20260522Staff Comments.pdf

RECEIVED
May 22, 2026
ERIKA K. MELANSON IDAHO PUBLIC
DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83702
[phone]
IDAHO BAR NO. 11675
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF QWEST )
CORPORATION INC.'S APPLICATION FOR ) CASE NO. QWE-T-25-04
THE 2022 BROADBAND EQUIPMENT TAX )
CREDIT )
COMMENTS OF THE
COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"), by and through its attorney of record, Erika K. Melanson, Deputy Attorney
General, submits the following comments.
BACKGROUND
On December 2, 2025, Qwest Corporation, Inc. ("Company") applied to the Commission
for an order confirming that equipment the Company installed during 2022 is"qualified broadband
equipment" under Idaho Code § 63-3029I (Income tax credit for investment in broadband
equipment) ("Application").
In 2001, House Bill 377 was enacted, authorizing income tax credit for the installation of
qualifying broadband infrastructure in Idaho. Idaho Code § 63-3029B(3)(a)(ii). Idaho Code § 63-
3029I allows a taxpayer to receive an investment tax credit for eligible broadband equipment
installed during a calendar year. Qualified broadband equipment is defined as equipment"capable
of transmitting signals at a rate of at least two hundred thousand (200,000) bits per second to a
subscriber and at least one hundred twenty-five thousand (125,000) bits per second from a
STAFF COMMENTS I MAY 22, 2026

subscriber." Idaho Code § 63-3029I(3)(b). If the equipment is installed by a telecommunications
carrier, it must also be "necessary to the provision of broadband services and an integral part of a
broadband network." Idaho Code § 63-3029I(3)(b)(i). The equipment must be primarily used to
provide services to subscribers in Idaho to qualify for the credit. Idaho Code § 63-3029I(3)(b)(vii).
To be eligible for the tax credit, the taxpayer must obtain an order from the Commission
confirming that the installed equipment meets the statutory definition of qualified broadband
equipment. Idaho Code § 63-3029I(4)Commission Order Nos. 35297 and 36970. Prior to making
such a determination, the Commission requires applicants to submit "a specific list of the
equipment or types of equipment that the applicant is requesting that the Commission determine
is `qualified broadband equipment' as defined in Idaho Code § 63-3029I(3)(b)," and to "[1]ist the
brand, manufacturer, model numbers of the installed equipment, number of items, and total cost."
Order No. 35297, Attachment A. The Commission has emphasized that its "role in applications
for broadband equipment tax credit is limited to `confirming that the installed equipment is
qualified broadband equipment"' and does not extend to approving costs for non-equipment
project expenditures for credit. Order No. 36970, quoting Idaho Code § 63-3029I(4). Once the
Commission has determined that the installed equipment is eligible for the broadband equipment
tax credit, an order along with the original application is forwarded to the Idaho Tax Commission.
The Company represents that the lowest transmission rates it offers broadband services to
its customers is 500,000 bits per second("bps") download to a subscriber and 250,000 bps from a
subscriber. Id. The Company stated that in 2022, it had the potential to serve 648,982 Idaho
customers in its service territory and actually served 91% of those customers. Id. at Exhibit 3.
The Company reported investing $22,052,269.00 in qualifying broadband equipment and
retired$513,505.00 of equipment during 2022 resulting in a net of$21,538,764. Id. at 1.
STAFF ANALYSIS
Staff reviewed the Application and documentation submitted to the Commission. As
part of the review process, Staff audited the list of broadband equipment submitted by the
Company. During the review, Staff was not able to verify any of the broadband equipment
listed complied with the requirements of Commission Order Nos. 35297 and 36970, which
requires the Company to provide the brand, manufacturer, model numbers of the installed
equipment, number of items, and total cost of the listed broadband equipment. The Company
STAFF COMMENTS 2 MAY 22, 2026

did not provide a brand, manufacturer, or valid model number for many of the items included
in its list. See Application, Exhibit 1. On December 10, 2025, Staff requested the missing
information through production requests. In the Company's response to Production Request
No. 1, the Company provided the same list that was originally submitted in the Application
while including apparent manufacturers names, but without including the other missing or
required information, such as model numbers. Staff was unable to verify all of the items in
the list as qualifying broadband equipment pursuant to Idaho Code § 63-3029I(3)(b) and
Commission Order Nos. 35297 and 36970.
The Company reported that it invested $21,538,764.00 in qualifying broadband
equipment in 2022. However, the duplicate spreadsheets provided in both the Application
and Company's response to Production Request No. 1 indicated a total of $44,104,539.90
when the sum of all items listed were totaled. Staff is unsure as to why there is such a large
discrepancy between what the Company is reporting and the information found within the
spreadsheets. Staff informally met with the Company to encourage them to submit the
required information. On May 21, 2026, the Company submitted a spreadsheet with
additional information to the Commission. Staff was unable to verify that the line items in
the spreadsheet qualified broadband equipment due to missing information and
inconsistencies in model numbers and prices. Idaho Code § 63-3029I(3)(b) and Commission
Order Nos. 35297 and 36970.
Additionally, it should be noted that on page 2 of the Application, the Company stated
that "Syringa Networks, LLC also believes that the broadband equipment included within
Exhibit A qualifies for the tax credit under Section 63-3029I of the Idaho Code." Syringa
Networks, LLC is not affiliated with the Company or the parent company. Staff is unsure
why the Company included this statement in the Application. Staff suggests that the Company
only include company specific information in future filings. Based on the review, Staff was
not able to verify any line items in the Application as qualified broadband equipment.
STAFF COMMENTS 3 MAY 22, 2026

STAFF RECOMMENDATION
Staff recommends that the Commission conditionally deny the Company's
Application with leave to amend for a period of 30 days. Should the Company submit an
amended equipment list within 30 days, Staff will provide the Commission with a
recommendation regarding the amended list.
Respectfully submitted this 22nd day of May 2026.
Erika K. Melanson
Deputy Attorney General
Technical Staff: Jon Kruck, Allison Moore
I:\Utility\UMISC\COMMENTS\QWE-T-25-04 Comments.docx
STAFF COMMENTS 4 MAY 22, 2026

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 22nd DAY OF MAY 2026, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO.
QWE-T-25-04, BY &MAILING A COPY THEREOF, TO THE FOLLOWING:
Company:
TONI L. MINCIC, SR. DIRECTOR, TAX
LUMEN
931 14TH STREET
DENVER, CO 80202
E-MAIL:
toni.mincic(a),lumen.com
PATRICIA JORD , SECRETARY
CERTIFICATE OF SERVICE