20130409final_order_no_32785.pdf

Office ofthe Secretary
Service Date
April 9,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF POTLATCH TELEPHONE COMPANY,)CASE NO.POT-T-13-O1
DBA TDS TELECOM,FOR AN )
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER NO.32785
EQUIPMENT )
__________________________________________________________________________________
)
On March 19,2013,the Commission received an Application from Potlatch
Telephone Company dba TDS Telecom (“TDS”or “Company”)requesting approval of a
broadband tax credit pursuant to Idaho Code §63-30291(3)(b)for the 2009-2012 calendar years.
THE APPLICATION
In its Application,TDS states that it has installed Digital Subscriber Line (DSL)
services with transmission rates of up to 24 Mbps in the Julietta,Kendrick and Troy exchanges.
TDS asserts that approximately 77%of its customers in these exchanges can be served by the
Company’s broadband network.The Company’s Application discloses an investment of
approximately $109,198 in qualifying broadband equipment for the following years:$10,976
(2009);$37,386 (2010);$33,559 (2011)and $27,277 (2012).
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by TDS and
found that the equipment identified meets the statutory criteria outlined in Idaho Code §63-
30291(3)(b).Staff determined that TDS’s broadband equipment is 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.Idaho Code §63-30291(3)(b).Staff also determined that TDS 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 §63-30291(3)(b)(i).Therefore,Staff
recommended the Commission issue an Order approving the Application and that the approving
Order,along with a copy of TDS’s Application,be forwarded to the Idaho State Tax
Commission.
COMMISSION FINDINGS
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
ORDER NO.32785 1
equipment.”Idaho Code §63-30291(4).‘1n 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 §63-30291(3)(b)(i).
Based upon our review of the Application and the recommendations of the
Commission Staff,we find that TDS’s Application requesting a qualified broadband equipment
Order should be granted.TDS has adequately demonstrated that the equipment identified in its
Application qualities as broadband equipment subject to the tax credit.We also find that TDS 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.It is therefore appropriate for the Commission to
issue this Order confirming that the equipment identified in TDS’s Application is qualified
broadband equipment.
ORDER
IT IS HEREBY ORDERED that the Application of Potlatch Telephone Company dba
TDS Telecom seeking an Order certifying that it has installed qualifying broadband equipment in
idaho during the 2009-20 12 calendar years is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of TDS’s
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.32785 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this j
day of April 2013
ATTEST:
MACK A REDFORD,COMMISSIONER
••
..6
MARSHA H.SMITH.COMMISSIONER
Jep D.JeweIlO
Commission Secretary
O:POT-F-13-Olnp
R.PRESIDENT
ORDER NO.32785