20051207final_order_no_29927.pdf

Office of the Secretary
Service Date
December 7, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
PROJECT MUTUAL TELEPHONE
COOPERATIVE FOR BROADBAND TAX
CREDIT CERTIFICATION ORDER NO. 29927
CASE NO. PRJ-O5-
On November 29, 2005 , Project Mutual Telephone Cooperative ("Project Mutual" or
Company ) filed an Application requesting that the Commission find the Company eligible to
receive an Idaho Investment Tax Credit. Pursuant to Idaho Code 9 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
9 63-3029I(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 "be necessary to the provision of broadband service and an integral part of a
broadband network." Idaho Code 963-3029I(3)(b)(i). In this Order, we find that the Company
has installed qualified broadband equipment.
THE APPLICATION
Project Mutual's Application identifies its broadband investments for the year ended
December 31 , 2004. The Application indicated the Company had installed central office
equipment, remote terminal equipment and fiber optic and copper cables to provide ADSL
(asynchronous digital subscriber line), SDSL (synchronous digital subscriber line) and HDSL
(high bit rate digital subscriber line) broadband services to Idaho customers. The Application
included a signed affidavit indicating the submitted investments qualified for the broadband tax
credit. The Application identified a total investment under one half of a million dollars.
STAFF REVIEW
To implement its responsibilities under Idaho Code 9 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
ORDER NO. 29927
the Commission Staff reVIews the Application and submits a recommendation to the
Commission. Staff reviewed the list of broadband equipment submitted by the Company. Staff
believes that the equipment is "necessary for the provision of broadband services and an integral
part of a broadband network.Idaho Code 9 63-3029I(3)(b)(i). Consequently, Staff
recommended that the Commission issue an Order approving the Company s Application. Staff
further recommended that the Commission forward the approving Order, along with a copy of
the original Application, to the Idaho Tax Commission.
FINDINGS
Having reviewed Project Mutual's Application and Staffs recommendation, we find
that the Application for a qualifying broadband equipment Order should be granted. The
Company has demonstrated that the installed broadband equipment identified in its Application
conforms with the qualifying requirements of Idaho Code 9 63-3029I(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 9 63-3029I(3)(b)(i). 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 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
approved.
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) 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 9 61-
626.
ORDER NO. 29927
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
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day of December 2005.
/w~KJ LLA D , PRESIDENT
LJ
MARSHA H. SMITH, COMMISSIONER
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
Je D. Jewell
~mission Secretary
O:PRJ-05-
ORDER NO. 29927