20070823final_order_no_30412.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
August 23, 2007
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 FOR THE YEAR 2004
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 FOR THE YEAR
2005
CASE NO. CTC- T -07-
CASE NO. CTC-07-
ORDER NO. 30412
On July 10, 2007, the Commission received two Applications from Citizens
Telecommunications of Idaho dba Frontier Communications of Idaho (Frontier) asking for
approval of equipment for the broadband tax credit for years 2004 and 2005 pursuant to Order
No. 28784 and Idaho Code ~ 63~3029I(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 s investment meets the applicable standards.
THE APPLICATIONS
1. 2004 Broadband Tax Credit (Case No. CTC-07-03). Frontier identified the
equipment that was installed to provide Asymmetric Digital Subscriber Line (ADSL) service in
McCall, Cascade, Donnelly, Homedale, New Meadows, Horseshoe Bend, and Garden Valley
exchanges. Frontier states that this equipment will allow network transmission rates to its
customers at speeds of 512 Kbps to 3 Mbps. The Company indicated the equipment is necessary
and integral to its broadband network. The Company claims that 100% of the identified
ORDER NO. 30412
investment will be used to provide service to Idaho customers. The 2004 broadband tax credit
investment is approximately $570 000.
2. 2005 Broadband Tax Credit (Case No. CTC-07-04)Frontier identified the
equipment that was installed to provide Asymmetric Digital Subscriber Line (ADSL) service to
customers in McCall, Cascade, Donnelly, Homedale, New Meadows, Riggins, Garden Valley,
Wilder, and Parma exchanges.Frontier states that this equipment will allow network
transmission rates to its customers at speeds of 5l2 Kbps to 3 Mbps. The Company indicated the
equipment is necessary and integral to its broadband network. The Company claims that lOO%
of the identified investment will be used to provide service to Idaho customers. The 2005
broadband tax credit investment is approximately $723 000.
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 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 Applications and further recommended that the Commission
forward an approving Order along with a copy of the original Applications to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed Frontier s Applications and Staffs recommendations, we find that
the Applications for a qualifying broadband equipment Order should be granted. The Company
has demonstrated that it installed qualifying broadband equipment identified in its Applications
during 2004 and 2005 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. 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 NO. 30412
ORDER
IT IS HEREBY ORDERED that Citizens Telecommunications of Idaho dba Frontier
Communications of Idaho s Applications for an Order certifying that it has installed qualifying
broadband equipment for 2004 and 2005 is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the
Applications 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).
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :;':1.
day of August 2007.
MARSHA H. SMITH, COMMISSIONER
~~,
ATTEST:
bls/O:CTC- T-07-03 - CTC- T-O7-- ws
ORDER NO. 30412