20030708Final Order No 29285.pdf

Office of the Secretary
Service Date
July 8, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDACOMM, INc. FOR A TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT.ORDER NO. 29285
CASE NO. GNR- T -03-
On May 2, 2003, IDACOMM, Inc. filed an Application requesting that the
Commission find the Company eligible to receive an Idaho investment tax credit. Pursuant to
Idaho Code 9 63-30291, an Idaho taxpayer may receive a tax credit for installing "qualified
broadband equipment" in Idaho. To be eligible for the tax credit, the taxpayer must obtain from
the Commission an Order confirming that the equipment has been installed and that it meets the
definition of qualified broadband equipment set out at Idaho Code 963-3029I(3)(b). In this
Order, we find that IDACOMM has installed qualifying broadband equipment.
THE APPLICATION
During calendar year 2002, IDACOMM states that it installed Alcatel brand fiber
optic cable and supporting splicers and conduit. IDACOMM also installed LuxN brand optical
multiplexers and supporting underground vaults and power supply equipment for the provision
of high-speed internet and other point-to-point data services to customers in Idaho s Treasure
Valley. The Company indicates that it offers high-speed access to customers at transmission
rates from 1.544 megabits per second (Mbps) up to 1000 Mbps. One-hundred percent of
IDACOMM's customers are Idaho subscribers of which approximately 5% are IdaCorp-related
companIes.
STAFF REVIEW
To implement the Commission s responsibilities under Idaho Code 963-30291, the
Commission issued procedural Order No.28784 in July of 2001. This Order identifies
information that must be included in an Application for a broadband tax credit. Once the
information has been filed, then the Commission Staff reviews the Application and submits a
recommendation to the Commission.
ORDER NO. 29285
Staff noted that IDACOMM claimed in its Application that it was eligible for the tax
credit because it is a "telecommunications carrier" as that term is defined in the Communications
Act of 1934, as amended. Staff was concerned that IDACOMM's offering of "dark fiber" rather
than providing dial tone, switching or transmission, might not constitute "telecommunications
service" as described in Idaho Code 9 63-3029I(3)(b)(i). Dark or "unlit" fiber does not have the
electronics to transmit information between the ends of the fiber links but is made available for
customers to use their own electronics to transmit signals between points.
Upon further review, Staff reported that the Federal Communications Commission
(FCC) has equated dark fiber with unused transport capacity. Consequently, the FCC found that
dark fiber is a "feature, function, and capability of facilities used to provide telecommunications
services." The FCC further stated that the term "dark fiber" refers to network facilities or
equipment that is "customarily employed for the purpose of providing a telecommunication
service.! Although IDACOMM may not meet the definition of a "telecommunications carrier
under Idaho La Staff determined that dark fiber is used for the provision of
telecommunication service under federal law and therefore qualifies as telecommunications
equipment under Idaho Code 9 63-3029I(3)(b)(i).
DISCUSSION
Having reviewed IDACOMM's Application and Staffs recommendation, we fmd
that the Company s Application for a qualifying broadband equipment Order should be granted.
The Company has demonstrated that it installed the qualifying broadband equipment identified in
its Application during 2002, in conformance with the requirements set forth in Idaho Code 9 63-
30291. We further find that as configured, the installed equipment and dark fiber 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 IDACOMM has
installed qualified broadband equipment as a precondition to seeking an Idaho broadband tax
credit.
In the Matter of Implementation of Local Competition Provisions of the Telecommunications Act of 1996, CC
Docket No. 96-, Third Report and Order Fourth Further Notice of Proposed Rulemaking, ~~ 339-40 (Sept. 15
1999).
See Order Nos. 28187 and 28497.
ORDER NO. 29285
ORDER
IT IS HEREBY ORDERED that IDACOMM, Inc s Application for an Order
certifying that it has installed qualified broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order be served upon the 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. See Idaho Code 9 61-626.
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this
g'f+.
day of July 2003.
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~~
MARSHA H. SMITH, COMMISSIONER
Ib:.
ATTEST:
Commission Secretary
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ORDER NO. 29285