It’s been just two years since Charter Communications completed its $65 billion takeover of Time Warner Cable, and the cable television giant is already at odds with regulators. The state agency that approved the merger in early 2016 is saying the company could owe New York $1 million for failing to meet an agreed-upon milestone in expanding its broadband network.

On Monday the Public Service Commission said that the company, which operates as Spectrum, padded its build-out target numbers by counting more than 12,000 households in New York City that already had cable service. In addition, the regulator will examine whether Spectrum is shortchanging the city with its franchise fees, which are supposed to add up to 5% of total cable television revenue.

According to the commission, the city’s Department of Information Technology and Telecommunications has found that the cable giant has been paying franchise fees that are less than what Time Warner Cable was paying as the franchise holder. DoITT administers Spectrum’s contracts with New York City.

The Public Service Commission has ordered Charter to turn over records that will let the agency determine whether the company and its subsidiaries “have materially breached their City of New York franchise agreements,” the agency stated on Monday in an order to show cause.

“It is critically important that regulated companies strictly adhere to the state’s rules and regulations,” Chairman John Rhodes said in a statement. “If a regulated entity like Charter’s cable business decides to violate or ignore the rules, we will take swift action and hold them accountable to the full extent of the law.”

“Charter is committed to bringing more broadband to more people across New York state,” the company said in a statement. “We exceeded our last build-out commitment by thousands of homes and businesses. We are in full compliance with our merger order and the New York City franchise, and we will fight these baseless and legally suspect actions vigorously.”

The commission’s move was prompted in part by a January filing by Charter in which it said it had “passed”—that is, run cable in the vicinity of—42,889 premises as of December 2017, as part of a planned build-out to 145,000 premises. Of those premises passed, 12,467 were located in the city.

But the numbers did not hold up in an audit by the agency. Those metro-area passings had to be “disqualified from Charter’s December 2017 build-out requirement on the basis that the cable network was already present,” the agency said.

In an “egregious example,” Charter “listed the Reuters Building as countable toward the December 2017 target,” the order said.

The agency has given Charter 21 days “to show cause” why the commission should not begin a public notice for a hearing on whether the company “has committed material breaches of its franchise agreements with NYC.”