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~4x15~97 14~16 ~ ?04 ~47 47~0 Centr~lina COG P.06 <br /> <br />CABLE TELEVISION RATE REVIEW FINDINGS SUMMARY <br /> Prepared by Centralina Council of Governments <br /> <br />Franchise: CABARRUS COUNTY <br />~ble Operator: TIME WARNER <br /> <br />Tier Reviewed: CPS TIER - 1997 <br />Number of Channels: 36 (increased by 6 channels since last year) <br />Average Number of Subscribers 1996: 400 approximately (162,000 on new combined headend) <br />Date Findings Prepared: 3-31-97 <br /> <br />SUMMARY REVIEW STATEMENT: <br /> <br /> The Cable Programming Service (CPS) Tier Rate has been reviewed and is ACCEPTABLE under <br /> required Federal Communications Commission guidelines. Comments follow. <br /> <br />COMMENTS AND EXPLANATIONS: <br /> <br />The Cable Programming Service Tier consists of 36 channels. The Serial Contract negotiated between <br />Time Warner and the FCC sets guidelines in the amount that can be charged per year for this tier. <br />Although the Cabarrus County Franchise Authority does not regulate this tier, information is provided. <br />The new, adjusted CPS tier rate went into effect on January 1, 1997. <br /> <br />A review of the FCC Form 1240 for the year 1997 establishes the revised maximum periiiitted CPS <br />tier rate at $20.70 (excluding the 3% franchise fee), compared to $19.37 in last year's revised 1240 form. <br />The new, higher rate is due entirely to adjustments allowed through the Social Contract. These <br />adjustments include inflation, additional programming costs, a 7.5% mark-up fee allowed by the FCC, <br />and a $1.00 adjustment allowed for upgrades to the overall system, The changes are summarized below: <br /> <br />TIER 1996' ' 1996 1997 1997 DIFFERENCE DIFFERENCE <br /> MAXIMUM ACTUAL MAXIMUM ACTUAL BETWEEN BETWEEN 1996 <br /> RATE RATE RATE RATE 1997 ACTUAL RATE <br /> (without 3% (without 3% (without 3% (without 3% MAXIMUM AND 1997 <br /> franchise franchise franchise fee)franchise RATE AND ACTUAL RATE <br /> fee) fee) fee) 1997 ACTUAL (without 3% <br /> RATE (without franchise fee) <br /> 3% franchise <br /> <br />'CPs $19.37 $18.10 ~20.70 ........... $20;~)0 -$.70 +$1.90 <br /> <br />Even though Time Warner is allowed to charge subscribers in 1997 as much as $20.70 for the 36 CPS <br />channels, they chose to set the rate $.70 lower Ihan that permitted through the Social Contract. <br /> <br />The actual rate set in 1996 was $18.10 compared to $20.00 for 1997, which represents an actual <br />increase of $1.90 for subscribers (excluding the 3% franchise fee). <br /> <br /> <br />