HomeMy WebLinkAboutRES-1997-001 Cable TV Rate Increase 01-21-1997-5a /--,-,7/- Y7
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STATE OF NORTH CAROLINA
ORANGE COUNTY
BEFORE THE BOARD OF COMMISSIONERS OF ORANGE COUNTY
IN THE MATTER OF: ORDER FINDING FCC 1240
Review of FCC 1240 Annual Basic BASIC SERVICE TIER
Service Tier Rate Adjustment Request RATE ADJUSTMENT
filed by Time Warner Cable/CVI/Alert REQUESTS TO BE
for Orange County,NC-0276,and IN COMPLIANCE
NC-0256 WITH FCC RATE MAKING
RULES AND TO BE
REASONABLE
BY THE COMMSSIONERS OF ORANGE COUNTY:
WHEREAS, on September 30, 1996,Time Warner Cable submitted three FCC 1240 Annual
Maximum Permitted Rate filing requests for Regulated Cable Services with Orange County,two for
NC-0276, the other for NC-0256. The two filings for NC-0276 cover external costs, inflation, and
cable system upgrade costs for the projected period of January 1, 1997 through December 31, 1997,
and costs for the true up period of January 1, 1996 through December 31, 1996 for NC-0276;the filing
for NC-0256 covers the true up period of February 1, 1996 through December 31, 1996, and the
projected period of January 1, 1997 through December 31, 1997;
WHEREAS, Time Warner Cable is permitted,pursuant to the Social Contract and Thirteenth
Order on Reconsideration,to estimate and recover inflation, external costs, and cable system upgrade
costs for the period of January 1, 1997 through December 31, 1997;
WHEREAS, on January 8, 1997, the County received a report stating that Time Warner's FCC
1240 rate calculations are in compliance with Federal Communications Commission rate making rules,,
and that the requested maximum permitted Basic Service Tier rates of$7.88 and $10.43 for NC-0276,
and$8.81 for NC-0256 are reasonable;
WHEREAS,FCC rules grant local franchise authorities an initial 90-day review period,
measured from the date of receipt of the FCC 1240 filing by the franchise authority, to review the cable
operator's rate filings. If said 90-day review period expires before the rates go into effect,'the franchise
authority retains review and refund authority past the initial 90-day review period as long as all
inquiries from the cable operator regarding said review are responded to in writing within 15 days of
said inquiry;
WHEREAS,Time Warner's rate filings include cost estimates for the calendar year of 1997,
and said estimates may require adjustment (true up) in the cable operator's subsequent FCC 1240 rate
filings; and,
WHEREAS, Orange County is certified with the FCC to regulate basic service tier rates,
equipment and installation services provided by Time Warner Cable in franchises NC-0276, and
NC-0256.
IT IS A FINDING:
THAT Time Warner Cable has substantiated the adjustment of its Basic Service Tier rates of
$7.88 (Chapel Hill system)and$10.43 (Durham system)for NC-0276, and$8.81 (Carrboro
system) for NC-0256, based on past and future external cost elements;
THAT,Time Warner has selected to charge the Basic Service Tier rate of$7.70 (Chapel Hill
system) and$10.40(Durham system)for franchise NC-0276, and$8.65 (Carrboro system)for
franchise NC-0256, during the 1997 calendar year in unincorporated Orange County; and,
THAT Time Warner has complied with FCC BST rate making rules, and its requested
maximum permitted BST rates are reasonable.
IT IS THEREFORE ORDERED:
THAT Time Warner Cable's maximum permitted rates for the Basic Service Tier during 1997
shall be$7.88 (Chapel Hill system,NC-0276),$10.43 (Durham system,NC-0276),and$8.65
(Carrboro system,NC-0256), subject to modifications in subsequent findings by the franchise
authority;
THAT the County retains its authority to issue refunds or rate roll backs after the initial 90-day
review period with respect to the rates set out in the FCC 1240 filings and approved herewith, subject
to subsequent findings by the franchise authority; and,
THAT Time Warner must keep a full and accurate account of all revenues and costs associated
with the aforementioned cable rate adjustments.
ISSUED BY ORDER OF THE BOARD OF COM MSSIONERS
This the 21 st day of January, 1997.
ATTEST- CHAIRMAN:
Zak,e-
W A�m
Deliver Report and Order via Certified U.S. Mail to: Time Warner Cable
Copy to: City of Raleigh/TJCOG