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Executive Summary FRC’s Review of Comcast’s Formal Renewal Proposal © Front Range Consulting, Inc.Page 3 current franchise agreement for a minimum of two years while informal negotiations are taking place. The extension continues a capital and operating support PEG commitment that is greater than the current NSCC PEG agreement and drastically larger than Comcast’s proposal. FRC will summarize each of these five issues below. Financial Projections Form III attached to the RFRP contained a listing of the financial information and projections that were required as part of Comcast’s Proposal. Form III.F contained requirements for pro forma financial projections by Comcast. The specific requirements4 are: The Applicant shall furnish tables following the format below and provide the requested pro forma projections for the Applicant’s operations in the Member Cities for the proposed franchise term (see Form XI), assuming a franchise for the City is awarded on January 1, 2014.5 If the system’s assumed revenues or expenses will reflect an allocation of assumed expenses or revenues for some other entity (including, but not limited to, overhead allocations and management fees),pro forma projections for such other entity should be provided as well. The pro forma projections should include approximately the same line-item level of detail indicated on the attached forms, but particular details of presentation may differ if the Applicant believes that alternatives are more appropriate given its internal accounting practices. Key assumptions supporting the projections should be documented and submitted as notes to the pro formas. In particular, assumptions regarding system modifications, PEG and institutional network requirements, franchise fee expenses, and any other franchise requirements should be clearly identified and treatment of associated costs or revenues in the financial projections should be highlighted or explained. Financial pro formas must be based upon RFRP requirements. If the application deviates from those requirements, submit separate and additional pro formas showing the financial impact of each difference. Comcast response6 was: As shown by the NSCC staff’s own report and the public filings of Comcast’s corporate parent, Comcast’s financial capability to perform is not in question. Comcast objects to the demands in this section for that reason, and also because the questions below are 4 RFRP Form III, page 101. 5 The NSCC recognizes that all franchises for the Member Cities will not be awarded on January 1, 2014. This date has been selected for purposes of convenient analysis. 6 Proposal, page 47.