20050217Final Order No 29712.pdf

Office of the Secretary
Service Date
February 17 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SYRINGA NETWORKS LLC FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT
CASE NO. SZ9-O5-
ORDER NO. 29712
On January 26, 2005 , Syringa Networks LLC ("Syringa ) 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). 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 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
Syringa s Application indicates that the majority of its 2004 expenditures were for the
completion of work started in 2002 and 2003 , including the installation of its fiber optic cable
network, digital switching equipment, SONET multiplexers, testing equipment, modular routers
and supporting power supply and software. Syringa offers high-speed transport, frame-relay,
and other related services to and from customers at transmission rates of 1.544 megabits per
second (Mbps) and higher. The Company also states that all of its customers are Idaho
subscribers. SYringa states that it invested approximately $447 000 in qualifying broadband
equipment during calendar year 2004.
ST AFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. The Order identifies information that must be
ORDER NO. 29712
included in an Application for broadband credit. Once the information has been filed, then the
Commission Staff reviews the Application and submits a recommendation to the Commission.
Staff has reviewed the list of proposed broadband equipment submitted by Syringa.
Staff has determined that Syringa is a telecommunications provider and believes that the
equipment 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 Syringa s Application.
COMMISSION FINDINGS
Based on review of the Application and Staff recommendation, we find that the
Application for a qualifying broadband equipment Order should be granted. Syringa has
adequately demonstrated that it has installed the qualifying broadband equipment identified in
the Application in conformance with the requirements set forth in Idaho Code ~ 63-30291. We
further find that Syringa 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). It is therefore appropriate for the
Commission to issue this Order confirming that SYringa has installed broadband equipment as a
precondition to seeking an Idaho broadband tax credit.
ORDER
IT IS HEREBY ORDERED that Syringa Networks LLC'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. 29712
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 17-fI\
day of February 2005.
ARSHA H. SMITH, COMMISSIONER
ATTEST:
~well
Commission Secretary
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ORDER NO. 29712