20121212final_order_no_32696.pdf

Office of the Secretary
Service Date
December 12,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF TW TELECOM OF IDAHO,LLC FOR AN )CASE NO.TWT-T-12-O1
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFIED BROADBAND )ORDER NO.32696
EQUIPMENT )
On September 4,2012,the Commission received an Application from tw telecom of
Idaho,lie (“TWT”or “Company”)seeking approval of a broadband tax credit for the calendar
years of 2007-2011.On November 5,2012,TWT submitted an amended Application with an
updated list of broadband equipment installed by the Company.
THE APPLICATION
TWT’s Application states that it has installed equipment associated with Internet
access,private-line transport,optical wavelength,Ethernet transport,Multi-Protocol Label
Switching (MPLS),and converged voice and data services via a private fiber optic based
network using Sonet,Ethernet and Dense Wavelength Division Multiplexing (DWDM).TWT’s
broadband equipment was installed in Ada,Bannock,Bonner,Canyon,Kootenai and Owyhee
counties.The Company states that its broadband network provides transmission rates of 1.5
Mbps to 10 Gbps.During the past five years,the Company invested approximately $24.8
million in qualifying broadband equipment as follows:2007 —approximately $6.1 million;2008
—approximately $6.5 million;2009 —approximately $2.8 million;2010 —approximately $5.1
million;and 2011 —approximately $4.3 million.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the list of proposed broadband equipment submitted by TWT and
found that the equipment identified meets the statutory criteria outlined in Idaho Code §63-
30291(3)(b).Staff determined that TWT’s broadband equipment is capable of transmitting
signals at a rate of at least 200,000 bits per second to a subscriber and at least 125,000 bits per
second from a subscriber.Idaho Code §63-30291(3)(b).Staff also determined that TWT 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 §63-30291(3)(b)(i).Therefore,Staff
recommended the Commission issue an Order approving the Application and that the approving
ORDER NO.32696 1
Order,along with a copy of TWT’s Application,be forwarded to the Idaho State Tax
Commission.
COMMISSION FINDINGS AND DECISION
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.”Idaho Code §63-30291(3)(b)(i).
Based upon our review of the Application and the recommendations of Staff,we find
that TWT’s Application requesting a qualified broadband equipment Order should be granted.
TWT has adequately demonstrated that the equipment identified in its Application qualifies as
broadband equipment subject to the tax credit.We also find that TWT 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.Therefore,it is appropriate for the Commission to issue this Order
confirming that the equipment identified in TWT’s Application is qualified broadband
equipment.
ORDER
IT IS HEREBY ORDERED that tw telecom of Idaho,llc’s Application seeking an
Order certifying that it has installed qualified broadband equipment in Idaho during the 2007-
2011 calendar years is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of TWT’s
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 §sS 61-626,63-30291(4).
ORDER NO.32696 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of December 2012.
ATTEST:
MACK A.REDFORD,COMMISSIONER
ARSHA H.SMITH,COMMISSIONER
J dn D.Jewell (J
immission Secretary
O:TWT-T-12-Olnp
ORDER NO.32696 3