20041025Final Order No 29618.pdf

Office of the Secretary
Service Date
October 25 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
COLUMBINE TELEPHONE COMPANY DBA
TETON TELECOM FOR AN INVESTIMENT
TAX CREDIT FOR INSTALLING QUALIFIED
BROADBAND EQUIPMENT ORDER NO. 29618
CASE NO. COL-O4-
On September 10, 2004, Columbine Telephone Company dba Teton Telecom
(Columbine; Company) filed an Application requesting that the Commission find the Company
eligible to receive an Idaho Investment Tax Credit. Pursuant to Idaho Code ~ 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 from the Commission an Order confirming
that the installed equipment meets the definition of qualified broadband equipment set out at
Idaho Code ~ 63-30291(3)(b). Briefly, 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, 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 Columbine has installed qualified broadband equipment.
THE APPLICATION
Columbine s Application indicates that, during 2003, it installed Digital Subscriber
Line (DSL) capable line cards, concentrators, and supporting equipment in providing
Asynchronous Digital Subscriber Line (ADSL) and High bit-rate Digital Subscriber Line
(HDSL) broadband services to customers in Teton County. The Company states that
transmission rates are from 128 kilobits per second (kbps) to 1.5 megabits per second (Mbps).
Columbine also installed over 17 miles of fiber optic cable in 2003. The Company capitalized
the labor and overhead costs associated with the installation of this equipment, and indicates
nearly $630 000 of broadband investment for 2003.
ST AFF 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
ORDER NO. 29618
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 reviewed the list of broadband equipment submitted by Columbine. Staff
believes that the equipment is "necessary for the provision of broadband services and an integral
part of a broadband network."Idaho Code ~ 63-30291(3)(b )(i).Consequently, Staff
recommends that the Commission issue an Order approving Columbine s Application. Staff
further recommends that the Commission forward the approving Order, along with a copy of the
original Application, to the Idaho Tax Commission.
FINDINGS
Having reviewed Columbine s Application and Staffs recommendation, we find that
the Application for a qualifying broadband equipment Order should be granted. The Company
has demonstrated that the installed broadband equipment identified in its Application conforms
with the qualifying requirements of Idaho Code ~ 63-30291(b).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. Idaho Code ~ 63-30291(3)(b )(i). It is therefore
appropriate for the Commission to issue this Order confirming that Columbine 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 Columbine Telephone Company dba Teton
Telecom s Application for an Order certifying that it has installed qualifying broadband
equipment is approved.
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. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ 61-
626.
ORDER NO. 29618
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;2J-JJ..
day of October 2004.
ATTEST:
O:COLT0403 dw
ORDER NO. 29618