20100507final_order_no_31073.pdf

Office of the Secretary
Service Date
May 6 2010
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-10-
ORDER NO. 31073
On March 3, 2010, Albion Telephone Company filed an Application requesting
approval of equipment for the broadband tax credit 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 equipment has been installed and that it meets the definition of
qualified broadband equipment set out in Idaho Code ~ 63-3029I(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 investment meets the applicable standards.
THE APPLICATION
The Company s Application identifies broadband investments for the year 2009 in
Butte, Cassia, Custer, and Oneida counties. The Application indicates that during 2009 the
Company added 19 miles of copper and 21 miles of fiber cable; installed Fujitsu fiber terminals
for backhaul and several brands of Digital Loop Carriers. The Company stated that it provides
asymmetric digital subscriber line (ADSL), ISDN digital subscriber line (IDSL), high bit-rate
digital subscriber line (HDSL), and symmetric digital subscriber line (SDSL) services to its
customers at network transmission rates of 256 Kbps to 6 Mbps. The Company reported that it
added the capacity to provide broadband service to 162 new customers in 2009. The Company
reported a total broadband investment in 2009 of approximately $820 000.
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
Commission, the Staff reviews the application and submits a recommendation to the
ORDER NO. 31073
Commission. Staff reviewed the list of proposed broadband equipment submitted by the
Company and believes that the equipment identified meets the statutory criteria. Staff therefore
recommended approval of the Application and further recommended that the Commission
forward an approving Order along with a copy of the original Application to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed the Company s Application and Staffs recommendation, 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 2009 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 2009 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. 31073
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho , this &
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day of May 2010.
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MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, C ' O
ATTEST:
~ill Je D. Jewell
Commission Secretary
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ORDER NO. 31073