20040312Final Order No 29443.pdf

Office of the Secretary
Service Date
March 12 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
CITIZENS TELECOMMUNICATIONS
COMPANY OF IDAHO (DBA FRONTIER) FOR
AN INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND )EQUIPMENT.
CASE NO. CTC-O4-
ORDER NO. 29443
On February 17, 2004, Citizens Telecommunications Company of Idaho (dba
Frontier) 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 from the Commission an Order confirming that the
equipment has been installed and that it meets the definition of qualified broadband equipment
set out at Idaho Code ~ 63-30291(3)(b). Briefly, qualified broadband equipment must be 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. In the case of a telecommunications carrier, the qualified
broadband equipment must also "be necessary to the provision of broadband service and an
integral part of a broadband network." Idaho Code ~ 63-30291(3)(b)(i). In this Order, we find
that Citizens Telecommunications has installed qualified broadband equipment.
THE APPLICATION
During calendar years 2002 and 2003 , Citizens states that it installed vanous
components as part of its wireline Asymmetrical Digital Subscriber Line (ADSL) broadband
network for the provision of high-speed Internet access to customers in the McCall, New
Meadows, Riggins, Cascade and Donnelly areas. Such component equipment included splitters
line cards, access ports, and supporting software. Citizens indicates in its Application that it
offered network transmission rates of up to 128 megabits per second (Mbps) to a subscriber and
up to 1 Mbps from a subscriber. Citizens maintains that it spent approximately $46 400 in 2002
and $417 500 in 2003 for broadband equipment.
ORDER NO. 29443
STAFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. This Order identifies information that must be
included in an Application for a broadband credit. Once the information has been filed, then the
Commission Staff reviews the Application and submits a recommendation to the Commission.
Staff reviewed the list of broadband equipment installed by Citizens. Staff believes that the
equipment is "necessary for the provision of broadband services and an integral part of a
broadband network.Idaho Code ~ 63-30291(3)(b)(i). Consequently, Staff recommends that the
Commission issue an Order approving Citizens ' Application.
FINDINGS
Having reviewed Citizens' Application and Staffs recommendation , we find that the
Application for a qualifying broadband equipment Order should be granted. The Company has
demonstrated that it installed qualifying broadband equipment identified in its Application
during 2002 and 2003 in conformance with Idaho Code ~ 63-30291. We further find that
configured, the installed equipment is an integral part of a broadband network necessary to
deliver broadband services to Idaho customers. It is therefore appropriate for the Commission to
issue this Order confirming that Citizens has installed qualified broadband equipment as a
precondition to seeking an Idaho broadband tax credit. The Commission makes no findings
regarding the costs of the installed broadband equipment.
ORDER
IT IS HEREBY ORDERED that Citizens Telecommunications of Idaho
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 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) issued in this Case No. CTC-04-1 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 issued in this Case No. CTC- T -04-1. Within seven (7) days after any person has
petitioned for reconsideration, any other person may cross-petition for reconsideration. See
Idaho Code ~ 61-626.
ORDER NO. 29443
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
/)..
f1..
day of March 2004.
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSEN, COMMISSIONER
ATTEST:
D. Jewell
Commission Secretary
vld/O:CTCT0401 dh
ORDER NO. 29443