20080829final_order_no_30633.pdf

Office of the Secretary
Service Date
August 29, 2008
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. 30633
CASE NO. VZN-08-
On August 12, 2008, Verizon Northwest Inc. (Verizon) filed an Application
requesting approval of equipment for a broadband tax credit pursuant to Order No. 28784 and
Idaho Code 9 63-30291(4). 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 9 63-3029I(3)(b). Qualified
broadband equipment must be capable oftransmitting 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. 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 the
Company s investment meets the applicable standards.
THE APPLICATION
Verizon s Application indicates that it installed Digital Subscriber Line (DSL) and
other high speed data (e.g. T -1) services with transmission rates of 1.544 Mbps to 51.84 Mbps in
25 exchanges in northern Idaho. Verizon asserts 100% of its customers in these exchanges have
access to broadband services. The Application states that Verizon invested approximately $13
million in qualifying broadband equipment during 2007, and that it is used to provide customers
with DSL and high-speed data services.
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 is filed with the
Commission, the Staff reviews the application and submits a recommendation to the
Commission. Staff has reviewed the list of proposed broadband equipment submitted by
Verizon and believes that the equipment identified meets the statutory criteria. Staff therefore
ORDER NO. 30633
recommended approval of the Application and further recommended that the Commission
forward an approving Order along with a copy of the original Application 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 meets the
statutory standards for 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 s Application is qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Verizon Northwest Inc.s Application for an Order
certifying that it installed qualifying broadband equipment during 2007 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 99 61-626, 63-30291(4).
ORDER NO. 30633
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;L~f+.
day of August 2008.
MACK A. REDFORD , PRESIDENT
~ITH
JIM KEMP ON, OMMISSIONER
ATTEST:
r#ufj Je D. Jewell
Commission Secretary
bls/O:VZN-O8-03 ws
ORDER NO. 30633