20040414Final Order No 29471.pdf

Office of the Secretary
Service Date
April 14 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE SUPPLEMENTAL
APPLICATION OF VERIZON NORTHWEST
INC. FOR BROADBAND TAX CREDIT CERTIFICATION
CASE NO. VZN- T -04-
ORDER NO. 29471
On March 31 , 2004, the Commission received a Supplemental Application from
Verizon Northwest Inc. asking for approval of equipment for the broadband tax credit pursuant
to Order No. 28784 and Idaho Code ~ 63-30291(4). To be eligible for the tax credit, the taxpayer
must obtain from the Commission an Order confirming that installed equipment qualifies for the
tax credit.
Pursuant to Idaho Code ~ 63-30291, an Idaho taxpayer may receive a tax credit for
making "qualified investments" in "qualified broadband equipment" in Idaho, defined as
network facilities that are 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), see also, Idaho Code ~~ 63-3029B and 63-3029I(3)(b). To be eligible for the tax
credit, the taxpayer must obtain from the Commission an Order confirming that the equipment
has been installed and that it meets the definition of qualified broadband equipment. Idaho Code
~ 63-30291(4). To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001 , identifying the information that must be
included in an application so the Commission can determine whether the installed equipment
qualifies for the tax credit.
In its Supplemental Application, Verizon states that it includes additional broadband
equipment that was inadvertently omitted from its original Application. During calendar year
2001 it installed equipment used to provide DSL and high-speed data (e., T-1) services to
customers in the exchanges of Bayview, Bonners Ferry, Coeur d' Alene, Genesee, Hayden Lake
Kellogg, Moscow, Orofino, Pinehurst, Sandpoint, and St. Maries. Such components include
over 25 miles of fiber optic cable, new copper cable, digital microwave radio equipment, digital
access platforms, line cards, access ports, fiber terminals, and supporting software. Verizon
states that transmission rates range from 128 Kbps to well beyond 1.544 Mbps.The
ORDER NO. 29471
Supplemental Application states that Verizon invested approximately $7 830 000 in additional
qualifying broadband equipment during 2001.
ST AFF REVIEW
Staff reviewed the lists of proposed broadband equipment submitted by Verizon in its
Supplemental Application and believed that the equipment identified qualifies for the investment
tax credit pursuant to Idaho Code ~ 63-30291. Staff also confirmed that the Fujitsu Speedport
DSL modems listed in the Supplemental Application were purchased and retained by Verizon
and not leased or purchased by each DSL customer. Therefore, Staff recommended approval of
the Supplemental Application and further recommended that the Commission forward the
approving Order along with a copy of the Supplemental Application to the Idaho Tax
Commission.
COMMISSION FINDINGS AND DECISION
Having reviewed Verizon' s Supplemental Application and Staff s recommendation
we find that the Company s Application for a qualifying broadband equipment Order should be
granted. The Company has adequately demonstrated that it installed the qualifying broadband
equipment identified in its Supplemental Application in conformance with requirements set forth
in Idaho Code ~ 63-30291. 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.
It is therefore appropriate for the Commission to issue this Order confirming that Verizon
Northwest Inc. has installed qualified broadband equipment as a precondition to seeking an
investment tax credit.
ORDER
IT IS HEREBY ORDERED that Verizon Northwest Inc.s Supplemental Application
for an Order certifying that it has installed qualified broadband equipment during 2001 is
granted.
IT IS FURTHER ORDERED that the Commission Secretary will forward a copy of
this Order along with a copy of the Application to the Idaho Tax Commission.
THIS IS A FINAL ORDER. Any person interested in 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. 29471
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this if
fit
day of April 2004.
, PRESIDENTPAUL KJELL
l"A .4LV rJ
, MARSHA H. SMITH, COMMISSIONER
, COMMISSIONER
ATTEST:
Commission Secretary
0: VZNTO402
ORDER NO. 29471