20040812Final Order No 29562.pdf

Office of the Secretary
Service Date
August 12 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
0 F FARMERS MUTUAL TELEPHONE
COMP ANY FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFIED
BROADBAND EQUIPMENT.ORDER NO. 29562
CASE NO. FMT-O4-
On June 7, 2004, Farmers Mutual Telephone Company (Farmers Mutual) 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 installed equipment
meets the definition of qualified broadband equipment set out at Idaho Code ~ 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 ~ 63-30291(3)(b)(i). In this Order we find that Farmers Mutual has installed
qualified broadband equipment.
THE APPLICATION
Farmers Mutual's Application states that during 2003 the Company installed Digital
Subscriber Line (DSL) line cards, line splitters, line filters, assembly and connection equipment
line ports, and various other components that support the provision of high-speed Internet access
to over 1 000 potential customers in and around Fruitland, Idaho. Farmers Mutual indicates it
began offering transmission speeds of 256 kbps to 2.48 Gbps to customers in 2001 via
Asynchronous Digital Subscriber Line (ADSL). The Application states that during 2003
Farmers Mutual invested approximately $126 000 in broadband equipment.
ST AFF 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. 29562
the Commission Staff reVIews the application and submits a recommendation to the
Commission. Staff reviewed the list of broadband equipment submitted by Farmers Mutual.
Staff believes that the equipment is "necessary for the provision of broadband services and an
integral part of a broadband network." Idaho Code ~ 63-30291(3)(b )(i). Consequently, Staff
recommends that the Commission issue an Order approving Farmers Mutual's Application.
FIND IN GS
Having reviewed Farmers Mutual's Application and Staffs recommendation, we find
that the Application for a qualifying broadband equipment Order should be granted. The
Company has demonstrated that the installed broadband equipment identified in its Application
conforms with the qualifying requirements of Idaho Code ~ 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 ~ 63-30291(3)(b )(i). It is therefore
appropriate for the Commission to issue this Order confirming that Farmers 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 Farmers Mutual'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. FMT - T -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. FMT-04-1. 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. 29562
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this B- p..
day of August 2004.
ARSHA H. SMITH, COMMISSIONER
Out of the Office on this Date
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
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ORDER NO. 29562