20031202Final Order No 29387.pdf

Office of the Secretary
Service Date
December 2, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF)
FILER MUTUAL TELEPHONE COMPANY FOR)
A TAX CREDIT FOR INSTALLING QUALIFIED)BROADBAND EQUIPMENT.
CASE NO. FIL-O3-
ORDER NO. 29387
On November 4, 2003 , Filer Mutual Telephone Company filed an Application
requesting that the Commission find the Company eligible to receive an Idaho investment tax
credit. Pursuant to Idaho Code ~ 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 equipment has been
installed and that it meets the definition of qualified broadband equipment set out at Idaho Code
~ 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 ~ 63-3029I(3)(b)(i). In this Order, we find that Filer Mutual
has installed qualified broadband equipment.
THE APPLICATION
During calendar year 2002, Filer Mutual states that it installed various components as
part of its wireline broadband network for the provision of high-speed Internet access to
customers in its Idaho service territory. Filer Mutual installed integrated multi service-access
platforms manufactured by AFC, Nortel Modems, and a Nortel Digital Subscriber Line Access
Multiplexer (DSLAM) all within the Twin Falls area. Filer Mutual offers high-speed access to
customers at transmission rates up to 1.54 Megabits per second (Mbps).
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 has been filed, then
ORDER NO. 29387
the Commission Staff reviews the Application and submits a recommendation to the
Commission.
Staff reviewed the list of broadband equipment installed by Filer Mutual. Based upon
conversations with Company representatives and Staffs review of the Application, Staff believes
that the equipment is "necessary for the provision of broadband services and an integral part of a
broadband network."Idaho Code ~ 63-3029I(3)(b)(i).The Company assured Staff that
installation labor, overhead, and supporting equipment is directly related to offering broadband
services in Idaho.Consequently, Staff recommended that the Commission issue an Order
approving Filer Mutual's Application.
D ISCUSSI
Having reviewed Filer Mutual's Application and Staff s 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 2002 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
deliver broadband services to Idaho customers. It is therefore appropriate for the Commission to
issue this Order confirming that Filer Mutual has installed qualified broadband equipment as a
precondition to seeking an Idaho broadband tax credit.
ORDER
IT IS HEREBY ORDERED that Filer Mutual Telephone Company s Application for
an Order certifying that it has installed qualifying broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order be served upon the Tax
Commission.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. FIL-03-
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 or in interlocutory Orders previously issued in
this Case No. FIL-03-Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ 61-
626.
ORDER NO. 29387
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this I sr
day of December 2003.
M~ Jj
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Commission Secretary
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ORDER NO. 29387