20030828Final Order No 29331.pdf

Office of the Secretary
Service Date
August 28, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF MID V ALE TELPEHONE EXCHANGE,
INC. CONCERNING INVESTMENT FOR
INSTALLING QUALIFIED BROADBAND
EQIDPMENT TAX CREDIT.ORDER NO. 29331
CASE NO. MID-O3-
On August 5, 2003 , Midvale Telephone Exchange, Inc. filed an Application to
receive an investment tax credit for installation of broadband equipment under Idaho Code ~ 63-
30291. Pursuant to that section, an Idaho taxpayer may receive a tax credit for installing eligible
equipment, which must be part of network facilities that are 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. In the case of a telecommunications carrier, the qualified broadband equipment also
must "be necessary to the provision of broadband service and an integral part of a broadband
network." Idaho Code ~ 63-30291 (3)(b)(i). A taxpayer may receive the credit only after
obtaining from the Commission an Order confirming that the installed equipment qualifies under
the statute. To facilitate its review under Idaho Code ~ 63-30291 , the Commission issued
Procedural Order No. 28784 in July 2001 , identifying the information that applicants must
provide to the Commission to determine whether the installed equipment qualifies for the tax
credit.
Midvale s Application states that during calendar year 2002 it installed various
components as part of its wireline broadband network for the provision of high speed Internet
access to its Idaho customers. Midvale states that it installed fiber optic transceivers, digital loop
carrier shelves, line cards, concentrating electronics, and supporting power supply and software.
Midvale also included in its Application labor and overhead costs associated with the installation
of the equipment.
Midvale states that it offers high-speed access to its customers at transmission rates
of 128 kilobits (kbps) to 1.54 megabits per second (Mbps). The Application states that Midvale
offers Asynchronous Digital Subscriber Line (ASDL) to customers using primarily AFC brand
equipment.
ORDER NO. 29331
Staff reviewed the Application filed by Midvale to confirm that the equipment is
necessary to the provision of broadband services and an integral part of a broadband network."
Staff stated the equipment installed by Midvale qualifies for the tax credit and recommended the
Commission approve the Application.
Having reviewed the Application filed by Midvale and Staff s recommendation the
Commission finds that the Company s Application for a qualifying broadband equipment Order
should be granted. The Company has adequately demonstrated that it installed the equipment
identified in its Application during 2002 to conform with the requirements set forth in Idaho
Code ~ 63-30291. The Commission further finds that as configured the installed equipment is an
integral part of a broadband network necessary to deliver broadband services to Idaho customers.
It is therefore appropriate for the Commission to issue this Order confirming that Midvale has
installed qualified broadband equipment as a precondition to seeking an investment tax credit.
ORDER
IT IS HEREBY ORDERED that Midvale Telephone Exchange, Inc.s Application
for an Order certifying that it has installed qualified. broadband equipment is granted. The
Commission Secretary will forward this Order along with the Application to the Idaho Tax
Commission.
THIS IS A FINAL ORDER. Any person interested in 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 ~ 61-626.
ORDER NO. 29331
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;J.Jltf-.
day of August 2003.
4cL-
, PRESIDENT
MARSHAB. SMITH, COMMISSIONER
ATTEST:
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Commission Secretary
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ORDER NO. 29331