20090218final_order_no_30732.pdf

Office of the Secretary
Service Date
February 18 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF RURAL TELEPHONE COMPANY FOR
AN INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
CASE NO. RUR- T -09-
ORDER NO. 30732
On January 27, 2009, the Commission received an Application from Rural Telephone
Company ("Rural") asking for approval of a broadband tax credit pursuant to Commission Order
No. 28784 and Idaho Code ~ 63-30291(4). 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 qualifying equipment shall be necessary to the provision of
broadband service and an integral part of a broadband network.Idaho Code ~ 63-
3029I(3)(b )(i).
THE APPLICATION
Rural's Application states that the Company invested approximately $1.1 million
during calendar years 2005-2007 for the installation of qualifying broadband equipment in Idaho
for the benefit of its Idaho subscribers. Rural collaborates with Syringa Networks, LLC in a
broadband network that includes locations throughout Elmore County. Rural states that it offers
services to its customers at transmission rates of 1.544 Mbps and higher.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Rural and
found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
3029I(3)(b). Staff determined that Rural's broadband equipment is capable of transmitting
signals at a rate of at least 200 000 bits per second to a subscriber and at least 125 000 bits per
second from a subscriber. Idaho Code ~ 63-3029I(3)(b). Staff also determined that Rural 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 ~ 63-3029I(3)(b)(i). Therefore, Staff
recommended that the Commission issue an Order approving the Application and that the
ORDER NO. 30732
approving Order, along with a copy of Rural's Application, be forwarded to the Idaho State Tax
Commission.
COMMISSION FINDINGS
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. Rural
has adequately demonstrated that the equipment identified in its Application is qualifying
broadband equipment subject to the tax credit. We further find that Rural 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 Rural's Application is qualifying
broadband equipment.
ORDER
IT IS HEREBY ORDERED that Rural Telephone Company 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 Rural'
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. 30732
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ~'fA
day of February 2009.
MARSHA H. SMITH, COMMISSIONER
~~
~L~JI . KEMPTON, CO ISSIONER
ATTEST:
O:RUR-O9-
ORDER NO. 30732