20050610Final Order No 29797.pdf

Office of the Secretary
Service Date
June 10, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
DIRECT COMMUNICATIONS CABLE FOR AN )INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND EQUIPMENT
CASE NO. GNR- T -05-
ORDER NO. 29797
On April 11 , 2005, Direct Communications Cable filed an Application requesting that
the Commission find the Company eligible to receive an Idaho Investment Tax Credit. Pursuant
to Idaho Code ~ 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 an
Order from the Commission confirming that the identified equipment meets the definition of
qualified broadband equipment set out in Idaho Code ~ 63-30291(3)(b).In addition, the
Commission must find that the equipment meets certain standards depending on whether the
carrier is characterized as a telecommunications carrier, commercial mobile service carrier, cable
or open video system operator, satellite carrier or wireless carrier and whether the equipment is
packet switching equipment or multiplexing and demultiplexing equipment. The Commission
finds that Direct Communications Cable meets the applicable standards.
THE APPLICATION
Direct Communications Cable states that it has installed (1) fiber and coaxial cables
and (2) remote digital terminals and related equipment to provide cable modem broadband
services to Idaho customers. The Company further states that this equipment provides service at
speeds of 512 000 bits per second for uploads from customers and 1 000 000 bits per second for
downloads to customers. The Company claims to have made $150 000 of investments in 2004.
The Company claims that 100% of this investment will be used to provide service to Idaho
customers.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Direct
Communications Cable and found that it complies with Idaho Code ~ 63-30291(3)(b) and
Procedural Order No. 28784. Staff determined that the equipment is "qualified broadband
equipment" capable of transmitting signals at a rate of at least 200 000 bits per second (bps) to a
ORDER NO. 29797
subscriber and at least 125 000 bps from a subscriber pursuant to Idaho Code ~ 63-30291(3)(b).
Staff also determined that Direct Communications Cable meets the requirements of a cable or
open video system operator. Specifically, the equipment extends "from the subscriber s side of
the headend to the outside of the structure in which the subscriber is located.Idaho Code ~ 63-
30291(3)(b )(iii). Therefore, Staff recommended that the Commission issue an Order approving
the Application.
COMMISSION FINDINGS
Based upon our review of the Application and Staff recommendations, we find that
the Application for a qualifying broadband equipment Order should be granted. Direct
Communications Cable has adequately demonstrated that the equipment identified in its
Application is qualifying broadband equipment subject to the tax credit. We further find that
Direct Communications Cable meets the standards required of a cable operator. Specifically, we
find that the equipment identified in the Application extends from the subscriber s side of the
headend to the outside of the structure in which the subscriber is located pursuant to Idaho Code
~ 63-30291(3)(b)(iii). It is therefore appropriate for the Commission to issue this Order
confirming that the equipment identified by Direct Communications Cable is qualified
broadband equipment.
ORDER
IT IS HEREBY ORDERED that the Direct Communications Cable Application for
an Order certifying it has installed qualifying broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served upon the Idaho State 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 ~~ 61-626, 63-30291(4).
ORDER NO. 29797
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this / O.
#--
day of June 2005.
PAUL KJELLAND R, PRESIDENT
JJ~
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSEN , COMMISSIONER
ATTEST:
. Jewell
ission Sec tary
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ORDER NO. 29797