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CABLE TELEVISION RATE REVIEW FINDINGS SUMMARY <br /> Prepared by Centralina Council of Governments <br /> <br />Franchise: CABARRUS COUNTY <br /> <br />Tier Reviewed: BASIC TIER - 1997 (Revised) <br />Channels: 12 <br />Subscribership 1997: 36,669 on entire headend including 8 communities and counties <br />Date Findings Prepared: 1-23-98 <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 /> <br />Each year at this time, a cable operator sets rates for the coming year, 1998. They also are able to <br />compare their actual costs in 1997 to the costs they projected for the year. An operator whose actual <br />costs in 1997 exceeded its projections may adjust or "true-up" its rates, with interest, to reflect <br />underestimates. Operators must also correct overestimates of permitted costs, with interest, when <br />overestimates were made. In most cases, the operator was conservative in calculating projected costs. <br /> <br />A revision of the 1997 form will have the net result of revising the "Maximum Permitted Rate", not <br />adjusting the amount actually charged for the twelve months in 1997. <br /> <br />A review of revised FCC Form 1240 for the year 1997 establishes the revised maximum permitted Basic <br />tier rate at $5.61 (excluding the franchise fee), compared to $5.64 in the original 1240 form. The <br />rate for the year (1997) remains unchanged at $5.60, which is $0.01 lower than the new maximum <br />permitted rate: <br /> <br />TIER 1997 MAXIMUM 1997 REVISED 1997 ACTUAL RATE <br /> RATE AS OF 1-97 MAXIMUM RATE (without franchise fees) <br /> (without franchise fee) (without franchise fee) <br />Basic $5.64 $5.61 $5.60 <br /> <br />The purpose of this revision is to adjust the maximum benchmark rate for 1997. Each year Time Warner <br />files their FCC 1240 Form, they must insert figures from the past form, one of which is the allowable <br />maximum permitted rate. Thus, this lower maximum permitted rate is used as a "base" from which they <br />calculate their new figures for 1998. <br /> <br />Since this revision is administrative, no action is needed by the Franchise Authority. <br /> <br />SUMMARY APPROVED BY: Sandra Albrecht Montgomery, <br />TITLE: Cable Telecommunications Administrator ~ <br /> <br /> <br />