20040812Final Order No 29563.pdf

Office of the Secretary
Service Date
August 12 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF VERIZON NORTHWEST FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT.ORDER NO. 29563
CASE NO. VZN-O4-
On May 27, 2004, Verizon Northwest 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 installed equipment meets the definition of
qualified broadband equipment set out at Idaho Code 9 63-30291(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 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-
30291(3)(b )(i). In this Order, we find that Verizon Northwest has installed qualified broadband
equipment.
THE APPLICATION
Verizon Northwest's Application states that during 2003 the Company installed
equipment used to provide Digital Subscriber Line (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, Orofino, Pinehurst, Plummer/Worley, Post Falls, Potlatch, Priest
River, Rathdrum, Spirit Lake, Weippe, 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 Northwest states that transmission rates
range from 128 kilobits per second (Kbps) to beyond 6 Megabits per second (Mbps). Verizon
Northwest's Application states that it invested approximately $8 600 000 in qualifying
broadband equipment during 2003.
ORDER NO. 29563
STAFF 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 tax credit. Once the information has been filed, then
the Commission Staff reviews the application and submits a recommendation to the
Commission. Staff reviewed the list of broadband equipment submitted by Verizon Northwest.
Staff believes that the equipment is "necessary for the provision of broadband services and an
integral part of a broadband network." Idaho Code 9 63-30291(3)(b )(i). Consequently, Staff
recommends that the Commission issue an Order approving Verizon Northwest's Application.
FINDINGS
Having reviewed Verizon Northwest's Application and Staff s recommendation, we
find that the Application for a qualifying broadband equipment Order should be granted. The
Company has demonstrated that the installed broadband equipment identified in its Application
conforms with the qualifying requirements of Idaho Code 9 63-30291(b). 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 9 63-30291(3)(b )(i). It is therefore
appropriate for the Commission to issue this Order confirming that Verizon Northwest 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.
ORDER
IT IS HEREBY ORDERED that Verizon Northwest'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) issued in this Case No. VZN- T -04-8 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 issued in this Case No. VZN- T -04-8. Within seven (7) days after any person has
petitioned for reconsideration, any other person may cross-petition for reconsideration. See
Idaho Code 9 61-626.
ORDER NO. 29563
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 1:1 t+
day of August 2004.
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MARSHA H. SMITH, COMMISSIONER
Out of the Office on thi ~ n~te
DENNIS S. HANSEN, COMMISSIONER
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ORDER NO. 29563