20040902Final Order No 29579.pdf

Office of the Secretary
Service Date
September 2, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF PROJECT MUTUAL TELEPHONE
COOPERATIVE FOR AN INVESTMENT
T AX CREDIT FOR INSTALLING
QUALIFIED BROADBAND EQUIPMENT.ORDER NO. 29579
CASE NO. PRJ-O4-
On August 9, 2004, Project Mutual Telephone Cooperative (Project Mutual) filed an
Application requesting that the Commission find the Company eligible to receive an Idaho
Investment Tax Credit. Pursuant to Idaho Code ~ 63-30291, an Idaho taxpayer may receive a tax
credit for installing "qualified broadband equipment" in Idaho. To be eligible for the tax credit
the taxpayer must obtain from the Commission an Order confirming that the installed equipment
meets the definition of qualified broadband equipment set out at Idaho Code ~ 63-30291(3)(b).
Briefly, qualified broadband equipment must be 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 must also "
necessary to the provision of broadband service and an integral part of a broadband network."
Idaho Code ~ 63-30291(3)(b)(i). In this Order we find that Project Mutual has installed
qualified broadband equipment.
THE APPLICATION
Project Mutual's Application states that during 2003 the Company installed various
components as part of its wireline and wireless broadband network for the provision of high-
speed Internet access to customers in Cassia, Twin Falls, and Minidoka counties. The installed
equipment consists of: fiber optic transceivers and Digital Subscriber Line (DSL) modems with
supporting line cards, ports and cables; a wireless antenna; and course wave division
multiplexing (CWDM) equipment. The Company indicates that the transmission rates are from
256 kilobits per second (kbps) up to 1.54 megabits per second (Mbps). Project Mutual also
capitalized the labor and overhead costs associated with the installation of this equipment. The
Company has asked for just over $22 000 of broadband tax credits in the Application.
ORDER NO. 29579
ST AFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. This Order identifies information that must be
included in an Application for a broadband tax credit. Once the information has been filed, then
the Commission Staff reviews the Application and submits a recommendation to the
Commission. Staff reviewed the list of broadband equipment submitted by Project Mutual. Staff
believes that the equipment is "necessary for the provision of broadband services and an integral
part of a broadband network."Idaho Code ~ 63-30291(3)(b )(i).Consequently, Staff
recommends that the Commission issue an Order approving Project Mutual's Application.
FINDINGS
Having reviewed Project Mutual's Application and Staffs recommendation, we find
that the Application for a qualifying broadband equipment Order should be granted. We find
that the broadband equipment identified in the Company s Application meets the qualifying
requirements of Idaho Code ~ 63-30291(b). 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. Idaho Code ~ 63-30291(3)(b )(i). It is therefore appropriate for the
Commission to issue this Order confirming that Proj ect Mutual has installed qualified broadband
equipment as a precondition to seeking an Idaho broadband tax credit. The Commission makes
no findings regarding the costs of the installed broadband equipment.
ORDER
IT IS HEREBY ORDERED that Project Mutual Telephone Cooperative
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 the 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) issued in this Case No. PRJ-04-1 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 issued in this Case No. PRJ-04-1. 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. 29579
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :( ivJ..
day of September 2004.
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MARSHA H. SMITH, COMMISSIONER
ATTEST:
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Commission Secretary
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ORDER NO. 29579