20060413final_order_no_30019.pdf

Office of the Secretary
Service Date
April 13, 2006
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
EQUIPMENT
CASE NO. ALB-06-
ORDER NO. 30019
On March 22, 2006, 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 9 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 9 63-3029I(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 9 63-3029I(3)(b)(i).
THE APPLICATION
Albion s Application indicated it installed new switching equipment, deployed fiber
in the loop, installed digital loop carrier systems and continued development of its fiber
backbone to provide broadband services to its Idaho customers. In 2005 Albion claimed that
added 12 miles of copper cable and 4.5 miles of fiber optic cable. The Application also indicated
the Company expanded its high-speed wireless system to a neighboring exchange. Albion
provides ADSL, IDSL, HDSL and SDSL services to its customers at speeds of 256 000 bits per
second (bps) to 3 000 000 bps. The Company indicated the equipment is necessary and integral
to its broadband network. The Company declared that 100% of the investment will be used to
provide service to Idaho customers. The Application identified nearly $2.0 million of investment
in 2005.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Albion and
found that it complies with Idaho Code 9 63-3029I(3)(b) and Procedural Order No. 28784. Staff
ORDER NO. 30019
determined that the equipment is "qualified broadband equipment" capable of transmitting
signals at a rate of at least 200 000 bps to a subscriber and at least 125 000 bps from a subscriber
pursuant to Idaho Code 9 63-3029I(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 9 63-
3029I(3)(b)(i). Therefore, Staff recommended that the Commission issue an Order approving
Albion s Application for a tax credit.
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 its Idaho customers. Idaho Code 9 63-3029I(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 99 61-626, 63-30291(4).
ORDER NO. 30019
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /3.;-h
day of April 2006.
/' ./ ~/'/
P AU~ A: D SIDENT
---
MARSHA H. SMITH, COMMISSIONER
ATTEST:
bls/O:ALB-06-0l dh
ORDER NO. 30019