20140225final_order_no_32983.pdf

Office of the Secretary
Service Date
February 25,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF FILER MUTUAL )
TELEPHONE COMPANY’S 2013 BROADBAND )CASE NO.FIL-T-14-01
EQUIPMENT TAX CREDIT APPLICATION.)
________________________________)
ORDER NO.32983
On February 10,2014,Filer Mutual Telephone Company (the “Company”)applied to
the Commission for an Order confirming that equipment it installed in 2013 is “qualified
broadband equipment”under Idaho Code §63-30291 (income tax credit for investment in
broadband equipment).With this Order,we confirm that the installed equipment is “qualified
broadband equipment”under Idaho Code §63-30291.
THE APPLICATION
In its Application,the Company says it invested $1,029,044.80 in qualifying
broadband equipment in 2013.The Company says it provides broadband telecommunications
services in the Filer and Hollister exchanges.It lists investments in equipment associated with
Asymmetric Digital Subscriber Line (ADSL),High-Bit-Rate Digital Subscriber Line (HDSL),
wireless broadband (WBB),and Fiber to the x (FTTX)services.The Company says its
broadband network can transmit signals at rates from 512 kilobits per second to 1 gigabit per
second (i.e.,from 512,000 bits per second (“bps”)to 1,000,000,000 bps)and can serve about
99%of its customers.See Application.
STAFF REVIEW
In July 2001,the Commission issued Procedural Order No.28784 to implement its
responsibilities under Idaho Code §63-30291.That Order identifies information that must be
included in a broadband tax credit application.When a company files an application,the
Commission Staff reviews it to determine whether the listed equipment meets the statutory
definition of “qualified broadband equipment.”Staff then submits a recommendation to the
Commission.
Here,Staff reviewed the Company’s Application to determine whether the listed
equipment is “qualified broadband equipment”under Idaho Code §63-30291.That statute
defines “qualified broadband equipment”as equipment that qualifies for the Idaho Code §63-
3029B capital investment credit that “is capable of transmitting signals at a rate of at least
ORDER NO.32983 1
[200,000 bps]to a subscriber and at least [125,000 bps]from a subscriber.”Idaho Code §63-
30291(3)(b).Further,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 on its review,Staff believes that the Company is a telecommunications carrier
and that the listed equipment meets the above-described statutory criteria and is “qualified
broadband equipment”that is eligible for the tax credit.Staff thus recommended that the
Commission:(1)issue an Order confirming that the Company’s equipment is qualified
broadband equipment,”and (2)forward copies of the Application and Order to the Idaho State
Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Application and Staffs recommendation,we find
the Company’s equipment is “qualified broadband equipment”subject to the tax credit under
Idaho Code §63-30291.The Company is a telecommunications carrier.Further,the listed
equipment (as presently configured)is an integral part of the Company’s broadband network and
is necessary to the provision of broadband service to Idaho customers.It is thus appropriate for
the Commission to issue an Order confirming that the Company’s equipment is qualified
broadband equipment.”The Commission makes no findings regarding the costs of the installed
broadband equipment or other expenses.
ORDER
IT IS HEREBY ORDERED that the Company’s Application for an Order confirming
that equipment it installed in 2013 is “qualified broadband equipment”is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served on 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 §c 6 1-626 and 62-6 19.
ORDER NO.32983
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of February 2014.
PAUL KJELLADER:PRESIDENT
\—
MACK A.REDFORD,COMMIS STONER
ATTEST:
Jean D.Jewell
Commission Secretary
O:FIL-T-14-OIkk
(1 V-(\)i
MARSHA H.SMITH.COMMISSIONER
ORDER NO.32983 3