20080606final_order_no_30566.pdf

Office of the Secretary
Service Date
June 6, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
DIRECT COMMUNICATIONS-ROCKLAND
INc. FOR AN INVESTMENT TAX CREDIT FOR)
INSTALLING QUALIFIED BROADBAND )
EQUIPMENT FOR THE YEAR 2007.
CASE NO. DCM- T -08-
ORDER NO. 30566
On April 21 , 2008, Direct Communications-Rockland, Inc. filed an Application
requesting approval of equipment for the broadband tax credit for the year 2007 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 confmning that the communications 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 investments meet the applicable standards.
THE APPLICATION
Direct Communications-Rockland submits that in 2007 the Company installed ADSL
with transmission rates of 512 Kbps upstream and 8 Mbps downstream in Franklin, Power and
Bear Lake Counties. The Company asserts that 400 customers are now served by broadband
servIces.The Application identifies a broadband tax credit investment of approximately
$628 000 in 2007.
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 broadband equipment installed by Direct
Communications-Rockland, Inc., and believes that it qualifies for the investment tax credit
pursuant to Procedural Order No. 28784 and Idaho Code ~ 63-3029I(3)(b). Further, Staff
ORDER NO. 30566
believes that the expenditures identified by the Company, a telecommunications provider, were
for equipment that is "necessary for the provision of broadband services and an integral part of a
broadband network." As a result, Staff recommended approval of the Application and further
recommended that the Commission forward a copy of the original Application along with an
Order certifying that the equipment meets the qualifications for broadband tax credit to the Idaho
State Tax Commission.
COMMISSION FINDINGS
Having reviewed Direct Communication-Rockland'Application and Staffs
recommendations, 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 2007 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 Direct Communications-Rockland
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 Direct Communication-Rockland's Application for
an Order certifying that it has installed qualifying broadband equipment during 2007 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. 30566
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of June 2008.
MARSHA H. SMITH, COMMISSIONER
MPTO~O ISSIONER
ATTEST:
~fJ. fr~lJe D. Jewell
Commission Secretary
O:DCM-08-01 ks
ORDER NO. 30566