20080212final_order_no_30502.pdf

Office of the Secretary
Service Date
February 12, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF SYRINGA NETWORKS, LLC FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
CASE NO. SZ9-08-
ORDER NO. 30502
On January 18, 2008 , the Commission received an Application from Syringa
Networks LLC ("Syringa ) asking for approval of a broadband tax credit pursuant to
Commission Order No. 28784 and Idaho Code ~ 63-30291(4). 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 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."
3029I(3)(b )(i).
Idaho Code ~ 63-
THE APPLICATION
Syringa s Application indicates that the Company has installed fiber optic cable
digital switching equipment SONET multiplexers, testing equipment, modular routers and
supporting power supply and software. Syringa states that all of its customers are Idaho
subscribers and that the equipment enables the Company to offer high-speed transport, frame-
relay, and other related services to its customers at transmission rates of 1.544 Mbps and higher.
The Company s total investment in qualified broadband equipment amounted to approximately
$770 000 during the 2007 calendar year.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Syringa and
found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
3029I(3)(b). Staff determined that Syringa 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 ~ 63-3029I(3)(b). Staff also determined that Syringa 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 ~ 63-3029I(3)(b)(i). Therefore, Staff
ORDER NO. 30502
recommended that the Commission issue an Order approving the Application and that the
approving Order, along with a copy of Syringa s Application, be forwarded to the Idaho State
Tax Commission.
COMMISSION FINDINGS
Based upon our review of the Application and the recommendations of the Staff, we
find that the Application for a qualifying broadband equipment Order should be granted.
Syringa has adequately demonstrated that the equipment identified in its Application
qualifying broadband equipment subject to the tax credit. We further find that Syringa 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 Syringa s Application is qualifying
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 granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Syringa
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. 30502
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /J.,fJ.
day of February 2008.
'4~A~
MACK A:'RE DFORD , PRESI , ENT
MARSHA H. SMITH, COMMISSIONER
. ~
JI MPTON, OMMISSIONER
ATTEST:
rill D. Jewel
ommlSSlon Secretary
0: SZ9-08-0 l
ORDER NO. 30502