Tag: "national rural electric cooperative association"

Posted February 6, 2020 by Katie Kienbaum

At the end of 2019, Congress passed the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act, fixing a tax law change that threatened to raise rates and delay the expansion of broadband for rural cooperative members across the country.

Passage of the RURAL Act ensures that cooperatives can accept federal funds for broadband deployment, disaster relief, and other efforts without risking their nonprofit tax exempt status. A change in the 2017 tax law would have labeled these funds as revenue for the first time, potentially causing co-ops to exceed the allowable percentage of non-member income they must maintain to remain tax exempt.

After Senators Tina Smith (D-Minn.) and Rob Portman(R-Ohio) and Representatives Adrian Smith (R-) and Terri Sewell (D-Ala.) introduced the bipartisan bill in April, it attracted 55 additional cosponsors in the Senate and more than 300 in the House. It was eventually incorporated into the consolidated appropriations act and signed into law in December.

“Obstacles From the Federal Government”

We described the possible impact of the 2017 tax law change on rural cooperatives over a year ago, when Senator Smith first brought the issue to our attention.

Failure to remedy it would have forced some co-ops to choose between continuing with desperately needed broadband and disaster recovery projects and increasing their members’ rates. Northwestern Electric Cooperative CEO Tyson Littau described the difficulty of that decision to the National Rural Electric Cooperative Association (NRECA):

Do we rebuild and try to strengthen our distribution system and pay the taxes, or do we delay the mitigation project that would improve 1,200 miles of line throughout our territory? I think we have a responsibility to the membership to improve the system for the future.

Gulf Coast Electric Cooperative was another co-op faced with the prospect of raising electric rates to...

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Posted May 15, 2019 by htrostle

Cooperatives are building the next-generation networks that will support rural areas long into the future. We’ve covered this extensively at ILSR as we have gathered materials on community networks from across the country into one place. We want to share this fact sheet from National Rural Electric Cooperatives Association (NRECA) on how electric cooperatives are well-situated to bring high-speed Internet service to another 6.3 million households.

6.3 Million Households Have a Co-op, But No Broadband

The fact sheet features an insightful map of the areas within electric cooperative service territories that do and do not have broadband. (Note: The FCC defines broadband as a speed of at least 25 Mbps download and 3 Mbps upload.) Many telephone and electric cooperatives can take the credit for bringing needed connectivity to their communities. For example, more than 90 electric cooperatives across the U.S. have built Fiber-to-the-Home (FTTH) networks, which offer some of the fastest Internet service in the country.

The NRECA fact sheet, however, reveals the 6.3 million households in rural electric cooperative service areas that still need high-speed Internet access. These areas are primarily in the Midwest and the South. Creating pathways for electric cooperatives to extend Internet service is increasingly a priority in a number of these states, and state legislatures are now passing laws to empower both electric and telephone cooperatives. NRECA offers more policy recommendations to continue the momentum.

You can learn more about the ways rural cooperatives are bringing better connectivity to rural areas by reading our 2017 report, Cooperatives Fiberize Rural America: A Trusted Model For The Internet Era.

Check out the NRECA fact sheet, and drop us a line if you know of more resources to add to the ILSR’s Community Networks Initiative archives. 

Posted March 13, 2019 by lgonzalez

In an effort to find ways to connect some of the state’s most disconnected communities, RiverStreet Networks and North Carolina’s Electric Cooperatives recently announced that they will work together for a series of pilot projects across the state. The initiative has the potential to discover new options for high-quality Internet access for residents and businesses in areas that have been left behind by national Internet service providers.

Going All Out 

North Carolina’s RiverStreet Networks is bent on bringing high-quality connectivity to people living and working in rural North Carolina. After expanding their physical infrastructure through deployment, the communications cooperative started to acquire other fiber networks in various areas across the state. Most recently, RiverStreet merged with TriCounty Telephone Membership Corporation

For RiverStreet, branching out among areas of the state were there is no high-speed Internet access is an opportunity to tap into an underserved market, not only an underserved population. It’s become obvious in recent years that rural communities want high-quality Internet access at least as fervently as in densely populated areas where big corporate ISP already have a monopoly. After upgrading their own members, RiverStreet was looking for growth; partnering with electric cooperatives is the next step to reaching more subscribers.

Listen to RiverStreet’s Greg Coltrain and Christopher discuss the merger and RiverStreet's plans to bring broadband to rural North Carolina:

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Posted July 17, 2017 by htrostle

co-op fiber map 12 2019 updated

Cooperatives around the country have built on their long legacy of delivering essential infrastructure by starting to deliver next-generation Internet services. Here, we cover the basics of cooperatives in rural areas and then discuss the details of electric and telephone cooperatives that have already branched out into Internet service. Finally, we highlight the first Internet fiber optic cooperative and discuss how other communities have better Internet service through building their own networks.

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Posted March 7, 2017 by lgonzalez

As an increasing number of rural electric cooperatives are working to bring high-quality Internet access to their members, we’re learning more about new projects and the people behind them. This week, we talk with the CEO of the North Arkansas Electric Cooperative, Mel Coleman. As an added bonus, we get Mel’s insight as President of the National Rural Electric Cooperative Association (NRECA).

Mel and Christopher discuss the cooperative’s new NEXT pilot project to bring high-quality Fiber-to-the-Home (FTTH) to members. Residents can get symmetrical gigabit connectivity for $79.95 per month. Mel draws parallels between the ways rural electric cooperatives brought electricity to rural areas in the region and now how the cooperatives are meeting the demand for broadband.

As the President of NRECA, Mel sees how other regions of the country are turning to rural electric cooperatives for better Internet access. While many are just getting started and others are well on their way, some have chosen to wait to take the plunge into offering telecommunications services. Why is that? Because just like local communities, cooperatives reflect the unique appetites and needs of their members. Mel explains why the North Arkansas Electric Cooperative feels offering better connectivity to their region is a necessity.

Read the transcript of the show here.

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This show is 16 minutes long and can be played on this page or via iTunes or via the tool of your choice using this feed.

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Thanks to Break the Bans for the music. The song is Escape and is...

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