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Jan-Il-ge Og:47A Centralina COG <br /> <br />704-347~4710 <br /> <br />P.O~ <br /> <br />CABLE TELEVISION RATE REVIEW FINDINGS suMMARy <br /> Prepared by Centratina Council o! Governments <br /> <br />Franchise: <br />Cable Operator: <br />Form Reviewed: <br />Tier Reviewed: <br />Number of Channels: <br />Average Number of Subscribers 1999: <br />Date FJnding~ Prepared: <br /> <br />CABARRUS COUNTY <br />TIME WARNER - METROLINA <br />FORM, 1240 SETTING BASIC RATE FOR 1999 <br />BASIC TIER - 1999 <br />12 <br />39,496 on entire headend including 8 systems <br />1-6-99 <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 1999 FCC Form 12~0 was submitled by Time Warner in October, 1998 a full 90-days before the <br /> adjusted basic rate went into effect on .fanuary 1, 1999. <br /> <br />A review of thc FCC Form 1240 for thc year 1999 establishes the new maximum permitted Basic tier <br />rate at $5.40 (excluding the franchise fee), compared to $5.64 in last year's 1240 forms. The new, lower <br />rate is due mainly to adjustments in thc inflation rate, which was much lower than anticipated. <br />According to the FCC, when an operator's actual costs are over-estimated, then it must correct thc <br />overestfimatc, with interest, thc next time they file a rate change. These overcharges would then be <br />combined with any new 1999 cha~cs allowed through thc Social Contract for inflation, additional <br />programming costs, and changes in copyright fees, and a 7.5% mark-up fee allowed by the FCC. The <br />changes are summarized below: <br /> <br />TIER 1998 1998 ....1999 1999 DIFFERENCE DIFFERENCE <br /> MAXIMUM ACTUAL MAXIMUM ACTUAL BETWEEN BETWEEN 1998 <br /> RATE RATE RATE RATE 1999 ACTUAL RATE <br /> (without (without (without (without MAXIMUM AND 1999 <br /> franchise franchise franchise fee) franchbe RATE AND ACTUAL RATE <br /> fee) fee) fee) 199.9 ACTUAL (without <br /> RATE (without franchise fee) <br /> franchise fee) <br />Basie $5.64 $5.60 $5.40 $5.40 0 -$.20 <br /> <br />Time Warner is allowed to charge subscribers in 1999 as much as $5.40 for thc I2 Basic channels, <br />which is thc rate they have chosen. This is an actual rate decrease of $.20 over last year's rates <br />(excluding the franchise fee). <br /> <br />Centralina Council of Gove~iu~nents concludes that Time Warner has set its rate at the maximum <br />allowable rate as set in thc Social Contract with the FCC. The Cabarrus County Franchise <br />Authority should approve the Basic Rate of $5.40 per month for the 1999 calendar year. <br /> <br />TITLE: Cable Telecommnnicntions Administrator ~~/~/~'~ . <br /> <br /> <br />