20021209_341.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
JEAN JEWELL
RANDY LOBB
DON HOWELL
LYNN ANDERSON
JOE CUSICK
CAROLEE HALL
WAYNE HART
BIRDELLE BROWN
BEVERLY BARKER
RON LAW
TONY A CLARK
GENE FADNESS
WORKING FILE
FROM:DOUG COOLEY
DATE:DECEMBER 4, 2002
RE:CABLE ONE'S APPLICATION FOR BROADBAND EQUIPMENT TAX
CREDIT; CASE NO. GNR- T -02-21.
BACKGROUND
On October 29 2002, the Commission received an Application from Cable One, Inc., to
receive an investment tax credit for eligible broadband equipment pursuant to Order No. 28784
and Idaho Code ~ 63-30291(4). To be eligible for the tax credit, the taxpayer must apply for and
obtain from the Commission an Order confirming that installed equipment qualifies for the tax
credit.
DISCUSSION
Cable One stated that, during calendar year 2001 , it installed coaxial cable and fiber
optics as part of its "Hybrid Fiber Coax Network" (HFC) in and around the areas of Boise, Idaho
Falls, Lewiston, Twin Falls, and Pocatello. According to its Application, Cable One s network
offers high-speed data services using fiber optic receivers and transmitters, Motorola RF network
amplifiers, signal equalizers, and couplers and taps. In addition to the electronics, fiber optic
DECISION MEMORANDUM DECEMBER 4, 2002
optic cable, and coaxial cable, Cable One also included in its Application its labor costs and the
supporting hardware such as connectors, conduit, splicing equipment, and enclosure materials.
At Staffs request, Cable One supplemented its Application on November 26 2002 to include a
unit price" column and a "quantity column" as part of its materials list. The amount of the
requested tax credit for 2001 is just over $469 000.
Cable One states that it offers high-speed Internet and broadband services to homes and
businesses in Idaho at upstream and downstream transmission rates of 128 kbps to 1.5 Mbps.
Cable One s network in Idaho consists of approximately 2 539 miles of aerial coax, 1 876 miles
of underground coax and 524 miles of fiber optic cable and passes by approximately 290 000
Idaho homes and businesses.
STAFF REVIEW
Staff has reviewed the list of proposed broadband equipment submitted by Cable One and
believes that the equipment identified qualifies for the investment tax credit pursuant to Idaho
Code ~ 63-30291. Therefore, Staff recommends approval of the Company s Application and
further recommends that the Commission forward the approving Order along with a copy of the
original Application to the Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve Cable One s Application for the broadband investment
tax credit?
~ /
i:udrnernos/cable one
DECISION MEMORANDUM DECEMBER 4, 2002