20080114final_order_no_30486.pdf

Office of the Secretary
Service Date
January 14, 2008
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. 30486
On November 14, 2007, the Commission received an Application from Qwest
Corporation asking for approval of equipment for a broadband tax credit pursuant to Order No.
28784 and Idaho Code ~ 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 ~ 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 ~ 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
2006. The Application indicated Qwest had installed Digital Subscriber Line (DSL),
Asynchronous Transfer Mode (A TM) and Frame Relay equipment to provide broadband services
to Idaho customers. These services are capable of offering high-speed network access to the
customers at transmission rates from 256 kilobits per second (kbps) to more than 100 megabits
per second (Mbps). The Company itemized the broadband investments under General Broadband
Services and Dedicated Line Services installed in Qwest communities throughout southern
Idaho. Qwest also included inter-office facilities to deliver the broadband services to customers.
Consistent with Part 32 of the Federal Communications Commission rules and regulations
Qwest capitalized such items as labor, engineering, transportation and other overhead costs
associated with the installation of equipment amounting to a net total of approximately $8
million for 2006.
ORDER NO. 30486
STAFF 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 is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
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 the Application and Staff s recommendation, we find that Qwest's
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 2006 in conformance with Idaho Code ~ 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 ~~ 61-626, 63-30291(4).
ORDER NO. 30486
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this '-I fk
day of January 2008.
ARSHA H. SMITH, COMMISSIONER
ATTEST:
/.1J .
. D. Jewell
Commission Secretary
bls/O:QWE- T -07 -- ws
ORDER NO. 30486