20050531Final Order No 29792.pdf

Office of the Secretary
Service Date
May 31 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
VELOCITUS FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFIED
BROADBAND EQUIPMENT
CASE NO. GNR-O5-
ORDER NO. 29792
On May 10, 2005, Velocitus 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 equipment has been installed and that it meets the definition
of qualified broadband equipment set out in Idaho Code ~ 63-3029I(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 Velocitus meets the applicable standards.
THE APPLI CA TI 0 N
The Velocitus Application states that it has installed (1) main office and remote
terminal equipment, (2) fiber and copper cables, and (3) wireless broadband equipment to
provide broadband services to Idaho customers. The Application states that Velocitus provides
broadband services over wireless networks, DSL, A TM and frame relay facilities at speeds of
256 000 bits per second or higher for downloads and 128 000 bits per second for uploads. The
Company indicated that the equipment is necessary and integral to its broadband network. The
Application states that Velocitus has made more than $2 million of investments in 2004. The
Company claims that 100% of this investment will be used to provide service to Idaho
customers.
ST AFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Velocitus and
found that it complies with Idaho Code~ 63-3029I(3)(b) and Procedural Order No. 28784. Staff
ORDER NO. 29792
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 subscriber and at least 125 000 bps
from a subscriber pursuant to Idaho Code ~ 63-3029I(3)(b). Staff also determined that Velocitus
meets the requirements of both a telecommunications carrier and a wireless carrier. Specifically,
the wireless equipment identified in the Application is "only that equipment that extends from a
transmitting/receiving antenna on the outside of the structure in which the subscriber is located.
Idaho Code ~ 63-3029I(3)(b )(iv). In addition, the wireline network investments are "necessary
to the provision of broadband service and an integral part of a broadband network." Idaho Code
~ 63-3029I(3)(b)(1). Therefore, Staff recommended that the Commission issue an Order
approving the Velocitus 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. Velocitus has
adequately demonstrated that the equipment identified in its Application is qualifying broadband
equipment subject to the tax credit. We further find that Velocitus meets the standards required
of both a wireless carrier and a telecommunications carrier. Specifically, we find that (1) the
wireless equipment included in the Application includes only that equipment that extends from a
transmitting/receiving antenna on the outside of the structure in which the subscriber is located
pursuant to Idaho Code ~ 63-3029I(3)(b )(iv), and (2) the wireline equipment is an integral part of
a broadband network necessary to deliver broadband services to Idaho customers pursuant to
Idaho Code ~ 63-3029I(3)(b )(i). It is therefore appropriate for the Commission to issue this
Order confirming that the equipment identified by Velocitus is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that the Velocitus 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
ORDER NO. 29792
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~~ 61-626, 63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3/
day of May 2005.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
ISSlon Secretary
O:GNRT0505 kdp
ORDER NO. 29792