20060726final_order_no_30107.pdf

Office of the Secretary
Service Date
July 26, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF CUSTER TELEPHONE COOPERATIVE,
INC. FOR AN INVESTMENT TAX CREDIT
FOR INSTALLING QUALIFIED
BROADBAND EQUIPMENT
ORDER NO. 30107
CASE NO. CUS-06-
On June 30, 2006, Custer Telephone Cooperative 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 ~ 63-3029I(3)(b).
THE APPLICATION
Custer s Application states that it has installed central office equipment, fiber optic
cables and copper cables to provide DSL service to Idaho customers. The Application indicates
that this equipment transmits data at speeds of 128 000 and 512 000 bits per second (bps) for
uploads from customers, and 512 000 and 1.5 million bps for downloads to customers. The
Company states that the equipment is necessary and integral to its broadband network. The
Company claims that 100% of this investment will be used to provide service to Idaho
customers. The Application identified nearly $2.5 million of investment in 2005.
STAFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. The Order identifies what 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 bps to a subscriber and at least 125 000 bps from a subscriber. In addition, for a
telecommunications carrier like Custer, such equipment must "be necessary to the provision of
broadband service and an integral part of the broadband network."
3029I(3)(b )(i).
Idaho Code ~ 63-
ORDER NO. 30107
Staff reviewed the list of installed broadband equipment submitted by Custer and
determined that the equipment identified 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 ~ 63-3029I(3)(b )(i).
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. Id. 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 Cooperative s Application for an
Order certifying it has installed qualifying broadband equipment is granted.
IT IS FURTHER ORDERED that the Commission Secretary serve a copy of this
Order and a copy of the Application upon 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. 30107
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;2..(, fA.
day of July 2006.
i?t
~UL KJELLANDER, PRESIDENT
Q1Q JL
ARSHA H. SMITH, COMMISSIONER
ATTEST:
J a D. Jewell
C~mission Secretary
O:CUS-06-01 dh dz
ORDER NO. 30107