Tag: "rural"

Electric Co-op Connectivity Covered on New NRECA Podcast

Posted December 17, 2018 by Katie Kienbaum

More and more electric cooperatives have been building broadband networks to bring better Internet access to their rural members. According to the cleverly titled podcast “Along Those Lines” from the National Rural Electric Cooperative Association (NRECA), that trend isn’t stopping any time soon.

In the second episode of the podcast, host Scot Hoffman, editor of RE Magazine, speaks with guests Mike Keyser, CEO of BARC Electric Cooperative, and Brian O’Hara, regulatory issues director for NRECA. They discuss the growing interest in broadband among electric cooperatives, some of the hurdles co-ops must overcome when deploying networks, and the impact that better connectivity has on Rural America.

Highlights From Their Conversation

A few years ago, the field of cooperative broadband was populated only by the early adopters. Now, Keyser tells the podcast host, “It seems like we’re reaching this tide where everybody’s now talking about [broadband] at every conference we go to.” One of the reasons for this groundswell of enthusiasm, O’Hara explains, is the increasingly vital role of communications infrastructure in managing the electric grid. Cooperatives’ commitment to local economic development and their “strategic advantages” in deploying networks also plays a role, he says.

BARC Electric Cooperative is one of the dozens of co-ops that have built fiber networks to connect their members. In the podcast, Keyser relates how the co-op ultimately decided to move forward with BARC Connects despite challenges:

“We finally got to the point as a co-op where the board said, look, this is going to revitalize our community, this is our mission, this is what we did 80 years ago . . . We need to just go. This is too important to the community and to the co-op.”

Local residents are clearly excited about the new network. “The single biggest question I get asked everyday is ‘When is it coming to my house?’” shares Keyser. He even believes that revenue from the broadband network will one day outstrip the co-op's income from selling electricity, a testament to the community’s need for better connectivity.

Grant PUD in Washington Aiming to Connect Entire County - Soon!

Posted December 7, 2018 by lgonzalez

At their November 27th meeting, Commissioners from the Grant County Public Utility District (Grant PUD) in Washington approved the funds to complete countywide fiber optic deployment. They’ve decided to dedicate an additional $12.6 million in new funding toward infrastructure to speed up the project. The total 2019 fiber budget is now set for $18.4 million to pay for expansion, maintenance and operation, and new customer connections.

According to Wholesale Fiber senior co-manager Russ Brethower, Grant PUD will have a more accurate and detailed timeline calculated in the spring. Approximately 30 percent of Grant County residents have yet to be connected to the network. While some communities have partial connectivity, there are still a few with no connections to the fiber and the new accelerated plan aims to change that.

Big Ambition for A Big County

With approximately 3,000 square miles, connecting the entire county is no small feat. Grant County, known for its large potato farms, contains expansive tracts of rural areas and several dense population centers. Add in the fact that soil varies from rock to easily plowed soil, and the Grant PUD has faced an extensive education in all manners of deploying fiber.

Christopher talked with Brethower for episode 279 of the Community Broadband Bits podcast about the network and the start of Grant PUD's efforts in 2000. Brethower discussed the fact that the county is an ideal place for data centers, as companies are encouraged by inexpensive real estate, the climate, low electric rates, and the fiber network.

Brethower also described how connecting the remaining residents and businesses in the county has become a priority for the Grant PUD and that their open access network, as required by state law, has attracted two dozen service providers.

With the additional funding for 2019, the Grant PUD will reduce the original deployment goal from 10 years to five.

Listen to the November 2017 interview with Russ Brethower here to learn more about the story behind Grant PUD’s fiber network:

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Unlocking the Value of Broadband for Electric Cooperative Consumer-Members

Posted December 6, 2018 by Katie Kienbaum

When privately owned utilities refused to electrify rural areas, communities established electric cooperatives to light up their homes and farms. A recently released report, Unlocking the Value of Broadband for Electric Cooperative Consumer-Members, describes how electric co-ops now have an opportunity revisit that role as they bring Internet access to their rural members nationwide.

The report, published in September by the National Rural Electric Cooperative Association (NRECA), finds that millions of people in electric cooperative service territories lack access to broadband. As the report explains, rural electric cooperatives are uniquely poised to meet their members’ needs for better connectivity. However, public investment may still be necessary to connect many rural communities.

Download the report.

Co-ops Could Meet Rural Broadband Needs

Like many rural Americans, members of electric cooperatives often find themselves unserved or underserved by the existing Internet service providers. The report’s authors estimate that more than 6 million electric co-op households — a total of 13.4 million people — don’t have access to broadband, defined by the Federal Communications Commission (FCC) as 25 Megabits per second (Mbps) download and 3 Mbps upload. Even more co-op members are likely struggling with poor connectivity because of how the FCC data overstates broadband availability and access.

There are several reasons why rural electric cooperatives are in a good position to bring modern-day connectivity to their unserved members, the report notes. Perhaps the most important advantage is that many co-ops are already investing in broadband networks to support smart grid technologies, such as advanced metering infrastructure (“smart meters”). The report points out that a broadband backbone ”not only enables the co-op’s smart grid operations, it also enables connectivity to the broader Internet backbone.” By expanding off their existing...

Organizing for Better Broadband in the Portland, Oregon, Region - Community Broadband Bits Podcast 334

Posted December 4, 2018 by lgonzalez

This week on the Community Broadband Bits Podcast, we hear from Russell Senior and Michael Hanna from Portland, Oregon. Russell is President of the Personal Telco Project and Michael is a Data Engineer for Multnomah County; both are on the Board of the Municipal Broadband Coalition of America.

In this interview Christopher, Russell, and Michael discuss the goals of the Coalition and their current work grassroots organizing in Portland and across and Multnomah County for the Municipal Broadband PDX initiative. In addition to hearing how Portland and the surrounding county has reached a point where residents and businesses are ready for better connectivity, we also find out how these two organizers became involved in the efforts.

Michael and Russell describe the way the project has evolved after years of attempts to improve Internet access in the region and their approach toward organizing such a large area with a high population. Our guests describe some of the challenges they have coped with and other issues they anticipate along the way as well as the basic principles that create the foundation for their initiative. They also define their visions for a successful outcome and offer suggestions for others who are considering organizing for better Internet access.

Check out the clever short film created to help launch Municipal Broadband PDX:

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 37 minutes long and can be played on this page or ...

Mississippi Public Service Commission Requests Law Change: "Let Electric Co-ops Offer Broadband!"

Posted November 30, 2018 by lgonzalez

When it comes to high-quality Internet access, the big corporate ISPs have failed rural Mississippi. Other states with similar digital divide issues are starting to see rural electric cooperatives make efforts to connect members. In some places, legislatures have adjusted state laws that complicated co-ops' ability to deploy fiber optic infrastructure. Now, the Public Service Commission (PSC) in Mississippi has formally requested that state lawmakers update an antiquated statute to allow rural electric cooperatives to expand high-quality Internet access.

Waiting for Action

When Magnolia's State Legislators convene in January, they’ll have a unanimous resolution waiting for them from the state’s PSC. The resolution requests that lawmakers take action to adjust Miss. Code 77-5-205 to allow electric cooperatives the authority to offer Internet access.

James Richardson, Policy Director and Counsel from the Office of Commissioner Brandon Presley, explained that the law currently only allows electric cooperatives the authority to form “…for the purpose of promoting and encouraging the fullest possible use of electric energy…” — electric cooperative are precluded from operating for any other purpose. The law was passed in the 1930s when cooperatives formed across the state to bring electricity to the many farmers in rural Mississippi. The matter has been tested and confirmed at the state Supreme Court.

The PSC asks that the State Legislature create an exception in statute in order to allow rural electric cooperatives the the ability to also offer Internet access. Earlier this month, the three Commissioners on the PSC approved the resolution requesting the law change.

Presley has been...

Grant County, Oregon, Getting Closer to Bridging the Digital Divide

Posted November 29, 2018 by Katie Kienbaum

The Grant County Digital Network Coalition is moving forward with plans to expand connectivity and close the digital divide in Grant County, Oregon.

We first reported on the creation of the coalition, which includes Grant County and the cities of John Day and Seneca, last year. Since then, the group has held three Board of Directors meetings and is making progress toward deploying a fiber optic network in Grant County. The coalition plans to build the network in phases, and once completed, it will connect public facilities, homes, and businesses along the fiber route. To offer Internet access to subscribers, the Grant County Digital Network Coalition will partner with local company Oregon Telephone Corporation (Ortelco).

Working Together to Solve Connectivity Woes

The local governments, led by John Day, established the Grant County Digital Network Coalition to improve the region's inadequate Internet access. Out of all Oregon counties, Grant County ranks second highest on the Digital Divide Index, a measurement of broadband access disparities, according to a presentation prepared by John Day City Manager Nick Green. In 2017, Green told the Blue Mountain Eagle that average Internet download speeds in Grant County are around 10 Megabits per second (Mbps) and that some people don’t have any access at all to the Internet.

Though the county desperately needs better connectivity, the region’s rugged hills make deploying a broadband network to the small communities difficult. Grant County is also home to Malheur National Forest and other federally owned land, further complicating network construction.

The coalition hopes that closing the digital divide in the county will promote local economic...

Tax Change Deters Rural Co-ops From Expanding Internet Access

Posted November 9, 2018 by Katie Kienbaum

For many rural Americans, the local electric or telephone cooperative is their best hope for finally obtaining modern-day connectivity. With the support of government funding, rural cooperatives have brought electricity, telephone service, and more recently broadband access to some of the most rugged and sparsely populated places in the country.

However, recent tax code changes might prevent co-ops from connecting more rural communities. Cooperatives could potentially lose their tax exempt status if they accept government grants for broadband expansion and disaster recovery — an unintended yet foreseeable consequence of the Republican “Tax Cuts and Jobs Act” passed late last year. In a press release, Senator Tina Smith called attention to the oversight, noting, “This uncertainty has caused cooperatives significant concern and frozen some of their grant applications.”

Who’s Ready for Some Tax Policy?

As nonprofit membership corporations, rural electric and telephone cooperatives are exempted from paying taxes under section 501(c)(12) of the Internal Revenue Code (IRC). To maintain this tax exempt status, cooperatives must derive at least 85 percent of their income from members (e.g., from selling electricity). This is sometimes referred to as the the member income test or the income source test.

Not all sources of non-member income are included when calculating this percentage. Revenue from utility pole rentals, for instance, is exempted. In the past, rural cooperatives also excluded federal and state grants from the member income test, based on assorted rulings from the Internal Revenue Service (one example is Rev. Rul. 93-16, 1993–1 C.B. 26, which held that a federal grant given to an airport should not be considered income for tax purposes). As long as co-ops treated the government funding as a source of capital, not income, they could accept as much grant money as they wanted without the...

Rural Connectivity a Top Issue in Maine Election

Posted October 23, 2018 by lgonzalez

As Election Day draws near, voters in 36 states and three territories are set to choose governors. In Maine, gubernatorial candidates are making rural broadband a key issue. All four candidates agree that the state needs to be involved in some way, and each recently gave the Press Herald a summary of their plan to expand high-quality connectivity to constituents, if elected.

Different Approaches

Both Independent candidates, Terry Hayes and Alan Caron have suggested state investment. Hayes would like to earmark $100 million annually for four years to deploy fiber networks and capitalize on public-private partnerships. Caron suggests a statewide network, funded by $100 million in bonding his first term and a second term if he were re-elected, to connect every city and town.

The Republican candidate stresses public-private partnerships with an emphasis on encouraging private companies to invest in rural areas. The candidate, Shawn Moody, believes that using federal and state funds as the carrot for private sector Internet access companies will be enough to bring rural connectivity up to speed.

Janet Mills, running as the Democratic candidate, has a plan that seems consistent with some of the current activity in Maine. She wants to create Broadband Expansion Districts, that will allow rural communities to band together to expand and administer their own broadband connectivity. She goes on to state that those districts would be eligible for grants. Mills also sees a particular need to address coastal areas where national providers see not profit in upgrading services. She wants to look into establishing “broadband regional hubs.”

Mills’s approach appears a little more consistent with the r egional efforts in Baileyville and Calais, the Downeast Broadband Utility. The two rural communities joined forces to create their own dark fiber utility when incumbents wouldn’t bring the services they needed. Recently Cumberland County released an RFP for a similar regional approach...

Opelika Opts to Privatize

Posted October 19, 2018 by lgonzalez

Once again, restrictive state laws designed to help big ISPs maintain their monopolies have helped push a publicly owned network to privatization. Opelika, Alabama, recently announced that they will sell their OPS One fiber optic network to Point Broadband, headquartered in West Point, Georgia. They expect the deal to be finalized in early November.

The Road to Now

The city of Opelika installed the network to overcome poor services from Charter and to improve municipal electric services with smart grid applications. In 2010, Charter’s astroturf campaign to stop the network failed when local voters supported the ballot initiative to build the broadband infrastructure to allow the city to provide services. By 2014, Opelika Power Services (OPS) was making Fiber-to-the-Home (FTTH) available for residents and businesses; folks in the community were loving the service from Alabama’s “Gig City.”

Nearby communities still stuck with poor Internet access wanted OPS to serve them also and OPS wanted to add more subscribers, but state law prevents Opelika from expanding beyond their current coverage area. As in the case of Bristol, Virginia, when a state prevents a municipal network from growing and increasing revenue, the state makes it difficult for the network to remain sustainable.

Mayor Gary Fuller recently told WLTZ:

“We attempted on three occasions to get the legislature to [allow us to] expand beyond our city limits, into North Auburn and rural Lee County, Beauregard, and we could never do that because we couldn’t get the law changed.”

Each attempt to convince lawmakers that Opelika’s neighbors deserve more options than what the incumbents offer have evoked attacks from misinformation groups,...

Egremont is Mad as Hell and They're Not Going to Take It Anymore

Posted October 18, 2018 by lgonzalez

The people of Egremont have had it with Charter Spectrum and their shenanigans. After the latest issue pushed them too far, the town’s Select Board voted to give the company the boot.

How Much?

Charter Spectrum had proposed connecting 96 percent of Egremont’s households for approximately $1.185 million, the lion’s share to be funded by a Massachusetts Broadband Institute (MBI) last mile grant. The company, however, had not calculated make-ready costs correctly until after making their proposal. After examining the situation in Egremont, Charter Spectrum has almost doubled the estimate for the project to $2.285 million.

The difference Charter Spectrum says, is due to the need to replace 150 poles, which they say are not tall enough to accommodate their infrastructure. Charter Spectrum puts the blame on local company Fiber Connect, which has been deploying fiber in Egremont and other Berkshire towns. The national company says that Fiber Connect’s fiber optic cable has filled any room on the poles for Charter Spectrum cables.

MBI isn’t willing to fill the $1.1 million gap created by Charter Spectrum and neither is the company. Peter Larkin from MBI attended the October 15th meeting and presented an MBI proposal, in which the town would pay for half of the gap and MBI would cover the remaining $600,000. Locals at the meeting were less than thrilled.

Unexplained Deal

With a population of only around 1,200 people, the news from MBI topped off an already long and frustrating process to bring high-quality Internet access to the rural town. Egremont had planned to joined Wired West, the broadband cooperative of western Massachusetts towns, but later opted to work with the national cable provider. Ever since the decision, they’ve experienced delays in negotiations, often because Charter Spectrum has remained elusive about where exactly they plan to deploy and which premises would be left out.

Fiber Connect had also proposed building out in Egremont, and a significant portion of the community has expressed support for the local company. MBI, however, has denied grant funds to Fiber Connect, citing it’s five-year record as...

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