20130625final_order_no_32839.pdf

Office of the Secretary
Service Date
June 25,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF QWEST CORPORATION FOR AN )CASE NO.QWE-T-13-02
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )
EQUIPMENT )ORDER NO.32839
________________________________________________________________________________________
)
On June 4.2013.Qwest Corporation (“Qwest”or “Company”)filed an Application
seeking a Commission Order approving the installation of qualifying broadband equipment
enabling the Company to receive a corresponding broadband tax credit for the calendar years of
2008 through 2012.
On June 19,2013.the Company submitted a revised Application removing items
associated with Vale.Oregon and pole attachments.In the Application,Qwest states that it
installed equipment associated with various forms of DSL-based broadband services using a
mixture of fiber and metallic cable transport in approximately 70 Idaho exchanges.
During the five-year period,Qwest states that it made investments totaling
approximately $130 million.Included in its Application,the Company provided the following
information pertaining to new and retired investments:
Year Transmission Rates %1 Retirements Investment
2008 256 Kbps—4OMbps 89 ($1,673,911)$26,008,403
2009 256 Kbps—4OMbps 89 ($437,930)$24,563,461
2010 256 Kbps—4OMbps 89 ($700,053)$24,263,537
2011 256 Kbps—4OMbps 90 ($463,124)$29,025,714
2012 256 Kbps—4OMbps 90 ($122.698)$26.037.870
TOTAL ($3,397,716)$129,898,985
STAFF REVIEW AND RECOMMENI)ATION
Staff reviewed the list of proposed broadband equipment submitted by Qwest and
found that the equipment identified meets the statutory criteria outlined in Idaho Code §63-
30291(3)(b).Staff determined that Qwest 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 §63-30291(3)(b)(i).Therefore,Staff recommended that the Commission issue an
Percentage of living units (or street addresses)that have access to broadband services.
ORDER NO.32839 1
Order approving the Application and that the approving Order,along with a copy of Qwest’s
Application,be forwarded to the Idaho State Tax Commission.
COMMISSION FINDINGS AND DECISION
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).
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.Qwest
has adequately demonstrated that the equipment identified in its Application is qualifying
broadband equipment subject to the tax credit.Further,we find that Qwest 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.It is therefore appropriate for the Commission to
issue this Order confirming that the equipment identified in Qwest’s Application is qualifying
broadband equipment.
ORDER
IT IS HEREBY ORDERED that Qwest Corporation’s Application for an Order
certifying that it has installed qualifying broadband equipment during the calendar years of 2008-
2012 is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Qwest
Corporation’s 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.32839
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2013.
/j),‘I z;
PAUL JELLA R,ESIDEN1
REDFORD,COMy1ISSIONER
ATTEST:
an D.Jewe4/
Commission Secretary
O:QWE-T-I 3-02_np
MARSHA H.SMITH,COMMISSIONER
MACK A.
La4tL [LJL
ORDER NO.32839 3