20100309final_order_no_31019.pdf

Office of the Secretary
Service Date
March 9, 2010
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
ORDER NO. 31019
CASE NO. CTC-I0-
On February 10, 2010, the Commission received an Application from Citizens
Telecommunications ofIdaho dba Frontier Communications ofIdaho ("Frontier" or "Company
asking for approval of a broadband tax credit, pursuant to Commission Order No. 28784 and
Idaho Code 9 63-30291(4), for the Company s broadband investments during the 2009 calendar
year.
THE APPLICATION
In the Application, Frontier states that during the 2009 calendar year it installed
equipment associated with Asymmetrical Digital Subscriber Line (ADSL) services with network
transmission rates of up to 512 Kbps send and 3 Mbps receive. This equipment was installed in
12 Idaho exchanges: Fairfield, Marsing, McCall, Cascade, Carey, Donnelly, Homedale, Parma
Riggins, Garden Valley, Whitebird and Wilder. Frontier asserts that broadband is now available
to 92% of its Idaho customers. The Company states that it invested approximately $719 000 in
qualifying broadband equipment during 2009.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Frontier and
found that the equipment identified meets the statutory criteria outlined in Idaho Code 9 63-
30291(3)(b). Staff determined that Frontier 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 Frontier
Application, be forwarded to the Idaho State Tax Commission.
ORDER NO. 31019
COMMISSION FINDINGS
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 63-3029I(3)(b)(i).
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.
Frontier has adequately demonstrated that the equipment identified in its Application
qualifying broadband equipment subject to the tax credit. We further find that Frontier 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 Frontier s Application is qualifying
broadband equipment.
ORDER
IT IS HEREBY ORDERED that the Application of Citizens Telecommunications of
Idaho dba Frontier Communications of Idaho (Frontier) seeking 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 Frontier
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. Idaho Code 99 61-626 , 63-30291(4).
ORDER NO. 31019
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this Cj-fA
day of March 2010.
~/.
KEMPTO , P SIDENT
MARSHA H. SMITH, COMMISSIONER
~~~
MACK A. REDFORD, COM ISS NER
ATTEST:
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/ifJ)D. Je ellCo ission Secretary
O:CTC-10-
ORDER NO. 31019