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15. North Central has not documented their analysis or <br /> assumptions to support a projected household growth of 2 <br /> percent in the franchise area. The Commission deter- <br /> mines this projection is unreasonable in light of the <br /> projected household growth of the Member Cities for <br /> 1986. Andover, Anoka, Champlain, and Ramsey respec- <br /> tively project a 6.5 percent, 1 percent, 9 percent, and <br /> 7.5 percent household growth in 1986. Future expansion <br /> of the system is therefore undercapitalized. <br /> <br />16. North Central has not provided its assumptions regarding <br /> the percentage price increases for basic and pay ser- <br /> vices. The Commission is unable to determine the rea- <br /> sonableness of this projection. <br /> <br />17. North Central has not provided sufficient detailed in- <br /> formation at this time to enable the Commission to de- <br /> termine the reasonableness of its operating expense <br /> assumptions, including but not limited to repairs and <br /> maintenance, system maintenance, postage and billing, <br /> converter maintenance, vehicle operation, light, heat, <br /> power, and pole rental. <br /> <br />18. North Central has not provided sufficient detailed in- <br /> formation at this time to enable the Commission to de- <br /> termine the reasonableness of its administrative expense <br /> assumptions, including but not limited to telephone, <br /> insurance, rent, legal fees, repairs and maintenance, <br /> consulting services, and employee benefits. <br /> <br />19. North Central has not provided sufficient detailed in- <br /> formation at this time to enable the Commission to de- <br /> termine the reasonableness of its marketing expense <br /> assumptions, including but not limited to telephone <br /> marketing, data processing, contract sales, direct sales <br /> override, direct mail promotions, mass media promotions, <br /> and subscriber maintenance. <br /> <br />20. For all expenses, North Central has not documented its <br /> assumptions for general inflation on a line-by-line <br /> basis. <br /> <br />21. North Central has not provided sufficient detailed in- <br /> formation at this time to enable the Commission to de- <br /> termine the reasonableness of its capital expenditure <br /> assumptions, including but not limited to office elec- <br /> tronics, billing computer, telephone installation and <br /> future construction. <br /> <br />22. The Commission has requested from North Central the <br /> financial information and operational assumptions to <br /> review the items listed above for the purpose of analyz- <br /> <br />- 4 - <br /> <br /> <br />