29037.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF VELOCITUS, INC. CONCERNING INVESTMENT FOR INSTALLING QUALIFIED BROADBAND EQUIPMENT TAX CREDIT )
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CASE NO. GNR-T-02-2

ORDER NO. 29037

On February 21, 2002, Velocitus, Inc. filed an Application to receive an investment tax credit for installation of broadband equipment under Idaho Code § 63-3029I. Pursuant to that section, an Idaho taxpayer may receive a tax credit for installing eligible equipment, which must be part of network facilities that are 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 also must “be necessary to the provision of broadband service and an integral part of a broadband network.” Idaho Code § 63-3029I(3)(b)(i). A taxpayer may receive the credit only after obtaining from the Commission an Order confirming that the installed equipment qualifies under the statute. To facilitate its review under Idaho Code § 63-3029I, the Commission issued Procedural Order No. 28784 in July 2001, identifying the information that applicants must provide to the Commission to determine whether the installed equipment qualifies for the tax credit.
Velocitus’ Application states that during calendar year 2001 it installed equipment as part of its wireline and wireless broadband network for provision of high-speed Internet access and other point-to-point data services to customers in Treasure Valley and other communities of Idaho. Velocitus identified the components as including a transmitting/receiving antenna, data traffic concentrators and routers. Velocitus also included in its Application costs incurred in installing the equipment, including crane rental, testing software and installation labor. Velocitus states that it began offering high-speed access to customers during 2001 at transmission rates of 256 kilobits per second (kbps) up to 45 mega bits per second (Mbps).
Staff reviewed the Application filed by Velocitus to confirm that the equipment is “necessary to the provision of broadband services and an integral part of a broadband network.” Staff stated the equipment installed by Velocitus qualifies for the tax credit, and Staff thus recommended the Commission approve the Application filed by Velocitus for a tax credit.
Having reviewed the Application filed by Velocitus and Staff’s recommendation, the Commission finds that the Company’s Application for a qualifying broadband equipment Order should be granted. The Company has adequately demonstrated that it installed the equipment identified in its Application during 2001 to conform with the requirements set forth in Idaho Code § 63-3029I. The Commission further finds that as configured the installed equipment is an integral part of a broadband network necessary to deliver broadband services to Idaho customers. It is therefore appropriate for the Commission to issue this Order confirming that Velocitus has installed qualified broadband equipment as a precondition to seeking an investment tax credit.
O R D E R
IT IS HEREBY ORDERED that Velocitus, Inc.’s Application for an Order certifying that it has installed qualified broadband equipment is granted. The Commission will forward this Order along with the Application filed by Velocitus, Inc. to the Idaho Tax Commission.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. 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 May 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

bls/O:GNRT0202_ws

ORDER NO. 29037 1

Office of the Secretary
Service Date
May 29, 2002