20090409final_order_no_30776.pdf

Office of the Secretary
Service Date
April 9, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATIONS
OF FILER MUTUAL TELEPHONE
COMPANY FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFYING
BROADBAND EQUIPMENT
CASE NOS. FIL- T -09-
FIL- T -09-
ORDER NO. 30776
On April 2, 2009, the Commission received two Applications from Filer Mutual
Telephone Company ("Filer ) asking for approval of a broadband tax credit pursuant to
Commission Order No. 28784 and Idaho Code ~ 63-30291(4) for the 2005 and 2006 calendar
years. In order to be eligible to obtain the tax credit, the taxpayer must first obtain an Order from
the Commission "confirming that the installed equipment is qualified broadband equipment."
Idaho Code ~ 63-30291(4).In the case of a telecommunications carrier, such qualifying
equipment shall be necessary to the provision of broadband service and an integral part of
broadband network." Idaho Code ~ 63-30291(3)(b)(i).
THE APPLICATIONS
Filer states that it offers Asymmetric Digital Subscriber Line (ADSL) broadband
services at transmission rates of 512 Kbps to 1 Mbps upstream and 512 Kbps to 3 Mbps
downstream. Filer s network consists of a fiber optic fed digital loop carrier with non-loaded
copper distribution cable, fiber to the home electronics, fiber optic transport electronics, fiber
optic backbone and distribution cable and copper.
During the 2005 calendar year, Filer s Application reports an investment of nearly
$34 700 in qualifying broadband equipment. The broadband equipment was installed in Filer
Idaho. Filer reported that 22% of its possible customers (1988) have broadband service.
During the 2006 calendar year, Filer s Application reports an investment of nearly
$208,400 in qualifying broadband equipment. The broadband equipment was installed in the
Idaho communities of Filer, Hollister and Clover, and throughout Twin Falls County, Idaho.
Filer reported that 32% of its possible customers (1988) have broadband service.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Filer and
found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
ORDER NO. 30776
30291(3)(b). Staff determined that Filer s broadband equipment is capable of transmitting
signals at a rate of at least 200 000 bits per second to a subscriber and at least 125 000 bits per
second from a subscriber. Idaho Code ~ 63-30291(3)(b). Staff also determined that Filer is a
telecommunications carrier and its equipment is "necessary to the provision of broadband service
and an integral part of a broadband network.Idaho Code ~ 63-30291(3)(b)(i). Therefore, Staff
recommended that the Commission issue an Order approving the Applications and that the
approving Order, along with a copy of Filer s Applications, be forwarded to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Based upon our review of the Applications and the recommendations of the Staff, we
find that the Applications for a qualifying broadband equipment Order should be granted. Filer
has adequately demonstrated that the equipment identified in its Applications is qualifying
broadband equipment subject to the tax credit. We further find that Filer is a
telecommunications carrier and, as presently configured, the installed equipment is an integral
part of the Company s broadband network and that it is necessary to facilitate the delivery of
broadband Internet service to Idaho customers. It is therefore appropriate for the Commission to
issue this Order confirming that the equipment identified in Filer s Applications is qualifying
broadband equipment.
ORDER
IT IS HEREBY ORDERED that Filer Mutual Telephone Company s Applications for
an Order certifying that it has installed qualifying broadband equipment during the 2005 and
2006 calendar years is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Filer Mutual
Telephone Company s Applications 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. Idaho Code ~~ 61-626 63-30291(4).
ORDER NO. 30776
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
qrA
day of April 2009.
ff.
. KEMPTON, PRE DENT
MARSHA H. SMITH, COMMISSIONER
~~A
MACK A. REDFORD
ATTEST:
fiJ!:::lJ
D. Jewell
isslOn Secretary
O:FIL- T-09-0 l FIL- T-09-02 - np
ORDER NO. 30776