20100901final_order_no_32060.pdf

Office of the Secretary
Service Date
September 1, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SILVER STAR TELEPHONE CO., INc. FOR AN )INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND EQUIPMENT.
CASE NO. SIL-IO-
ORDER NO. 32060
On July 16, 2010, Silver Star Telephone Co., Inc. filed an Application requesting
approval of equipment for the broadband tax credit pursuant to Order No. 28784 and Idaho Code
9 63-30291(4). 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 9 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 investment meets the applicable standards.
THE APPLICATION
The Company s Application identifies broadband investments during the year 2009.
Silver Star maintains that it installed equipment that provides Asymmetric Digital Subscriber
Line (ADSL), Symmetrical Digital Subscriber Line (SDSL) and Trunk Levell (T-1) services.
The Company asserts that the installed equipment has network transmission rates of between 64
Kbps and 5 Mbps upstream and between 256 Kbps and 20 Mbps downstream to customers.
The qualifying equipment was installed in Bonneville and Caribou counties. The
Company asserts that it provides broadband service to 180 out of 570 possible customers. The
Company reported a total broadband investment in 2009 of approximately $537 000.
ST AFF REVIEW
To implement its responsibilities under Idaho Code 9 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 is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
Commission. Staff has reviewed the list of proposed qualifying broadband equipment submitted
ORDER NO. 32060
by the Company and believes that the equipment identified meets the statutory criteria. Staff
therefore recommended approval of the Application and further recommended that the
Commission forward an approving Order along with a copy of the original Application to the
Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company s Application and Staffs recommendation, 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 2009 in conformance with Idaho Code 9 63-30291. 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 Co., Inc. 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 Co., Inc.s Application for an
Order certifying that it has installed qualifying broadband equipment for 2009 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 99 61-626, 63-30291(4).
ORDER NO. 32060
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho , this I~t
day of September 2010.
D. KEMP ON SIDENT
8JL
MARSHA H. SMITH, COMMISSIONER
~~~A
MACK A. REDFORD, COMMISSIONER
ATTEST:
Commission Secretary
O:SIL-IO-O2 ks
ORDER NO. 32060