20100210final_order_no_31001.pdf

Office of the Secretary
Service Date
February 10, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
VERIZON NORTHWEST INc. FOR AN
ORDER CONFIRMING THE INSTALLATIONOF QUALIFYING BROADBAND EQUIPMENT
CASE NO. VZN-I0-
ORDER NO. 31001
On January 25 , 2010, the Commission received an Application from Verizon
Northwest Inc. ("Verizon" or "Company ) requesting an Order from the Commission, pursuant
to Idaho Code ~ 63-3029I( 4), confirming that the Company installed qualifying broadband
equipment during the 2008 calendar year.
THE APPLICATION
Verizon s Application indicates that the Company installed equipment associated
with Digital Subscriber Line (DSL) and high speed data (e., T- 1) services with transmission
rates of 1.544 to 51.84 Mbps in 22 exchanges in northern Idaho. Verizon asserts that 100% of its
customers in these exchanges are served or can be served by the broadband network. The
Application states that Verizon invested approximately $17 million in qualifying broadband
equipment during 2008.
STAFF REVIEW AND RECOMMENDATION
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 V erizon' s broadband equipment is capable of transmitting
signals at a rate of at least 200 000 bits per second to a subscriber and at least 125 000 bits per
second from a subscriber. Idaho Code ~ 63-3029I(3)(b). Staff believes 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 of Verizon s Application, be forwarded to the Idaho State
Tax Commission.
ORDER NO. 31001
COMMISSION FINDINGS
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); Order No. 28784. "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 ~ 63-3029I(3)(b)(i).
Based upon our review of the Application and the recommendations of 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 is 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
broadband network and that it is necessary to facilitate the delivery of broadband Internet service
to Idaho customers. It is therefore appropriate for the Commission to issue this Order confirming
that the equipment identified in Verizon s Application is qualifying broadband equipment.
ORDER
IT IS HEREBY ORDERED that the Application of Verizon Northwest Inc. for an
Order confirming that the Company installed qualifying broadband equipment during the 2008
calendar year is approved.
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. 31001
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this /Q+-I1
day of February 2010.
D. KEMPT , P SIDENT
li~
MARSHA H. SMITH, COMMISSI
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ATTEST:
O:VZN-I 0-0 I
ORDER NO. 31001