20100901final_order_no_32062.pdf

Office of the Secretary
Service Date
September 1 2010
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.
CASE NO. CUS-IO-
ORDER NO. 32062
On August 9, 2010, Custer Telephone Cooperative, Inc. filed an Application
requesting approval of equipment for the broadband tax credit pursuant to Order No. 28784 and
Idaho Code ~ 63-30291(4). 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). 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. In this Order, we find
that the Company s investment meets the applicable standards.
THE APPLI CA TI 0
The Company s Application identifies broadband investments during the year 2009.
Custer maintains that it installed equipment associated with Asymmetric Digital Subscriber Line
(ADSL) and Symmetrical Digital Subscriber Line (SDSL) services with transmission rates of
128 to 512 Kbps upstream and 512 Kbps to 8 Mbps downstream. The qualifying equipment was
installed in Custer and Lemhi counties. The Company asserts that 5 out of 1 000 customers are
served by the broadband network. The Company reported a total broadband investment in 2009
of approximately $1 000 000.
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 is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
Commission. Staff has reviewed the list of proposed broadband equipment submitted by the
Company and believes that the equipment identified meets the statutory criteria. Staff therefore
ORDER NO. 32062
recommended approval of the Application and further recommended that the Commission
forward an approving Order along with a copy of the original Application to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed the Company s Application and Staffs recommendation, we find
that the Application for a qualifying broadband equipment Order should be granted. The
Company has demonstrated that it installed qualifying broadband equipment, identified in its
Application, during 2009 in conformance with Idaho Code ~ 63-30291. 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. Based on the foregoing, the Commission issues
this Order confirming that Custer Telephone Cooperative, Inc. has installed qualified broadband
equipment as a precondition to seeking an Idaho broadband tax credit. 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 for 2009 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. 32062
DONE by Order of the Idaho Public Utilities Commission at Boise , Idaho, this I sf"
day of September 2010.
~d.JI . EMPTON, P IDENT
MARSHA H. SMITH, COMMISSIONER
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MACK A. REDFORD, COMMISSIONER
ATTEST:
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J n D. Jewel
Commission Secretary
O:CUS-1 0-0 I
ORDER NO. 32062