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Federal Communications Commission DA 01-2142 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of: TIME WARNER CABLE Appeal of Local Rate Order lssued by Cabarms County, North Carolina CUID NCO 173 File No. CSB-A-0663 MEMORANDUM OPINION AND ORDER Adopted: August 31, 2001 Released: September 14, 2001 By the Deputy Chief, Cable Services Bureau: I. INTRODUCTION 1. Time Warner Cable ("TWC") the franchised operator of a cable system serving Cabarrus County, North Carolina ("County"), has appealed the rate decision adopted by the County on February 19, 2001. The contested rate decision denied the operator's request to increase rates charged for basic service2 The issue is whether the County issued a written rate decision that properly explained its denial of TWC's proposed rates. The County did not file an opposition to the appeal. 2. Under the Commission's rules, rate orders issued by local franchising authorities ("LFAs") may be appealed to the Commission.2 In ruling on an appeal of a local rate order, the Commission will not conduct a de novo review, but instead will sustain the franchising authority's decision provided them is a reasonable basis for that decision, and will reverse a franchising authority's decision only if the franchising authority unreasonably applied the Commission's rules in its local rate order? If the Commission reverses a franchising authority's decision, it will not substitute its own decision but instead will remand the issue to the franchising authority with instructions to resolve the case consistent with the Commission's decision on appeal.' ~ Appeal of Local Rate Order (March 21, 2001); Exhibit A, Letter from John D. Day, Deputy County Manager, to Robert Melton, General Manager, Time Wamer Cable (March I, 2001) 2 47 C.F.R. § 76.944. ~ See Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate Regulation, Report and Order and Further Notice of Proposed Rulemaking in MM Docket No.92-266, 8 FCC Rcd 5631, 5731 (1993) ("Rate Order"); See also Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992, Rate Regulation, Third Order on Reconsideration, 9 FCC Rcd 4316, 4346 (1994) (" Third Reconsideration "). 4 Rate Order at 5732.