20031009Final Order No 29353.pdf

Office of the Secretary
Service Date
October 9, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF SYRINGA NETWORKS, LLC FOR
BROADBAND TAX CREDIT
CERTIFICATION ORDER NO. 29353
CASE NO. GNR-O3-
On August 19, 2003, Syringa Networks LLC (Syringa) filed an Application
requesting that the Commission certify that certain telecommunications equipment it installed in
2001 and 2002 is eligible for the broadband infrastructure tax credit authorized by Idaho Code
63-3029 et seq.
Pursuant to Idaho Code 9 63-30291, an Idaho taxpayer may receive a tax credit for
making "qualified investments" in "qualified broadband equipment" in Idaho, defined as
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. Idaho Code 9 63-
30291(3)(b), see also, Idaho Code 99 63-3029B and 63-30291(3)(b). 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. Idaho Code
9 63-30291(4). To implement its responsibilities under Idaho Code 9 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001 , identifying the information that must be
included in an application so the Commission can determine whether the installed equipment
qualifies for the tax credit.
Syringa s Application stated that during the calendar year 2001, it installed Signal
Transfer Point and supporting power for its packet switching. In 2002 Syringa stated that it
installed a digital switch, digital access cross connects, SONET OC-48 multiplexers, an A TM
switch, dense wave division multiplexers, and approximately 100 miles of fiber optic cable.
Syringa also included supporting power supply materials as well as engineering and overhead
costs. Syringa requested that the Commission issue an Order determining that the installed
equipment constitutes qualified broadband equipment eligible for the investment tax credit
authorized by Idaho Code 9 63-30291.
ORDER NO. 29353
In its original Application, Syringa included land, leasehold improvements, furniture
office equipment, general purpose computers and a company vehicle that Staff did not believe
qualified for the investment tax credit. After negotiations with Staff, Syringa agreed to remove
those items from its Application so that its investment totals $201 895 for 2001 and $15 853 807
for 2002.
After removal of these items the Commission Staff reviewed the broadband
equipment identified by Syringa and stated that it believed the equipment is "necessary to the
provision of broadband services and an integral part of a broadband network" according to Idaho
Code 9 63-30291(3)(b )(i) and thus, should be certified by the Commission as qualified broadband
equipment pursuant to Idaho Code 9 63-3029(1).
COMMISSION FINDINGS AND DECISION
Having reviewed Syringa s Application and Staffs recommendation, we find that the
Company s Application for a qualifying broadband equipment Order should be granted, with the
caveat that land, leasehold improvements, furniture, office equipment, general purpose
computers and a company vehicle are not within the Commission s certification. The Company
has adequately demonstrated that it installed the qualifying broadband equipment identified in its
Application during 2001 and 2002 in conformance with requirements set forth in Idaho Code
63-30291. We further find 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 Syringa Networks, LLC has
installed qualified broadband equipment as a precondition to seeking an investment tax credit.
ORDER
IT IS HEREBY ORDERED that Syringa Networks LLC's Application for an Order
certifying that it has installed qualified broadband equipment is granted, with the caveat that
land, leasehold improvements, furniture, office equipment, general purpose computers and a
company vehicle do not qualify for the credit.
IT IS FURTHER ORDERED that the Commission Secretary will forward a copy of
this Order along with a copy of the Application 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)
ORDER NO. 29353
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 of the Idaho Public Utilities Commission at Boise, Idaho this
q-f#--
day of October 2003.
fi€/(/i(PAUL E:C'6 ER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
iiE;:g;l Co ission Secretary
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ORDER NO. 29353