20071227final_order_no_30479.pdf

Office of the Secretary
Service Date
December 27, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF CENTURYTEL OF IDAHO, INC. FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
CASE NO. CEN-07-
ORDER NO. 30479
On November 16, 2007, the Commission received an Application from CenturyTel
of Idaho, Inc. ("CenturyTel") 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." Idaho Code ~ 63-30291(4). "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
CenturyTel submitted a broadband tax credit application for the years 2004 through
2006. The Application indicates that the Company has installed Asymmetrical Digital
Subscriber Line (ADSL) equipment in the cities of Salmon, North Fork and Leadore, Idaho. The
equipment enabled transmission rates from 1 Mbps to a subscriber and 129 Mbps from a
subscriber. The Company states that as a result of the installed equipment the percentage and
number of potential broadband subscribers in Idaho were 480 or 62% in 2004; 774 or 83% in
2005; and 1 434 or 72% in 2006. The Company s total investment in qualified broadband
equipment amounted to approximately $592 000, spread over the three-year period.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by CenturyTel
and found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
3029I(3)(b). Staff determined that CenturyTel's broadband equipment is capable of transmitting
signals at a rate of ~t least 200 000 bits per second (bps) to a subscriber and at least 125 000 bps
from a subscriber. Idaho Code ~ 63-3029I(3)(b). Staff also determined that CenturyTel is a
telecommunications carrier and its equipment is "necessary to the provision of broadband service
ORDER NO. 30479
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 Century Tel's Application, be forwarded to the Idaho State
Tax Commission.
COMMISSION FINDINGS
Based upon our review of the Application and the recommendations of Staff, we find
that the Application for a qualifying broadband equipment Order should be granted. CenturyTel
has adequately demonstrated that the equipment identified in its Application is qualifying
broadband equipment subject to the tax credit. We further find that CenturyTel 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 CenturyTel'
Application is qualifying broadband equipment.
ORDER
IT IS HEREBY ORDERED that CenturyTel of Idaho, Inc.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 CenturyTel'
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. 30479
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J.1
day of December 2007.
~n~ Ii
MARSHA H. SMITH, COMMISSIONER
ATTEST:
ill.
D. Jewell
mission Secretary
O:CEN-07-
ORDER NO. 30479