Tag: "utility"

Posted March 22, 2017 by lgonzalez

In January 2016, Holland, Michigan, made commencing fiber-optic Internet access to residential neighborhoods its number one goal for fiscal year 2017. They’re a little behind schedule, but the town is now moving forward by expanding a pilot project in order to serve a larger downtown area.

It's Really Happening

The Holland Board of Public Works (BPW) held an informational meeting on March 13th to answer questions from the community and share plans for the potential expansion. About a year ago, we reported on the results of a study commissioned by the city in which, based on a take rate of about 40 percent, 1 Gigabit per second (1,000 Mbps) connectivity would cost residents about $80 per month. Small businesses would pay approximately $85 per month and larger commercial subscriber rates would run around $220 per month. The update on the plan confirms those figures, noting that the four businesses that tested the pilot services had positive experiences. As a result, BPW feels it’s time to expand to more of downtown.

"If it goes really well we hope to be able to expand the service out as far into the community as we can," said Pete Hoffswell, broadband services manager at BPW.

The expansion is planned for construction in June and July, with service testing in August. Actual delivery would be in September, BPW estimates.

BPW will use a boring technique to place conduit and fiber below ground so there will be minimal disruption. No streets will be closed. Next, BPW will get construction bids, evaluate them, and present them to the City Council for approval.

Not An Impulse Decision

tulips.jpeg Holland has had dark fiber in place for decades for the municipal electric operations. Later BPW extended it to schools and businesses that needed high capacity data services. After years of incremental expansions, the network is now more than 150 fiber miles throughout the city.

They tried to lure Google to the community in 2010, but when the tech company went elsewhere, city leaders created a 2011 strategic plan which confirmed the desire to improve connectivity. The plan came with a $58 million recommendation to... Read more

Posted March 16, 2017 by lgonzalez

Out of 58 business applications, the city of Ellensburg, Washington, recently selected 30 local businesses to participate in their fiber-optic pilot project. Nineteen participants are business owners, 11 are business tenants; 22 are located at commercial locations and six are home-based businesses along with two telecommuters, reports the Daily Record.

The participants will obtain a credit of $5,000 to connect to the network from the city’s telecommunications utility. Any connection fees over and above the credit will be the responsibility of the pilot project participants.

Businesses will be able to purchase Internet access from the city at either 300 Megabits per second (Mbps) capacity or gigabit (1,000 Mbps) capacity. Service is symmetrical, which is critical for business, so speeds are just as fast on the upload as on the download. Month service fees will be $39.95 and $59.95 per month respectively. The city expects to begin connecting businesses in August.

Posted March 14, 2017 by christopher

West Plains is one of the many population centers of rural regions that have been left behind by big cable and telephone companies. Located in the scenic Ozarks of southern Missouri, they are taking their digital future into their own hands with a modest fiber-optic investment.

City Administrator Tom Stehn strolls by our podcast this week to discuss what they are doing and why with a municipal fiber network that will connect anchor institutions and local businesses with high-quality Internet access.

We discuss the need, how they are financing it, and why the state legislature should not enact new barriers to local solutions. The community has already been placing conduit as part of a larger undergrounding effort, which will help them to expand the network over time.

Read the transcript of the show here.

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

This show is 17 minutes long and can be played on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Break the Bans for the music. The song is Escape and is licensed under a Creative Commons Attribution (3.0) license.

Posted March 14, 2017 by lgonzalez

Erwin Fiber is growing in stages and now that the utility in Erwin, Tennessee, has completed phase three of its Fiber-to-the-Home (FTTH) deployment, about half of its electricity customers have access to high-quality Internet access. That’s not all - phase four this spring will bring gigabit connectivity to more rural customers in two nearby mountain communities.

Reaching Out In Steps

All told, Erwin Fiber more than tripled its service area in 2016. A December grant from the Appalachian Regional Commission (ARC) will allow the utility to complete the spring build out, which will serve an additional 680 homes and 30 businesses. The Temple Hill and Bumpass Cove areas located in the mountains outside of downtown Erwin will have access to Erwin Fiber's symmetrical Internet access. Due to the remote character of these neighborhoods, people here had little prospect of obtaining high-quality Internet access from other providers. The 35-mile expansion will cost approximately $400,000.

November’s expansion added 2,200 homes and businesses, while a similar effort last March included 1,300 homes and businesses. Both expansions came after the community successfully experimented with a 2015 pilot project in which the city’s electric utility connected an initial 1,200 customers. The utility needed the infrastructure for the electric system other utilities; it was the right to to invest in the equipment for high-speed connectivity and phone service 

Not An Impluse

The municipality of about 6,000 people had considered the investment some 15 years prior but couldn’t afford the investment until recent years when the cost of deployment decreased. In January, Christopher interviewed Lee Brown and John Williams from Erwin Utilities who discussed the community’s project and explained how the fiber infrastructure is benefitting all the utility customers, even those who don’t subscribe to FTTH services.

Posted March 13, 2017 by lgonzalez

A new article from the Berkman Klein Center for Internet and Society takes a look at the pay in and pay off from Chattanooga’s investment into its fiber-optic network. The article, Smart Grid Paybacks: The Chattanooga Example, was written by Davd A. Talbot and Maria Paz-Canales.

From the Abstract:

After building a fiber optic network throughout its service territory, the city-owned electric utility in Chattanooga, Tennessee, became the first U.S. company to offer Internet access speeds of 1 gigabit per second to customers. The fiber also serves as the backbone for a sophisticated smart grid.

Data show that the savings produced by the smart grid, plus revenue from access fees paid by the utility’s Internet access business, more than cover the capital and operating costs of the smart grid. What’s more, we estimate this would still be true even if the utility hadn’t received a $111.6 million federal stimulus grant, and instead borrowed the extra amount. We reach this conclusion after counting direct savings in the utility’s operating costs (such as labor, truck maintenance, and fuel), avoided purchases of expensive wholesale power at peak times, and avoided power losses.

The region is also experiencing second-order benefits including economic development and savings to local businesses thanks to fewer and shorter power outages. The data on the following two pages were provided by the utility (known as the Electric Power Board of Chattanooga, or EPB), and include data on second-order benefits originally published by Bento Lobo at the University of Tennessee at Chattanooga.

The authors detail direct and indirect paybacks to the community from the smart grid investment. The grand total? $67.1 million.

Check out the full article here.

Posted March 10, 2017 by lgonzalez

Mayor Gary Fuller won’t tolerate lies about his city. In a recent Opelika City News release titled, Setting the Record Straight - Response to Yellowhammer article, Mayor Fuller corrected the numerous misleading errors in a piece written by Jordan LaPorta. The Yellowhammer article covered a Taxpayer's Protection Alliance Foundation (TPA) report, filled with errors and misrepresentation about municipal Internet networks. TPA is one of the many front groups that describe themselves as "nonpartisan think tanks" but are actually funded by industry leaders with an agenda to advance policies that limit competition.

Mayor Fuller has seen untruths written about Opelika before, but this time he felt it was time to fight the flying monkeys.

Get Your Facts Right

Mayor Fuller corrected a number of brazen untruths LaPorta tossed out in his article, including:

  • OPS ONE is not taxpayer-funded - No, LaPorta, there are no tax subsidies. Additionally, there have not been any federal or state grants used for the network.
  • Expenditures grossly overstated - LaPorta incorrectly attributes the cost of an electric grid modernization ($20 million) to the cost of the FTTH network ($23 million). The two are not one and the same. Do your homework.
  • Number of Gig subscribers - LaPorta reports that OPS has one Gigabit subscriber, but they actually have five residential customers who take the service. The city council has recently reduced the price to $94.99 for Gigabit service in some bundles.

This Is Why Opelika Is A Success

OPS ONE is generating annual gross revenues of around $5.5M after three years serving the community. There are more than 3,200 subscribers and testimonials of customers who appreciate obtaining service from a hometown Internet access provider. Even though OPS ONE is still young, states Mayor Fuller, it’s on track:

Mr. LaPorta does correctly quote me as stating Opelika’s network “has not... Read more

Posted February 27, 2017 by lgonzalez

The community of Rock Falls, Illinois, is well on its way to developing a gigabit municipal network to offer better connectivity to residents, businesses, and public facilities. Last week, the City Council adopted an ordinance that allows the city to issue general obligation bonds to fund citywide fiber-optic Internet infrastructure.

Following Demand

The city’s plan will expand first in business corridors and then use the fiberhood approach in residential areas, building only after a certain percentage of households preregister. The plan divides the city into 14 fiberhoods with each area’s build out cost estimated to be approximately $250,000. Residential fiberhoods will require 45 percent participation prior to construction. Consultants estimate citywide buildout costs will be $13 million; the City Council authorized bonding for that amount. The first bond issue will be $4.1 million likely to happen in early May if approval proceeds as planned.

The City Council authorized the first phase of the project to begin - network design and project administration - which will cost approximately $207,000. The process to issue GO bonds will start in March and city leaders hope to have the backbone completed by the end of June.

Most publicly owned Internet infrastructure is funded by revenue bonds, avoided costs, or interdepartmental loans rather than GO bonds. When funded by general obligation bonds, a project is backed by the credit and taxing power of the issuing jurisdiction and the resource is always publicly owned. Clearly, the community of Rock Falls recognizes how critical the investment is to the community's future.

From The Mayor

In his recent State of the City address, Mayor Bill Wescott focused on three factors that drove the initiative: growth, the city’s strong finances, and local control.

While it’s common knowledge that economic development needs better connectivity than what is now available in Rock Falls, Wescott noted that residents stuck with 10 - 20 Megabits per second (Mbps) download Internet access need and deserve higher capacity connectivity to participate in the modern economy. He defined “growth” broadly, encompassing jobs, education, innovation, public safety, and government.

... Read more

Posted February 7, 2017 by lgonzalez

Muscatine, Iowa, is ready to begin its upgrade, bringing municipal cable network customers up to Fiber-to-the-Home (FTTH) technology. Last week, the Board of Water, Electric & Communications Trustees from Muscatine Power & Water (MP&W) awarded the contract to a firm that will transform the network and bring speeds up to 1 Gigabit per second (1,000 Megabits per second) download tier. No word yet on upload speeds.

As we reported last spring, MP&W is taking a slow march toward finishing this project because there are a number of interlocking pieces that need to fit together correctly. The firm awarded the contract was able to introduce several alternatives that reduced the initial estimate of $8.7 million to $7.5 million. The upgrade will be funded with an interdepartmental loan from the electric utility.

At the same meeting, the Board also reviewed the 2016 budget which came out well for the MachLink communications utility.

Net income of $1,372,919 was budgeted for the communications utility, but actual net income was $2,148,272, with an ending cash balance of $8,257,000. There also is debt of $9,044,000 owed to the electric utility. Gowey said revenues were 3.2 percent over budget, while expenses were 25 percent under.

The upgrade will begin in May and customers are expected to be on the new system as early as August. The project should be completed by the end of 2018.

Posted January 24, 2017 by christopher

When we first learned of the Lookout Lane fiber-optic project in the Kitsap Public Utility District in Washington, we knew we wanted to learn more. Kitsap PUD General Manager Bob Hunter and Telecommunications Superintendent Paul Avis join us for episode 237 of the Community Broadband Bits podcast.

KPUD has historically focused on water and wastewater services but they increasingly hear from residents and businesses that Internet access is a major priority. We talk about their approach and how neighborhoods are able to petition KPUD to build fiber to them. The first area to use this option had very poor Internet access from the incumbent telephone provider.

The discussion covers a lot of interesting ground, from how it is financed to where the demand is heaviest, and why public utility districts should have the option of using a retail model in some areas rather than continuing to be limited solely to wholesale-only by state law. 

For related information, consider our coverage of the Northwest Open Access Network.

Read the transcript of the show here.

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

This show is 33 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Admiral Bob for the music. The song is Turbo Tornado (c) copyright 2016 Licensed under a Creative Commons Attribution (3.0) license. Ft: Blue Wave Theory.

Posted January 10, 2017 by christopher

Nestled in the Cherokee National Forest on the border of Tennessee and North Carolina, not far from Virginia, is Erwin. Erwin Utilities runs the water, wastewater, and electricity for the town of 6,000 and long wanted to invest in a fiber network. After years of following industry trends, they developed a plan to build it and tell us how in Community Broadband Bits episode 235.

General Manager Lee Brown and Fiber-Optic Engineer John Williams join us to discuss what started as a pilot project but is now an incremental plan to connect the entire community with a Fiber-to-the-Home network offering high speed Internet access and telephone service.

We discuss the reaction from the community, financing, and how they are using it for smart utility management -- not only for electricity but also for water services.

Read the transcript of the show here

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

This show is 29 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Admiral Bob for the music. The song is Turbo Tornado (c) copyright 2016 Licensed under a Creative Commons Attribution (3.0) license. Ft: Blue Wave Theory.

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