This article was co-written with ILSR's Energy Democracy initiative research associate, Karlee Weinmann, and is cross-posted on ILSR.org.

Ouachita Electric Cooperative, nestled deep in south-central Arkansas, is an unlikely innovator in a pair of industries struggling to adapt to shifting market dynamics: electricity and broadband.

Despite rising demand for energy efficiency and renewable electricity generation, large investor-owned utilities -- and many rural electric co-ops -- have resisted programs to address those needs. Likewise, corporate Internet service providers frequently offer shoddy service at high rates, a particular problem in rural areas with limited competition.

But Ouachita Electric found a way to do both things better, with complementary technologies. Fiber-optic network investments provided lower cost Internet access, but also provide an information backbone for the electric utility that can reduce outage times and verification for energy savings programs. The network and the efficiency programs reduce costs for a customer base dominated by low-income households that can now reinvest their earnings elsewhere in the community.

Inclusive Financing

The utility’s tariff-based, on-bill financing program -- known as HELP PAYS -- allows customers to invest in energy efficiency upgrades at their homes, like insulation and heat pumps, with no upfront cost. Ouachita Electric covers eligible expenses, then recoups its buy-in through payments from participating customers on their monthly bills. Customers immediately pay less thanks to utility-financed energy-saving improvements.

Unlike other energy efficiency programs, the opt-in “inclusive financing” program, HELP PAYS, enables all Ouachita customers to capture significant benefits:

• Low-income households can pay, because they don’t need to come up with thousands of dollars upfront for qualifying improvements.

• Renters can...

Ozarks Electric Cooperative has a plan to bring fast, affordable, reliable connectivity to northwest Arkansas and northeast Oklahoma.

Fast, Affordable, Reliable Connectivity At Last

OzarksGo, a wholly owned subsidiary of the electric co-op, will provide Fiber-to-the-Home (FTTH) Internet service with symmetrical speeds of up to a Gigabit (1,000 Megabits) per second. The fiber network will cost $150 million to build over the next six years.

ArkansasOnline and local news station KSFM reported on the future network. The residential FTTH service will have no data caps and OzarksGo will offer additional services, such as telephone and video. At the end of the project, all co-op members will have access to the network's services.

According to the FCC 2016 Broadband report, 25 percent of all Arkansas residents don't have access to broadband (defined as 25 Megabits per second (Mbps) download and 3 Mbps upload). In Oklahoma, the FCC puts the numbers higher at 27 percent. Rural areas are even higher with 48 percent lacking in Arkansas and 66 percent missing out in Oklahoma. Considering the data collection process depends on self-reporting by ISPs, those numbers are considered low. The number of households that do not have access to federally defined broadband, especially in rural areas, is higher.

Soon though, these Arkansas and Oklahoma residents will have access to fast, affordable Internet access. General manager for OzarksGo Randy Klindt, who previously worked on Co-Mo Electric Cooperative's FTTH network, explained in the video below that the price for a Gigabit will be less than $100, which is an entirely opt-in service.

Ozarks Electric Cooperative serves about 71,000 customers, including businesses. Since the service area is so large, OzarksGo will build the network incrementally over the next six years. Each phase will cost between $25 and $35 million - for a total of...

In an unsurprising result, voters in Siloam Springs, Arkansas, chose not to build their own FTTH network. The margin was 58% against, 42% for. According to that article, the opponents (bankrolled largely by national cable company Cox) outspent proponents by 3:1.

We previously covered this plan and were concerned that the number one reason identified for proposing the network was to diversify revenue for the local government. Quite frankly, that is a poor reason to go head to head against massive companies like Cox and CenturyLink.

The biggest benefits of community networks tend to be the hard to quantify -- aggregate savings to the community from lower prices from all providers in a competitive environment, increased economic development, better customer service from a local provider, etc. These networks are built to be financially self-sufficient, but we caution against expecting them to be a piggy bank for the local government.

Unlike the successful Longmont approach, where those advocating for the community network engaged others who had been through similar fights elsewhere, it seemed like Siloam Springs preferred not to ask for help. Meanwhile, Cox tapped its nationwide resources to oppose the network, with misinformation like this:

Download the full size flyer here.

Communities that want to build community networks should engage the wider community of community broadband supporters and be prepared for flyers like this one. And when seeking local support, make sure you find messages that resonate. Make sure you read about the grassroots movement in Lafayette in our recent report or how Chattanooga had hundreds of community meetings to explain its plan.

These networks face stiff opposition from entrenched opponents that want to be the sole gatekeepers to the Internet -- ensuring a real choice means doing real organizing.

Siloam Springs, sporting 15,000 people in the northwestern corner of Arkansas, could be the next community to build its own community fiber network. But first they have to pass a referendum in May in the face of stiff opposition from Cox Cable, which would prefer not to face real competition.

For over 100 years, the city has provided its own electricity via its electrical department. Now, it wants to join the more than 150 other communities that have done so. After last year's changes to Arkansas law, Siloam Springs has the authority to move forward if it so chooses.

Pamela Hill at the City Wire has covered the situation with a series of stories, starting with an explanation of why they are moving forward:

David Cameron, city administrator, said the proposal is not so much about dissatisfaction with current providers as it is about finding new revenue for the city. Cameron said revenue from electric services has been a key source of funding for various projects and necessities for the city. That “enterprise” fund is getting smaller, Cameron said, and an alternative funding source is needed.

“We have done a good job managing accounts, building a reserve,” Cameron said. “We want to keep building on the programs we have. It takes money and funds to do that.”

City officials discussed the issue for the last 18 months and decided to put it to a referendum. Voters will decide the issue May 22.

That is a fairly unique reason. Most communities want to build these networks to encourage economic development and other indirect benefits to the community. Given the challenge of building and operating networks, few set a primary goal of boosting city revenue.

If approved by voters, the city plans to spend $8.3 million to install 100 miles of fiber optic cable directly to homes and businesses. The city should be able to repay the debt in 12 years, if things go according to a feasibility study presented to the city’s board of directors in January. Cameron said projections show the system could begin making a profit...