20051013final order no 29888.pdf

Office of the Secretary
Service Date
October 13, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF QWEST CORPORATION FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT
CASE NO. QWE-O5-
ORDER NO. 29888
On September 8, 2005 , Qwest Corporation (Qwest; 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 63-30291(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 9 63-30291(3)(b )(i). In this Order, we find that Qwest has installed qualified
broadband equipment.
THE APPLICATION
Qwest's Application identifies the Company s broadband investments for the year
2003. The Application indicates Qwest has installed central office equipment and fiber cables to
provide broadband services to Idaho customers. The Application included general broadband
dedicated line, and inter-office facilities. The Application included a signed affidavit indicating
the submitted investments qualify for the broadband tax credit. The Application also identified a
net investment (new investment minus retirements) of over $8 million in 2003.
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
the Commission Staff reviews the application and submits a recommendation to the
Commission.Staff reviewed the list of broadband equipment submitted by Qwest.Staff
ORDER NO. 29888
believes that the identified equipment meets the statutory criteria and is "necessary for the
provision of broadband services and an integral part of a broadband network." Idaho Code 9 63-
30291(3)(b)(i). Consequently, Staff recommended that the Commission issue an Order
approving Qwest'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 Qwest's Application and Staff s 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 63-30291(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 9 63-30291(3)(b )(i). It is therefore appropriate for the
Commission to issue this Order confirming that Qwest 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 Qwest Corporation s 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 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. See Idaho Code 9 61-
626.
ORDER NO. 29888
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /3'
day of October 2005.
ATTEST:
~LO.Je D. Jewell
Co mission Se retary
O:QWE-05-
ORDER NO. 29888
~1l
~~
ARSHA H. SMITH, COMMISSIONER