20110930final_order_no_32374.pdf

Office of the Secretary
Service Date
September 30,2011 1
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CUSTER TELEPHONE COOPERATIVE,)CASE NO.CUS-T-1l-O1
INC.FOR AN INVESTMENT TAX CREDIT )
FOR INSTALLING QUALIFYII’G )ORDER NO.32374
BROADBAND EQUIPMENT )
On August 11,201 1,the Commission received an Application from Custer
Telephone Cooperative,Inc.(“Custer”or “Company”)asking for approval of its Application for
a broadband tax credit for 2010 pursuant to Idaho Code §63-3029 and Commission Order No.
28784.
THE APPLICATION
In its Application,Custer states that it has installed equipment associated with
Asymmetrical Digital Subscriber Line (ADSL)and Symmetrical Digital Subscriber Line (SDSL)
with transmission rates ranging from 128 Kbps to 5 Mbps upstream and 256 Kbps to 20 Mbps
downstream in the Challis,Clayton,Elk Bend,and May exchanges.Custer asserts that 70%of
its customers in the exchanges can be served by the Company’s broadband network.Custer’s
Application discloses that,during the 2010 calendar year,the Company has invested
approximately $460,000 in qualifying broadband equipment.
STAFF REVIEW
Staff has reviewed the list of proposed broadband equipment submitted by Custer
and believes the identified equipment qualifies for the investment tax credit pursuant to
Procedural Order No.28784 and Idaho Code §63-30291(3)(b).Staff also believes that the
expenditures identified by Custer,a telecommunications provider,were for equipment that is
“necessary for the provision of broadband services and an integral part of a broadband network.”
Staff recommended that the Commission issue an Order confirming that the equipment is
qualified broadband equipment,as defined in Idaho Code §63-30291(3)(b)(i),and forward a
copy of the Order to the Idaho Tax Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the broadband 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
ORDER NO.32374 1
carrier,such qualifying equipment shall be necessary to the provision of broadband service and
an integral part of a broadband network.”Idaho Code §63-30291(3)(b)(i).
Based upon our review of the Application and the recommendations of Staff,we find
that Custer’s 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.Further,we find that Custer is a
telecommunications carrier and,as presently configured,the installed equipment is an integral
part of the Company’s 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 installed during the 2010 calendar year.
ORDER
IT IS HEREBY ORDERED that Custer Telephone Cooperative,Inc.’s Application
for an Order certifying that it installed qualifying broadband equipment during the 2010 calendar
year is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Custer’s
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.32374 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this jti
day of September 2011.
PAUL KJ LAND,PRESIDENT
/i//\b—A,
MACK A’REDFcd COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
,1 (
Jqn D.Jeweijj
Commission Secretary
OCUS-T-1 1-Olnp
ORDER NO.32374 3