NH Electric Cooperative President Steve Camerino is on the Down to Business podcast from NH Business Review and talks about the vote to amend the charter and efforts to add broadband Internet access to their services.
Tag: "rural electric coop"
Over the summer, Windstream and Colquitt Electric Membership Corporation announced that the two entities will work together to expand fiber optic Internet access throughout the electric co-op’s service territory in rural south Georgia. Windstream, the fifth largest telephone company in the nation, will maintain ownership of the newly deployed network and use it to offer its Kinetic broadband services to residents and businesses, while Colquitt, which has more than 45,000 members, will take advantage of the fiber connectivity to improve the management of its electric grid.
The announcement came one year after Georgia lawmakers clarified that electric cooperatives in the state are able to invest in broadband infrastructure to serve their members and established guidelines for co-ops that want to get into the business.
Working Out the Details
According to Telecompetitor, the project will expand Fiber-to-the-Home connectivity and gigabit speeds to Colquitt members who currently have access to Windstream’s much slower DSL services.
Windstream plans to use Colquitt’s labor force and its Rights-of-Way and electric poles to help deploy the network, but the telephone company will own the actual fiber optic lines. Colquitt will receive an indefeasible right of use (IRU) for some of the fiber capacity for internal uses and smart grid applications.
The two companies have not released details on the construction plan or locations yet.
Partnership Pros and Cons
Typically, electric co-ops that partner with a broadband provider to offer connectivity to their members choose to work with a nearby telephone co-op or a locally-owned company, though many electric co-ops do decide to provide the services themselves. For example, Minnesota-based CTC has...Read more
When Craig Eccher, CEO Tri-County Rural Electric Cooperative, joined Christopher on the podcast last fall, he had an exciting project to talk about: the electric cooperative, after strong calls from its membership asking their utility to deliver broadband, stepped up and committed to an $80 million, 3,250-mile fiber build across the rugged terrain of rural Pennsylvania, the first leg propelled by $52.6 million in federal and state grants. Tri-Co Connections, the subsidiary building the network and serving as provider, has begun connecting residents in an aggressive plan to serve 10,000 users in the next three years. The move makes Tri-County the first electric co-op in Pennsylvania to enter the fiber space, and it's doing so in dramatic fashion.
More Humble Beginnings
The project started as a smart meter initiative as the electric co-op realized that reliability and other cost savings gains could be made if it ran fiber to its substations and other infrastructure, but at an annual meeting five years ago members overwhelmingly said they wanted more. In fact, when surveyed, 80% said they wanted their electric utility to deliver broadband. But the co-op faced some significant obstacles, primarily in the form of low population density — its service territory in north-central Pennsylvania has an average of just six homes per mile. Financially, the plan wouldn’t have worked without a successful bid for a number of grants. They include a $17 million PennDOT grant, a $1.5 million state grant from the Pennsylvania Redevelopment Assistance Capital Project program, a $33 million Connect America Fund II (CAFII) grant, and a $2.5 million Appalachian Regional Commission grant. All told, they add up to two-thirds of the anticipated costs of the project. The rest will be paid for by ongoing subscription fees as residents, farms, and businesses are brought online. Sheri Collins, Executive Director of the Pennsylvania’s Office of Broadband...Read more
A couple years ago, fed up member-owners of Rappahannock Electric Cooperative (REC) in Virginia banded together to form Repower REC, a grassroots group that’s seeking to reform the state’s largest electric cooperative and advocating for clean energy and improved Internet access.
Rural electric co-ops are supposed to embrace the cooperative principles of democratic member control and concern for community, but some of REC’s members charge that the co-op’s practices fall short of those goals.
Repower REC hopes to bring greater transparency and member oversight to the co-op, as well as clean energy programs and a cooperative-owned broadband network.
Cleaning up Governance and the Grid
Rappahannock Electric Cooperative serves 170,000 meters in portions of 22 counties stretching from northern Virginia toward the Chesapeake Bay. It is the largest electric cooperative in Virginia and one of the largest in the country.
Member-owners of the co-op launched Repower REC in 2018 in partnership with Solar United Neighbors of Virginia, in response to concerns over undemocratic practices and the lack of transparency at REC. The group has called for a number of reforms, including public board meetings and transparent board elections. People involved in the group have also spoken out against lobbying activities that they believe were not in the best interest of the co-op’s members. Repower REC members have run as candidates for the co-op board of directors, though none have won a seat as of yet.
Some of the initial interest in governance at REC stemmed from member dissatisfaction with the co-op’s lukewarm response to renewable energy as well as the co-op’s attempt to double its fixed access charges....Read more
Less than two years after Mississippi lifted its ban on electric cooperative broadband networks, at least 15 of the 25 co-ops in the state have announced plans to provide Internet access to members, with more on the way.
“I would venture to say that there is a higher percentage of co-ops launching [broadband] projects in Mississippi at one time than anywhere else in the country,” said Randy Klindt, partner at Conexon, a consulting firm that is working with several co-ops in the state.
The months in between were marked by two major changes. First, in January of 2019, the Mississippi legislature passed a law that enabled co-ops to create broadband subsidiaries to connect their members. Then a year later, the pandemic hit, highlighting the urgent need for better connectivity and turning the steady stream of cooperative interest in broadband into a veritable flood.
In response to the global health crisis, the state leveraged federal CARES Act money to establish a grant program to fund electric co-op broadband deployment. Through the program, Mississippi awarded $65 million to 15 electric cooperatives to build high-quality Fiber-to-the-Home networks in some of the state’s most disconnected and rural communities, dramatically ramping up the pace of the co-ops’ broadband projects.
“When we started two years ago, I would’ve guessed that you would have had maybe five systems out of 25 in the state that would be to the level where we are now,” Coast Electric Power Association (EPA) President and CEO Ron Barnes said in an interview. “Most people would tell you they were surprised by the speed,” he added.
Opening the Floodgates
Internet access has been lagging in rural Mississippi for years. The state came in at 42 in BroadbandNow’s most recent connectivity rankings. According to the Federal Communications Commission (FCC), at least 35% of rural Mississippians do not have access to the Internet at broadband speeds.
In 2018, the state co-op association, Electric Cooperatives of Mississippi, brought its 25 member organizations together to gauge their interest in changing the state law so the co-ops could address their rural members' inadequate connectivity. At the time, electric co-ops in the state were prohibited from operating for any purpose other than providing...Read more
Get up to speed with how electric cooperatives are rapidly expanding rural broadband access by watching a recent webinar on the topic from the Community Broadband Action Network (CBAN). The webinar is part of CBAN’s Lunch and Learn series, and it features panelists Christopher Mitchell, Director of the Community Broadband Networks initiative, and Steve Collier, Vice President of Business Development at consulting firm Conexon.
View the webinar recording on YouTube or below.
Watch the Webinar
CBAN is an Iowa-based network of local governments, broadband providers, and community groups that advocates for better community broadband solutions. Its Lunch and Learn webinar series has covered a variety of topics, including digital inclusion and New Market Tax Credits.
On the recent webinar, the hosts and panelists talked about how rural co-ops provide broadband to a large and growing portion of rural America. They discussed the various reasons why electric cooperatives invest in fiber infrastructure, including smart grid applications, local economic development, and the needs of rural communities. Other topics of conversation included financing for co-op fiber networks, electric and telephone cooperative partnerships, and co-op member organizing efforts. For more, watch below.
Co-op Fiber Continues to Grow
Learn more about how rural electric and telephone cooperatives are bringing high-quality to rural areas with our report Cooperatives Fiberize Rural America: A Trusted Model for the Internet Era. See which co-ops are investing in broadband by viewing the rural cooperatives page on MuniNetworks.org, which features a periodically updated list of cooperative fiber and gigabit networks.
Stay up to date on how electric cooperatives are connecting their communities with our articles on rural electric co-ops.
As the Covid-19 pandemic continues and the federal response sputters, it’s clear that the responsibility of getting our local economies back on track now lies largely with cities and states.
To help state and local governments responding to the coronavirus, the American Sustainable Business Council (ASBC) released a set of policy recommendations, “From Crisis to Opportunity: Recommendations for State & Local Governments,” in late May. ASBC’s policy suggestions touch on various issues, including Internet access. The guide directs government officials to promote cooperative and municipal networks and remove barriers to community broadband in order to expand Internet access.
ASBC describes the thinking behind the recommendations:
As socially responsible businesses and thought leaders, we have long advocated for a triple bottom line of people, planet, and profit. None of these values are mutually exclusive. Together, through local investment, equity and accountability we can rebuild our post-COVID economy stronger, more sustainable, and enduringly just.
How Cities and States Can Rebuild Sustainable Economies
ASBC represents more than 250,000 businesses and advocates for a vibrant, sustainable economy. Read more about the group and its principles on its website.
The recommendations are focused on actions that state and local governments can take because they are on the frontlines of the pandemic’s effect on local economies. “Even with the passage of three federal stimulus bills (with more promised), these leaders will remain in the driver’s seat, and they now need bold ideas,” ASBC explains.
However, ASBC also sees the ongoing crisis as a chance to fix existing issues, saying:
We believe that this moment provides state and local governments an opportunity not only to continue leading the way through this crisis but also in solving the structural problems the federal government has too long neglected . . . Most of our suggested policies effectively provide not only economic stimulus but lasting social, environmental, and public benefit.
Accordingly, while the pandemic has exposed our country’s many digital divides, it did not create them...Read more
In 1936, Cullman Electric was the first co-op in the state of Alabama to “energize” its electric lines. Today, it serves about 44,000 member-owners in the north central part of the state.
The first phase of the co-op’s project will extend the Sprout Fiber Internet network to 12,000 of those members, making gigabit Internet access available to both residents and businesses. Community members are looking forward to faster broadband speeds, while state and local officials hope the new network will boost the region’s economy.
“This is going to be a game changer,” State Representative Randall Shedd said at the announcement. “When rural Alabama has high speed Internet, then rural Alabama will be able to do work in rural Alabama.”
Connecting the Grid and Their Members
The electric co-op’s decision to invest in a Fiber-to-the-Home network was influenced in part by a petition organized by Baileyville residents dissatisfied with the poor broadband options available in the area.
Additionally, Cullman Electric was interested in developing a fiber network to connect its substations and better manage its electric grid. “It will cut down outage response times significantly and lay the foundation for us to take advantage of cutting-edge technology in the future,” shared CEO Tim Culpepper.
In a Facebook Live video of the announcement, Cullman Electric also noted the importance of a recent state law clarifying that electric cooperatives can use their existing easements to deploy broadband.
The co-op will build the Sprout Fiber Internet network in phases. It...Read more
The board of the New Hampshire Electric Cooperative voted unanimously at yesterday's meeting to create a separate entity to pursue broadband funding and development in the state for its 84,000 member-owners, committing $1 million in funding to the effort.
In the press release, President and CEO Steve Camareno remarked: “meeting our members’ needs is NHEC’s only focus, and the ability to access fast, reliable internet service is a critical need, now more than ever. In pursuing this initiative, we remain mindful that we must balance that need with our members’ reliance on NHEC as their electric service provider.”
The response by the board shows the success of local organizing efforts around the issue; voting was up 33% at the annual board meeting last week, where adding broadband to cooperative's charter was a primary concern. The move positions NEHC well to pursue money from the state's available CARES funds as well as bid in the Rural Digital Opportunity Fund auction this fall.
Efforts to add broadband to the New Hampshire Electric Cooperative’s (NEHC) charter fell just 2% short of the 2/3 supermajority it needed to pass last week, but supporters remain hopeful. Over seven thousand voters turned out for the annual Board of Directors election, which included the broadband line item on the ballot. The measure fell short by 183 votes. A successful vote would have allowed the co-op to build a broadband network and offer Internet access to its members.
Advocates are still optimistic, and efforts by groups like NH Broadband are ongoing. It was the first attempt to add broadband Internet to the NEHC’s charter. Further, two new members of the 10-person board are on the record in support, with one of them taking the place of an outgoing board member who opposed it. Broadband remained a central topic at this past Monday’s meeting where the board discussed different options, and another meeting is scheduled for today to discuss potential sources from...Read more
A bill close to being passed by the Louisiana State Legislature would allow electric cooperatives to expand Internet access but only in parts of the state without broadband currently. This limitation in the bill, SB 406, will keep Internet choice out of reach for many rural Lousianans and could even hamstring co-ops’ efforts to expand broadband to unserved areas.
“The language would restrict us from competing with others in the broadband market but would not stop them from cherry picking (customers) from cooperatives who choose to get in the broadband market,” Jeff Arnold, CEO of the Association of Louisiana Electric Cooperatives, explained to the Advocate.
As introduced, SB 406 explicitly authorized the state’s electric cooperatives to deploy broadband networks to connect their members using their existing electrical systems and easements. But, Senate amendments added to the bill later narrowed electric co-ops’ authority only to unserved areas, which include less than 13 percent of the state’s residents, according to the Federal Communications Commission (FCC). The Louisiana Senate voted unanimously in favor of the bill last week, and it’s currently in the House of Representatives awaiting a final reading and vote.
Louisiana Lawmakers Restrict Co-op Connectivity
While Louisiana state law does not prohibit electric cooperatives from offering Internet access, it is not expressly authorized, and one co-op that attempted to enter the business was held up by the state’s Public Service Commission, reported the Advocate. To fix that, SB 406 would specifically allow electric co-ops and their partners to provide broadband access and would permit them to use existing electrical easements and infrastructure to expand service.
However, new language added to the bill would stifle competition and challenge co-ops’ ability to expand broadband access. In particular, an amendment from the Senate Commerce Committee limits the authority only to areas without any broadband access, as ...Read more