HomeMy WebLinkAbout20020715Decision Memo.doc DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RANDY LOBB
DON HOWELL
LYNN ANDERSON
JOE CUSICK
CAROLEE HALL
WAYNE HART
BIRDELLE BROWN
BEVERLY BARKER
RON LAW
TONYA CLARK
GENE FADNESS
WORKING FILE
FROM: DOUG COOLEY
DATE: JULY 15, 2002
RE: FREMONT TELCOM’S APPLICATION FOR BROADBAND EQUIPMENT TAX CREDIT.
BACKGROUND
On March 28, 2002, the Commission received an Application from Fremont Telcom to receive an investment tax credit for eligible broadband equipment pursuant to Order No. 28784 and Idaho Code § 63-3029I(4). To be eligible for the tax credit, the taxpayer must apply for and obtain from the Commission an order confirming that installed equipment qualifies for the tax credit.
DISCUSSION
Fremont stated that, during Calendar Year 2001, it installed T1 transceivers, routers, fiber optic multiplexers, power supply and back-ups, supporting line card accessories, and various other components that support the provision of high-speed Internet access to customers in eastern Idaho. Fremont also included such items as buried cable, buried fiber, one pole and supporting labor and overhead costs. (See attached Application) Fremont indicated that it began offering 640 kbps to 1.5Mbps access speeds to end users in 2001 via Asynchronous Digital Subscriber Line (ADSL).
STAFF REVIEW
Staff has reviewed the list of proposed broadband equipment submitted by Fremont and believes that, with the exception of one load coil, the equipment identified qualifies for the investment tax credit pursuant to Idaho Code § 63-3029I. Load coils are induction devices in long local loops that boost the voice-grade frequencies. However, load coils must be removed when high-speed data transmissions are required. This item accounts for $400 of Fremont’s $1.2 million Application total. Therefore, Staff recommends approval of the Company’s Application with the exception of the load coil and further recommends that the Commission forward the approving Order along with a copy of the original Application to the Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve Fremont Telcom’s Application, with the exception of the load coil, for the broadband investment tax credit?
__________________________________
Doug Cooley
udmemos/Fremont memo.dc
DECISION MEMORANDUM 2 JULY 15, 2002