HomeMy WebLinkAboutS Adoption of 2003 Rate Order for Cable Services in Unincorporated Orange County~~~ y~~o 3 0 ~~
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STATE OF NORTH CAROLINA
ORANGE COUNTY
NC-0256a, NC-0256b & NC-0276
BEFORE THE COUNTS BOARD
IN THE MATTER OF:
The Review of FCC1240 Annual Rate
Adjustment Request, FCC1235
Abbreviated Cost of Service Rate Request,
and FCC 1203 Equipment aad Installation
Rate Request filed by Time Warner
An Order Finding Time Warner Cable's 2003
FCC1240 Basic Service Tier and FCG1235 Cost of
Service Rates are Reasonable and FCC1205
Installation Rates Comply with the FCC's Rules
and are Subject to the Conditions Stated Herein.
W1dEREAS, in accordance with the provisions of the Cable Television Consumer Protection and
Competition Act of 1992 (1992 Act), the Federal Teleco~~nications 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 of Raleigh Durham (Time Warner) submitted FCC1240 Updating
Annual Maximmn 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" FCC1205 Det?rmining 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;
Vi~HEREAS, 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 find a rate unreasonable;
WHEREAS, the County had issued a 2002 Rate Order finding TW's 2002 HSC unreasonable and the
basis for this finding 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 asagnitude 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..
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NOW THEREFORE THE BOARD OF COUNTY COMMISSIONERS MAKES THE
FOLLOWING FINDINGS:
THAT Time Warner's Maxirrn~m PermittedNC-0256a $12.55 Rate for Basic Tier Service is reasonable;
THAT Time Warner's NC-0256a $2.11 "Add-on" Rate for Basic Tier Service is reasonable;
THAT Time Warner's Maxi*+++~**+ Permitted NC-0256b $10.40 Rate for Basic Tier Service is reasonable;
THAT Time Warner's NC-0256b 1.81 "Add-on" Rate for Basic Tier Service is reasonable;
THAT Time Warner's M~Yim„m pe~~ NC-0276 $11.74 Rate for Basic Tier Service is reasonable;
THAT Time Warner's NC-076 $1.45 "Add-on" Rate for Basic Tier Service is reasonable;
. THAT Time Warner may charge a Basic Service Tier rate below the approved combined maximum
pem~itted rate;
THAT Time. Warner's Nationally.Aggregated $37.62 HSC complies with the FCC's rate regulation rules;
THAT Time Warner maybase its installation rates on its 2003 FCC1205 HSC rate of $37.62; S
THAT Time Warner has substantiated adjustments to its FCC 1205 equipment rates, and
THAT Time blamer has substantiated the other adjustments to its cable service rates based on past and
estimated cost elements.
IT IS THEREFORE ORDERED:
THAT Time Warner's Maximum Permitted Rate for Basic Tier Service for NC-0256a ($12.55 is
reasonable, its $2.11 FCC1235 "Add-on" is reasonable and that Time Warner may charge a combined "selected"
BST rate below the approved maximum permitted rates, but not above it;
THAT the maximum permitted Basic Service Tier rate for Time blamer subscribers in NC-0256a for the
projected period shall not exceed $14.66 per month, subject to subsequent findings by the Board to the contrary;
THAT Time Warner's Maximum Permitted Rate for Basic Tier Service for NC-0256b ($10.40) is
reasonable, its $1.81 FCC1235 "Add-on" is reasonable and that Time Warner may charge a combined "selected"
BST rate below the approved maximum permitted rates, but not above it;
THAT the maximum permitted Basic Service Tier rate for Time blamer subscribers is NC-0256b for the
projected period shall not exceed $12.21 per month, subject to subsequent findings by the Board to the contrary;
THAT Time Warner's Maxi~~**+ Permitted Rate for Basic Tier Service for NC-0276 ($11.74) is
reasonable, its $1.45 FCC1235 "Add-on" is reasonable and that Time Warner may charge a~combined "selected"
BST rate below the approved maximum permitted rates, but not above it;
THAT the maximum permitted Basic Service Tier rate for Time Warner subscribers in NC-0276 for the
projected period shall not exceed $13.19 per month, subject to subsequent findings by the Board to the contrary;
THAT the County Board rescinds its 2002 Local Rate Order that found Time Warner's 2002 HSC
unreasonable;
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rules;
THAT Time Warner's 2003 Equipment, Installation and HSC rates comply with the FCC's rate regulation
THAT the County reserves its right to revise this Rate Order subject to subsequent contrary findings by the
Board, and
THAT this Rate Order will be effective immediately.
ISSUED BY ORDER OF THE BOARD OF COUNTY COMl«SSIONERS
This the ~ ~~ day of ~ 2003.
^~ ~~
Chair
ATTEST:
Clerk
Deliver Report and Fxecuud Order via Certified US Mail to: Paul Baccellieri, Time Warner Cable; 101 Innovation Av ; Morrisville, NC 27560
Copy via ordmary US Mail to: Action Audits, I i C.,101 Pocono I.N., Cary, NC 27513-1316.