20090428final_order_no_30789.pdf

Office of the Secretary
Service Date
April 28, 2009
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 QUALIFYING
BROADBAND EQUIPMENT
) CASE NO. CTC-09-
) ORDER NO. 30789
On March 31 , 2009, the Commission received an Application from Citizens
Telecommunications of Idaho dba Frontier Communications of Idaho ("Citizens ) asking for
approval of a broadband tax credit for the 2008 calendar year pursuant to Commission Order No.
28784 and Idaho Code 9 63-30291(4). 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 9 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 9 63-
30291(3)(b )(i).
THE APPLICATION
Citizens' Application states that, during the 2008 calendar year, the Company
installed approximately $893 600 of qualifying broadband equipment in Idaho for the benefit of
its Idaho subscribers. The Application states that the Company installed various components of
its Asymmetrical Digital Subscriber Line (ASDL) broadband network enabling Citizens to
provide high-speed Internet access to approximately 18 750 customers, 87% of its Idaho
customer base, in the Idaho communities of Horseshoe Bend, McCall, Homedale, Aberdeen
Wilder, Garden Valley, Cascade, Riggins, and Sweet. Citizens states that it offers broadband
service to its customers at transmission rates of up to 512 Kbps to subscribers and 3 Mbps from a
subscriber.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Citizens and
found that the equipment identified meets the requirements outlined in Idaho Code 9 63-
30291(3)(b) and Commission Order No. 28784. Staff determined that Citizens' broadband
equipment is capable of transmitting signals at a rate of at least 200 000 bits per second to a
ORDER NO. 30789
subscriber and at least 125 000 bits per second from a subscriber. Idaho Code 963-30291(3)(b).
Staff also determined that Citizens 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 9 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 Citizens
Application, be forwarded to the Idaho State Tax Commission.
COMMISSION FINDINGS
Based upon our review of the Application and the recommendations of the Staff, we
find that the Application for a qualifying broadband equipment Order should be granted.
Citizens has adequately demonstrated that the equipment identified in its Application
qualifying broadband equipment subject to the tax credit. We further find that Citizens 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 Citizens' Application is qualifying
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 Citizens
Application be served upon the Idaho State Tax Commission.
THIS IS A FINAL ORDER. Anyperson 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 99 61-626 63-30291(4).
ORDER NO. 30789
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;;l
&'t+-
day of April 2009.
~~-
. KEMPTO , P SIDENT
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, COMMISSIONER
ATTEST:
O:CTC-09-
ORDER NO. 30789