20120814final_order_no_32614.pdf

Office of the Secretary
Service Date
August 14,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF SILVER STAR TELEPHONE COMPANY,)CASE NO.SIL-T-12-O1
INC.FOR AN INVESTMENT TAX CREDIT )
FOR INSTALLING QUALIFIED )ORDER NO.32614
BROADBAND EQUIPMENT )
On July 31,2012,the Commission received an Application from Silver Star
Telephone Company,Inc.(“Silver Star”or “Company”)asking for approval of a broadband tax
credit pursuant to Commission Order No.28784 and Idaho Code §63-30291(4)for the 2011
calendar year.
THE APPLICATION
Silver Star’s Application states that it has installed equipment associated with
Asymmetric Digital Subscriber Line (ADSL),Symmetrical Digital Subscriber Line (SDSL),and
high-speed data T-1 services with transmission rates of 256 Kbps to 5 Mbps upstream and 256
Kbps to 20 Mbps downstream.During the 2011 calendar year,Silver Star’s Application reports
that the Company’s broadband network served 212 customers and that the Company invested
approximately $477,500 in qualified broadband equipment in Bonneville and Caribou Counties.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the list of proposed broadband equipment submitted by Silver Star and
found that the equipment identified meets the statutory criteria outlined in Idaho Code §63-
30291(3)(b).Staff determined that Silver Star’s broadband equipment is 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.Idaho Code §63-30291(3)(b).Staff also determined that Silver Star is a
telecommunications carrier and its equipment is “necessary to the provision of broadband service
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 the Application and that the
approving Order,along with a copy of Silver Star’s Application,be forwarded to the Idaho State
Tax Commission.
COMMISSION FINDINGS AND DECISION
In order to be eligible to obtain the tax credit,the taxpayer must first obtain an Order
from the Commission “confirming that the installed equipment is qualified broadband
ORDER NO.32614 1
equipment.”Idaho Code §63-30291(4).“In the case of a telecommunications carrier,such
qualifying equipment shall be necessary to the provision of broadband service and an integral
part of a broadband network.”Idaho Code §63-30291(3)(b)(i).
Based upon our review of the Application and the recommendations of Commission
Staff,we find that Silver Star’s Application requesting a qualified broadband equipment Order
should be granted.Silver Star has adequately demonstrated that the equipment identified in its
Application qualifies as broadband equipment subject to the tax credit.We also find that Silver
Star is a telecommunications carrier and,as presently configured,the installed equipment is an
integral part of the Company’s broadband network and that it is necessary to facilitate the
delivery of broadband Internet service to Idaho customers.It is therefore appropriate for the
Commission to issue this Order confirming that the equipment identified in Silver Star’s
Application is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Silver Star Telephone Company,Inc.’s Application
seeking an Order certifying that it has installed qualified broadband equipment in Idaho during
the 2011 calendar year is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Silver Star’s
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.Idaho Code §61-626,63-30291(4).
ORDER NO.32614 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2012.
PAUL KJELLA DE ,PRESIDENT
MACK A.REDFORD,COMM SIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
I
Jean D.Jewel!..
COmmission Secretary
O:SIL-T12-Olnp
ORDER NO.32614 3