20080626final_order_no_30585.pdf

Office of the Secretary
Service Date
June 26, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SILVER STAR TELEPHONE COMPANY FOR
AN INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT FOR THE YEAR 2007.
CASE NO. SIL-08-
ORDER NO. 30585
On May 12, 2008, Silver Star Telephone Company filed an Application requesting
approval of equipment for broadband tax credit for the year 2007 pursuant to Order No. 28784
and Idaho Code ~ 63-3029I(4). To be eligible for the tax credit, the taxpayer must obtain an
Order from the Commission confirming that the communications equipment has been installed
and that it meets the definition of qualified broadband equipment set out in Idaho Code ~ 63-
3029I(3)(b). 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 this Order, we find that the Company s equipment meets the applicable standards.
THE APPLICATION
Silver Star submits that in 2007 it installed fiber optic cables and central office and
outside equipment to offer Asymmetric Digital Subscriber Line (ADSL), Symmetrical Digital
Subscriber Line (SDSL) and Trunk level (T -1) services. The Company asserts that the network
transmission rates for this installed equipment is between 256 Kbps and 4 Mbps upstream and
between 256 Kbps and 9 Mbps downstream to customers. The Company states that it provides
129 out of 619 possible customers with broadband service in the counties of Bonneville and
Caribou. Silver Star claims a broadband investment of approximately $155 600 in 2007.
STAFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-3029I, the Commission
issued Procedural Order No. 28784 in July 2001. This Order identifies information that must
included in an application for a broadband tax credit. Once the information is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
Commission.
ORDER NO. 30585
Staff has reviewed the list of broadband equipment installed by Silver Star Telephone
Company in 2007 and believes that it qualifies for the investment tax credit pursuant to
Procedural Order No. 28784 and Idaho Code ~ 63-3029I(3)(b). Further, Staff believes that the
expenditures identified by the Company, a telecommunications provider, were for equipment
that is "necessary for the provision of broadband services and an integral part of a broadband
network." As a result, Staff recommended approval of the Application and further recommended
that the Commission forward a copy of the original Application along with an Order certifying
that the equipment meets the qualifications for broadband tax credit to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed Silver Star Telephone Company Application and Staffs
recommendations, we find that the Application for a qualifying broadband equipment Order
should be granted. The Company has demonstrated that it installed qualifying broadband
equipment, identified in its Application, during 2007 in conformance with Idaho Code 9 63-
3029I. 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. Based on the
foregoing, the Commission issues this Order confirming that Silver Star Telephone Company 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 s Application for
an Order certifying that it has installed qualifying broadband equipment for 2007 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 9~ 61-626 63-30291(4).
ORDER NO. 30585
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this :&;.J.
day of June 2008.
4;
MACK A. REDFORD, PRESID
MARSHA H. SMITH , COMMISSIONER
ATTEST:
~&~
. D. Jewell
Co mission Secretary
O:SIL-08-01 ks
ORDER NO. 30585