HomeMy WebLinkAboutRES-2000-017 Resolution - Rate Order Concerning Time Warner's Basic Cable Service Rates -Res - C2000 - 0 ) 7
STATE OF NORTH CAROLINA
ORANGE COUNTY
BEFORE THE BOARD OF COUNTY COMMISSIONERS
IN THE MATTER OF: ORDER FINDING TWC's 2000
Review of FCC 1205, 1235 & 1240 CABLE SERVICE FCC1240/1235
Annual Rate Adjustment Requests filed by RATE METHODOLOGY AS
Time Warner Cable for NC-0256 and REASONABLE AND ORDERING
NC-0276 A RATE TRUE-UP FOR 2001.
BY THE BOARD OF COUNTY COMMISSIONERS:
WHEREAS,Time Warner Cable submitted three FCC 1240 Updating Annual Maximum
Permitted Rates filings for Regulated Cable Services with the County. Time Warner's filing covers
external costs,inflation, and cable system upgrade costs for the true up period of October 1998 through
September 1999 and the projected period of January through December 2000;
WHEREAS, Time Warner Cable submitted an FCC 1235 Abbreviated cost of Service For
Cable Network Upgrades with the County. Time Warners filing covers capital expenses directly
related to system infrastructure improvements prior to January 1, 2000;
WHEREAS, the County received a report stating that Time Warner's FCC 1205, 1235 and
FCC 1240 rate calculations comply with Federal Communications Commission rate making rules and
that the requested maximum permitted Basic Service Tier rate is reasonable;
WHEREAS, the County received a report stating that Time Warner's FCC 1240 BST rate
calculations comply with Federal Communications Commission rate making rules, and that the
requested monthly maximum permitted Basic Service Tier rate is excessive by 15 cents for Carrboro
System served customers,2 cents for Chapel Hill system served customers and 40 cents for
Durham System served customers;
WHEREAS,FCC rules grant local franchise authorities an initial ninety(90)day review
period,measured from the date of receipt of said filing by the franchise authority,with which to review
the cable operator's FCC 1240 rate filing. If said ninety(90)-day review period expires before the rates
go into effect, the franchise authority retains review and refund authority past the initial ninety(90) day
review period as long as all inquiries from the cable operator regarding said review are responded to in
writing within fifteen(15) days of said inquiry;
WHEREAS,Time Warner's rate filing includes cost estimates for the calendar year of 2000,
and said estimates shall require adjustment(true up),due to changes in to the 2000 projected period's
inflation factor effects the 2001 BST MPR in TWC's subsequent FCC 1240 rate filing for 2001; and
WHEREAS,the County is certified with the FCC to regulate basic service tier rates provided
by Time Warner Cable in franchise NC-0256 and NC 0276.
IT IS A FINDING:
THAT Time Warner Cable's Basic Service Tier rate assessed subscribers within the County
shall not exceed the maximum permitted rate,subject to modifications in subsequent findings by the
cable operator or franchise authority, and Time Warner's FCC 1240 BST MPR shall not exceed$8.60
monthly for Carrboro System served customers, $8.74 monthly for Chapel Hill System served
customers, and$10.18 monthly for Durham System served customers and Time Warner's
FCC1235 Add-on Network Upgrade Charge cannot exceed$1.81 monthly for Chapel Hill system
served customers and$2.11 for Durham System served customers during the 2000 calendar year;
THAT Time Warner Cable may charge a Basic Service Tier rate below the approved
Maximum Permitted Rate,but not above it;
THAT Time Warner may charge a Network Upgrade Charge rate below the approved
Maximum Permitted Rate, but not above it;
THAT Time Warner Cable has by in large substantiated the other adjustments to its Cable
Service rates based on past and estimated cost elements; and
THAT Time Warner has complied with FCC rate making rules, and its requested Maximum
Permitted BST and COS "Add-on"rates are found to be reasonable and subject to any refund liability
due to for the projected period's inflation factor adjustment at the time the FCC 1240 BST filing for
2001 is submitted.
IT IS THEREFORE ORDERED:
THAT Time Warner's FCC 1240 BST MPR shall not exceed$8.60 monthly for Carrboro
System served customers, $8.74 monthly for Chapel Hill System served customers, and $10.18
monthly for Durham System served customers and Time Warner's FCC1235 Add-on Network
Upgrade Charge cannot exceed $1.81 monthly for Chapel Hill system served customers and$2.11
for Durham System served customers during the 2000 calendar year, subject to subsequent findings
by the County to the contrary,during the 2000 calendar year;
THAT Time Warner may charge a Basic Service Tier rate below the approved Maximum
Permitted Rate,but not above it;
THAT the County retains its authority to issue refunds or rate roll backs after the initial ninety
(90)day review period with respect to the restructured rate set out in the FCC 1240 or FCC1235
filings; and
THAT Time Warner must keep a full and accurate account of all revenues and costs associated
with the aforementioned cable rate adjustment.
ISSUED BY ORDER OF THE BOARD OF COUNTY COMMISSIONERS
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This the 16`x'day of February, 2000
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ATTEST: CHAIRMAN:
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everly B e Moses Carey, Jr.
Send Report and Order via Certified U.S.Mail to: Time Warner Cable
Copy to: R.F.Sepe@ the City of Raleigh