20080610final_order_no_30572.pdf

Office of the Secretary
Service Date
June 10, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF CUSTER TELEPHONE COOPERATIVE,
INC. FOR AN INVESTMENT TAX CREDIT
FOR INSTALLING QUALIFYING
BROADBAND EQUIPMENT
ORDER NO. 30572
CASE NO. CUS-08-
On April 3 , 2008, the Commission received an Application from Custer Telephone
Cooperative, Inc. ("Custer ) asking for approval of a broadband tax credit pursuant to
Commission Order No. 28784 and Idaho Code ~ 63-30291(4). In order to be eligible to obtain
the tax credit, the taxpayer must first obtain an Order from the Commission "confirming that the
installed equipment is qualified broadband equipment.Idaho Code ~ 63-30291(4). "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-
3029I(3)(b )(i).
THE APPLICATION
Custer s Application identifies the Company s broadband investments for the
calendar year 2007. In the Application, Custer states it installed equipment that provides
Asymmetric Digital Subscriber Line (ADSL) and High-bit-rate Digital Subscriber Line (HDSL)
services with transmission rates of 128 to 512 Kbps upstream and 512 Kbps to 8 Mbps
downstream. The qualifying equipment was installed in the Custer, Challis, Lemhi, May, and Elk
Bend exchanges. Custer asserts that 5 out of 1 000 possible customers have access to broadband
servIces. The Company identifies approximately $2.2 million in qualifying broadband
equipment during 2007.
STAFF REVIEW
Staff reviewed the list of broadband equipment submitted by Custer and found that
the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-3029I(3)(b).
Staff determined that Custer s broadband equipment is capable of transmitting signals at a rate of
at least 200 000 bits per second to a subscriber and at least 125 000 bits per second from a
subscriber. See id Staff also determined that Custer is a telecommunications carrier and its
equipment is "necessary to the provision of broadband service and an integral part of a
broadband network." Idaho Code ~ 63-3029I(3)(b)(i). Staff recommended that the Commission
ORDER NO. 30572
issue an Order approving the Application and that the approving Order, along with a copy of
Custer s Application, be forwarded to the Idaho State Tax Commission.
COMMISSION FINDINGS
Based upon our review of the Application and the recommendations of Staff, we find
that the Application for a qualifying broadband equipment Order should be granted. Custer has
adequately demonstrated that the equipment identified in its Application is qualifying broadband
equipment subject to the tax credit. We further find that Custer is a telecommunications carrier
and, as presently configured, the installed equipment is an integral part of the Company
broadband network, and that it is necessary to facilitate the delivery of broadband Internet
service to Idaho customers. It is therefore appropriate for the Commission to issue this Order
confirming that the equipment identified in Custer s Application is qualifying 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 granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Custer
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. Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 30572
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 10
++-
day of June 2008.
MACK A. REDFORD, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
Commission Secretary
O:CUS-08-
ORDER NO. 30572