20130212final_order_no_32741.pdf

Office of the Secretary
Service Date
February 12,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF SYRINGA NETWORKS,)
LLC’S 2012 BROADBAND EQUIPMENT TAX )CASE NO.SZ9-T-13-01
CREDIT APPLICATION.)
)ORDER NO.32741
On January 24,2013,Syringa Networks,LLC applied to the Commission for an
Order confirming that equipment it installed in 2012 is “qualified broadband equipment”under
Idaho Code §63-30291 (income tax credit for investment in broadband equipment).With this
Order,we confirm that the installed equipment is “qualified broadband equipment”under Idaho
Code §63-3029!.
THE APPLICATION
In its Application,the Company says it invested 9,422,77l in qualifying broadband
equipment in 2012.The Company says it provides wholesale broadband telecommunications
service and other telecommunications services in southern idaho.The Company lists
investments associated with fiber optic facilities,equipment,and engineering connected with the
broadband network.See Application.Though not referenced in the Application,the Company
confirmed to Staff that its network’s transmission rate averages more than 10 gigabits per
second.See Staff Decision Memorandum.’
STAFF REVIEW
In July 2001,the Commission issued Procedural Order No.28784 to implement its
responsibilities under Idaho Code §63-30291.That Order identifies information that must be
included in a broadband tax credit application.When a company files an application,the
Commission Staff reviews it to determine whether the listed equipment meets the statutory
definition of “qualified broadband equipment.”Staff then submits a recommendation to the
Commission.
Commission Order No.28784 mandates that an application for a “qualified broadband equipment”Order:“[s]tate
the network transmission rate in bits per second The Company’s Application omits this information.For
purposes of this proceeding,however,we allow the Company to supply the omitted information through its
communication to Staff,as referenced in the Decision Memorandum.See RP 66 (Commission may allow any
omission to be supplied).The Company should ensure that its future applications contain all required information.
ORDER NO.32741 1
Here,Staff reviewed the Company’s Application to determine whether the listed
equipment is “qualified broadband equipment”under Idaho Code §63-30291.That statute
defines “qualified broadband equipment”as equipment that qualifies for the Idaho Code §63-
3029B capital investment credit that “is capable of transmitting signals at a rate of at least
[200,000 bps]to a subscriber and at least [125,000 bps]from a subscriber.”Idaho Code §63-
30291(3)(b).Further,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 on its review,Staff believes that the Company is a telecommunications carrier
and that the listed equipment meets the above-described statutory criteria and is “qualified
broadband equipment”that is eligible for the tax credit.Staff thus recommended the
Commission:(1)issue an Order confirming that the Company’s equipment is “qualified
broadband equipment,”and (2)forward copies of the Application and Order to the Idaho State
Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Application and Staff’s recommendation,we find
that the Company’s equipment is “qualified broadband equipment”subject to the tax credit under
Idaho Code §63-30291,The Company is a telecommunications carrier.Further,the listed
equipment (as presently configured)is an integral part of the Company’s broadband network and
is necessary to the provision of broadband service to Idaho customers.Accordingly,it is
appropriate for the Commission to issue an Order confirming that the Company’s equipment is
“qualified broadband equipment.”The Commission makes no findings regarding the costs of the
installed broadband equipment or other expenses.
ORDER
IT IS HEREBY ORDERED that the Company’s Application for an Order confirming
that equipment it installed in 2012 is “qualified broadband equipment”is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served on 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
ORDERNO.32741 2
after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of February 2013.
ATTEST:
7
./1
Jtn D.Jewe4’i
Commission cretary
O:SZ9-T-13-OIkk
\//7
MACK A.REDFOR,COvIMISSIONER
MARSHA H.SMITH,COMMISSIONER
)
ORDER NO.32741 3