20070411final_order_no_30295.pdf

Office of the Secretary
Service Date
April 11 2007
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-07-
ORDER NO. 30295
On March 1 , 2007, the Commission received an Application from Qwest Corporation
asking for approval of equipment for the broadband tax credit pursuant to Order No. 28784 and
Idaho Code 9 63-30291(4). To be eligible for the tax credit, the taxpayer must obtain an Order
from the Commission confirming that the equipment has been installed and that it meets the
definition of qualified broadband equipment set out in Idaho Code 9 63-30291(3)(b). 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. The qualified broadband
equipment must also "be 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's
investment meets the applicable standards.
THE APPLICATION
Qwest's Application identifies the Company s broadband investments for the year
2005. 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
Application identified a net investment (new investment minus retirements) of just over $8
million in 2005.
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 is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
ORDER NO. 30295
Commission. Staff has reviewed the list of proposed broadband equipment submitted by Qwest
and believes that the equipment identified meets the statutory criteria. Staff therefore
recommended approval of the Application and further recommended that the Commission
forward an approving Order along with a copy of the original Application to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed Qwest's Application and Staffs recommendation, we find that the
Application for a qualifying broadband equipment Order should be granted. The Company has
demonstrated that it installed qualifying broadband equipment identified in its Application
during 2005 in conformance with Idaho Code 9 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. The Commission accordingly issues this Order confirming that
Qwest Corporation 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 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) 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 99 61-626 63-30291(4).
ORDER NO. 30295
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this / II'"
day of April 2007.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je ? D. Jewell
O(,thmission Secretary
bls/O:QWE-07-
ORDER NO. 30295