20070712final_order_no_30368.pdf

Office of the Secretary
Service Date
July 12, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF CAMBRIDGE TELEPHONE COMPANY
FOR AN INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
ORDER NO. 30368
CASE NO. CAM-07-
On June 27, 2007, the Commission received an Application from Cambridge
Telephone Company ("Cambridge ) asking for approval of a broadband tax credit pursuant to
Commission Order No. 28784 and Idaho Code ~ 63-30291(4). In order to be eligible to obtain
the tax credit, the taxpayer must first obtain an Order from the Commission "confirming that the
installed equipment is qualified broadband equipment." Id. In the case of a telecommunications
carrier, such qualifying equipment shall be necessary to the provision of broadband service and
an integral part of a broadband network." Idaho Code ~ 63-3029I(3)(b )(i).
THE APPLICATION
Cambridge s Application states that it has installed central office equipment and fiber
optic cables to provide DSL, Tl , DS3 and Frame Relay services to Idaho customers.
Cambridge s Application indicates its service provides speeds of between 256 000 and 5 000 000
bps to customers. The Company states that the equipment is necessary and integral to its
broadband network and that 100 percent of the investment will be used to provide service to
Idaho customers. The Application identified over $1 000 000 of investment in 2006.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Cambridge
and found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
3029I(3)(b). Staff determined that Cambridge s broadband equipment is 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.
Idaho Code ~ 63-3029I(3)(b). Staff also determined that Cambridge is a telecommunications
carrier and its equipment is "necessary to the provision of broadband service and an integral part
of a broadband network." Idaho Code ~ 63-3029I(3)(b)(i). Therefore, Staff recommended that
the Commission issue an Order approving the Application and that the approving Order, along
with a copy of Cambridge s Application, be forwarded to the Idaho State Tax Commission.
ORDER NO. 30368
COMMISSION FINDINGS
Based upon our review of the Application and the recommendations of the Staff, we
find that the Application for a qualifying broadband equipment Order should be granted.
Cambridge has adequately demonstrated that the equipment identified in its Application is
qualifying broadband equipment subject to the tax credit. We further find that Cambridge is a
telecommunications carrier and, as presently configured, the installed equipment is an integral
part of the Company s broadband network and that it is necessary to facilitate the delivery of
broadband Internet service to Idaho customers. Id. It is therefore appropriate for the
Commission to issue this Order confirming that the equipment identified in Cambridge
Application is qualified 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 Cambridge
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. Idaho Code ~~ 61-626 63-30291(4).
ORDER NO. 30368
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this I J-r-
day of July 2007.
OWL
MARSHA H. SMITH, COMMISSIONER
. .
OMMISSIONER
ATTEST:
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Cb-Inmission Secretary
O:CAM- T-07-0 I
ORDER NO. 30368