20110809final_order_no_32322.pdf

Office of the Secretary
Service Date
August 9,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CENTURYTEL OF GEM STATE,INC.)CASE NO.CGS-T-11.-02
FOR AN INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER O.32322
EQUIPMENT )
On July 21,2011,CenturyTel of Gem State,Inc.filed an Application requesting
approval of equipment as eligible for a 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.If installed by a
telecommunications carrier,the qualified broadband equipment must also “be necessary to the
provision of broadband service and an integral part of a broadband network.”Idaho Code §63-
30291(3)(b)(i).In this Order,we find that the Company’s investment meets the applicable
standards.
THE APPLICATION
CenturyTel’s Application states that it installed equipment associated with
Asymmetrical Digital Subscriber Line (ADSL)service in the Grandview,Bruneau,and
Grasmere Riddle exchanges with transmission rates of 1 Mbps to a subscriber and 125 Kbps
from a subscriber.CenturyTel asserts that 72%of its customers can be served by the broadband
network.The Company states that it invested approximately $304,000 in qualifying broadband
equipment during 2010.
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,Staff reviews the application and submits a recommendation to the Commission.
Staff has reviewed the list of proposed broadband equipment submitted by CenturyTel and
ORDER NO.32322 1
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.
COMI4IISSION 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.
CenturyTel has adequately demonstrated that the equipment identified in its Application meets
the statutory standards for 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.It is therefore
appropriate for the Commission to issue this Order confirming that the equipment identified in
Centurylel’s Application is qualified broadband equipment as defined in Idaho Code §63-
30291.
ORDER
IT IS HEREBY ORDERED that CenturyTel of Gem State,Inc.’s Application for an
Order certifying that it installed qualifying broadband equipment during 2010 is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of CenturyTel’s
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.32322 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this f
day of August 2011
ATTEST:
MACK A.REDFORD,COMMISSIONER
-,C)4
MARSHA H.SMITH,COMMISSIONER
/J
Jan D.Jewel()
Commission Secretary
bls/O:CGS-T-i I-O2ws
ORDER NO.32322 3