20260624Final_Order_No_37078.pdf

Office of the Secretary
Service Date
June 24,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF FREMONT TELECOM ) CASE NO. FRE-T-25-01
CO.'S APPLICATION FOR THE 2024 )
BROADBAND EQUIPMENT TAX CREDIT )
ORDER NO. 37078
On July 23,2025,Fremont Telecom Co. ("Company")applied to the Idaho Public Utilities
Commission ("Commission") for an order confirming that equipment the Company installed
during 2024 is "qualified broadband equipment"under Idaho Code § 63-3029I (Income tax credit
for investment in broadband equipment) ("Application").
On December 10, 2025, the Commission issued a Notice of Application and Notice of
Modified Procedure establishing written comment deadlines. Order No. 36867. Commission Staff
("Staff") filed comments. On January 16, 2026, rather than submitting reply comments, the
Company filed an amended application along with a revised equipment list ("Amended
Application").
On May 14,2026,the Commission issued a Notice of Amended Application and Amended
Notice of Modified Procedure re-establishing written comment deadlines. Order No. 37041. Staff
filed supplemental comments. The Commission received no public comments or Company reply
comments.
Based on our review of the record, the Commission now issues this Final Order denying
the Application and the Amended Application.
BACKGROUND
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 subscriber." Idaho Code § 63-
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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 apply for and obtain an order from the
Commission confirming that the installed equipment meets the statutory definition of qualified
broadband equipment. Idaho Code § 63-3029I(4). 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"[l]ist the brand,manufacturer,model numbers
of the installed equipment,number of items,and total cost."Order No. 3 5297,Attachment A. 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 APPLICATION AND AMENDED APPLICATION
The description of the Company's network and the total amount it claimed investing in
qualifying broadband equipment were identical in the Application and the Amended Application.
The Company represented that it offers broadband services through Asymmetric Digital
Subscriber Line, Very-high-bit-rate Digital Subscriber Line, Broadband Ethernet and Wavelength
services. Amended Application at 2. The Company stated that it provides broadband services to
its customers at transmission rates of 256,000 bits per second ("bps") up to 1,000,000,000 bps
from a subscriber and 768,000 bps up to 1,000,000,000 bps to a subscriber. Id. According to the
Company, during 2024 it served 4,271 broadband customers in Idaho out of 13,551 possible
broadband subscribers, resulting in 32% of possible subscribers being served. Id. The Company
reported investing $2,818,233.75 in qualifying broadband equipment during 2024.Id. at 3.
STAFF COMMENTS AND SUPPLEMENTAL COMMENTS
In its original comments, Staff recommended that the Commission disallow the majority
of the Company's equipment list as project costs outside of investment in qualifying broadband
equipment and approve only a portion of the list as qualifying broadband equipment. Staff
Comments at 2-4. In its supplemental comments, Staff noted that despite making changes to the
ORDER NO. 37078 2

equipment list submitted with the Amended Application, the Company claimed investing an
amount identical to that claimed in the original Application. Staff Supplemental Comments at 3.
However, Staff stated that after filing the Amended Application, the Company informally
provided Staff with a further revised list on March 27, 2026. Id. In the newly revised equipment
list, the Company reported investing a total of$387,202.65 in qualifying broadband equipment.
Id. Staff recommended that the Commission issue an order approving the equipment contained in
that list, which was attached to Staff s supplemental comments as Attachment A, as qualifying
broadband equipment.Id.
COMMISSION FINDINGS AND DECISION
Having reviewed the record,the Commission cannot determine whether the items included
in either the equipment list attached to the Company's Application or that attached to the Amended
Application are qualified broadband equipment necessary for the provision of broadband service
in Idaho. Based on the record before us, we therefore cannot End that the claimed equipment
expenses are eligible for the income tax credit under Idaho Code § 63-3029I.
While we understand the Company informally provided Staff with an equipment list that
Staff believed qualified as broadband equipment,Idaho Code § 63-3029I(4)requires the applicant
to submit its equipment list to the Commission.We decline to approve a list that was not filed with
the Commission as part of the record in this proceeding. It is the applicant's burden to ensure the
record supports its request for relief before this Commission.Accordingly,we deny the Company's
Application and Amended Application.
ORDER
IT IS HEREBY ORDERED that the Application and the Amended Application are denied.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within 21 days of the service date of this Order regarding any matter decided in
this Order.Within seven days after any person has petitioned for reconsideration, any other person
may cross-petition for reconsideration.Idaho Code §§ 61-626 and 62-619.
ORDER NO. 37078 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 24th day of
June 2026.
G o
EDWARD LODGE, PR IDENT
J R. HAMMOND JR., COMMISSIONER
DAYN HA IE, COMMISSIONER
ATTEST:
Monica bare Sanchez
Commission Secretary
1 ALegaLTELECOM\FRET2501_BTC\orders\FRET2501_FOJ l.docx
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