20040609Final Order No 29520.pdf

Office of the Secretary
Service Date
June 9, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
VERIZON NORTHWEST INC. FOR AN
INVESTMENT TAX CREDIT FOR
INST ALLING QUALIFIED BROADBAND
EQUIPMENT.ORDER NO. 29520
CASE NO. VZN-04-
On April 30, 2004, Verizon Northwest Inc. (Verizon) 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 equipment has been installed and that
it meets the definition of qualified broadband equipment set out at Idaho Code 963-3029I(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 service provider and a wireless carrier, the qualified broadband
equipment must also "be 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 Verizon has
installed qualified broadband equipment.
THE APPLICATION
Verizon stated that during calendar year 2002, it installed equipment used to provide
DSL and high-speed data (e.g. T-1) services to customers in the exchanges of Bayview, Bonners
Ferry, Coeur d' Alene , Clark Fork, Hayden Lake, Hope Kellogg, Moscow, Mullan
OldtowniAlbeni, Orofino , Pinehurst, Plummer, Priest Lake, Priest River, Rathdrum, Spirit Lake
Wallace, Sandpoint, and St. Maries. Such components include digital access platforms, long-
range digital transport, line cards, access ports, fiber optic cable, fiber terminals, and supporting
software. Verizon stated that transmission rates range from 128 Kbps to well beyond 6 Mbps.
The Application stated that Verizon invested approximately $7 300 000 in qualifying broadband
equipment during 2002.
ORDER NO. 29520
ST AFF 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 credit. Once the information has been filed, the
Commission Staff reviews the Application and submits a recommendation to the Commission.
Staff has reviewed the list of broadband equipment installed by Verizon.Staff
believes that the equipment is "necessary for the provision of broadband services and is an
integral part of a broadband network." Consequently, Staff recommends that the Commission
issue an Order approving Verizon s Application.
FINDINGS
Having reviewed the Application and Staff s recommendation we find that the
Application for a qualifying broadband equipment Order should be granted. Verizon has
demonstrated that it installed qualifying broadband equipment identified in its Application
during 2002 in conformance with Idaho Code 9 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. Idaho Code 99 63-3029I(3)(b )(i, iv-vi). It is therefore appropriate
for the Commission to issue this Order confirming that Verizon 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 or whether it is appropriate
to include installation and labor as part of its tax credit.
ORDER
IT IS HEREBY ORDERED that Verizon 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 the 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) or in interlocutory Orders previously issued in this Case No. VZN- T -04-
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 or in interlocutory Orders previously issued in
this Case No. VZN-04-Within seven (7) days after any person has petitioned for
ORDER NO. 29520
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code 99 61-
626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
q-f/o..
day of June 2004.
ARSHA H. SMITH, COMMISSIONER
ATTEST:
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ORDER NO. 29520