20041025Final Order No 29619.pdf

Office of the Secretary
Service Date
October 25, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SILVER STAR TELEPHONE COMPANY, INC.
FOR AN INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND EQUIPMENT
CASE NO. SIL-O4-
ORDER NO. 29619
On September 10, 2004, Silver Star Telephone Company, Inc. (Silver Star;
Company) filed an Application requesting that the Commission find the Company eligible to
receive an Idaho Investment Tax Credit. Pursuant to Idaho Code ~ 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
~ 63-30291(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 "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 Silver Star has
installed qualified broadband equipment.
THE APPLICATION
Silver Star s Application indicates that, during 2003, it installed Digital Subscriber
Line (DSL) line cards and over 6 miles of fiber optic able to provide Asynchronous Digital
Subscriber Line (ADSL) to customers in Bonneville County at speeds from 128 kilobits per
second (kbps) to 1.5 megabits per second (Mbps). Silver Star capitalized the labor and overhead
costs associated with the installation of this equipment, and indicates approximately $94 000 of
broadband investment for 2003.
ST AFF 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 has been filed, then
ORDER NO. 29619
the Commission Staff reVIews the Application and submits a recommendation to the
Commission. Staff reviewed the list of broadband equipment submitted by Silver Star. Staff
believes that the equipment is "necessary for the provision of broadband services and an integral
part of a broadband network."Idaho Code ~ 63-30291(3)(b )(i).Consequently, Staff
recommends that the Commission issue an Order approving Silver Star s Application. Staff
further recommends that the Commission forward the approving Order, along with a copy of the
original Application, to the Idaho Tax Commission.
FINDINGS
Having reviewed Silver Star s Application and Staff s recommendation, we find that
the Application for a qualifying broadband equipment Order should be granted. The Company
has demonstrated that the installed broadband equipment identified in its Application conforms
with the qualifying requirements of Idaho Code ~ 63-30291(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 ~ 63-30291(3)(b )(i). It is therefore
appropriate for the Commission to issue this Order confirming that Columbine 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 Silver Star Telephone Company, Inc.' s 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 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 ~ 61-
626.
ORDER NO. 29619
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .2..2
t...f.
day of October 2004.
JELL , PRESIDENT
SHA H. SMITH, COMMISSIONER
ATTEST:
O:SILT0401 dw
ORDER NO. 29619