20060411final_order_no_30015.pdf

Office of the Secretary
Service Date
April 11 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
DIRECT COMMUNICATIONS ROCKLAND,
INC. FOR BROADBAND INVESTMENT TAX
CREDIT CERTIFICATION ORDER NO. 30015
CASE NO. DCM-06-
On March 8, 2006, Direct Communications Rockland, Inc. ("Direct" or "Company
filed an Application requesting that the Commission find the Company eligible to receive an
Idaho Investment Tax Credit. Pursuant to Idaho Code 9 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
9 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.In the case of a telecommunications carrier, the qualified broadband
equipment must also "be necessary to the provision of broadband service and an integral part of a
broadband network." Idaho Code 9 63-3029I(3)(b)(i). In this Order, we find that Direct has
installed qualified broadband equipment.
THE APPLICATION
Direct's Application indicated it had installed central office equipment and fiber and
copper cables to provide asymmetrical digital subscriber line (ADSL) services to Idaho
customers. Direct's Application indicated its service provides speeds of 512 000 bits per second
for uploads from customers, and 8 000 000 bits per second for downloads to customers. The
Company indicated the equipment is necessary and integral to its broadband network. The
Company claims that 100% of the investment will be used to provide service to Idaho customers.
The Application identified nearly $300 000 of investment in 2005.
STAFF REVIEW
To implement its responsibilities under Idaho Code 9 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. 30015
Commission. Staff reviewed the list of broadband equipment submitted by Direct. Staff
believes that the equipment is "necessary for the provision of broadband services and an integral
part of a broadband network.Idaho Code 9 63-3029I(3)(b)(i). Consequently, Staff
recommended that the Commission issue an Order approving Direct'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 Direct'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 9 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 9 63-3029I(3)(b)(i). It is therefore appropriate for the
Commission to issue this Order confirming that Direct has installed qualified broadband
equipment as a pre-condition 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 Direct Communications Rockland Inc.'s
Application for an Order certifying that it has installed qualifying broadband equipment is
approved.
IT IS FURTHER ORDERED that a copy ofthis 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 9 61-
626.
ORDER NO. 30015
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /,-
+4-
day of April 2006.
JEL - N ER, PRESIDENT-
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Commission Secretary
O:DCM-06-
ORDER NO. 30015