20051115final order no 29913.pdf

Office of the Secretary
Service Date
November 15, 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. 29913
On October 12, 2005, Qwest Corporation ("Qwest" 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 "
necessary to the provision of broadband service and an integral part of a broadband network."
Idaho Code 9 63-3029I(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
2004. The Application indicated Qwest had installed central office equipment and fiber cables to
provide broadband services to Idaho customers. The Application included general broadband
facilities dedicated line facilities, and inter-office facilities. The Application included a signed
affidavit indicating the submitted investments qualified for the broadband tax credit. The
Company amended the Application on November 1 , 2005 to remove certain items from the list
of equipment. The amended Application identified a net investment (new investment minus
retirements) of more than $16 million in 2004.
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
ORDER NO. 29913
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
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 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 as amended and Staffs recommendation, we
find that the amended Application for a qualifying broadband equipment Order should be
granted. The Company has demonstrated that the installed broadband equipment identified in its
amended 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
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 amended 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 amended
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. 29913
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /'-ItJ..
day of November 2005.
PAUL ELLA
. .
. PRESIDENT
~JJ~
MARSHA H. SMITH, COMMISSIONER
IS S. HANSEN, COMMISSIONER
ATTEST:
Commission Secretary
O:QWE- T-05-
ORDER NO. 29913