20070104final_order_no_30217.pdf

Office of the Secretary
Service Date
January 4, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
SYRINGA NETWORKS, LLC FOR AN
INVESTMENT TAX CREDIT FOR
INST ALLING QUALIFIED BROADBAND
EQUIPMENT ORDER NO. 30217
CASE NO. SZ9- T -06-
On December 26, 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 9 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 9 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 9 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 2006 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 2006.
STAFF 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 has been filed, then
ORDER NO. 30217
the Commission Staff reviews the Application and submits a recommendation to the
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 9 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 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 with
the qualifying requirements of Idaho Code 9 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 9 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 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 Syringa Network, 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 amended
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 9 61-
626.
ORDER NO. 30217
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this '-I f-I.
day of January 2007.
PAUL KJELLA ER, PRESIDENT
MARSHA H. SMITH, OMMISSIONER
ATTEST:
~djJe D. Jewell
Co mISSIOn Secretary
O:SZ9-O6-
ORDER NO. 30217