20050511Final Order No 29781.pdf

Office of the Secretary
Service Date
May 11 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
ALBION TELEPHONE COMPANY FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND EQ UIPMENT
CASE NO. ALB-O5-
ORDER NO. 29781
On April 11 , 2005 , Albion Telephone Company filed an Application requesting that
the Commission find the Company eligible to receive an Idaho Investment Tax Credit. Pursuant
to Idaho Code ~ 63-30291, an Idaho taxpayer may receive a tax credit for installing "qualified
broadband equipment" in Idaho. To be eligible for the tax credit, the taxpayer must obtain an
Order from the Commission confirming that the equipment has been installed and that it meets
the definition of qualified broadband equipment set out in Idaho Code ~ 63-30291(3)(b). In the
case of a telecommunications provider, the qualified broadband equipment must also "
necessary to the provision of broadband service and an integral part of a broadband network."
Idaho Code ~ 63-30291(3)(b )(i).
THE APPLICATION
Albion s Application states that it installed central office and remote terminal
equipment, fiber and copper cables to provide broadband services to Idaho customers. In
addition, Albion s Application states that it provides Asynchronous Digital Subscriber Line
(ADSL), Integrated Digital Services Subscriber Line (IDSL), High Bit Rate Digital Subscriber
Line (HDSL) and Symmetric Digital Subscriber Line (SDSL) services to its customers at speeds
of 256 000 bits per second to 1 540 000 bits per second. The Company provides that this
equipment is necessary and integral to its broadband network and that 1000/0 of the investment
will be used to provide services to Idaho customers. The Application identified over $2 million
of investment in 2004.
ST AFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Albion and
found that it complies with Idaho Code ~ 63-30291(3)(b) and Procedural Order No. 28784. Staff
determined that the equipment is "qualified broadband equipment" capable of transmitting
ORDER NO. 29781
signals at a rate of at least 200 000 bits per second (bps) to a subscriber and at least 125 000 bps
from a subscriber pursuant to Idaho Code ~ 63-30291(3)(b). Staff also determined that the
expenditures identified by Albion, a telecommunications provider, were for equipment that is
necessary for the provision of broadband services and an integral part of a broadband network."
Idaho Code ~ 63-30291(3)(b )(i). Therefore, Staff recommended that the Commission issue an
Order approving Albion s Application.
COMMISSION FINDINGS
Based upon our review of the Application and Staff recommendations, we find that
the Application for a qualifying broadband equipment Order should be granted. Albion has
adequately demonstrated that the equipment identified in its Application is qualifying broadband
equipment subject to the tax credit. We further find that Albion is a telecommunications carrier
and, as configured, the installed equipment is an integral part of a broadband network necessary
to deliver broadband services to Idaho customers. Idaho Code ~ 63-30291(3)(b )(i). It is
therefore appropriate for the Commission to issue this Order confirming that the equipment
identified by Albion is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Albion Telephone Company s Application for an
Order certifying it has installed qualifying broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served upon the Idaho State Tax Commission.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order with regard to any matter decided in this Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 29781
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this II
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day of May 2005.
PAUL
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSEN, OMMISSIONER
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Commission Secretary
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ORDER NO. 29781