20160420final_order_no_33507.pdf

Office of the Secretary
Service Date
April 20.2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF FREMONT TELCOM FOR AN )CASE NO.FRE-T-16-O1
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER NO.33507
EQUIPMENT )
On February 29,2016,the Commission received an Application from Fremont
Telcom (“Fremont Telcom”or “Company”)seeking a Commission Order certifying that
the Company has installed qualified broadband equipment in Idaho,pursuant to
Commission Order No.28784 and Idaho Code §63-30291(4),during the 2015 calendar
year.
THE APPLICATION
In its Application,Fremont Telcom stated that it installed equipment
associated with Asymmetric Digital Subscriber Line (ADSL)and Ethernet broadband
services (using 18k non-loaded copper distribution,fiber optic backbone and distribution
cable).The Company stated that its network is capable of providing transmission speeds
of 256 Kbps to 1 Mbps from a subscriber and 768 Kbps to 1 Mbps to a subscriber.The
Company stated that approximately 53%of its customers currently have broadband
services and that it invested approximately $459,933 in broadband equipment during the
2015 calendar year.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by
Fremont Telcom and found that the equipment identified meets the statutory criteria
outlined in Idaho Code §63-30291(3)(b).Staff determined that Fremont Telcom’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 Fremont Telcom is a telecommunications
carrier and its equipment is “necessary to the provision of broadband service and an
integral part of a broadband network.”Idaho Code §63-30291(3)(b)(i).Staff
recommended that the Commission issue an Order approving the Application and
ORDER NO.33507 1
forward the Order,along with a copy of Fremont Telcom’s Application,to the Idaho
State Tax Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the broadband tax credit,a 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 Fremont Telcom’s Application requesting a qualified
broadband equipment Order should be approved.Fremont Telcom has adequately
demonstrated that the equipment identified in its Application qualifies as broadband
equipment eligible for the tax credit.The Commission also finds that Fremont Telcom 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.Therefore,the Commission
certifies in this Order that the equipment identified in Fremont Telcom’s Application is
qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that the Application of Fremont Telcom,seeking
an Order certifying that it has installed qualified broadband equipment in Idaho during
the 2015 calendar year,is approved.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Fremont
Telcom’s Application shall be forwarded to 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 §6 1-626,63-30291(4).
ORDER NO.33507 2
DONE by Order of the Idaho Public Utilities Commission at Boise.Idaho this O
day of April 2016.
KRI ‘INE RAPER,CO MISSIONER
-
ERIC ANDERSON,COMMISSIONER
ATTEST:
4 /1 1;’!/A&t—L .1
Idan D.JewelY7
iommission Secretary
O:FRE-T-I 6-01 np
PRESIDENT
ORDER NO.33507 .3