20070604final_order_no_30337.pdf

Office of the Secretary
Service Date
June 4, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF CUSTER TELEPHONE COOPERATIVE,
INc. FOR AN INVESTMENT TAX CREDIT
FOR 2006 FOR INSTALLING QUALIFIED
BROADBAND EQUIPMENT
ORDER NO. 30337
CASE NO. CUS-07-
On May 4, 2007, Custer Telephone Cooperative, Inc. (Custer Telephone) 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 from the Commission an Order confirming that the installed equipment
meets the definition of qualified broadband equipment set out at Idaho Code ~ 63-3029I(3)(b).
Briefly, qualified 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.
the case of a telecommunications carrier, the qualified broadband equipment must also "
necessary to the provision of broadband service and an integral part of a broadband network."
Idaho Code ~ 63-3029I(3)(b )(i). In this Order, we find that Custer Telephone has installed
qualified broadband equipment as more fully set forth below.
THE APPLICATION
Custer s Application indicates that it has installed central office equipment and fiber
and copper cables to provide Digital Subscriber Line (DSL) services to Idaho customers. The
Company asserts that its service provides speeds of between 128 kilobits per second (kbps) to
512 kbps for uploads from customers, and 512 kbps to 8 megabits per second (Mbps) for
downloads to customers. The Company states that the equipment is necessary and integral to its
broadband network and that 100% of the investment will be used to provide service to Idaho
customers. The Application identifies nearly $2.5 million of investment in 2006.
STAFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. This Order identifies information that must be
included in an Application for a broadband tax credit. Once the information has been filed, then
the Commission Staff reviews the Application and submits a recommendation to the
ORDER NO. 30337
Commission. Staff reviewed the list of broadband equipment submitted by Custer Telephone.
Staff believes that the equipment is "necessary for the provision of broadband services and an
integral part of a broadband network." Idaho Code ~ 63-3029I(3)(b)(i). Consequently, Staff
recommended that the Commission issue an Order approving Custer Telephone s Application.
Staff further recommended that the Commission forward the approving Order, along with a copy
of the original Application, to the Idaho Tax Commission.
FINDINGS
Having reviewed Custer Telephone s Application and Staffs recommendation, we
find that the Application for a qualifying broadband equipment Order should be granted. The
Company has demonstrated that the installed broadband equipment identified in its Application
conforms to the qualifying requirements of Idaho Code ~ 63-3029I(b). We further find that, as
configured, the installed equipment is an integral part of a broadband network necessary to
deliver broadband services to Idaho customers. Idaho Code ~ 63-3029I(3)(b )(i). It is therefore
appropriate for the Commission to issue this Order confirming that Custer Telephone has
installed qualified broadband equipment as a pre-condition to seeking an Idaho broadband tax
credit for 2006. The Commission makes no findings regarding the costs of the installed
broadband equipment.
ORDER
IT IS HEREBY ORDERED that Custer Telephone Cooperative Inc.'s
Application for an Order certifying that it has installed qualifying broadband equipment is
approved.
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. 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. 30337
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this L/'0--'
day of June 2007.
MARSHA H. SMITH , COMMISSIONER
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MACK A. RED ORD , COMMISSIONER
ATTEST:
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Barbara Barrows
Assistant Commission Secretary
O:CUS-07-03 dw
ORDER NO. 30337