20060726final_order_no_30105.pdf

Office of the Secretary
Service Date
July 26, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF VERIZON NORTHWEST INc. FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT
CASE NO. VZN-06-
ORDER NO. 30105
On June 1 , 2006, 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 from the Commission an Order confirming that the installed equipment meets the
definition of qualified broadband equipment set out at Idaho Code ~ 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
~ 63-30291(3)(b)(i). In this Order, we find that Verizon has installed qualified broadband
equipment.
THE APPLICATION
Verizon s Application indicates that it has installed central office equipment, fiber
and copper cables, digital radio, and pairgain devices, all capable of transmitting data in excess
of 200 000 bps to or from the consumer and will be used to provide digital subscriber line (DSL)
or high speed data services. The Company indicates the equipment is necessary and integral to
its broadband network. Verizon indicates the equipment was installed in the Bayview, Bonners
Ferry, Clark Fork, Coeur d' Alene, Hayden Lake, Kellogg, Moscow, Mullen, Orofino, Pinehurst
Plurnrner- Worley, Post Falls, Priest River, Rathdrum, Sandpoint, Spirit Lake, St. Maries and
Wallace, Idaho exchanges. The Company claims that 100% of the investment will be used to
provide service to Idaho customers. The Application identifies nearly $5.5 million of investment
in 2005.
ORDER NO. 30105
ST AFF REVIEW
To implement its responsibilities under Idaho Code ~ 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. Staff
believes that the equipment is "necessary for the provision of broadband services and an integral
part of a broadband network.Idaho Code ~ 63-30291(3)(b)(i).Consequently, Staff
recommended that the Commission issue an Order approving Verizon' s Application. Staff
further recommended that the Commission forward the approving Order, along with a copy of
the original Application, to the Idaho Tax Commission.
FINDINGS
Having reviewed Verizon s Application and Staffs 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 ~ 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 ~ 63-30291(3)(b)(i). It is therefore
appropriate for the Commission to issue this Order confirming that Verizon has installed
qualified broadband equipment as a pre-condition 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 the Application of Verizon Northwest Inc. for an
Order certifying that it has installed qualifying broadband equipment is approved.
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.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. 30105
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;l.(pifi--
day of July 2006.
~~
li ARSHA H. SMITH, COMMISSIONER
ATTEST:
D. Jewell
C mmission Secretary
O:VZN-06-06 dw
ORDER NO. 30105