20050823final order no 29848.pdf

Office of the Secretary
Service Date
August 23, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
CUSTER TELEPHONE CO-OP INC. FOR AN INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND EQUIPMENT
CASE NO. CUS-O5-
ORDER NO. 29848
On July 29, 2005 , Custer Telephone Co-op Inc. filed an Application requesting that
the Commission find the Company eligible to receive an Idaho Investment Tax Credit. Pursuant
to Idaho Code ~ 63-30291, an Idaho taxpayer may receive a tax credit for installing "qualified
broadband equipment" in Idaho. 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 ~ 63-30291(3)(b).
THE APPLICATION
Custer s Application states that it has installed central office equipment and fiber and
copper cables to provide DSL service to Idaho customers. The Company asserts that this
equipment transmits data at speeds of 128K and 512K bits per second for uploads from
customers, and 512K and 1.5M bits per second for downloads to customers. The Company
further asserts that the equipment is necessary and integral to its broadband network.
The Application identified nearly $500 000 of investment in 2004. The Company
claims that 100% of this investment will be used to provide service to Idaho customers.
ST AFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. The Order identifies information that must be
included in an Application for broadband credit. Once the information has been filed, the
Commission Staff reviews the Application and submits a recommendation to the Commission.
In order to qualify for the tax credit, the 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. In the case of a telecommunications provider, the qualified
broadband equipment must also "be necessary to the provision of broadband service and an
integral part of a broadband network." Idaho Code ~ 63-30291(3)(b )(i).
ORDER NO. 29848
Staff reviewed the list of proposed broadband equipment submitted by Custer and
determined that the identified equipment meets the statutory standards. Staff also determined
that Custer is a telecommunications provider and the equipment is "necessary for the provision
of broadband services and an integral part of a broadband network." Idaho Code ~ 63-
30291(3)(b)(i). Therefore, Staff recommended that the Commission issue an Order approving
Custer s Application and forward the Order with a copy of the original Application to the Idaho
Tax Commission.
COMMISSION FINDINGS
Based on our review of the Application and Staff recommendations, we find that the
Application for a qualifying broadband equipment Order should be granted. Custer has
adequately demonstrated that it has installed qualifying broadband equipment identified in its
Application in conformance with the requirements set forth in Idaho Code ~ 63-30291. We
further find that Custer is a telecommunications carrier and, as configured, the installed
equipment is an integral part of a broadband network necessary to deliver broadband services to
Idaho customers. Idaho Code ~ 63-30291(3)(b)(i). It is therefore appropriate for the
Commission to issue this Order confirming that Custer has installed broadband equipment as a
precondition to seeking an Idaho broadband tax credit.
ORDER
IT IS HEREBY ORDERED that Custer Telephone Co-op Inc.s Application for an
Order certifying it has installed qualifying broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the 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. See Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 29848
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J.. g HI.
day of August 2005.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
mmission Secretary
o:cus- T -05-0 l kdp
ORDER NO. 29848