20061101final_order_no_30163.pdf

Office of the Secretary
Service Date
November 1 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
CAMBRIDGE TELEPHONE COMPANY, INc.
FOR AN INVESTMENT TAX CREDIT FOR
INST ALLING QUALIFIED BROADBAND EQUIPMENT
CASE NO. CAM-06-
ORDER NO. 30163
On October 12, 2006 Cambridge Telephone Company, Inc. 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). 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 the case of a telecommunications carrier such as Cambridge, the qualified
broadband equipment must also "be necessary to the provision of broadband service and an
integral part of a broadband network." Idaho Code 9 63-3029I(3)(b)(i). In this Order, we find
that Cambridge Telephone has installed qualified broadband equipment.
THE APPLICATION
During calendar year 2005, Cambridge states that it installed central office equipment
and fiber cables to provide digital subscriber line (DSL), T1 , DS3, and frame relay services to
Idaho customers. The Company indicates its broadband services provide speeds of between
256 000 and 3 000 000 bps to customers. In association with the OC-48 fiber optic ring provided
by Syringa Networks, Cambridge is in the process of expanding its DSL service to each of its
exchanges. The Company indicates that the installed equipment is necessary and integral to its
broadband network and claims that 100% of the investment will be used to provide broadband
services to Idaho customers.
ORDER NO. 30163
ST AFF REVIEW
To implement its responsibilities under Idaho Code 9 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 has been filed, then
the Commission Staff reviews the application and submits a recommendation to the
Commission.Staff has reviewed the list of installed broadband equipment submitted by
Cambridge and believes the identified equipment meets the statutory criteria. Consequently, the
Staff recommends that the Commission issue an Order approving Cambridge Telephone
Application.
COMMISSION FINDINGS
Having reviewed Cambridge Telephone 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 2005 in conformance with Idaho Code 9 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. Therefore, the Commission issues this Order
confirming that Cambridge Telephone 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 Cambridge Telephone Company s Application for
an Order certifying that 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. 30163
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 2/ #'
day of October 2006.
PAUL KJELDA
if &:.L
ARSHA H. SMITH, COMMISSIONER
ATTEST:
bls/O:CAM-06-01 dh
ORDER NO. 30163