20030728Final Order No 29307.pdf

Office of the Secretary
Service Date
July 28, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF ALBION TELEPHONE COMPANY CASE NO. ALB-03-
CONCERNING INVESTMENT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT TAX CREDIT
IN THE MATTER OF THE APPLICATION
OF CAMBRIDGE TELEPHONE COMPANY,CASE NO. CAM-03-
INC. CONCERNING INVESTMENT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT TAX CREDIT
IN THE MATTER OF THE APPLICATION
OF COLUMBINE TELEPHONE COMPANY CASE NO. COL- T -03-
CONCERNING INVESTMENT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT TAX CREDIT
IN THE MATTER OF THE APPLICATION
OF DIRECT COMMUNICATIONS CASE NO. DCM-03-
ROCKLAND, INc. CONCERNING
INVESTMENT FOR INSTALLING
QUALIFIED BROADBAND EQUIPMENT
TAX CREDIT
IN THE MATTER OF THE APPLICATION
OF SILVER STAR TELEPHONE COMPANY CASE NO. SIL- T -03-
INC. CONCERNING INVESTMENT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT TAX CREDIT ORDER NO. 29307
On May 21 , 2003, Albion Telephone Company, Cambridge Telephone Company,
Inc., Columbine Telephone Company, Direct Communications Rockland, Inc., and Silver Star
Telephone Company, Inc. filed Applications to receive an investment tax credit for installation
of broadband equipment under Idaho Code ~ 63-30291.
Pursuant to Idaho Code ~ 63-30291, an Idaho taxpayer may receive a tax credit for
installing eligible equipment, which must be part of network facilities that are 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, the qualified
ORDER NO. 29307
broadband equipment also must "be necessary to the provision of broadband service and an
integral part of a broadband network." Idaho Code ~ 63-3029I(3)(b )(i). A taxpayer may receive
the credit only after obtaining from the Commission an Order confirming that the installed
equipment qualifies under the statute. To facilitate its review under Idaho Code 9 63-30291, the
Commission issued Procedural Order No. 28784 in July 2001, identifying the information that
applicants must provide to the Commission to determine whether the installed equipment
qualifies for the tax credit.
THE APPLICATIONS
1. Albion s Application states that during calendar year 2002 it installed over 60
miles of fiber optic cable that connects its central offices in Cassia, Butte, and Custer Counties.
Albion provides xDSL broadband services to customers at speeds of 256 kbps to 1.54 Mbps.
Albion capitalized the labor and overhead costs associated with the installation of this
equipment.
2. Cambridge s Application states that it installed fiber optic cable and fiber
multiplexing terminals providing Asynchronous Digital Subscriber Line (ADSL) broadband
service to customers in Adams and Washington Counties. Cambridge also capitalized the labor
and overhead costs associated with the installation ofthis equipment.
3. Columbine s Application indicates that during calendar year 2002 it installed
Digital Subscriber Line (DSL)-capable line cards and supporting equipment in providing ADSL
and High Bit Rate Digital Subscriber Line (HDSL) broadband services to customers in Teton
County. Columbine also included in its Application the labor and overhead costs associated with
the installation of the equipment.
4. Direct Communications ' Application indicates that it installed fiber optic cable
and supporting line cards and ports to provide ADSL broadband service to customers in Bear
Lake, Bannock, Power, and Caribou Counties. Direct capitalized the labor and overhead costs
associated with the installation of the equipment.
5. Silver Star s Application states that during calendar year 2002 it installed
additional DSL line cards to provide ADSL broadband service to customers in Bonneville
County at speeds from 128 kbps from subscribers to 1.5 Mbps from subscribers. Silver Star also
states that it capitalized the labor and overhead costs associated with the installation of this
equipment.
ORDER NO. 29307
D ISCUSSI 0 N
Staff reviewed the Applications filed by Albion Telephone, Cambridge Telephone
Columbine Telephone, Direct Communications, and Silver Star Telephone to confirm that the
equipment is "necessary to the provision of broadband services and an integral part of a
broadband network." Idaho Code 9 63-3029I(3)(b)(i). Staff stated the equipment installed
qualifies for the tax credit, and Staff thus recommended the Commission approve the
Applications filed by the five telecommunications carriers.
Having reviewed the Applications filed by Albion Telephone, Cambridge Telephone
Columbine Telephone Direct Communications Silver Star Telephone and Staffs
recommendation, the Commission finds that the Companies' Applications for a qualifying
broadband equipment Order should be granted. The Companies have adequately demonstrated
that they installed the equipment identified in their Applications during 2002 to conform with the
requirements set forth in Idaho Code 9 63-30291. The Commission further finds that as
configured the installed equipment is an integral part of a broadband network necessary to
deliver broadband services to Idaho customers. It is therefore appropriate for the Commission to
issue this Order confirming that the five telecommunications carriers have installed qualified
broadband equipment as a precondition to seeking their respective investment tax credit.
ORDER
IT IS HEREBY ORDERED that Albion Telephone Company s Application for an
Order certifying that it has installed qualified broadband equipment is granted.
IT IS FURTHER ORDERED that Cambridge Telephone Company, Inc.
Application for an Order certifying that it has installed qualified broadband equipment is granted.
IT IS FURTHER ORDERED that Columbine Telephone Company s Application for
an Order certifying that it has installed qualified broadband equipment is granted.
IT IS FURTHER ORDERED that Direct Communications Rockland, Inc.
Application for an Order certifying that it has installed qualified broadband equipment is granted.
IT IS FURTHER ORDERED that Silver Star Telephone Company, Inc.'s
Application for an Order certifying that it has installed qualified broadband equipment is granted.
IT IS FURTHER ORDERED that the Commission Secretary will forward a copy of
this Order along with copies of the respective Applications of each of the five
telecommunications carriers to the Idaho Tax Commission.
ORDER NO. 29307
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :J.. V
day of July 2003.
64 J~A
:~~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
bls/O:ALBT030 1- CAMT0301- COL TO303 - DCMTO301- SIL TO301
ORDER NO. 29307