29121.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF WESTCOM LLC DBA DIGITAL EASY CHAIR CONCERNING TAX CREDIT FOR INSTALLING QUALIFIED BROADBAND EQUIPMENT. )
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CASE NO. GNR-T-02-17

ORDER NO. 29121

On August 29, 2002, WestCom LLC, doing business as Digital Easy Chair 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 telecommunications 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.
WestCom’s Application states that during calendar year 2001 it installed equipment as part of its network for providing high-speed Internet access and other point-to-point data services to its customers in Meridian, Idaho. WestCom identified the equipment as Internet switch, routers, servers, an equipment building with equipment racks and power back up, and fiber optic cable to each of the 326 residential lots in Bear Creek Subdivision. WestCom states that it began offering high-speed Internet e-mail and community portal services access to customers during 2001 at transmission rates of 256 kilobits per second (kbps) up to 1.5 mega bits per second (Mbps).
Staff reviewed the Application filed by WestCom 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 WestCom qualifies for the tax credit. Staff thus recommended the Commission approve the Application filed by WestCom for a tax credit.
Having reviewed the Application filed by WestCom 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 WestCom has installed qualified broadband equipment as a precondition to seeking an investment tax credit.
O R D E R
IT IS HEREBY ORDERED that WestCom LLC dba Digital Easy Chair’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 WestCom 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 September 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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ORDER NO. 29121 1

Office of the Secretary
Service Date
September 27, 2002