20060306final_order_no_29987.pdf

Office of the Secretary
Service Date
March 6, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SYRINGA NETWORKS, LLC FOR
BROADBAND INVESTMENT TAX CREDIT
CERTIFICATION
CASE NO. SZ9-O6-
ORDER NO. 29987
On February 21 , 2006, Syringa Networks, LLC ("Syringa" or "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 that 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 Syringa has installed qualified
broadband equipment.
THE APPLICATION
Syringa s Application indicates that the majority of its 2005 expenditures were for
the completion of work started in previous years, 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 customers at transmission rates of 1.544 Mbps and higher. The
Company also states that all of its customers are Idaho subscribers. Syringa states that it
invested approximately $500 000 in qualifying broadband equipment during calendar year 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. 29987
Commission. Staff reviewed the list of broadband equipment submitted by Syringa. 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 Syringa 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 Syringa Networks, LLC'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 to 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 Syringa 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 Syringa Networks, LLC'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. 29987
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
~-rI..
day of March 2006.
ATTEST:
Je D. Jewell
mission Secretary
0: SZ9-O6-0 l
ORDER NO. 29987
MARSHA H. SMITH, COMMISSIONER