2006-02-22 CC Packet - Laserfiche WebLink

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They identified quite a few issues, and, consequently, issued a rate order that estimated Comcast would have to refund approximately $5.00-$6.00 per subscriber (not taking into consideration possible refund offsets, whereby Comcast may be able to deduct any undercharges from refund amounts, and franchise fee repayments). Comcast then appealed our 2004 1205 rate order to the FCC. Things would have sat there, possibly for two or more years, until the FCC made a decision regarding the validity of our rate order. In the meantime Comcast approached our consultants to ask if their clients might be interested in considering a settlement of the Form 1205 2004 and 2005 issues. Comcast offered the following on the outstanding 2004 Form 1205 rate order: 1. $2.50 per sub refund with no offsetting against any possible undercharges. 2. They would not require us to repay the franchise fees we would owe them on the refund amount. This would bring the total dollar value of the settlement to about $2.63 per subscriber. For 2005 and 2006 Forms 1205, Comcast would agree to adopt most of the adjustments the consultants made to the 2004 Form 1205, which adjustments were included in our 2004 Form 1205 rate order and Comcast would modify the way they estimate installation times. Once the appropriate adjustments were made, to the 2005 Form 1205, the consultants estimated that some refunds would be owed to subscribers. Comcast has agreed not to offset any refund liability against any undercharges. If the se,ttlement agreement were to be adopted Comcast would agree not to appeal any rate order the Commission may adopt concerning the 2005 FCC Form 1205 that was consistent with the settlement. While there were pros and cons to accepting the settlement deal, the pros won out in the end. Agreeing to a settlement meant that subs would get a refund right away for the 2004 Form 1205, and in the near future for the 2005 Form 1205. This meant more people who actually paid the higher rate would get their money back, as opposed to people two or more years from now getting it after all appeals are exhausted. We also wouldn't have to pay back the franchise fees we would have owed the company on the refunded amount for the 2004 Form 1205. The outstanding Form 1205 issues would be settled for 2004 and 2005 through 2006, saving the Commission consultant and attorney fees. And it would provide some regulatory certainty going forward. Both our consultants and our attorney, stated that while it might not be the greatest deal, it was a very good one, and was one of the largest Form 1205 settlements since the inception of rate regulation in 1992. I believe it was a big win for our subscribers. Fmal BuzLdInej Issues The majority of building issues were resolved in 2004, but as is always the case with a project like this, we had a few projects left to wrap up in 2005. 22