20040812Final Order No 29561.pdf

Office of the Secretary
Service Date
August 12, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF FILER MUTUAL TELEPHONE
COMP ANY FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFIED
BROADBAND EQUIPMENT.ORDER NO. 29561
CASE NO. FIL-O4-
On April 22, 2004, Filer Mutual Telephone Company (Filer Mutual) 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 63-30291(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 "
necessary to the provision of broadband service and an integral part of a broadband network."
Idaho Code 9 63-30291(3)(b )(i). In this Order, we find that Filer Mutual has installed qualified
broadband equipment.
THE APPLICATION
Filer Mutual's Application states that during the years of 2002 and 2003 the
Company installed transport cable, digital subscriber line access multiplexers (DSLAM), and
modems in expanding its broadband network. The Company offers high-speed Internet and
other data services to customers in Twin Falls County, Idaho. It has approximately 210
customers all of which are Idaho subscribers. Filer Mutual indicates that it offers high-speed
transmission rates of 1 Megabits per second (Mbps) minimum. Filer Mutual maintains that it
invested approximately $307 000 in 2002 and $636 000 in 2003.
ST AFF 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
ORDER NO. 29561
the Commission Staff reVIews the application and submits a recommendation to the
Commission. Staff reviewed the list of broadband equipment submitted by Filer Mutual. Staff
believes that the equipment is "necessary for the provision of broadband services and an integral
part of a broadband network."Idaho Code 9 63-30291(3)(b )(i).Consequently, Staff
recommends that the Commission issue an Order approving Filer Mutual's Application.
FINDINGS
Having reviewed Filer Mutual's Application and Staffs recommendation, we find
that the Application for a qualifying broadband equipment Order should be granted. We find
that the broadband equipment identified in the Company s Application meets the qualifying
requirements of Idaho Code 9 63-30291(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 63-30291(3)(b )(i). 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. The Commission makes
no findings regarding the costs of the installed broadband equipment.
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 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) issued in this Case No. FIL-04-1 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 issued in this Case No. FIL-04-1. 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. 29561
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J..-7I'
day of August 2004.
-'L ARSHA H. SMITH, COMMISSIONER
Out of the Office on this Date
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
Je n D. Jewell
ission Secretary
O:FILT0401 dw
ORDER NO. 29561