20170330final_order_no_33733.pdf

Office of the Secretary
Service Date
March 30,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF COLUMBINE TELEPHONE COMPANY,)CASE NO.COL-T-16-Oi
INC.FOR AN INVESTMENT TAX CREDIT )
FOR INSTALLING QUALIFYING )ORDER NO.33733
BROADBAND EQUIPMENT )
On December 21,2016,1 the Commission received an Application from Columbine
Telephone Company,Inc.(“Columbine”or “Company”)seeking a Commission Order certifying
that the Company has installed qualified broadband equipment in Idaho,pursuant to Commission
Order No.28784 and Idaho Code §63-30291(4),during the 2012,2013,2014,and 2015 calendar
years.
THE APPLICATION
In its Application,Columbine stated that it installed equipment associated with
Asymmetric Digital Subscriber Line (ADSL),Very High Speed Digital Subscriber Line (VDSL),
and Fiber to the X (FTTX)services with transmission rates of 1 to 50 Mbps upstream and 1 to 50
Mbps downstream.See Application at 2.The Company also stated that more than 50%of its
customers have access to its broadband network within its designated service area.See
Amendment to Application at 2.The Company stated that it installed equipment that qualifies
for the broadband tax credit in the following approximate amounts:$945,000 in 2012;
$1,466,000 in 2013;$1,755,000 in 2014;and $3,755,000 in 2015.The Company provided
exhibits that lists equipment it believed qualifies for the tax credit,stating that “the listed
equipment shown on the exhibits to the application constitutes an integral part of the relevant
broadband network,necessary to broadband services....“See Amendment to Application at 2.
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 (bps)to a subscriber and at least 125,000 bps
from a subscriber.Idaho Code §63-30291(3)(b).Staff also determined that the Company is a
telecommunications carrier and its equipment is “necessary to the provision of broadband service
The Company filed an amendment to its original Application on February 28,2017.
ORDERNO.33733 1
and an integral part of a broadband network.”Idaho Code §63-30291(3)(b)(i).Staff
recommended that the Commission issue an Order approving the Application and forward the
Order,along with a copy of Co1umbines Application,as amended,to the Idaho State Tax
Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the broadband tax credit,a 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 recommendation of Commission
Staff,we find that Columbine’s Application requesting a qualified broadband equipment Order
should be approved.Columbine has adequately demonstrated that the equipment identified in its
Application qualifies as broadband equipment eligible for the tax credit.The Commission also
finds 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.Therefore,the
Commission certifies in this Order that the equipment identified in Columbine’s Application is
qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that the Application of Columbine Telephone Company,
Inc.,seeking an Order certifying that it has installed qualified broadband equipment in Idaho
during the 2012,2013,2014,and 2015 calendar years,is approved.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Columbine’s
Application shall be forwarded to the Idaho State Tax Commission.
THIS IS A FfNAL 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 §S 61-626,63-30291(4).
ORDER NO.33733
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of March 2017.
PAUL KJELLAY R,PRESIDENT
KRI TINE RAPER,COMvIISSTONER
/
ERIC ANDERSON,COMMISSIONER
ATTEST:
4
Diane M.Hanian
Commission Secretary
O:COL-T-16-0 lsc
ORDER NO.33733 3