20070924final_order_no_30441.pdf

Office of the Secretary
Service Date
September 24, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF VERIZON NORTHWEST INc. FOR AN
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
ORDER NO. 30441
CASE NO. VZN-07-
On June 23 2007, the Commission received an Application from Verizon Northwest
Inc. ("Verizon ) asking for approval of a broadband tax credit pursuant to Commission Order
No. 28784 and Idaho Code ~ 63-30291(4). In order to be eligible to obtain the tax credit, the
taxpayer must first obtain an Order from the Commission "confirming that the installed
equipment is qualified broadband equipment." Idaho Code ~ 63-30291(4). "In the case of a
telecommunications carrier, such qualifying equipment shall be necessary to the provision of
broadband service and an integral part of a broadband network." Idaho Code ~ 63-
30291(3 )(b )(i).
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 bits per second (bps) to or from the consumer and will be used to provide DSL or
high-speed data services to Idaho customers. The Company states that the equipment is
necessary and integral to its broadband network. The Company has installed the equipment in
the Bayview, Bonners Ferry, Bovill, Clark Fork, Coeur d' Alene, Deary, Genesee, Hayden Lake
Hope, Kellogg, Moscow, Orofino, Peck, Pinehurst, Plummer-Worley, Post Falls, Potlatch, Priest
River, Rathdrum, Sandpoint, Spirit Lake, St. Maries, Wallace and Weippe exchanges. The
Company claims that 100 percent of the investment will be used to provide service to Idaho
customers. The Application identified more than $4 000 000 of investment in 2006.
STAFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Verizon and
found that the equipment identified meets the statutory criteria outlined in Idaho Code ~ 63-
3029I(3)(b). Staff determined that Verizon s broadband equipment is capable of transmitting
signals at a rate of at least 200 000 bps to a subscriber and at least 125 000 bps from a subscriber.
ORDER NO. 30441
Idaho Code ~ 63-3029I(3)(b). Staff also determined that Verizon is a telecommunications carrier
and its equipment is "necessary to the provision of broadband service 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 the Application and that the approving Order, along with
a copy ofVerizon s Application, be forwarded to the Idaho State Tax Commission.
COMMISSION FINDINGS
Based upon our review of the Application and the recommendations of the Staff, we
find that the Application for a qualifying broadband equipment Order should be granted.
Verizon has adequately demonstrated that the equipment identified in its Application
qualifying broadband equipment subject to the tax credit. We further find that Verizon is a
telecommunications carrier and, as presently configured, the installed equipment is an integral
part of the Company s broadband network and that it is necessary to facilitate the delivery of
broadband Internet service to Idaho customers. Id. It is therefore appropriate for the
Commission to issue this Order confirming that the equipment identified in Verizon
Application is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Verizon Northwest Inc.'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 Verizon
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. Idaho Code ~~ 61-626 , 63-30291(4).
ORDER NO. 30441
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this O1'-!-f'I..
day of September 2007.
ATTEST:
le D. Jewell
Commission Secretary
O:VZN-07-
ORDER NO. 30441
PAUL KJELL N ,PRESIDENT
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MARSHA H. SMITH, COMMISSIONER