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Home My WebLink About20200716Application.pdfCABLE On'E'RECEIV€8 ?01il JUI- 16 Alt 9: 35 *",, *tii;'#i[*B*,on* Dear Mr. Klein, Please find enclosed Cable One's ldaho Broadband Tax Credit application for your review and approval. The total ldaho broadband equipment investment credit we are applying for tax year 2019 is $669,1 18. Also, similar to prior year, I have enclosed the detailed supports for ten of the qualifying assets Should you need any additional information please do not hesitate to contact me Respectfully Submitted, Cable One, lnc. 5/2, I trtnt Dafeng Zhu Tax Manager (602)-364-6253 Dafeng.zh u@cableone. biz June 30, 2020 Application: ldaho Broadband Tax Credit for 11112019 - 1213112019 Mr. Daniel Klein ldaho Public Utilities Commission 472W. Washington Boise, ldaho 83702 Ust t -T- Jo-t t 210 East Earll Drive, Phoenix, Arizona 85012-2626 602-364-6000 o t 602-364-6010 . cableone.net Companv lnformation Name of company: Location of equipment: Mailing Address: Type of company: Contact Person: Equipment Description Broadband services offered: Network description: ldaho Broadband Equipment Tax Credit Application - Tax Year 2019 Cable One, lnc. 8400 Westpark St. Boise, lD 83704 210 E. Earll Drive Phoenix, A285012 Cable Operator Dafeng Zhu Transmission Rate: Number and Percentage of ldaho: HSD. Cable One, Inc. provides high speed data service through a network that uses an MX960 router that all data traffic travels through. The network also contains several CMTSs that deliver broadband service to customers. lt's the equipment that cable modems in customer homes talk to. Netflix and Google caches store Netflix and YouTube content locally so that customer requests for content are delivered from the local caches in Boise as opposed to going allthe way to Netflix and Google data centers. The network also utilizes a Network Time Protocol server that makes sure that all the equipment in the headend has the right "time" on it. Alcatel 9700 CDS is the equipment that delivers our commercial fiber service. The switches are just devices that some of the servers in the headend connect to for network access (Exhibit C). From 3Mb to 200Mb. Equipment list: The total number of potential ldaho subscribers (homes passed) is approximately 481,185 at the end of 2019. lt is estimated 99.9% of those with access to Cable One have access to our broadband network. lt is estimated that our cable system reaches 97o/o of the population in the areas served by Cable One, lnc. See Attached Broadband Equipment List (Exhibit B). I hereby certify that I have read the applicable statutes for broadband investment income tax credit and believe that the equipment listed herein qualifies for the tax credit under ldaho Code 63-30291. 6lq,/zo Lo Dafeng Zhu, Tax Manager 6t30t2020 Cable One, lnc. 2018 ldaho Broadband Gredit Backup for schedule 68 Exhibit B - Calculation of Credit Period: 11112019 - 1219112019 1.4'.14.876 184,989 265.946 1.053.47 3.885,409 8.711.045 465.47'l 154.095 8.728 28.188 168,305 ul.2s8 544.373 37,U8 $ 502,820 Plant, Distribution and Head-end Equipment Drop Spending Equipment Total $ '|,000/0 502,820 166,298 $ 669,118 BroadbandequipmentacquiredandsenttoPUCforapprovdf Credit eamed 669,118 Cable One, lnc. EIN: 13-3060083 Attachment to ldaho Form 68 Application for order confirminq qualified broadband equipment Period: 1/1/2019 - 12131 12019 Drop Spending: A standard industry practice is to estimate the % of the cost to the house to be 60%; current engineering suggests the outside cost to be closer to 80% since most homes are pre-wired. For a conseryative approach, Cable One is using 60% for drop material and drop labor. Since most in-house labor on Multi Dwellings is interior, 0% is estimated for the Broadband Credit. Contract drop labor (single and multi) is for burying the drops and is 100% qualified since it occu6 prior to the demarcation point. Drop labor overhead is deemed 0% for Broadband Credit. Drop Spending ldaho Systems Total Spendino Percentaoe of total Spendinq in ldaho Qualifvina Percentaqe Exhibit B-l Qualifirino Amount 75,771 40,007 132,839 0 19,644 10,226 97,1 53 0 35,751 17,613 148,582 0 138,584 71,087 218,126 0 202,956 880,112 3'19,829 0 714,287 2,063,347 357,368 0 5,543,280 3o/o 166,298 Twin Falls System 101750 101754 101755 101758 Lewiston System 101750 101754 101755 1 01 758 Pocatello System 260 258 Drop Material - Non Project Labor - Drop - Non Project Labor-Drop-Project Labor-Drop-Overhead 259 Drop Material - Non Project Labor - Drop - Non Project Labor-Drop-Project Labor-Drop-Overhead Drop Material - Non Project Labor - Drop - Non Project Labor-Drop-Project Labor-Drop-Overhead 267 Drop Material - Non Project Labor - Drop - Non Project Labor-Drop-Project Labor-Drop-Overhead 268 Drop Material - Non Project Labor - Drop - Non Project Labor-Drop-Project Labor-Drop-Overhead 269 Drop Material - Non Project Labor - Drop - Non Project Labor-Drop-Project Labor-Drop-Overhead 126,285 66,678 221,398 0 414,361 50,369 26,220 249,110 0 325,699 59,585 29,355 247,637 0 336,577 230,973 118,478 363,543 0 712,995 338,260 1,466,853 533,048 0 2,338,162 1 ,253,1 35 3,619,906 626,962 0 5,500,002 9,627,795 1 01 750 'to't754 101755 101758 101750 101754 101755 101758 ldaho Falls System 101750 101754 101755 10'1758 Boise System 100Yo 100To 100% 100% 65% 65% 65o/o 65% 100To 100o/o 100% 100%o 100o/o 100Yo 100o/o 100o/o 100o/o 100% 100To 100o/o 95o/o 9SYo 95o/o 95o/o 600/o 600/o 60% 0% 60% 60% 600/0 00 600/0 60% 60% o% 60o/o 60% 6Qo/o jYo 60% 60% 60% Oo/o 60% 60% 600/o 0% West Valley System 1 01 750 101754 10't7s5 1 01 7s8 Q:\Tax Department\Tax Returns\Federal and State Tax Files\2019\State\lD\lD Broadband Credit\Schedule B - 2019 ldaho Broadband Credit Backup for Schedule 68 1-1-19 to J.2-3L-79 V2