20050506Final Order No 29777.pdf

Office of the Secretary
Service Date
May 6, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
VERIZON NORTHWEST INC. FOR
INVESTMENT TAX CREDIT FOR
INST ALLING QUALIFIED BROADBAND
EQ UIPMENT
CASE NO. VZN-O5-
ORDER NO. 29777
On March 18, 2005 , 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 ~ 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 an Order from the Commission confirming that the equipment has been
installed and that it meets the definition of qualified broadband equipment set out in Idaho Code
~ 63-3029I(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 provider, the qualified broadband
equipment must also "be necessary to the provision of broadband service and an integral part of a
broadband network." Idaho Code ~ 63-3029I(3)(b )(i).
THE APPLICATION
Verizop.' s Application states that it has installed central office equipment, fiber and
copper cables, digital radio, and pairgain devices. This equipment is capable of transmitting data
in excess of 200 000 bits per second to or from the consumer and will be used to provide DSL or
high-speed data services. The Company indicates that the equipment is necessary and integral to
its broadband network and is installed in the Bayview Bonners Ferry, Clark Fork, Coeur
d' Alene, Hayden Lake, Kellogg, Moscow, Mullen, Orofino, Pinehurst, Lummer- Worley, Post
Falls, Priest River, Rathdrum, Sandpoint, Spirit Lake, St. Maries and Wallace exchanges. The
Application states that Verizon has made more than $10 million of investments in 2004. The
Company claims that 100% of this investment will be used to provide service to Idaho
customers.
ORDER NO. 29777
ST AFF REVIEW
To implement its responsibilities under Idaho Code ~ 63-30291, the Commission
issued Procedural Order No. 28784 in July 2001. The Order identifies information that must be
included in an Application for broadband credit. Once the information has been filed, then the
Commission Staff reviews the Application and submits a recommendation to the Commission.
Staff has reviewed the list of broadband equipment submitted by Verizon. Staff has
determined that Verizon is a telecommunications provider and believes that the equipment is
necessary for the provision of broadband services and an integral part of a broadband network."
Idaho Code ~ 63-3029I(3)(b )(i). Therefore, Staff recommended that the Commission issue an
Order approving Verizon' s Application.
COMMISSION FINDINGS
Based on our review of the Application and Staff recommendations, we find that the
Application for a qualifying broadband equipment Order should be granted. Verizon has
adequately demonstrated that it has installed qualifying broadband equipment identified in its
Application in conformance with the requirements set forth in Idaho Code ~ 63-30291. We
further find that Verizon is a telecommunications carrier and, as configured, the installed
equipment is an integral part of a broadband network necessary to deliver broadband services to
Idaho customers. Idaho Code ~ 63-3029I(3)(b )(i). It is therefore appropriate for the
Commission to issue this Order confirming that Verizon has installed broadband equipment as a
precondition to seeking an Idaho broadband tax credit.
ORDER
IT IS HEREBY ORDERED that Verizon Northwest Inc.s Application for an Order
certifying 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) 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. See Idaho Code ~~ 61-626, 63-30291(4).
ORDER NO. 29777
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho thIS 6'f'I--
day of May 2005.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
O:VZNT0501 kdp
ORDER NO. 29777