20180824final_order_no_34132.pdf

Office of the Secretary
Service Date
August 24,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CABLE ONE,INC.'S )CASE NO.GNR-T-18-05
APPLICATION FOR A 2017 BROADBAND )EQUIPMENTTAX CREDIT FOR )INSTALLING QUALIFYING BROADBAND )ORDER NO.34132EQUIPMENT)
On July 12,2018,Cable One,Inc.("Cable One"or "Company")applied to the Idaho
Public Utilities Commission ("Commission")for an Order confirmingthat equipment it installed
during calendar year 2017 is "qualified broadbandequipment"underIdaho Code §63-3029I.With
this Order,we confirm that the installed equipment is "qualified broadband equipment"under
Idaho Code §63-3029I.
THE APPLICATION
In its Application,Cable One states that it installed broadband equipment associated
with the Hybrid Coax Network.Cable One discloses that its broadband network has data
transmission rates of 3 Mbps to 200 Mbps.The Company estimates that 99.9%of its Idaho
customers have access to its broadband network within its designated service areas.Cable One
invested approximately $12,396,603 in 2017 in qualifying broadband equipment that it confirms
is integral to the broadband network.
THE BROADBAND EQUIPMENTTAX CREDIT
Idaho Code §63-3029I allows a taxpayer to receive an income tax credit for having
installed qualified broadband equipment during a calendar year.Before the taxpayer is eligible for
the tax credit,the taxpayer must first apply to the Commission for an Order confirmingthat the
installed equipment is "qualified broadband equipment"as defined in the statute.Idaho Code §
63-3029I(4).The statute defines "qualified broadband equipment"as equipment that:(1)qualifies
for the Idaho Code §63-3029B capital investment credit that "is capable of transmitting signals at
a rate of at least [200,000 bps]to a subscriber and at least [125,000 bps]from a subscriber"(Idaho
Code §63-3029I(3)(b));and (2)is "primarily used to provide services in Idaho to Idaho public
subscribers."See Idaho Code §63-3029I(3)(b)(vii).Further,in "the case of a telecommunications
carrier,such qualifying equipment shall be necessary to the provision of broadband service and an
integral part of a broadband network."Idaho Code §63-3029I(3)(b)(i).
ORDER NO.34132 l
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.1 That Order specifies the information the taxpayer must include in the broadband tax credit
application.When the taxpayer files the application,the Commission Staff reviews it to determine
whether the listed equipment meets the statutory definition of "qualified broadband equipment."
Staff then submits a recommendation to the Commission.If the Commission ultimately approves
the application,then the Commission forwards it and the Order to the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed and audited the Company's Applicationunder Idaho Code §63-3029I.
Based on its review and audit,Staff believes that the Company is a telecommunications carrier
and that the listed equipment meets the statutory criteria and is "qualified broadband equipment"
that is eligible for the tax credit.Staff thus recommended the Commission:(1)issue an Order
confirmingthat the Company's equipment is "qualified broadband equipment,"and (2)forward
copies of the Application and Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company's Applicationand Staff's recommendation,we find that
the Company's equipment identified in Case No.GNR-T-18-05 is "qualified broadband
equipment"eligible for the tax credit under Idaho Code §63-3029I.The Company is a
telecommunications carrier.Further,the listed equipment (as presently configured)is an integral
part of the Company's broadband network and is necessary to the provision of broadband service
to Idaho customers.Accordingly,it is appropriate for the Commission to issue an Order confirming
that the Company's equipment is "qualified broadband equipment."The Commission makes no
findings regarding the costs of the installed broadband equipment or other expenses.
ORDER
IT IS HEREBY ORDERED that the Company's Application for an Order confirming
that equipment it installed in 2017 is "qualified broadband equipment"is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served on 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
'The Commission issued Order No.28784 pursuant to Idaho Code §63-3029I(4),which empowers the Commission
to "issue procedural orders necessary to implement"Idaho Code §63-3029(4).
ORDER NO.34132 2
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 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this A 4
day of August 2018.
PA L KJE L DER,PRESIDENT
K STINE RAPER,MMIŠSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
I:\Legal\TELEPHONE\GNR-T-18-05\GNRTl805_BTC_finalorder_ejdocx
ORDER NO.34132 3