20100928final_order_no_32076.pdf

Office of the Secretary
Service Date
September 28, 2010
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
ORDER NO. 32076
CASE NO. VZN-IO-
On September 13 , 2010, 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), for broadband investments made
during the 2009 calendar year.
THE APPLICATION
In its Application, Verizon states that it has installed Digital Subscriber Line (DSL)
and high-speed data (e., T 1) services with transmission rates of 138 Kbps to 6 Mbps in 26
exchanges. Verizon states that equipment was installed in the following Idaho communities:
Athol, Bayview, Bonners Ferry, Bovil, Clark Fork, Coeur d'Alene, Deary, Genesee, Hayden Lake, Hope
Kellogg, Moscow, Mullan, Orofino, Pinehurst, Post Falls, Priest Lake, Priest River, Rathdrum, Sandpoint
Spirit Lake, S1. Maries, and Weippe. Verizon claims that 100% of its customers in these exchanges
are served or can be served by the broadband network. Verizon asserts that it has invested
approximately $3.3 million in qualified broadband equipment during 2009.
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 9 63-
3029I(3)(b). Staff 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 9 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
Application, be forwarded to the Idaho State Tax Commission.
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 9 63-30291(4). "In the case of a telecommunications carrier, such
ORDER NO. 32076
qualified equipment shall be necessary to the provision of broadband service and an integral part
of a broadband network.Idaho Code 963-3029I(3)(b)(i).
Based upon our review of the Application and the recommendations of Staff, we find
that the Application for a qualified broadband equipment Order should be granted. Verizon has
adequately demonstrated that the equipment identified in its Application is qualified broadband
equipment subject to the tax credit. Further, we 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 qualified broadband equipment.
ORDER
IT IS HEREBY ORDERED that Verizon Northwest Inc.s Application for an Order
certifying that it has installed qualified 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 99 61-626, 63-30291(4).
ORDER NO. 32076
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :2
day of September 20 I
. KEMP ON SIDENT
MARSHA H. SMITH, COMMISSIONER
--"
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MACK A. REDFORD, CO
ATTEST:
~~
iO~'H
J n D. Jewe
Commission Secretary
O:VZN-IO-
ORDER NO. 32076