Tag: "cooperative"

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...

Read more
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.

logo-ms-psc.jpg Presley has been...

Read more
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...

Read more
Posted October 11, 2018 by lgonzalez

City Officials in Fort Scott, Kansas, located about 95 miles south of Kansas City, say that they haven’t been able to entice national providers to bring high-quality Internet access to their town of about 8,000 people. That may be a good thing — Craw-Kan Telephone Cooperative is building out fiber in Fort Scott as early as 2019.

Working With the City

Planning for the network has involved collaboration between Fort Scott and the cooperative. Before bringing connectivity to residents, the cooperative has been deploying to a local industrial part, the airport, and the golf course. 

The plan has included an Exchange Agreement between the city and Craw-Kan which allows the co-op to use vacant conduit to connect Fort Scott’s Water Treatment Plant to the golf course and the airport. Fort Scott will also provide an easement for a fiber node at the golf course. Craw-Kan will provide six fibers for the city to use along this part of the route, and will also install vacant conduit for the city during construction at another location. The additional conduit will be earmarked exclusively for the city’s use.

City officials and representatives from Craw-Kan have been working on the deal and the project since the fall of 2017. At a recent City Commission meeting, City Manager Dave Martin said that Fort Scott was excited that the cooperative was bringing gigabit Fiber-to-the-Home (FTTH) connectivity to town, noting that they’d tried to attract ISPs that would offer better services. Suddenlink offers services in parts of town and AT&T’s DSL is also available. 

Craw-Kan will provide $70 per month symmetrical gigabit connections  with no data caps in addition to 10/10 and 50/50 for $50 per month and $60 per month respectively. Installation is free and a Wi-Fi router is included in the monthly rate.

Working With Other Communities

logo-craw-kan-coop.png

The Fort Scott project is the latest in the Craw-Kan portfolio as they work with local communities in the region. Further south in Pittsburg, Craw-Kan has been building their...

Read more
Posted October 2, 2018 by lgonzalez

When Fairpoint wouldn’t give folks in Crestone, Colorado, what they needed after repeated requests, they decided to take care of it themselves. By 2012, Ralph Abrams and his band of Internet pioneers had created Colorado Central Telecom, providing affordable, dependable fixed wireless service to premises throughout the region at much faster speeds than Fairpoint could ever deliver. In this episode of the podcast, Maisie Ramsay, Marketing and Business Development from the company, tells us more about the company and their work.

Colorado Central Telecom has been delivering Internet access to subscribers for a relatively short time, but it’s clear they have the needs of the community in mind. They’ve made steady investments in their equipment in order to improve their services and have even picked up some fiber network resources. Maisie describes some of the challenges of working in a mountain geography such as the San Luis Valley and the technologies they employ to get past the hurdles Mother Nature has created.

Maisie also talks about some of the collaboration Colorado Central Telecom is pursuing. It’s clear that the company has a goal — to bring better connectivity to the people in the region — and doesn’t mind sacrificing a little as a way to improve the situation for the whole region. No wonder they were named Service Provider of the Year at the 2018 Mountain Connect Broadband Development Conference.

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

This show is 23 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed. You can listen to the interview on this page...

Read more
Posted September 25, 2018 by lgonzalez

Great Lakes Energy (GLE) in Michigan decided in late 2017 to approve a plan to incrementally deploy Fiber-to-the-Home (FTTH) to cooperative members, beginning with a pilot project in Petoskey. This week, Vice President of Communications, Marketing and Energy Optimization from GLE joins Christopher to talk about what could possibly become the largest FTTH project in the state.

GLE anticipates offering its symmetrical Truestream Internet access to members in the pilot area as early as the end of October. The planning process, however, has involved several feasibility studies and at least two years of planning in addition to several more years of contemplation. Shari explains how the region GLE serves covers many different types of geographies, subscriber income levels, and different levels of Internet access competition. Some folks have only dial-up, while others have the option of cable Internet access. One of the challenges GLE faces is educating potential subscribers about the differences between what they have now and the potential with Truestream.

She explains that the cooperative has decided to approach deployment with a flexible incremental approach, carefully examining demand as they deploy to determine where they go next across their service area. There’s a significant portion of seasonal homes in this northern section of the lower peninsula, and GLE sees that high-quality Internet access can help boost local economic development if those seasonal visitors have the ability to stay longer by working from the cabin.

For more on the project, check out our coverage....

Read more
Posted September 19, 2018 by Katie Kienbaum

South Dakota has more cows than people — and if you live in a rural community outside of the state, it’s possible that all those bovines may have better Internet access than you do.

South Dakota Dashboard recently released a report on rural Internet access in the state. It was commissioned by the South Dakota Telecommunications Association (SDTA), whose members include cooperative, municipal, and tribal providers. The report, Connecting South Dakota’s Future: A Report on the Deployment & Impact of Rural Broadband, found that rural connectivity in the state significantly exceeds national averages, proving that high-quality Internet access is possible even in the most rural areas.

Download the report for more details.

Summary of Findings

According to the report, more than three quarters of rural South Dakotans who subscribe to Internet access from SDTA members have access to speeds of 25 Megabits per second (Mbps) download and 3 Mbps upload, which are the federal minimums for broadband. Across the country, approximately 61 percent of rural residents have access to those speeds.

Furthermore, 65 percent of people who subscribe to Internet access from SDTA members receive service through Fiber-to-the-Premises (FTTP). In contrast, only around 40 percent of rural telecommunications company subscribers nationwide are connected via fast and reliable fiber optic lines.

This is all despite the fact that, with fewer than five residents per square mile, deploying fiber costs on average $3,571 per resident in the rural regions served by SDTA members versus about $26 per resident in the more densely populated Sioux Falls.

Fast Internet Speeds Nothing New for South Dakota

In June of this year, we reported on PCMag’s annual ranking of the fastest Internet service providers (ISPs) in the country, which chose South Dakota as the state with the second...

Read more
Posted September 4, 2018 by lgonzalez

A year ago, we last had Jonathan Chambers of Conexon on the podcast to discuss the pros and cons of the Connect America Fund. Since then, the FCC has held an auction to expand connectivity in rural areas as part of the Connect America Fund Phase II (Auction 903) and recently released news of the winning bidders. In episode 321 of the podcast, he’s back for another conversation on the process and the results.

In addition to a brief history on the Connect America Fund, Jonathan and Christopher spend some time discussing the arguments for and against federal funding dedicated to rural deployment. Do ISPs really want to serve residents and businesses in rural areas? Based on the results of the auction, the answer is yes.

As Jonathan notes, this year’s bidding process has been more transparent in years past, but in order for the program to be a true success, there also needs to be accountability. Christopher and Jonathan also discuss the results from this auction and the strong showing that rural electric cooperatives made in the auction. They talk about some of the technological challenges that may arise for some of the bidding firms that promised results that may be beyond their capabilities. Christopher and Jonathan also discuss some of the areas of the country where firms receiving Connect America Funds will deploy.

You can view lists of bid winners and the news release about the auction at the FCC website. There are also maps available at the FCC, to offer visual representations of areas to receive infrastructure, along with eligible areas, and related documents.

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

This show is 51 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here....

Read more
Posted August 28, 2018 by Katie Kienbaum

There may be one famous Orange County already — the one in California is home to Laguna Beach, Disneyland, and The Real Housewives — but Orange County, Indiana, will soon be making a name for itself with world-class connectivity thanks to the local electric cooperative.

After a few years of planning, Orange County REMC is moving ahead with the construction of a Fiber-to-the-Home (FTTH) network that will bring premium Internet and telephone services to its members and other nearby residents. Construction on the main fiber ring begins this fall with services starting as early as next year.

The Seventh Cooperative Principle

In Orange County, the co-op’s main service territory, about half of the county’s 9,000 residents do not have access to 25 Megabit per second (Mbps) wired Internet access.

To address this, Orange County REMC began exploring ways to provide fast, reliable connectivity to its members in 2015. Two surveys and a feasibility study confirmed that a fiber project would be financially possible for the co-op and that it would garner sufficient interest from residents, while also improving management of the electric grid. “Based on the second survey, 85 percent of Orange County REMC members stated they would take our service if it were offered,” Matt Deaton, the co-op’s General Manager and CEO, told Hoosier Energy.

Because of the strong community support and the benefits for local businesses and residents, the Orange County REMC Board of Directors approved the FTTH project, Orange County Fiber, in May 2018.

In a recent edition of the Electric Consumer, published by Indiana electric co-ops, Deaton explained:

“All of these factors are found under the seventh cooperative principle ­— concern for community...This was a major decision to expand the services we provide to prepare us to meet the current and future needs of our members.”

Orange County Fiber

The finished fiber network will serve 14,000 people, primarily in Orange County, but also in parts of Crawford, Davies, Lawrence, and...

Read more
Posted August 9, 2018 by Katie Kienbaum

Great Lakes Energy (GLE), Michigan’s largest electric cooperative and third largest energy utility, is constructing a Fiber-to-the-Home (FTTH) network to bring gigabit connectivity to its 125,000 members. Construction in the project’s pilot area is underway. Eligible members may be able to subscribe to services from the co-op’s subsidiary Truestream as soon as the end of the year.

Truestream Off to A Quick Start

GLE shared on its website that the co-op decided to build the Truestream network because members expressed a need for better connectivity in rural Michigan.

At the end of 2017, the co-op’s Board of Directors approved the planned fiber project. Board approval came after three feasibility studies, commissioned by GLE and its power supplier, Wolverine Power Cooperative, concluded that a broadband network would be a responsible investment for the co-op. Bill Scott, President and CEO of GLE, wrote in Michigan Country Lines that this conclusion was “based in part on GLE’s very positive satisfaction rating… [and] on surveys done by GLE and Wolverine that show a high demand for high-speed, reasonably priced, Internet service.”

GLE began constructing the first portion of the Truestream network earlier this year. For the initial pilot, the co-op is focusing on the Petoskey service district, which includes Emmet County and parts of Charlevoix and Cheboygan Counties. An online FAQ explains this region was selected because it’s representative of the varying terrain, density, level of connectivity, and type of membership found throughout GLE’s service territory. Some homes could be online by the end of 2018.

logo-Truestream.jpg

State Representatives Lee Chatfield and Tristan Cole joined the co-op at a July 26th ribbon cutting ceremony to congratulate GLE on connecting...

Read more

Pages

Subscribe to cooperative