20070202final_order_no_30237.pdf

Office of the Secretary
Service Date
February 2, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
FIRST STEP INTERNET LLC FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT
CASE NO. GNR- T -06-
ORDER NO. 30237
On December 18 , 2006, First Step Internet LLC 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 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 9 63-3029I(3)(b).
Qualified broadband equipment must be 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. The
qualified broadband equipment must also "be necessary to the provision of broadband service
and an integral part of a broadband network." Idaho Code 963-3029I(3)(b)(i). In this Order, we
find that First Step meets the applicable standards.
THE APPLICATION
First Step indicates that it provides broadband services using both wired and wireless
technologies, using its own facilities, as well as those leased from local telephone companies.
First Step has built a point-to-point wireless network to provide broadband services to Idaho
customers in the rural communities around Lewiston and Moscow. Customers on the wireless
network are provided broadband services at a variety of speeds, from a minimum of 256 000 bps
(256 kbps) to as much as 5 million bps (5 Mbps). Wired services are provided at speeds from
256 kbps downloadl128 kbps upload to as fast as 100 Mbps. The Company indicated the
equipment identified in its Application is necessary and integral to its broadband network. The
Company claims that 100% of the investment will be used to provide service to Idaho customers.
The Application identified approximately a $500 000 investment.
ORDER NO. 30237
STAFF REVIEW
To implement its responsibilities under Idaho Code 9 63-30291, the Commission
issued Procedural Order No. 28784 in July 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. Staff has reviewed the list of installed broadband equipment submitted by First
Step and believes the identified equipment meets the statutory criteria. Consequently, the Staff
recommends that the Commission issue an Order approving First Step s Application.
COMMISSION FINDINGS
Having reviewed First Step s Application and Staffs recommendation, we find that
the Application for a qualifying broadband equipment Order should be granted. The Company
has demonstrated that it installed qualifying broadband equipment identified in its Application
during 2006 in conformance with Idaho Code 9 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. Therefore, the Commission issues this Order confirming that First
Step Internet has installed qualified broadband equipment as a precondition to seeking an Idaho
broadband tax credit. The Commission makes no findings regarding the costs of the installed
broadband equipment.
ORDER
IT IS HEREBY ORDERED that First Step Internet LLC's Application for an Order
certifying that it has installed qualifying broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy ofthe 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 99 61-626 63-30291(4).
ORDER NO. 30237
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this t2J
day of February 2007.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~&~
Je D. Jeweli
mission Secretary
bls/O:GNR-06-0S ws
ORDER NO. 30237