20060411final_order_no_30014.pdf

Office of the Secretary
Service Date
April 11 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
IDACOMM, INc. FOR BROADBAND
INVESTMENT TAX CREDIT
CERTIFICATION ORDER NO. 30014
CASE NO. IZ2-06-
On March 10, 2006, IDACOMM, Inc. ("IDACOMM" or "Company ) 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 from the Commission an Order confirming that the installed equipment
meets the definition of qualified broadband equipment set out at Idaho Code 9 63-3029I(3)(b).
Briefly, qualified broadband equipment must be capable of transmitting signals a~ a rate of at
least 200 000 bits per second (bps) to a subscriber and at least 125 000 bps from a subscriber. In
the case of a telecommunications carrier, the qualified broadband equipment must also "
necessary to the provision of broadband service and an integral part of a broadband network."
Idaho Code 9 63-3029I(3)(b)(i). In this Order, we find that IDACOMM has installed qualified
broadband equipment.
THE APPLICATION
IDACOMM's Application indicated it had installed (1) main office and remote
terminal equipment and (2) fiber and copper cables to provide broadband services to Idaho
customers in the Treasure and Magic Valleys. IDACOMM's Application indicated it provides
broadband services at speeds of 1 544 000 bits per second or higher. 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 one and a half million dollars of investment in 2005.
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
ORDER NO. 30014
Commission. Staff reviewed the list of broadband equipment submitted by IDACOMM. Staff
believes that the equipment is "necessary for the provision of broadband services and an integral
part of a broadband network." Idaho Code 9 63-3029I(3)(b )(i). Consequently, Staff
recommended that the Commission issue an Order approving IDACOMM's Application. Staff
further recommended that the Commission forward the approving Order, along with a copy of
the original Application, to the Idaho Tax Commission.
FINDINGS
Having reviewed IDACOMM's Application and Staffs recommendation, we find
that the Application for a qualifying broadband equipment Order should be granted. The
Company has demonstrated that the installed broadband equipment identified in its Application
conforms to the qualifying requirements of Idaho Code 9 63-3029I(b). 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. Idaho Code 9 63-3029I(3)(b)(i). It is therefore
appropriate for the Commission to issue this Order confirming that IDACOMM has installed
qualified broadband equipment as a pre-condition 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 IDACOMM, Inc.'s Application for an Order
certifying that it has installed qualifying broadband equipment is approved.
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. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code 9 61-
626.
ORDER NO. 30014
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 1/-//'
day of April 2006.
&J_
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~LU.Je D. Jewell
ISSlOn Secretary
0 :lZ2- T -06-- cg
ORDER NO. 30014