20071015final_order_no_30452.pdf

Office of the Secretary
Service Date
October 15 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
MUD LAKE TELEPHONE COOPERATIVE,
INC. FOR AN INVESTMENT TAX CREDIT
FOR INSTALLING QUALIFYING
BROADBAND EQUIPMENT ORDER NO. 30452
CASE NO. MLC-07-
On September 12, 2007, the Commission received an Application from Mud Lake
Telephone Cooperative, Inc. ("Mud Lake ) asking for approval of a broadband tax credit
pursuant to Commission Order No. 28784 and Idaho Code ~ 63-30291(4). In order to be eligible
to obtain the tax credit, the taxpayer must first obtain an Order from the Commission
confirming that the installed equipment is qualified broadband equipment." Idaho Code ~ 63-
30291(4). "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).
THE APPLICATION
Mud Lake submitted a broadband tax credit Application for 2006. The Application
indicates that it has installed qualifying equipment to provide Digital Subscriber Line (DSL) and
wireless broadband services in Clark County and portions of western Jefferson County in Idaho.
The Company states that the equipment is necessary and integral to its broadband network. The
Company has installed the equipment that will allow network transmission rates of 128k to 1.
bits per second (bps) and that 100% of the customers served are Idaho residents. The
Application identified $412 500 of investment in qualifying equipment in 2006.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Mud Lake and
found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
3029I(3)(b). Staff determined that Mud Lake s broadband equipment 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). Staff also determined that Mud Lake is a telecommunications
carrier and its equipment is "necessary to the provision of broadband service and an integral part
of a broadband network." Idaho Code ~ 63-3029I(3)(b )(i). Therefore, Staff recommended that
ORDER NO. 30452
the Commission issue an Order approving the Application and that the approving Order, along
with a copy of Mud Lake s Application, be forwarded to the Idaho State Tax Commission.
COMMISSION FINDINGS
Based upon our review of the Application and the recommendations of the Staff, we
find that the Application for a qualifying broadband equipment Order should be granted. Mud
Lake has adequately demonstrated that the equipment identified in its Application is qualifying
broadband equipment subject to the tax credit. We further find that Mud Lake is a
telecommunications carrier and, as presently configured, the installed equipment is an integral
part of the Company s broadband network and that it is necessary to facilitate the delivery of
broadband Internet service to Idaho customers. Id. It is therefore appropriate for the
Commission to issue this Order confirming that the equipment identified in Mud Lake
Application is qualifying broadband equipment.
ORDER
IT IS HEREBY ORDERED that Mud Lake Telephone Cooperative, Inc.
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 of Mud Lake
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. Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 30452
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /5#-
day of October 2007.
J&JL
MARSHA H. SMITH, COMMISSIONER
r-'
'--'--
ATTEST:
. J D. Jewell
mmission Secretary
O:MLC-07-
ORDER NO. 30452