20030815Final Order No 29318.pdf

Office of the Secretary
Service Date
August 15 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PROJECT MUTUAL TELEPHONE
COOPERATIVE ASSOCIATION, INC. FOR
BROADBAND TAX CREDIT
CERTIFICATION ORDER NO. 29318
CASE NO. PRJ-O3-
On July 16, 2003, Project Mutual Telephone Cooperative Association, Inc. filed an
Application requesting that the Commission certify that certain telecommunication equipment it
installed in 2002 is eligible for the broadband infrastructure tax credit authorized by Idaho Code
~ 63-3029.
Pursuant to Idaho Code ~ 63-30291, an Idaho taxpayer may receive a tax credit for
installing "qualified broadband equipment " defined as 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. Idaho Code ~ 63-3029I(3)(b). To be eligible for the tax credit
the taxpayer must obtain from the Commission an Order confmning that the equipment has been
installed and that it meets the definition of qualified broadband equipment. Idaho Code ~ 63-
30291(4). To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001 , identifying the information that must be
included in an application so the Commission can determine whether the installed equipment
qualifies for the tax credit.
Project Mutual's Application states that during calendar year 2002 it installed fiber
optic cable, fiber optic transceivers and multiplexers, Digital Subscriber Line (DSL) modems
with supporting line cards, ports and cables. The Company also states that it installed wireless
modems, antennae, optical laser multiplexers and an A TM switch providing ADSL and HDSL
broadband service to customers in Minidoka and Cassia Counties. Project Mutual also
capitalized the labor and overhead costs associated with the installation of this equipment.
The Commission Staff reviewed the broadband equipment identified by Project
Mutual and stated that it believes the equipment is "necessary to the provision of broadband
services and an integral part of a broadband network" according to Idaho Code ~ 63-30291
ORDER NO. 29318
(3)(b)(i) and thus, should be certified by the Commission as qualified broadband equipment
pursuant to Idaho Code ~ 63-3029(1).
Having reviewed Project Mutual's Application and Staffs recommendation, we find
that the Company s Application for a qualifying broadband equipment Order should be granted.
The Company has adequately demonstrated that it installed the qualifying broadband equipment
identified in its Application during 2002 in conformance with requirements set forth in Idaho
Code ~ 63-30291. 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. It is
therefore appropriate for the Commission to issue this Order confirming that Project Mutual has
installed qualified broadband equipment as a precondition to seeking an investment tax credit.
ORDER
IT IS HEREBY ORDERED that Project Mutual Telephone Cooperative Association
Inc. ' s Application for an Order certifying that it has installed qualified broadband equipment is
granted.
IT IS FURTHER ORDERED that the Commission Secretary will forward a copy of
this Order along with a copy of 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. 29318
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /fi"*'
day of August 2003.
ATTEST:
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ORDER NO. 29318
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ENNIS S. HANSE , OMMISSIONER