20120405final_order_no_32510.pdf

Office of the Secretary
Service Date
April 5,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF FILER MUTUAL TELEPHONE )CASE NO.FIL-T-12-01
COMPANY FOR AN INVESTMENT TAX )
CREDIT FOR INSTALLING QUALIFYING )ORDER NO.32510
BROADBAND EQUIPMENT )
On February 29,2012,the Commission received an Application from Filer Mutual
Telephone Company (“Filer”or “Company”)asking for approval of a broadband tax credit
pursuant to Commission Order No.28784 and Idaho Code §63-30291(4)for the 2011 calendar
year.
THE APPLICATION
Filer states that it offers Asymmetric Digital Subscriber Line (ADSL),High-bit-rate
Digital Subscriber Line (HDSL),Wireless Broadband (WBB)and fiber optic (FTTX)services at
transmission rates of 512 Kbps to 1 Gbps.During the 2011 calendar year,Filer’s Application
reports that the Company added 178 new customers for a total of 2,284 and an investment of
approximately $1.4 million.Filer states that 99%of its customers have access to broadband
services.
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-
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 (bps)to a subscriber and at least 125,000 bps
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 ofbroadband service
and an integral part of a broadband network.”Idaho Code §63-30291(3)(b)(i).Therefore,Staff
recommended the Commission issue an Order approving the Application and the approving
Order,along with a copy of Filer’s Application,be forwarded to the Idaho State Tax
Commission.
ORDER NO.32510 1
COMMISSION FINDINGS
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 a broadband network.”Idaho Code §63-30291(3)(b)(i).
Based upon our review of the Application and the recommendations of Commission
Staff,we find that Filer’s Application requesting a qualified broadband equipment Order should
be granted.Filer has adequately demonstrated that the equipment identified in its Application
qualifies as broadband equipment subject to the tax credit.We also 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 Application is qualified
broadband equipment.
ORDER
IT IS HEREBY ORDERED that Filer Mutual Telephone Company’s Application
seeking an Order certifying that it has installed qualifying broadband equipment in Idaho during
the 201 1 calendar year is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Filer’s
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.Idaho Code §61-626,63-30291(4).
ORDER NO.32510 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2012.
PAUL KJEL A4 R.SIDENT
MACK A.REDFO’RI,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
JëanD.Jewell 1/
Commission Secretary
O:FII..T-12-Olnp
ORDERNO.32510 3