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The Honolulu Advertiser

Updated at 1:47 p.m., Tuesday, March 6, 2007

Accounting error tied to mistakes in Oceanic billings

Advertiser Staff

Oceanic Time Warner Cable subscribers on Maui and in Hilo will receive a small credit on their bills that reflects a refund in franchise fees.

The Department of Commerce and Consumer Affairs determined that Time Warner Entertainment Co., L.P., owed a total of $120,078 to its Maui subscribers, except those served by the Lahaina franchise, for collecting more fees than it should have from June 1, 1999, through Dec. 31, 2003.

The DCCA also said the company over-collected a total of $42,100 from Hilo subscribers during the period from May 1, 1996, through Dec. 31, 2003.

The error came to light after the department hired a financial consultant, Merina & Co., LLP, to review Time Warner's franchise fee calculation, assessment, collection and payment process, according to a DCCA news release. The consultant said the problem was a result of the cable company's internal accounting practices. Time Warner has since changed the way it calculates franchise fees to ensure greater accuracy, the release said.

Maui subscribers should expect a $2.79 credit by May 5, while Hilo subscribers will get a $1.85 credit.

The Lahaina area has its own franchise agreement that was separately reviewed. The consultant determined that Time Warner under-collected franchise fees for those subscribers by a total of $6,675.

The DCCA ruled that the company cannot assess subscribers for the under-collected amount.

The reports are posted on the DCCA Web site at www.hawaii.gov/dcca/areas/catv/decisions_orders/files/.