20090623final_order_no_30849.pdf

Office of the Secretary
Service Date
June 23 , 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF QWEST CORPORATION FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
CASE NO. QWE- T -09-
ORDER NO. 30849
On May 29 2009 , the Commission received an Application from Qwest Corporation
Qwest") asking for approval of a broadband tax credit, pursuant to Commission Order No.
28784 and Idaho Code ~ 63-30291(4), for the Company s broadband investments during calendar
year 2007, as well as the 2007 retirements for 2003 , 2004, 2005, and 2006 investments.
THE APPLICATION
Qwest's Application lists general broadband facilities , e., DSL and ATM services
dedicated line facilities and inter-office facilities as qualifying broadband equipment The
aforementioned services are capable of offering high-speed network access to customers at
transmission rates ranging from 256 kilobits per second (Kbps) to more than 100 megabits per
second (Mbps). Qwest submitted an employee affidavit affirming that the investments identified
in its Application were for qualifying broadband equipment as the term is defined in Idaho Code
~ 63-30291. Qwest identified a net investment of approximately $7.3 million in 2007.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Qwest and
found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
30291(3)(b). Staff determined that Qwest is a telecommunications carrier and its equipment is
necessary to the provision of broadband service and an integral part of a broadband network.
Idaho Code ~ 63-30291(3)(b)(i). Therefore, Staff recommended that the Commission issue an
Order approving the Application and that the approving Order, along with a copy of Qwest'
Application, be forwarded to the Idaho State Tax Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the tax credit, the taxpayer must first obtain an Order
from the Commission "confirming that the installed equipment is qualified broadband
equipment" Idaho Code ~ 63-30291(4). "In the case of a telecommunications carrier, such
ORDER NO. 30849
qualifying equipment shall be necessary to the provision of broadband service and an integral
part of a broadband network.Idaho Code ~ 63-30291(3)(b)(i).
Based upon our review of the Application and the recommendations of the Staff, we
find that the Application for a qualifying broadband equipment Order should be granted. Qwest
has adequately demonstrated that the equipment identified in its Application is qualifying
broadband equipment subject to the tax credit. We further find that Qwest is a
telecommunications carrier and, as presently configured, the installed equipment is an integral
part of the Company s broadband network and that it is necessary to facilitate the delivery of
broadband Internet service to Idaho customers. It is therefore appropriate for the Commission to
issue this Order confirming that the equipment identified in Qwest's Application is qualifying
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 Qwest
Corporation s 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. Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 30849
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;2 3 ;-J.
day of June 2009.
g/ ~
KEMPTON, P SIDENT
LL~
ARSHA H. SMITH, COMMISSIONER
MACK A. REDFO
ATTEST:
Je D. Jewell
ISSlon Secretary
O:QWE-09-
ORDER NO. 30849