propsdordr-ntc.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of THE ISSUANCE OF A PROCEDURAL ORDER TO FACILITATE THE REVIEW OF APPLICATIONS TO DETERMINE WHETHER BROADBAND EQUIPMENT MEETS THE ELIGIBILITY REQUIREMENTS FOR INVESTMENT TAX CREDITS. )
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CASE NO. GNR-T-01-10

NOTICE OF PROPOSED ORDER

Earlier this year the Legislature enacted and the Governor signed House Bill 377 authorizing income tax credits for the installation of qualifying broadband infrastructure in Idaho. 2001 Idaho Sess., ch. 386 (to be codified at Idaho Code § 63-3029B(3)(a)(ii)). In particular, Section 8 of the Bill (to be codified at Idaho Code § 63-3029I) allows a taxpayer to receive an investment tax credit for eligible broadband equipment installed between January 1, 2001 and December 31, 2005.
“Qualified broadband equipment” is defined as those facilities capable of transmitting signals that are at a rate of at least 200,000 bits per seconds (bps) to a subscriber and at least 125,000 bps from a subscriber. Idaho Code § 63-3029I(3)(b). To be eligible for the tax credit, the taxpayer must apply and obtain “from the Idaho public utilities commission an order confirming that installed equipment is qualified broadband equipment.” Idaho Code § 63-3029I(4). This section also provides that the Commission “may issue procedural orders necessary to implement this section.” Id.
The Commission finds that it is appropriate to issue a procedural order to facilitate the filing of applications to determine whether broadband equipment meets the eligibility requirements for investment tax credits. Accordingly, the Commission issues the attached Proposed Order pursuant to Rule 312 (IDAPA 31.01.01.312. Interested parties may file written exceptions and comments to the Proposed Order.
NOTICE OF PROPOSED ORDER
YOU ARE HEREBY NOTIFIED that pursuant to Rule 312, the Commission is issuing the attached Proposed Order for comment. IDAPA 31.01.01.312. Any interested parties may file exceptions and comments to the Proposed Order. The deadline for filing written comments is 21 days from the service date of this Notice.
YOU ARE FURTHER NOTIFIED that written comments regarding the Commission’s Proposed Order should be mailed to the Commission at the address reflected below:

JEAN D. JEWELL, COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, ID 83720-0074
[phone] (TELEPHONE)
[phone] (FAX)

STREET ADDRESS:
472 WEST WASHINGTON
BOISE, ID 83702
All comments should contain the case caption and case number shown on the first page of this Notice.
YOU ARE FURTHER NOTIFIED that the Commission may adopt a revised Proposed Order in response to the exceptions or comments and issue a final Order accordingly. The Proposed Order is not an Order of the Commission unless it is later adopted by an Order.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this matter pursuant to Idaho Code § 63-3029I(4).
DATED at Boise, Idaho this day of June 2001.

Jean D. Jewell
Commission Secretary

vld/N:GNR-T-01-10_dh

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE ISSUANCE OF A PROCEDURAL ORDER TO FACILITATE THE REVIEW OF APPLICATIONS TO DETERMINE WHETHER BROADBAND EQUIPMENT MEETS THE ELIGIBILITY REQUIREMENTS FOR INVESTMENT TAX CREDITS.
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CASE NO. GNR-T-01-10

PROPOSED ORDER

Earlier this year the Legislature enacted and the Governor signed House Bill 377 authorizing income tax credits for the installation of qualifying broadband infrastructure in Idaho. 2001 Idaho Sess., ch. 386 (to be codified at Idaho Code § 63-3029B(3)(a)(ii)). In particular, Section 8 of the Bill (to be codified at Idaho Code § 63-3029I) allows a taxpayer to receive an investment tax credit for eligible broadband equipment installed between January 1, 2001 and December 31, 2005.
“Qualified broadband equipment” is defined as those facilities capable of transmitting signals that are at a rate of at least 200,000 bits per seconds (bps) to a subscriber and at least 125,000 bps from a subscriber. Idaho Code § 63-3029I(3)(b). To be eligible for the tax credit, the taxpayer must apply and obtain “from the Idaho public utilities commission an order confirming that installed equipment is qualified broadband equipment.” Idaho Code § 63-3029(4). This section also provides that the Commission “may issue procedural orders necessary to implement this section.” Id.
Section 63-3029I(3)(b) describes the various types of facilities that constitute “qualified broadband equipment.” Qualifying equipment is technology-neutral and is available to wireline telecommunications carriers, cellular and PCS carriers, cable and video carriers, and satellite carriers. Qualifying equipment also include packet switching equipment and multiplexing and demultiplexing equipment. The Section also requires that property eligible for the tax credit be “primarily used to provide services in Idaho to public subscribers.” Idaho Code § 63-3029I(3)(b)(vii). For example, a bank that installs its own fiber optic cable for the transmission of data between its various offices would not be eligible for the tax credit because such facilities are not provided for public use.
To implement its responsibilities under the broadband tax credit, the Commission finds that it is appropriate to issue a procedural order regarding broadband equipment applications. The Commission finds that the following information shall be contained in an application submitted for our decision whether the installed equipment is “qualified” broadband equipment.
1. Name and address of applicant including the contact person in the event there are questions regarding the application and its content.

2. Identify the area or location where the equipment is installed in Idaho.

3. Describe the type of broadband service(s) offered to the public in Idaho.

4. State the transmission rate in bits per second at which subscribers to the relevant broadband network can receive and send (download and upload).

5. List the brand, manufacturer, model numbers, or other distinguishing features of the installed broadband equipment.

6. Provide the date(s) or time period(s) when the broadband equipment was installed in Idaho.

7. Provide a written description (including basic schematics or general drawings) of the relevant broadband network including a description of how the installed equipment is “an integral part” of a broadband network.

8. Quantify the percentage and number of potential Idaho subscribers that could be served with the broadband equipment and the percentage and number of non-Idaho subscribers that will be/could be served by the broadband network.

9. Enclose a statement certifying that the applicant has read the applicable statutes for broadband investment income tax credit and the applicant believes that the subject broadband equipment qualifies for the tax credit under Idaho Code § 63-3029I.
O R D E R
IT IS HEREBY ORDERED that taxpayers submitting applications for the Commission to determine whether installed broadband equipment is eligible for the Idaho state tax credit must include the information set out in the body of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. GNR-T-01-10 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 or in interlocutory Orders previously issued in this Case No. GNR-T-01-10. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of June 2001.

[Intentionally Blank]
PAUL KJELLANDER, PRESIDENT

[Intentionally Blank]
MARSHA H. SMITH, COMMISSIONER

[Intentionally Blank]
DENNIS S. HANSEN, COMMISSIONER

ATTEST:

[Intentionally Blank]
Jean D. Jewell
Commission Secretary

bls/O:gnrt0110_dh

NOTICE OF PROPOSED ORDER 2

PROPOSED ORDER 5

Office of the Secretary
Service Date
June 14, 2001