20120911final_order_no_32641.pdf

Office of the Secretary
Service Date
September 11,2012
BEFORE THE IDAHO PUBLIC UTILITIES COIVI MISSION
IN THE MATTER OF CUSTER TELEPHONE )
COOPERATIVE,INC.’S 2011 BROADBAND )CASE NO.CUS-T-12-01
EQUIPMENT TAX CREDIT APPLICATION.)
)ORDER NO.32641
_____________________________________________________________________________________)
On August 14,2012,Custer Telephone Cooperative,Inc.applied to the Commission
for an Order confirming that equipment it installed in 2011 is “qualified broadband equipment”
under Idaho Code §63-30291 (Income tax credit for investment in broadband equipment).On
August 29,2012,the Company filed a Replacement Page correcting certain wording in the
Application.The Application and Replacement Page are collectively called the “Application”in
this Order.With this Order,we confirm that the installed equipment is “qualified broadband
equipment”under Idaho Code §63-30291.
THE APPLICATION
In its Application,the Company says it invested about $1.3 million in qualifying
broadband equipment in 2011.The Company says it installed equipment associated with
Asymmetric Digital Subscriber Line (ADSL)and Symmetrical Digital Subscriber Line (SDSL)
services with transmission rates of 256,000 bits per second (bps)to 10,000,000 bps from a
subscriber and 256,000 bps to 50,000,000 bps to a subscriber.The Company says it installed the
broadband equipment in the Challis,Clayton,Elk Bend,and May exchanges,and that the
broadband network can serve about 76%of its customers in these exchanges.See Application.
STAFF REVIEW
In July 2001,the Commission issued Procedural Order No.28784 to implement its
responsibilities under Idaho Code §63-30291.That Order identifies information that must be
included in a broadband tax credit application.When a company files an application,the
Commission Staff reviews it to determine whether the listed equipment meets the statutory
definition of “qualified broadband equipment.”Staff then submits a recommendation to the
Commission.
Here,Staff reviewed the Company’s Application and believes that the listed
equipment is “qualified broadband equipment”under Idaho Code §63-30291.That statute
ORDER NO.32641 1
defines “qualified broadband equipment”as equipment that qualifies for the Idaho Code §63-
3029B capital investment credit that ‘is 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.”Idaho Code §63-
30291(3)(b).Further,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 §63-30291(3)(b)(i).
Here,Staff believes that the Company is a telecommunications carrier and that the
listed equipment meets the above-described statutory criteria and is “qualified broadband
equipment”that is eligible for the tax credit.Staff thus recommended that the Commission:(1)
issue an Order confirming that the Company’s equipment is “qualified broadband equipment,”
and (2)forward copies of the Application and Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Application and Staffs recommendation,we find
that the Company’s equipment is “qualified broadband equipment”subject to the tax credit under
Idaho Code §63-3 0291.The Company is a telecommunications carrier.Further,the listed
equipment (as presently configured)is an integral part of the Company’s broadband network and
is necessary to the provision of broadband service to Idaho customers.Accordingly,it is
appropriate for the Commission to issue an Order confirming that the Company’s equipment is
“qualified broadband equipment.”The Commission makes no findings regarding the costs of the
installed broadband equipment or other expenses.
ORDER
IT IS HEREBY ORDERED that the Company’s Application for an Order confirming
that equipment it installed in 2011 is “qualified broadband equipment”is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served on 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 §sS 6 1-626 and 62-619.
ORDER NO.32641 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 1/
day of September 2012.
ATTEST:
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
/1 1 t•
Jean D.Jewell
Commission Secretary
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PAUL
ORDER NO.32641 1