20130129final_order_no_32730.pdf

Office of the Secretary
Service Date
January 29,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CITIZENS )
TELECOMMUNICATIONS COMPANY OF )CASE NO.CTC-T-12-02
IDAHO DBA FRONTIER COMMUNICATIONS )
OF IDAHO’S 2011 BROADBAND EQUIPMENT )ORDER NO.32730
TAX CREDIT APPLICATION.)
On December 20,2012,Citizens Telecommunications Company of Idaho dba
Frontier Communications of Idaho applied to the Commission for an Order confirming that
equipment it installed in 2011 is “qualified broadband equipment”under Idaho Code §63-30291
(Income tax credit for investment in broadband equipment).With this Order,we confirm that
the installed equipment is “qualified broadband equipment”under Idaho Code §63-30291.
THE APPLICATION
In its Application,the Company says it invested $403,824.38 in qualifying broadband
equipment in 2011.The Company says it installed equipment associated with Asymmetric
Digital Subscriber Line (ADSL)services with transmission rates of 640,000 bits per second (bps)
from a subscriber and 6,000,000 bps to a subscriber.The Company says it installed the
broadband equipment in the Aberdeen,Carey,Cascade,Donnelly,Garden Valley,Homedale,
Horseshoe Bend,Marsing,McCall,Parma,and Wilder exchanges,and that the broadband
network can serve about 13,536 Idaho customers,which is more than 89%of the Company’s
total customer base.See Application.
STAFF REVIEW
In July 2001,the Commission issued Procedural Order No.28784 to implement its
responsibilities under Idaho Code §63-30291.That Order identifies information that must be
included in a broadband tax credit application.When a company files an application,the
Commission Staff reviews it to determine whether the listed equipment meets the statutory
definition of “qualified broadband equipment.”Staff then submits a recommendation to the
Commission.
Staff reviewed the Company’s Application and believes that the listed equipment is
“qualified broadband equipment”under Idaho Code §63-30291.That statute defines “qualified
broadband equipment”as equipment that qualifies for the Idaho Code §63-3029B capital
ORDER NO.32730 1
investment credit that “is capable of transmitting signals at a rate of at least [200,000 bps]to a
subscriber and at least [125,000 bps]from a subscriber.”Idaho Code §63-30291(3)(b).Further,
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 §63-
30291(3 )(b)(i).
Staff believes that the Company is a telecommunications carrier and that the listed
equipment meets the above-described statutory criteria and is “qualified broadband equipment”
that is eligible for the tax credit.Staff thus recommended that the Commission:(1)issue an
Order confirming that the Company’s equipment is “qualified broadband equipment,”and (2)
forward copies of the Application and Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Application and Staff’s recommendation,we find
that the Company’s equipment is “qualified broadband equipment”subject to the tax credit under
Idaho Code §63-30291.The Company is a telecommunications carrier.Further,the listed
equipment (as presently configured)is an integral part of the Company’s broadband network and
is necessary to the provision of broadband service to Idaho customers.Accordingly,it is
appropriate for the Commission to issue an Order confirming that the Company’s equipment is
“qualified broadband equipment.”The Commission makes no findings regarding the costs of the
installed broadband equipment or other expenses.
ORDER
IT IS HEREBY ORDERED that Citizens Telecommunications Company of Idaho
dba Frontier Communications of Idaho’s Application for an Order confirming that equipment it
installed in 2011 is “qualified broadband equipment”is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served on 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 §6 1-626 and 62-6 19.
ORDER NO.32730 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 2?
day of January 2013.
ATTEST:
PALl.KWLIA,DIR.PRl.SIDLNI
SIONER
iL&2
MARSHA H.SMITH,COMMISSIONER
7’IL ‘A_X
Ján D.Jewel1)
Commission Secretary
O:CTC-T-1 2-O2kk
ORDER NO.32730 3