20080523final_order_no_30554.pdf

Office of the Secretary
Service Date
May 23 , 2008
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 FORTHE YEAR 2007.
CASE NO. ALB-08-
ORDER NO. 30554
On March 21 , 2008, Albion Telephone Company filed an Application requesting
approval of equipment for the broadband tax credit for the year 2007 pursuant to Order No.
28784 and Idaho Code ~ 63-30291(4). To be eligible for the tax credit, the taxpayer must obtain
an Order from the Commission confirming that the communications equipment has been
installed and that it meets the definition of qualified broadband equipment set out in Idaho Code
~ 63-30291(3)(b). Qualified broadband equipment must be capable of transmitting 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. In this Order, we find that the Company s equipment meets the applicable standards.
THE APPLICATION
Albion Telephone Company submits that in 2007 the Company added 31 miles of
copper and 4 miles of fiber cable in Ada, Bingham, Butte, Cassia, Custer, Jefferson, and Oneida
counties. The Company installed Tekelec soft switch equipment enabling Albion to offer the
next generation of switching, and continued to deploy a High Speed Wireless System in a
neighboring exchange. The Application states that the Company provides ADSL, IDSL, HDSL
and SDSL services to its customers at network transmission rates of 256 000 bps to 3 000 000
bps. The Company maintains that it added the capacity to provide broadband service to 567 new
customers in 2007 for a total of 1 492 customers. Albion claims a broadband investment of
approximately $2 700 000 in 2007.
STAFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. This Order identifies information that must be
included in an application for a broadband tax credit. Once the information is filed with the
ORDER NO. 30554
Commission, the Staff reVIews the application and submits a recommendation to the
Commission.
Staff has reviewed the list of broadband equipment installed by Albion Telephone
Company and believes that it qualifies for the investment tax credit pursuant to Procedural Order
No. 28784 and Idaho Code ~ 63-30291(3)(b). Further, Staff believes that the expenditures
identified by the Company, a telecommunications provider, were for equipment that is
necessary for the provision of broadband services and an integral part of a broadband network.
As a result, Staff recommends approval of the Application and further recommends that the
Commission forward a copy of the original Application along with an Order certifying that the
equipment meets the qualifications for broadband tax credit to the Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed Albion Telephone Company Application and Staffs
recommendations, we find that the Application for a qualifying broadband equipment Order
should be granted. The Company has demonstrated that it installed qualifying broadband
equipment, identified in its Application, during 2007 in conformance with Idaho Code ~ 63-
30291. We further find that as configured, the installed equipment is an integral part of a
broadband network necessary to deliver broadband services to Idaho customers. Based on the
foregoing, the Commission issues this Order confirming that Albion Telephone Company has
installed qualified broadband equipment as a precondition to seeking an Idaho broadband tax
credit. The Commission makes no findings regarding the costs of the installed broadband
equipment.
ORDER
IT IS HEREBY ORDERED that Albion Telephone Company s Application for an
Order certifying that it has installed qualifying broadband equipment for 2007 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. 30554
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this ~3 rJ.
day of May 2008.
MACK A. FO NT -
RSHA H. SMITH, COMMISSIONER
ATTEST:
O:ALB-08-01 ks
ORDER NO. 30554