20030416Order No 29224.pdf

Office of the Secretary
Service Date
April 16 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF WESTCOM, LLC DBA DIGITAL EASY
CHAIR CONCERNING INVESTMENT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT TAX CREDIT ORDER NO. 29224
CASE NO. GNR-O3-
On March 17, 2003 , WestCom, LLC dba Digital Easy Chair filed an Application to
receive an investment tax credit for installation of broadband equipment under Idaho Code ~ 63-
30291. 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 ~ 63-30291, 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.
Digital Easy Chair s Application states that during calendar year 2002 it installed an
Internet switch, routers, servers, optical splitters, and optical premises equipment for homes
power supply, and fiber optic cable to homes in the Bear Creek Subdivision in Meridian, Idaho
and on Boeing Street in Boise, Idaho. Digital Easy Chair also included in its Application costs
incurred in installing the equipment. Digital Easy Chair states that it began offering high-speed
Internet access, e-mail, and community portal services to customers during 2002 at transmission
rates of256 ki10bits per second (kbps) up to 1.5 mega bits per second (Mbps).
Staff reviewed the Application filed by Digital Easy Chair 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 the Company qualifies for the tax
ORDER NO. 29224
credit. Staff thus recommended the Commission approve the Application filed by Digital Easy
Chair for a tax credit.
Having reviewed the Application filed by Digital Easy Chair and Staff
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 2002 to conform with the
requirements set forth in Idaho Code ~ 63-30291. 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 Digital Easy Chair has installed qualified broadband equipment
as a precondition to seeking an investment tax credit.
ORDER
IT IS HEREBY ORDERED that WestCom, LLC dba Digital Easy Chair
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 Digital Easy Chair
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.
ORDER NO. 29224
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this I~ 1f--
day of April 2003.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
/t.Commission Secretary
bls/O:GNRT0311 ws
ORDER NO. 29224