Tag: "cooperative"

Broadband in the Bootheel: Missouri Electric Co-op Delivers

Posted February 18, 2019 by lgonzalez

Missouri’s Bootheel is the ultimate southeast corner of the state, extending south and surrounded on three sides by lands in Arkansas, Tennessee, and a smattering of Kentucky. The area’s known for having fertile soil and vibrant agriculture but now that Pemiscot-Dunklin Electric Cooperative is deploying Fiber-to-the-Home (FTTH), it's also becoming known for high-quality Internet access.

The Region and Lack of Connectivity

Jack Davis has worked in several fields. His tech career started when most people in the area reached the Internet via dial-up connections; at the time he worked as a network administrator for a local dial-up ISP in the 1990s. His second career was in agriculture and now he’s back in the tech field. Davis’s multiple work experiences have given him insight into the increasing broadband needs of rural residents who either farm or work in some other aspect of the agriculture industry.

When Davis went back into tech, he joined Pemiscot-Dunklin because the electric cooperative, which had never had IT staff before, needed to fill a long-existing personnel gap. With approximately 8,800 connected meters, the cooperative is a modest-sized organization. Approximately 20 percent of their load goes toward irrigation, revealing the important role agriculture plays in the region. Internet access in rural areas is limited to fixed wireless. Cooperative members who used to subscribe to the wireless service typically found top speeds were around 3 - 4 Megabits per second (Mbps) download and much slower upload speeds.

Time for an Upgrade

Discussion about the project began in 2014 soon after Davis started at Pemiscot-Dunklin. The way Davis tells it, his boss said “Now that I’ve got you hired, what can we do about Internet service?” The cooperative researched for about two years, examining a variety of options because they anticipated FTTH would be too expensive to deploy. In 2016, they worked with Conexon, the consulting firm that works with electric cooperatives interested in broadband deployment. Conexon's Jonathan Chambers was on Community Broadband Bits, episode 229, to discuss electric cooperatives and rural broadband access...

Georgia's Pineland Telephone Cooperative Reaching Across Counties With Commercial Fiber Connectivity

Posted February 14, 2019 by lgonzalez

Pineland Telephone Cooperative is known for providing Fiber-to-the-Home (FTTH) services in southeast Georgia’s rural areas between Savannah, Augusta, and Macon. Now the co-op’s subsidiary Pineland Communications is expanding south and west into Americus, where they plan to provide fiber connectivity to local businesses.

Partnering for Pineland

In January, Pineland began deploying fiber to the delight of potential commercial subscribers. The project should start offering gigabit Internet access, voice, security, and computer services to local businesses this fall. Pineland is considering expanding to residential connections in Americus and Sumter County in the future. Pineland invested $2 million toward the project and local donors also contributed.

The project was spearheaded by the One Sumter Economic Development Foundation and began with a feasibility study three years ago. In August 2018, when the Foundation and Pineland announced the project, Rene Smith from the Foundation told WGXA:

"For our businesses, it means an opportunity to access high speed data -- which we see as vital for business success as well as education for our young people in this community. We feel like it's vital for our future."

In addition to the feasibility study from the Foundation, the local hospital authority also contributed by selling property for the central office to Pineland at market value. Sumter Electric Membership Corporation, Georgia Electric Membership Corporation, Georgia System Operations Corporation, and Georgia Transmission Corporation all assisted with the project. As a result of the efforts of all the entities involved, Americus can market itself to potential new employers as Gig-Certified.

Coming to Americus

The small city is home to businesses that need high-speed options and reliability that only fiber can provide. Americus is somewhat geographically removed, however, from larger cities where big corporate providers are more inclined to offer it. As Executive Director...

RiverStreet Networks Reaching Across Rural North Carolina - Community Broadband Bits Podcast 342

Posted February 5, 2019 by lgonzalez

While in North Carolina at the recent Let’s Connect! speaking tour, Christopher sat down with Greg Coltrain, Vice President of Business Development of RiverStreet Networks. Greg participated in panel discussions in all three communities where the community meetings occurred: Albemarle, Fuquay-Varina, and Jacksonville.

RiverStreet Networks is the product of evolution of what began as Wilkes Communications. They’ve acquired several local providers in different areas across the state and are set on bringing high-quality Internet access to rural North Carolinians. In this interview, Greg shares some of the cooperative’s history, including information on how they’ve funded their deployments.

Greg also discusses his experience on the practical side of cooperative life, such as comparative operating costs between fiber and copper, working with electric cooperatives, and the ins and outs of leasing assets from public entities. Christopher and Greg also talk about future plans that RiverStreet has to partner with North Carolina’s electric cooperatives across the state to bring connectivity to more people in rural areas.

Learn more about Wilkes Communications and RiverStreet Networks from our conversation with Eric Cramer from 2016 for episode 188 of the Community Broadband Bits Podcast.

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

This show is 22 minutes long and can be played on this...

Midwest Energy and Communications Finishing Up the Job in Milton, Michigan

Posted January 15, 2019 by lgonzalez

Midwest Energy and Communications (MEC) offers Fiber-to-the-Home (FTTH) in large pockets of southeast and southwest Michigan, north central Ohio, and a sliver of north central Indiana. Recently, the small rural town of Milton, Michigan, awarded the cooperative $75,000 to deploy fiber to approximately 80 homes in the community.

That Last Five Miles

According to the South Bend Tribune, the funds are being used to install the last 5-mile stretch of fiber that will complete a larger vision to connect the township’s entire 3,800 residents to high-quality Internet access. Mostly agricultural Milton Township is located in Cass County along the Indiana border. Construction is underway and may be completed as early as this spring.

Rates from MEC include:

$49.95 per month for 25 Megabits per second (Mbps) upload and download

$59.95 per month for 50/50 Mbps

$79.95 per month for 100/100 Mbps

$119.95 per month for 1 gigabit upload and dowload (1,000 Mbps)

When the Southwest Michigan Planning Commission and Connect Michigan assessed connectivity in the region almost seven years ago, Cass County was considered “below average” for Internet access in Michigan. Since that time, the Planning Commission has provided resources and information for local communities interested in taking steps toward better local connectivity; working with electric cooperatives and providing grants and loans have helped over time.

Midwest Energy

In addition to providing Fiber-to-the-Home (FTTH) Internet access for members in their service area, MEC is also working with Lyndon Township by providing Internet access over the town’s publicly owned fiber network. MEC also offers propane, a popular form of household heat in rural Michigan.

The cooperative begin in 1937 as one of the many rural electric cooperatives formed by locals to bring lights to the families in areas unserved by private sector electric providers. The cooperative added propane service in 1998.

Check out this short video on the history of MEC:

...

North Carolina Co-ops Merge to Connect Rural Communities Across the State(s)

Posted January 10, 2019 by lgonzalez

Urban areas in North Carolina don’t have the same challenges obtaining high-quality Internet access as rural communities, but telephone and electric co-ops are taking more steps to change that imbalance. Cooperatives are filling gaps and finding opportunities where national ISPs don't see a high enough profit margin. Wilkes Communications/RiverStreet Networks and TriCounty Telephone recently merged to find those gaps and serve North Carolinians left behind.

Acquiring and Expanding

In September 2018, TriCounty Telephone Membership Corporation merged with Wilkes Telephone Membership, the parent entity of Wilkes Communications and RiverStreet Networks. The cooperative also acquired Peoples Mutual Telephone Company and Peoples Mutual Long Distance Company, which took Wilkes into southern Virginia.

When they added several other smaller companies, the cooperative continued to implement their strategy to bring broadband to rural communities without limiting themselves to one region. In addition to counties in central North Carolina, the cooperative now serves people along the north border, in a few south central counties, and in three counties far in eastern North Carolina that brush the eastern shore.

President and CEO Eric Cramer told the Journal Patriot in September that, where national ISPs turn away, Wilkes sees opportunity:

“Larger companies have abandoned these areas, so we think there is an advantage to grow there. A number of rural counties are looking to partner with companies like ours to help bring broadband like we’ve done here in Wilkes. .... These buildouts are much harder and take longer to produce results than acquisitions.”

Merging with TriCounty made sense because TriCounty had reached its potential due to size and scale limitations. TriCounty’s Vice President for business development Greg Coltrain recently told WNCT Channel 9 that the cooperative was considering the quickest way to bringing high-quality Internet access to rural North Carolina and achieve long-term success when they chose to merge with Wilkes:

"Our goal and our initiative is to find those areas, come up with an...

Indiana Electric Co-op Acquires Local ISP to Enhance Broadband Service to Members

Posted January 7, 2019 by lgonzalez

When Indiana’s Tipmont REMC asked members about broadband in 2017, more than half said that they couldn’t access fast, affordable, reliable connectivity. The rural electric cooperative soon began establishing plans to develop a fiber broadband network. Now, in a move to bring high-quality connectivity to members sooner, Tipmont has acquired local ISP Wintek Corporation, and plans to serve all 23,000 members within the next eight years.

A Comfortable Relationship

Wintek, headquartered in Lafayette, began in 1973 and provides connectivity to Tipmont’s headquarters in Linden, Indiana. The ISP has used the electric co-op's poles for more than 10 years to mount sections of the Wintek fiber for residential and commercial connections. According to Tipmont’s announcement on the acquisition, Wintek has also served as a consultant for IT systems to the cooperative. Tipmont leaders have already established a level of trust with Wintek and vice versa.

According to Oliver Beers, co-owner and COO of Wintek, the acquisition will allow more Wintek customers to access fiber connectivity. “We’ve done as much as we can financially afford to do,” Beers told the Journal Review.

Began as A Solo Project

When the Tipmont board unanimously decided to develop a Fiber-to-the-Home (FTTH) network, they had not intended to work with another entity. They commenced construction this past summer in Montgomery and Tippecanoe Counties, where they’ve already deployed 30 miles of fiber. In November, they connected a dozen households in Linden as test customers to work with the system for two months.

“It’s really important when you have a service that people depend on, like electric service or broadband service, that we make very sure that what we’re providing is highly reliable given the gravity of what’s being provided,” says [Tipmont REMC President and CEO Ron] Holcomb. “So since we are new...

Minnesota Counties Help Fund Cooperative Broadband Projects for Economic Development

Posted December 20, 2018 by Katie Kienbaum

Even if a local government isn’t ready or able to build its own broadband network, there are still ways they can help bring the benefits of better connectivity to their community. Over the past few years, several counties in Minnesota have partnered with local electric and telephone cooperatives to expand high-quality Internet access as an economic development strategy. In many instances, county governments have offered financial support to the local co-ops, in the form of grants and loans, to connect their rural residents with high-quality fiber networks, often supplementing federal subsidies or statewide Minnesota Border-to-Border Broadband Development grants.

Projects Across the State

Minnesota counties have taken a variety of approaches when it comes to helping cooperatives finance broadband deployment projects.

Some, such as Cook County in the far northeastern corner of the state, provided grants to local co-ops. Cook County began its partnership with Arrowhead Electric Cooperative back in 2008 when both entities contributed to a broadband feasibility study. At the time, the county suffered from the worst connectivity in the state, and many people still relied on dial-up. In 2010, Arrowhead was awarded a $16.1 million combined grant and loan from the stimulus-funded Broadband Initiatives Program (BIP) to build a fiber network in Cook County. The county government offered Arrowhead a $4 million grant for the project, funded by the voters’ reauthorization of a 1 percent sales tax that was due to expire. In return, Arrowhead agreed to provide services such as Internet access to county buildings at no cost.

Yet more local governments have opted to loan money to co-ops to expand broadband access in their county. Both Big Stone County and Swift County chose this route after Federated Telephone Cooperative received a $3.92 million...

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...

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...

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...

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