20060615final_order_no_30072.pdf

Office of the Secretary
Service Date
June 15 2006
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-06-
ORDER NO. 30072
On May 15, 2006, 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 the installed equipment
meets the definition of qualified broadband equipment set out at Idaho Code ~ 63-3029I(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 "
necessary to the provision of broadband service and an integral part of a broadband network."
Idaho Code ~ 63-3029I(3)(b )(i). In this Order, we find that Silver Star has installed qualified
broadband equipment.
THE APPLICATION
Silver Star s Application indicated it had installed central office equipment and fiber
optic cables to provide Digital Subscriber Line (DSL) and Tl services to Idaho customers. The
Company asserted its service provides speeds of between 128 kilobits per second (kbps) to 1.5
megabits per second (Mbps) for uploads from customers, and 256 kbps to 1.5 Mbps for
downloads to customers. The Company stated that the equipment is necessary and integral to its
broadband network and that 100% of the investment will be used to provide service to Idaho
customers. The Application identified nearly $40 000 of investment in 2005.
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 has been filed, then
the Commission Staff reviews the Application and submits a recommendation to the
ORDER NO. 30072
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 ~ 63-3029I(3)(b)(i).Consequently, Staff
recommended that the Commission issue an Order approving Silver Star s Application. Staff
further recommended 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 Staffs 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 ~ 63-3029I(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 ~ 63-3029I(3)(b)(i). It is therefore
appropriate for the Commission to issue this Order confirming that Silver Star has installed
qualified broadband equipment as a pre-condition 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. 30072
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this rt-
day of June 2006.
PAUL KJELLA D RESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
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ISSlOn Secretary
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ORDER NO. 30072