20090917final_order_no_30902.pdf

Office of the Secretary
Service Date
September 17 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
COLUMBINE TELEPHONE COMPANY, INc.
DBA SILVER STAR COMMUNICATIONS
FOR AN INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBANDEQUIPMENT
CASE NO. COL-09-
ORDER NO. 30902
On July 29, 2009, the Commission received an Application from Columbine
Telephone Company, Inc. dba Silver Star Communications ("Columbine" or "Company
asking for approval of a broadband tax credit pursuant to Commission Order No. 28784 and
Idaho Code ~ 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." !d. 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 ~ 63-3029I(3)(b)(i).
THE APPLICATION
Columbine indicates that it has installed equipment that provides Asymmetrical
Digital Subscriber Line (ADSL), Symmetrical Digital Subscriber Line (SDSL) and Trunk Levell
(T - 1) services with transmission rates of 64 Kbps to 5 Mbps upstream and 256 Kbps to 20 Mbps
downstream. The qualifying equipment was installed in Teton County. Columbine claims that it
provides broadband service to 2 334 customers out of a possible 4 112 customers. The Company
identified approximately $1 875 000 of investment in qualifying broadband equipment for the
2008 calendar year.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Columbine
and found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
3029I(3)(b). Staff determined that Columbine s broadband equipment is capable of transmitting
signals at a rate of at least 200 000 bits per second to a subscriber and at least 125 000 bits per
second from a subscriber. Idaho Code ~ 63-3029I(3)(b). Staff also determined that Columbine
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 ~ 63-3029I(3)(b )(i).
ORDER NO. 30902
Therefore, Staff recommended that the Commission issue an Order approving the Application
and that the approving Order, along with a copy of Columbine 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.
Columbine has adequately demonstrated that the equipment identified in its Application
qualifying broadband equipment subject to the tax credit. We further find that Columbine 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 Columbine
application is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that the Application of Columbine Telephone Company,
Inc. dba Silver Star Communications 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 Columbine
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. 30902
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 11#
day of September 2009.
~ff. JI . KEMPT , P IDENT
J~.
MARSHA H. SMITH, COMMISSIONER
~A~
MACK A. RED , COMMISSIONER
ATTEST:
~fJJe D. Jewell
Commission Secretary
O:COL-09-
ORDER NO. 30902