC-0256 <br />BEFORE THE COUNTY 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 FCC1205 Equipment and Installation ) <br />Rate Request filed by Time Warner ) <br />Cable ) <br />An Order Finding Time Warner Cable's 2002 <br />FCC1240 Basic Service Tier and FCC1235 Cost of <br />Service Rates Reasonable and Subject to the <br />Conditions Stated Herein. <br />And Finding Time Warner Cable's FCC1205 <br />Equipment and Installation Rates Unreasonable. and <br />Subject to the Conditions Stated Herein. <br />WHEREAS, in accordance with the provisions of the Cable Television Consumer Protection and <br />Competition Act of 1992 (1992 Act), the Federal Telecommunications Act of 1996 (1996 Act), the County Code, <br />and regulations adopted pursuant to that Code, the County Board is pernutted to regulate rates for basic cable <br />services and associated equipment; <br />WHEREAS, Time Warner Cable of Raleigh-Durham (Time Warner) submitted FCC 1240 Updating <br />Annual Maximum 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 2000 through September <br />2001, and the projected period of January 2002 through December 2002; <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 Determining 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 rentai rates; <br />WHEREAS, the County received a report from its Consultant stating that Time Warner was not able to <br />justify assumptions underlying the Hourly Service Charge ($35.84); <br />WHEREAS, the Consultant determined that Time Warner's FCC1205 filing does not comply with FCC <br />rules §76.923 (c)(1) and FCC §76.923 (c)(3) requiring the company FCC1205 methodology to produce just and <br />reasonable rates; <br />WHEREAS, Time Warner voluntarily selected a$34.95 HSC rate for its subscribers and not the <br />consolidated "Company" $35.84 FCC1205 rate and neither rate is reasonable; <br />WHEREAS, FCC rule §76.933 grants local franchisee authorities an initial ninety (90) day review period, <br />measured from the date of receipt of said filing by the franchise authority, with which to review the cable operator's <br />FCC 1240 rate filing. If said ninety (90) day review period expires before the rates go into effect, the franchise <br />authority retains review and refund authority past the initial ninety (90) day review period as long as all inquiries <br />from the cable operator regarding said review are responded to in writing within fifteen (15) days of said inquire; <br />WHEREAS, on March 1, 2002 Time Warner appealed the Town of Smithfield's FCC 1205 HSC Rate <br />Order to the FCC and subsequently requested the County delay its Rate Order pending a ruling by the FCC on Time <br />Warner's appeal; <br />1~~'~ <br />~ , ~J~q~a~- <br />