No, the $75 is the maximum overage charge you can get per month at any tier. At the lowest tier (the new lowest one - $15.95/mo for 758Kbps and 1GB cap) you can hit that $75 faster because it's $2/GB overage fee.

However, they've structured their tiers so that the less you pay the slower your connection is and the lower your cap as well.

I'm one of the fortunate few to be in Rochester, NY and fall under the tyranny of Time Warner Cable. I've talked to their customer service reps. I've read their statements. And yesterday I had the opportunity to hear some of their low-level execs try and defend the plan at a town hall meeting with our congressional representative (who's on our side BTW).

They simply don't acknowledge that access (bandwidth) is not at issue here, limiting the use of that bandwidth in terms of some arbitrary amount of data is the issue.

If you look at their 2008 SEC filings (linked by their corporate site timewarnercable.com then you'd see their costs went down about 12% from 2007 and their revenues and new customers both rose about 10% over 2007. Clearly usage is not really an issue.

The issue they're not admitting to (except in their SEC filing) is Internet video like Hulu and Netflix is their primary threat and the way to mediate this threat is to make it more expensive to watch videos on the Internet than to pay Time Warner for cable and Video on Demand services.