HomeMy WebLinkAboutRES-1999-007 Resolution - Order Finding Time Warner Cable's 1999 Proposed Selected Basic Service Tier Rates as Reasonable and Providing Conditional Approval C-
STATE OF NORTH CAROLINA
ORANGE COUNTY
BEFORE THE BOARD OF COUNTY COMMISSIONERS
IN THE MATTER OF: ) Order Finding TWC's 1999
Review of FCC 1240 Annual Basic ) Proposed Selected Basic
Service Tier Rate Adjustment Request Service Tier Rates as .
filed by Time Warner Cable for Reasonable and Providing
NC-0256&NC-0276 Conditional Approval.
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 1, 1997
through September 30, 1998,and the projected period of January 1, 1999 through December. 31, 1999;
WHEREAS,Time Warner Cable is permitted,pursuant to the Social Contract and Thirteenth
Order on Reconsideration, to estimate and recover anticipated inflation, external costs, and cable
system upgrade costs for the period of January 1, 1999 through December 31, 1999;
WHEREAS,on January 3, 1999,the County received a report from its consultant stating that
Time Warner's FCC 1240 BST rate calculations are in compliance with Federal Communications
Commission rate making rules,and'that the requested maximum permitted Basic Service Tier Selected
rate was calculated in compliance with the FCC's rate making rules;
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 1999,
and said estimates shall require adjustment(true up),due to changes in the fourth quarter 1998
inflation factor which effected the 1999 BST APR,in the cable operator's subsequent FCC 1240 rate
filing for 2000; 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 did structure its 1998 true-up charges for the fourth 1997 through
third quarter 1998 on the FCC's published inflation factors(da980663, da981292).
THAT Time Warner Cable did base its BST.(Basic Tier Service)projected 1999 rate, in part,
upon an erroneous fourth quarter 1998 inflation factor FCC Cable Bureau(da981974);
THAT Time Warner Cable has by in large substantiated the other adjustments to its Basic
Service Tier rate based on past and estimated cost elements; and
THAT Time Warner has complied with FCC rate making rules, and its requested Maximum
Permitted BST rate is found to be reasonable and subject to any refund liability due to the fourth
quarter 1998 inflation factor at the time the FCC 1240 BST filing for 2000 is submitted.
IT IS THEREFORE ORDERED:
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 for Basic Service Tier cable television programming during the
1999 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 filing; 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/�day of- , 1999.
ATTEST: CHAIRI :
Send Report and Order via Certified U.S.Mail to: Time Warner Cable
Copy to: R.F.Sepe @ the City of Raleigh