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AG 2000 03 20
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AG 2000 03 20
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Last modified
3/25/2002 4:56:44 PM
Creation date
11/27/2017 11:47:01 AM
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Meeting Minutes
Doc Type
Agenda
Meeting Minutes - Date
3/20/2000
Board
Board of Commissioners
Meeting Type
Regular
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3-t5-00; 12:04PM;CentF81 Ina COG ;704 347 4710 # 2/ g <br /> <br />CABLE TELEVISION RATE REVIEW FINDINGS SUMMARY <br /> Prepared by Centr~lina Council of Goyernments <br /> <br />Franchise: CABARRUS COUNTY <br />Cable Operator: TIME WARNER - METROLINA <br /> F m'Rev!e ed: 'i (: :' '.. i"i i.:... :. i...':". BASiCaAT .'i OR:20O0 .!.,'i .. <br /> <br />Number of Channels: 13 <br />Average Number of Substribers 2000: 40, 231 on entire headend <br />Date Findings Prepared: 2-22-00 <br /> <br />SUMMARY REVIEW STATEMENT: <br /> The Basic Tier Rate has been reviewed and is ACCEPTABLE under required Federal Communications <br /> Commission guidelines. Comments follow. <br /> <br />COMMENTS AND EXPLANATIONS: <br />· The 2000 FCC Form 1240 and 1235 was submitted by Time Warner in October, 1999 a full 90-days <br /> before the adjusted basic rate went into effect on January 1, 2000. The Social Contract, which <br /> controlled Time Warner's rates for the past five years has expired. Time Warner, however, still has to <br /> follow FCC guidelines in setting the Basic Tier Rate. The Franchise Authority only has authority over <br /> the Basic tier of rotes. The Cable Programming Service Tier has been deregulated, and is no longer <br /> even under FCC review. <br /> <br />Cable operators have the option of basing their maximum permitted rate on a "cost-of-servi~ showing" <br />in lieu of using the benchmark/price cap approach used in Form 1240. The FCC established cost-of- <br />service rate regulations to provide a "safety valve" to cable operatora ensuring them compensatory rates <br />if thch- primary benchmark/price cap rates were undervalued. Only the cable operator, not thc FCC or <br />the Franchise Authority can d~ide whether to undertake a cost-of-service showiag. In this case, Time <br />Warner has cho~:n to £de a Form 1235, an abbreviated cost-of-service filiag for network upgrades. <br /> <br />The rote established in a cost-of-service filing is the permitted rate, even if it is lower than the rate that <br />would have been allowed under the benchmark/price cap approach. Once a cost-of-service rate is <br />approved, it may not be adjusted by a subsequent cost-of-service showing until two years after the <br />permitted rate has become effective. The Franchise Authority may waive this prohibition upon a <br />showing of unustml circumstances that would create an undue hardship for thc cable operator. <br /> <br />A review of FCC Form 1240 and 1235 for the year 2000 establishes the new maximum permitted Basic <br />tier rate at $6.37 (excluding the franchise fee), compared to $5.40 in last year's 1240 forms. The new, <br />higher rate is duc mainly to tho cost-of-service showing, for network upgrades. The changes arc <br />summarized below: <br /> <br />'~ER 1999 1999 2000 .... 2000 <br /> MAXIMUM ACTUAL MAXIMUM ACTUAL <br /> RATE RATE RATE RATE <br /> (without (without (withont (without <br /> franchise franchise franchise fee) franchise <br /> fee) fee) fee) <br />Basic $5.40 $5.40 $6.37 $6.37 <br /> <br /> <br />
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