20120814final_order_no_32613.pdf

Office of the Secretary
Service Date
August 14,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF COLUMBINE TELEPHONE COMPANY,)CASE NO.COL-T-12-O1
INC.FOR AN INVESTMENT TAX CREDIT )
FOR INSTALLING QUALIFIED )ORDER NO.32613
BROADBAND EQUIPMENT )
On July 26,2012,the Commission received an Application from Columbine
Telephone Company (“Columbine”or “Company”)asking for approval of a broadband tax credit
pursuant to Commission Order No.28784 and Idaho Code §63-30291(4)for the 2011 calendar
year.
THE APPLICATION
Columbine’s Application states that it has installed equipment associated with
Asymmetric Digital Subscriber Line (ADSL),Symmetrical Digital Subscriber Line (SDSL),and
high-speed data T-1 services with transmission rates of 256 Kbps to 5 Mbps upstream and 256
Kbps to 20 Mbps downstream.During the 2011 calendar year,Columbine’s Application reports
that the Company’s broadband network served 2,527 customers and that the Company invested
approximately $1.1 million in qualifying broadband equipment in Teton County.
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-
30291(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 §63-30291(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 §63-30291(3)(b)(i).
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.
ORDERNO.32613 1
COMMISSION FINDINGS
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.”Idaho Code §63-30291(4).“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 §63-30291(3)(b)(i).
Based upon our review of the Application and the recommendations of the
Commission Staff,we find that Columbine’s Application requesting a qualified broadband
equipment Order should be granted.Columbine has adequately demonstrated that the equipment
identified in its Application qualifies as broadband equipment subject to the tax credit.We also
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.It is therefore
appropriate for the Commission to issue this Order confirming that the equipment identified in
Columbine’s Application is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Columbine Telephone Company,Inc.’s Application
seeking an Order certifying that it has installed qualifying broadband equipment in Idaho during
the 2011 calendar year is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Columbine’s
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 §6 1-626,63-30291(4).
ORDER NO.32613 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2012.
PAUL KJELL NDER,PRESIDENT
MACK A.REDFORD,COMMISS’IONER
SL
MARSHA H.SMITH,COMMISSIONER
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Commission Secretary
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ORDER NO.32613 3