20050826final order no 29854.pdf

Office of the Secretary
Service Date
August 26, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SIL VER STAR TELEPHONE CO., INC. FOR AN )INVESTMENT TAX CREDIT FOR
INST ALLING QUALIFIED BROADBAND EQUIPMENT
CASE NO. SIL- T -05-
ORDER NO. 29854
On June 27 , 2005, Silver Star Telephone Co., Inc. ("Silver Star ) 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 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).In the case of a telecommunications provider, 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).
THE APPLICATION
Silver Star s Application states that it installed central office equipment and fiber optic
cables to provide Digital Subscriber Line (DSL) and Tl services to Idaho customers. This
equipment provides service at speeds of between 128 000 and 1 500 000 bits per second (bps) for
uploads from customers and 256 000 and 1 500 000 bps for downloads to customers. The
Company provides that this equipment is necessary and integral to its broadband network and
that 100% of the investment will be used to provide services to Idaho customers. The
Application identified over $100 000 of investment in 2004.
ST AFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Silver Star and
found that it complies with Idaho Code ~ 63-30291(3)(b) and Procedural Order No. 28784. Staff
determined that the equipment is "qualified broadband equipment" capable of transmitting
signals at a rate of at least 200 000 bps to a subscriber and at least 125 000 bps from a subscriber
pursuant to Idaho Code ~ 63-30291(3)(b). Staff also determined that Silver Star is a
ORDER NO. 29854
telecommunications provider and the identified expenditures were for equipment that is
necessary for the provision of broadband services 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 Silver Star s Application.
COMMISSION FINDINGS
Based upon our review of the Application and Staff recommendations, we find that
the Application for a qualifying broadband equipment Order should be granted. Silver Star has
adequately demonstrated that the equipment identified in its Application is qualifying broadband
equipment subject to the tax credit. We further find that Silver Star is a telecommunications
carrier and, 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).
is therefore appropriate for the Commission to issue this Order confirming that the equipment
identified by Silver Star is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Silver Star Telephone Co., Inc.s Application for an
Order certifying 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. 29854
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;l1J
day of August 2005.
6ACk~MARSHA H. SMITH, COMMISSIONER
ATTEST:
~j~
Je D. Jewell
mission Secretary
O:SIL- T -05-- kdp
ORDER NO. 29854