Time Warner Cable still hasn't closed its $3 billion deal to acquire cable systems in Kentucky, Indiana and Ohio from Insight Communications, but it is already facing difficulties with a franchise agreement in Louisville, one of Insight's largest systems.

Complaining that Insight has been unwilling to promise that it will keep a customer service center in Louisville that employs 900 people, Louisville has threatened to rescind Insight's franchise agreement on Dec. 19. Louisville says Insight has also declined to continue to provide free cable service to the city.

Time Warner Cable dispatched regional VP Ed Kozelek to negotiate with Louisville officials, even though the nation's second largest cable MSO still doesn't own Insight's operation in the city.

Kozelek proposed in a letter to Louisville Mayor Greg Fischer that the city issue a six-month extension to the cable franchise, and he also chided the city for threatening to pull the cable franchise.

"Productive negotiations cannot take place in the hostile and contentious atmosphere created by your threat to unlawfully terminate Insight's franchises," Kozelek wrote in the letter.

While it's likely that Louisville will eventually extend Insight's franchise agreement, the city could attempt to squeeze additional concessions from Insight and Time Warner Cable after the deal closes. Time Warner Cable could also be pressured to maintain Insight's customer service operation in Louisville.