20070612final_order_no_30341.pdf

Office of the Secretary
Service Date
June 12 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
CITIZENS TELECOMMUNICATIONS OF
IDAHO DBA FRONTIER COMMUNICATIONS
OF IDAHO FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFIED BROADBAND EQUIPMENT
CASE NO. CTC-07-
ORDER NO. 30341
On April 18, 2007, the Commission received an Application from Citizens
Telecommunications of Idaho dba Frontier Communications of Idaho (Frontier) asking for
approval of equipment for the broadband tax credit pursuant to Order No. 28784 and Idaho Code
~ 63-30291(4). To be eligible for the tax credit, the taxpayer must obtain an Order from the
Commission confirming that the equipment has been installed and that it meets the definition of
qualified broadband equipment set out in Idaho Code ~ 63-3029I(3)(b). 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. The qualified broadband
equipment must also "be necessary to the provision of broadband service and an integral part of a
broadband network." Idaho Code ~ 63-3029I(3)(b)(i). In this Order, we find that Frontier
investment meets the applicable standards.
THE APPLICATION
Frontier s Application identifies the Company s broadband investments for the year
2006. The Application indicated Frontier had installed central office equipment and fiber and
copper cables to provide DSL services to Idaho customers. Frontier indicated its slowest DSL
service provides speeds of 256K bits per second for uploads from customers, and 1M bits per
second for downloads to customers. The Company indicated the equipment is necessary and
integral to its broadband network. The Company claims that 100% of the identified investment
will be used to provide service to Idaho customers. The Application identified over $300 000 of
investment in broadband facilities in 2006.
ORDER NO. 30341
ST AFF 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
included in an application for a broadband tax credit. Once the information is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
Commission.Staff has reviewed the list of proposed broadband equipment submitted by
Frontier and believes that the equipment identified meets the statutory criteria. Staff therefore
recommended approval of the Application and further recommended that the Commission
forward an approving Order along with a copy of the original Application to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed Frontier s 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 2006 in conformance with Idaho Code ~ 63-30291. We further find that as configured
the installed equipment is an integral part of a broadband network necessary to deliver broadband
services to Idaho customers. The Commission accordingly issues this Order confirming that
Citizens Telecommunications of Idaho dba Frontier Communications of Idaho 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 dba Frontier
Communications of Idaho 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 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) 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. See Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 30341
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this 1;;;14-
day of June 2007.
(j~
MARSHA H. SMITH, COMMISSIONER
,2)
, COMMISSIONER
ATTEST:
' D. Jewell I
Ceinmission Secretary
bls/O:CTC-07-02 ws
ORDER NO. 30341