20150917Application.pdf

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TO: ldaho Public Utilities Commission ("PUC")
47 2 W. Washington Street
Boise, lD 83702
ATTN: Grace Seaman, Utilities Analyst
FROM: Paul L. Mattiola, Vice President - Taxes
Verizon Communications, lnc.
One Verizon Way
P.O. Box 627
Basking Ridge, NJ 07920 N /N-T: r s:-o I
Date: 9/10/15
Re: Verizon Business ('VzB'), a,ka. Verizon Enterprise Sotutions
2Ol4ldaho Broadband Equipment lnvestment Credit (ldaho Form 68)
lntroduction
Verizon Business ("VzB") is submitting the following application to the ldaho Public Utilities
Commission ("PUC")for qualification of broadband equipment in accordance with
Procedural Order No.28784 (attached), in order to claim the Broadband Equipment
lnvestment Tax Credit (ldaho Form 68) for capital asset additions in 2014.
1. Applic-aEt..lnfgrmation
Verizon Business ("VzB") is a division of Verizon Communications, lnc. ("Verizon") and
provides services to business and government entities, including advanced
communications, information technology, networking, cloud computing and data
storage, and data security.
Questions regarding this application and its content should be directed to:
Tom Florino
Ernst & Young LLP
[e-mail]
212-773-6436
Or
11,.
Nick McGuirl
Ernst & Young LLP
[e-mail]
212-773-2591
2. Location of Broadband Equipment
Please refer to the attached 2014 capital asset addition schedule.
3. Description of Broadband Services
Verizon Business ("VzB) provides lP services and networks, as well as managed
WAN and LAN services, in addition to other networking services. VzB also offers
cloud and data center services. Additional products and services offered by VzB
include wired and wireless voice, as well as a variety of data and lnternet services.
4. Broadband Network Transmission Rates
Verizon Business ("VzB") broadband network infrastructure has data transmission
rates no lower than 155M bits per second for subscriber downloads (receive) and
uploads (send). This range exceeds the rate of at least 2O0,0OO bits per second to a
subscriber (download/receive) and at least 125,OOO bits per second from a
subscriber (upload/send), required under statute (ldaho Code S 63-30291).
5. List of Qualified Broadbdnd Equipment
Please refer to the attached 2014 capital asset addition schedule.
6. lnstallation Dates - Qualified Broadband Equipment
Please refer to the attached 2014 capital asset addition schedule.
7. Description of Broadband Equipment / Network
Verizon Business ("VzB") has 88 asset additions in 2O14 (see schedule)that are
"qualified broadband equipment," which is eligible for the 3olo Broadband Equipment
lnvestment Tax Credit (ldaho Forrn 68) under ldaho Code S 63-30291. This qualified
broadband equipment directly facilitates data transmission to and from service
subscribers and is integral to the broadband network.
The total 2014 tax credit claim is $22,529.6L P|ease see below and attached for
further detail.
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Verizon Business ("VzB")
2014 ldaho Qualified Broadband Equipment
Qualified Asset Summary
Row Labels LJ co.qrrt ojglIEggFv" -911.:! ojr -Qook t Coits . Sum of,3% TAX GREDIT_
Broadband Fiber Amplif ier - Data Transmission
Broadband Fiber Equip - Data Transmission
Broadband Network Device,- Data Transmission
Broadband Router Equip - Data Transmission
Cable - Data Transmission
Card Device - Data Transmission
Digital Transmission Device - Data Network
Electrical Equipment - Broadband Network
Fiber Optic Cable - Data Transmission
Multiplexer Signal Device - Data Transmission
Network Monitoring Device - Data Transmission
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88,793.7L
82,444.23
5,824.82
1,592.89
151,@8.25
5,25L.O2
2,292.59
26,726.05
1,040.51
3,736.U
58,801.87
24,774.14
24,UO.95
72,00L2\
5,775.56
2,563.8L
2,473,33
t74.74
50.79
4,531.45
157.53
5&78
801.78
31;22
112.08
2,064.06
743.22
72L.23
2,160,04
Power Device - Data Fransmission
Signal Amplifier - Data Transmission
Signal Transponder - Data Transmission
l:$!P gvt-.e :!-a-!1S99!r.ul s?.tl e L-
Grand Total 88s 750,986.94 s 2zils.ot
8. Broadband Network Sqbscribers
A. o/o and # of potential ldaho subscribers that could be served by the network;. 100o/o of allsubscribers
B. o/o and # of potential non-ldaho subscribers that could be served by the
network:. There are no non-ldaho customers that could be served with the
broadband equipment placed in service.
9. St"alem*e nt C e rtif vi nq Q u a lif i c ati on of Eligi b le B ro a dbanC"Eqtttg1enl
Verizon Business ("VzB") has reviewed the applicable statutes and regulations and
hereby certifies that the attached 2014 capital asset addition schedule contains
"qualified broadband equipment" that qualifies for the Broadband Equipment
lnvestment Tax Credit (ldaho Form 68) under ldaho Code S 63-30291.
Siqned and Certified:- /-^)/'1 r' /ed- -
Date:?71a7/z or;
3l
Verizon Business ("VzB")
2014 ldaho Qualified Broadband Equipment
Qualified Asset Summary
Bb
Broadband Fiber Amplifier - Data Transmission
Broadband Fiber Equip - Data Transmission
Broadband Network Device - Data Transmission
Broadband Router Equip - Data Transmission
Cable - Data Transmission
Card Device - Data Transmission
Digital Transmission Device - Data Network
Electrical Equipment - Broadband Network
Fiber Optic Cable - Data Transmission
Multiplexer Signal Device - Data Transmission
Network Monitoring Device - Data Transmission
Power Device - Data Transmission
Signal Amplifier - Data Transmission
Signal Transponder - Data Transmission
Switch Device - Data Communication
11 53s
11 s4s
192,518.56 s
88,793.71 s
82,444.23 s
5,824.82 sS r,692.89 SS rsr,048.25 SS s,2s7.02 S
2,292.69 s
26,726.05 s
1,040.51 s
3,736.04 s
58,801.87 s
24,774.L4 s
24,040.95 s
72,00t.27 s
5,775.56
2,663.87
2,473.33
174.74
50.79
4,53!.45
157.53
58.78
801.78
37.22
112.08
2,064.06
743.22
721.23
2,760.04
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Office of the Secretary
Service Date
July 12,2001
BEFORE THE IDAHO PIJBLIC UTILITIES COMMISSION
IN THE MATTER OF THE ISSUANCE OF A
PROCEDURAL ORDER TO FACILITATE THE
REVIEW OF APPLICATIONS TO DETERMINE
WIIETHER BROADBAND EQUIPMENT MEETS
THE ELIGIBILITY REQUIREMENTS FOR
INVESTMENT TAX CREDITS.
CASE NO. GNR.T-01-10
oRDER NO. 28784
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Earlier this year the Legislature enacted and the Governor signed House Bill 377
authorizing income tax credits for the installation of qualiffing broadband infrastructure in
Idaho. Idaho Code $ 63-30298(3XaXii). In particular, Section 63-3029I allows a taxpayer to
receive an investment tax credit for eligible broadband equipment installed between January 1,
2001 and December 31,2005.
"Qualified broadband equipment" is defined as those network facilities capable of
transmitting signals that are at a rate of at least 200,000 bits per seconds (bps) to a subscriber and
at least 125,000 bps from a subscriber . Idaho Code $ 63-30291(3)(b). To be eligible for the tax
credit, the taxpayer must apply and obtain "from the Idaho public utilities commission an order
confirming that installed equipment is qualified broadband equipment." Idaho Code $ 63-
30291(4). This section also provides that the Commission "may issue procedural orders
necessary to implement this section." ,Id.
PROCEDURAL HISTORY
On June 14, 2001, the Commission issued a Proposed Order to implement its
responsibilities under the broadband tax credit statute. IDAPA 31.01.01.312. The Proposed
Order identified informatiorr that should be contained in an application to determine whether the
installed equipment is "qualified" broadband equipment. Persons interested in commenting on
the Proposed Order were invited to subnrit written comnlents no later than July 5, 2001. The
Commission received two comments.l
'On June 28,2001, Avista Comrrunications petitioned to intervene in this rnatter. Although it filed no colnments,
Avista's Petition was sranted in a separate Order'.
ORDER NO. 28784
THE COMMENTS
Verizon Northwest and Qwest Corporation each filed brief comments. In its
comments, Verizon "applaud[ed] the Commission's efforts to implement House Bill 377 and
believes that this should help to speed deployment of broadband infrastructure in Idaho."
Verizon recommended that infomration filed in response to paragraph Nos. 7 and 8 be
considered as confidential information. Items 7 and 8 provide:
7. Provide a written description (including basic schematics or general
drawings) of the relevant broadband network including a description
of how the installed equipment is "an integral part" of a broadband
network.
8. Quantifu the percentage and number of potential Idaho subscribers that
could be served with the broadband equipment and the percentage and
number of non-Idaho subscribers that will belcould be served by the
broadband network.
Proposed Order at 2.
In its comments, Qwest agreed that "the information described in the Proposed Order
is appropriate for determination of whether equipment is qualified broadband equipment."
Qwest Comments at l. In particular, Qwest agreed with Item No. 4 in the Proposed Order which
requires an application to state the transmission rate of the broadband network. The Company
stated that its understanding of the phrase "qualified broadband equipment" includes
items that arc necessary and integral for the broadband network to operate,
but which are not parl of the actual transmission of the signal. Thus,
Qwest agrees that an application should set oLrt the transmission rate for
the network, and that the transmission rate does not apply to specific items
of equipment.
Qwest Comments at 2 (enrphasis added).
DISCUSSION
To implcnient olrr rcsponsibilitics undcr thc broadband tax credit, the Commission
finds that it is appropriate to issue a procedural order regarding broadband equipment
applications. Both comments suppor-ted adoption of a procedural order. Tuming to Verizon's
conrments. we believe the Commission's existing Rules of Procedure provide appropriate
protection for trade secret information contained in materials submitted to the Commission. See
ILulc 67.03. IDAPA 31.01.01.067.03. As for Qw'est's comnrents, thc Conimission amends Item
ORDEI{ NO. 28781
No. 4 to reflect that it is the network of broadband equipment that must satisfr the transmission
rates set out in ldaho Code $ 63-3029I(3Xb).
Applicants shall submit the following information in applications when seeking an
Order whether installed equipment is "qualified" broadband equipment.
l. Name and address of applicant including the contact person in the
event there are questions regarding the application and its content.
Indicate whether the applicant is a telecommunications carrier, a
commercial mobile service carrier, a cable or open video operator, a
satellite carrier, or other type of wireless carrier.
2. Identify the area or location where the equipment is installed in Idaho.
3. Describe the type of broadband service(s) offered to the public in
Idaho.
4. State the network transmission rate in bits per second at which
subscribers to the relevant broadband network can receive and send
(download and upload).
Provide a specific list of the equipment or types of equipment that the
applicant is requesting that the Commission determine is "qualified
broadband equipment" as defined in ldaho Code $ 63-3029I(3Xb).
List the brand, manufacturer, model numbers, or other distinguishing
features of the installed equipment.
Provide the date(s) or time period(s) when the broadband equipment
was installed in Idaho.
7. Provide a written description (including basic schematics or general
drawings) of the relevant broadband network including a description
of how the installed equipment is "an integral part" of a broadband
network.
Quantify the percentage and number of potential Idaho subscribers tliat
could be served with the broadband equipment and the percentage and
numbcr of non-Idaho subscribcrs that will be/could be served by the
broadband network.
Enclose a statement certifying that the applicant has read the
applicable statlrtes for broadband investment income tax credit and the
applicant believes that the subject broadband equipment qualifies for
tlre tax credit under ldaho Code \ 63-30291.
5.
6.
8.
9.
OI{DhR NO. 28784
ORDER
IT IS HEREBY ORDERED that taxpayers subrnitting applications for the
Commission to determine whether installed broadband equipment is eligible for the Idaho state
tax credit must include the information set out in the body of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. GNR-T-OI-
l0 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 or in interlocutory Orders previously issued in
this Case No. GNR-T-01-10. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See ldaho Code $ 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this /l#
day of .luly 2001.
ATTEST:
Conrmission Secretary
blsr'O:snrtOll0_dhl
oRDl,R NO. 28784
MARSHA H. SMITH, COMMISSIONER
MISSIONER