20070712final_order_no_30369.pdf

Office of the Secretary
Service Date
July 12, 2007
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
INST ALLING QUALIFYING BROADBAND
EQ UIPMENT
ORDER NO. 30369
CASE NO. COL- T -07-
On April 12, 2007, the Commission received an Application from Columbine
Telephone Company dba Teton Telecom ("Teton ) asking for approval of a broadband tax credit
pursuant to Commission Order No. 28784 and Idaho Code 9 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." Id. 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 9 63-3029I(3)(b )(i).
THE APPLICATION
Teton s Application states that it has installed central office equipment and fiber
optic cables to provide DSL and Tl services to Idaho customers. The Application indicates its
service provides speeds of between 64 000 and 1.5 million bps for uploads from customers, and
256 000 and 1.5 million bps for downloads to customers. In subsequent conversations with
Staff, Teton corrected the minimum upload speed to 128 000. The Company states that the
equipment is necessary and integral to its broadband network and that 100 percent of the
investment will be used to provide service to Idaho customers. The Application identified
approximately $700 000 of investment in 2006.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Teton and
found that the equipment identified meets the statutory criteria outlined in Idaho Code 9 63-
3029I(3)(b). Staff determined that Teton s broadband equipment is capable of transmitting
signals at a rate of at least 200 000 bps to a subscriber and at least 125 000 bps from a subscriber.
Idaho Code 9 63-3029I(3)(b). Staff also determined that Teton is a telecommunications carrier
and its equipment is "necessary to the provision of broadband service and an integral part of a
broadband network." Idaho Code 9 63-3029I(3)(b)(i). Therefore, Staff recommended that the
ORDER NO. 30369
Commission issue an Order approving the Application and that the approving Order, along with
a copy of Teton s Application, be forwarded to the Idaho State Tax Commission.
COMMISSION 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. Teton
has adequately demonstrated that the equipment identified in its Application is qualifying
broadband equipment subject to the tax credit. We further find that Teton 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 Teton s Application
is qualified 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 granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Teton
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 99 61-626 63-30291(4).
ORDER NO. 30369
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /;2
ft.
day of July 2007.
ATTEST:
/1 & !)K~ewell
ummlSSlOn ecretary
O:COL-07-
ORDER NO. 30369
L1~
MARSHA H. SMITH, COMMISSIONER