20210225Comments.pdf

MATT HUNTER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 10655
Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OFF ARMERS MUTUAL )
TELEPHONE COMPANY'S APPLICATION )
FOR A 2019 INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )
EQUIPMENT )
------------------
)
)
CASE NO. FMT-T-20-04
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of record,
Matt Hunter, Deputy Attorney General, submits the following comments.
BACKGROUND
On December 10, 2020, Farmers Mutual Telephone Company ("Farmers" or "Company")
applied to the Idaho Public Utilities Commission ("Commission") for an order confirming that
equipment it installed in 2019 is "qualified broadband equipment" under Idaho Code § 63-30291
(Income tax credit for investment in broadband equipment). Exhibit A of the Application
purported to list the qualified broadband equipment the Company installed in 2019 and the
Company's total qualified investment. On January 21 , 2021 , the Commission granted the
Company's Application, confirming the equipment the Company installed in 2019 is "qualified
broadband equipment." Order No. 34896.
STAFF COMMENTS FEBRUARY 25, 2021
On January 25, 2021, the Company petitioned for reconsideration ("Petition"). See
IDAPA 31.01.01.331 through-333. In its Petition, the Company asked the Commission to
reconsider its decision in Order No. 34896. "[T]he equipment list attached to [the Company ]'s
Application was erroneously filed, and instead included the equipment list for an affiliated entity
of [the Company]." Petition at 1. The Company's Petition includes an equipment list indicating
the Company invested $4,347,224.89 in qualified broadband equipment in 2019. Petition, Exhibit
A. As Order No. 34896 found the Company invested $3,351.97 in qualified broadband equipment
in 2019, the Company argued Order No. 34896 is erroneous and should be reconsidered based on
the equipment list submitted with the Company's Petition.
On February 10, 2021, the Commission granted the Company's Petition, directing Staff
"and any other interested persons" to file any comments on the amended record by February 25,
2021.
STAFF ANALYSIS
Staffs analysis focused on the assertions made by the Company in its Application and the
equipment list submitted with the Company's Petition. In its Application, Farmers stated that it
installed equipment associated with Asymmetric Digital Subscriber Line (ADSL), Very High
Speed Digital Subscriber Line (VDSL), and Fiber to the Home (FTTH) service with transmission
rates that meet or exceed the required rates of 200,000 bits per second to a subscriber and 125,000
bits per second from a subscriber. The Company asserted that more than 93% of its Idaho
subscribers have access to the broadband network. According to the equipment list submitted as
part of the Company's Petition, the Company invested approximately $4,347,224.89 in 2019 in
qualifying broadband equipment that it confirms is integral to the broadband network.
STAFF RECOMMENDATION
Staff has reviewed and audited the updated equipment list and believes the identified
equipment qualifies for the investment tax credit pursuant to Order No. 28784 and Idaho Code
§ 63-30291(3)(b). Staff, therefore, recommends that the Commission issue an order confirming
the equipment is qualified broadband equipment and forward the order-along with a copy of the
Application, Petition, and updated equipment list-to the Idaho Tax Commission.
STAFF COMMENTS 2 FEBRUARY 25, 2021
Respectfully submitted this 2.S-Na day of February 2021.
~ Matt Hunter
Deputy Attorney General
Technical Staff: Daniel Klein
i:umisc/comments/fmtt20.4mhdk comments
STAFF COMMENTS 3 FEBRUARY 25, 2021
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 25th DAY OF FEBRUARY 2021 ,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. FMT-T-20-04, BY E-MAILING A COPY THEREOF, TO THE
FOLLOWING:
CYNTHIA A MELILLO PLLC
8385 W EMERALD ST
BOISE ID 83704
E-MAIL: [e-mail]
RON REMBELSKI
ASSISTANT GENERAL MGR
FARMERS MUTUAL TELE CO
PO BOX 103
FRUITLAND ID 83619
E-MAIL: [e-mail]
CERTIFICATE OF SERVICE