20031009Final Order No 29356.pdf

Office of the Secretary
Service Date
October 9, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF CUSTER TELEPHONE COOPERATIVE,
INc. CONCERNING INVESTMENT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT TAX CREDIT.ORDER NO. 29356
CASE NO. CUS- T -03-
On September 5, 2003 , Custer Telephone Cooperative, Inc. filed an Application to
receive an investment tax credit for installation of broadband equipment under Idaho Code ~ 63-
30291. An Idaho taxpayer may receive a tax credit for installing eligible equipment, which must
be part of network facilities that are 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. In the case of a
telecommunications carrier " the qualified broadband equipment also must "be necessary to the
provision of broadband service and an integral part of a broadband network." Idaho Code ~ 63-
30291(3)(b )(i). A taxpayer may receive the credit only after obtaining from the Commission an
Order confirming that the installed equipment qualifies under the statute. To facilitate its review
under Idaho Code ~ 63-30291, the Commission issued Procedural Order No. 28784 in July 2001
identifying the information that applicants must provide to the Commission to determine whether
the installed equipment qualifies for the tax credit.
THE APPLICATION
Custer s Application states that during calendar year 2002 it installed varIOUS
components as part of its wireline broadband network for the provision of high speed Internet
access to its Idaho customers. Custer states that it installed fiber optic transceivers, digital loop
carrier shelves, line cards, concentrating electronics, and supporting power supply and software.
Custer also installed approximately 30 miles of fiber optic cable and 10 miles of copper
distribution cable. Custer also included in its Application labor and overhead costs associated
with the installation of the equipment.
Custer states that it offers high-speed access to its customers at transmission rates of
128 kilobits (kbps) to 1.54 megabits per second (Mbps). The Application states that Custer
offers Asynchronous Digital Subscriber Line (ASDL) to customers using primarily equipment
manufactured by AFC.
ORDER NO. 29356
DISCUSSION
Staff reviewed the Application filed by Custer to confirm that the equipment is
necessary to the provision of broadband services and an integral part of a broadband network.
Staff stated the equipment installed by Custer qualifies for the tax credit and recommended the
Commission approve the Application.
Having reviewed the Application filed by Custer and Staff s recommendation, the
Commission finds that the Company s Application for a qualifying broadband equipment Order
should be granted. The Company has adequately demonstrated that it installed the equipment
identified in its Application during 2002 to conform with the requirements set forth in Idaho
Code ~ 63-30291. The Commission further finds that, as configured, the installed equipment is
an integral part of a broadband network necessary to deliver broadband services to Idaho
customers. It is therefore appropriate for the Commission to issue this Order confirming that
Custer has installed qualified broadband equipment as a precondition to seeking an investment
tax credit.
ORDER
IT IS HEREBY ORDERED that Custer Telephone Cooperative s Application for an
Order certifying that it has installed qualified broadband equipment is granted.
IT IS FURTHER ORDERED that the Commission Secretary forward a copy of this
Order along with the Application to the Idaho Tax Commission.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of 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.
ORDER NO. 29356
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 'i""
day of October 2003.
ATTEST:
EillD. Jewell
ommlSSlOn Secretary
bls/O:CUST0301 dh
ORDER NO. 29356