20050823final order no 29849.pdf

Office of the Secretary
Service Date
August 23 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
COLUMBINE TELEPHONE COMPANY DBA
TETON TELECOM FOR AN INVESTMENT
TAX CREDIT FOR INSTALLING QUALIFIEDBROADBAND EQUIPMENT
CASE NO. COL-O5-
ORDER NO. 29849
On June 27, 2005, Columbine Telephone Company dba Teton Telecom (Teton) 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 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).
THE APPLICATION
Teton s Application states that it has installed central office equipment and fiber
cables to provide DSL and T1 services to Idaho customers. The Company asserts that this
equipment transmits data at speeds of 128K and 1.5M bits per second for uploads from
customers, and 256K and 1.5M bits per second for downloads to customers. The Company
further asserts that the equipment is necessary and integral to its broadband network.
The Application identified over $500 000 of investment in 2004. The Company
claims that 100% of this investment will be used to provide service to Idaho customers.
ST AFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. The Order identifies information that must be
included in an Application for broadband credit. Once the information has been filed, the
Commission Staff reviews the Application and submits a recommendation to the Commission.
In order to qualify for the tax credit, the broadband equipment must be capable
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 provider, the qualified
ORDER NO. 29849
broadband equipment must also "be necessary to the provision of broadband service and an
integral part of a broadband network." Idaho Code ~ 63-3029I(3)(b)(i).
Staff reviewed the list of proposed broadband equipment submitted by Teton and
determined that the identified equipment meets the statutory standards. Staff also determined
that Teton is a telecommunications provider and the equipment is "necessary for the provision of
broadband services 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
Teton s Application and forward the Order with a copy of the original Application to the Idaho
Tax Commission.
COMMISSION FINDINGS
Based on our review of the Application and Staff recommendations, we find that the
Application for a qualifying broadband equipment Order should be granted. Teton has
adequately demonstrated that it has installed qualifying broadband equipment identified in its
Application in conformance with the requirements set forth in Idaho Code ~ 63-30291. We
further find that Teton is a telecommunications carrier and, as configured, the installed
equipment is an integral part of a broadband network necessary to deliver broadband services to
Idaho customers. Idaho Code ~ 63-3029I(3)(b )(i). It is therefore appropriate for the
Commission to issue this Order confirming that Teton has installed broadband equipment as a
precondition to seeking an Idaho broadband tax credit.
ORDER
IT IS HEREBY ORDERED that Columbine Telephone Company dba Teton
Telecom s Application for an Order certifying it has installed qualifying broadband equipment is
granted.
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 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. See Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 29849
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :J.. tJ.
day of August 2005.
ATTEST:
~&.
D. Jewell
Commission Secretary
O:COL- T-05-kdp
ORDER NO. 29849
MARSHA H. SMITH, COMMISSIONER