Tag: "utility"

Posted July 9, 2015 by lgonzalez

Fifteen years ago, Holyoke Gas & Electric  (HG&E) began its incremental fiber deployment to meet the need for better connectivity in the community. Since then, they have invested savings created by initial and subsequent investments. Over the years, HG&E expanded their services, becoming the ISP for several local business customers in two nearby communities. HG&E also established a regional interconnection agreement and it is now an ISP for municipal agencies in a third community 30 miles away.

The Berkman Center's most recent report, report, "Holyoke: A Massachusetts Municipal Light Plant Seizes Internet Access Business Opportunities,” documents their story.

From the Abstract:

The Holyoke Gas & Electric Department’s telecom division competes with Comcast and Charter and serves 300 business customers and numerous public buildings. It has shown steady growth in revenues, and $500,000 in net earnings over the past decade. It also saves the city at least $300,000 a year on various Internet access and networking services. HG&E's telecom division is also now providing a variety of services to three other municipalities. Finally, the utility is considering a residential high-speed Internet access offering, something the muni in neighboring Westfield is piloting later this year. HG&E’s success in a competitive environment was achieved without any debt issuance, tax, or subsidy from electricity or gas ratepayers.

Key Findings:

  • HG&E Telecom saves city offices and HG&E itself more than $300,000 a year by providing Internet access and networking and telephone services to public agencies.
  • The utility provides approximately 300 businesses and large institutions with telecom services and creates competition, which tends to improve service offerings from all market participants, aiding the local economy.
  • HG&E Telecom forged inter-municipal agreements that extend services and accompanying benefits to the neighboring city of Chicopee and to the city of Greenfield, 30 miles north.
  • While HG&E Telecom has focused on selling services to businesses, the utility is now considering a residential fiber-to-the-home (FTTH) offering, given the declining market pressure to provide television content.
  • ...
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Posted July 7, 2015 by htrostle

Storm Lake’s city council recently approved a resolution to collaborate with other entities in Buena Vista County to install a fiber optic network. For this fiber project, the city, school district, and county have forged a partnership to share the costs and reap the benefits of the estimated $1,374,335 project.

As the county seat, the city has 10,600 residents, a waterpark, a college, and a small school district of 2,442. The project’s origins started with an effort to improve water and wastewater communication. In exploring their options, the city decided fiber would replace the wireless radios. The fiber will also provide more reliable and secure communications for the government and school facilities.

City leaders estimated the cost only for a contract to lay a system of ducts for the fiber. They will also consider trenchless methods of distributing the fiber throughout the city. The cost estimate does not include the hardware needed to connect the fiber at each school and government facility in Storm Lake. The city intends to purchase the fiber in a separate contract in order to minimize costs and ensure quality.

The City Clerk Yarosevich has said that they expect the base project to be completed this year with the currently available funds of $700,000-$800,000. The base project has five possible expansions to be completed with additional funding. Construction on the base project is  expected to be mostly finished by December 18th 2015. 

The collaboration between the City of Storm Lake, Buena Vista County, and the Storm Lake Community School District is anticipated to bring savings to the community. The $1.4 million cost will be split among the three agencies, and the network itself is expected to reduce costs for internet, phone, and hardware. By creating the network themselves, they intend to ensure collaboration in the future and save on costs. From the June 1st City Council meeting agenda item:

"Over time the investment in this infrastructure will provide reduced costs for internet, phone, and data hardware (...

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Posted June 25, 2015 by phineas

A feasibility study conducted by the Lubbock Power & Light (LP&L) Electric Utility Board this April discussed several potential benefits of installing a fiber optic cable in the City of Lubbock, Texas. Charles Dunn, a member of the Utility Board, proposed installing fiber optic cables alongside the city’s utility lines, which are currently being buried underground as part of a three-phase, $1.9 million downtown redevelopment initiative

A fiber optic cable, Dunn contended, could increase Internet speeds hundredfold (from a max speed of around 10 Mbps to one above 1 Gbps), attract high tech companies to the city, and induce Texas Tech University students to stay in Lubbock after they graduate. In Lubbock, where Internet speeds run about 35 percent slower than they do in the rest of the state, a fiber network could be a boon for businesses and residents alike.

According to the April feasibility study, the fiber project might not even eclipse $100,000. LP&L would shoulder the costs of the project by drawing from its own budget. Both Dunn and LP&L director of electric utilities, David McCalla, believe that fiber would greatly benefit the community.

CEO of McDougal Companies, Marc McDougal, also argued in favor of the installation of the cable. From Fox 34 News:

Quite honestly, it would give us something that very few cities have... It would give us a huge advantage in another market to recruit businesses for downtown Lubbock. 

If plans to build the network were to move forward in Lubbock, LP&L would not be able to immediately offer Internet access to customers because of state law discouraging municipalities from offering telecommunications service. Though a Texas Utilities Code prohibits municipalities from offering telecommunications services to the public, that restriction does not appear to apply to...

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Posted June 9, 2015 by lgonzalez

For the first time in four years, EPB is asking its board of directors to approve a rate increase for electric power charges, reports the Chattanoogan. According to EPB, revenue from the Fiber Optic division has kept electric power prices in check for the past four years.

Price increases are always a frustration for residents and businesses, but this is actually another example of how the entire community, even those who may not subscribe to EPB's fiber network, have beneifted via reduced energy rates. We wrote about this last in 2012.

According to the article, several years of deadly storms have caused damage that have increased the average cost of cleanup from $2 million per year to $6 million per year. Additionally:

Officials said this rate increase "is driven by a continuing trend over several years of higher-than-normal costs associated with the greater frequency of devastating storms and by large peak energy demand charges that EPB pays to TVA for power generation.  These demand charges are not covered by regular power sales during months with extreme fluctuations in temperature, particularly when there are a few days of extreme temperatures and the rest of the month is much milder."

The article also notes that the fiber optic division has made $13.4 million over the past fiscal year. Debt from the investment made to offer telephone services is expected to be paid off this June.

[EPB CEO Harold] DePriest  said it was "the best investment we ever made."

Posted May 15, 2015 by lgonzalez

Decorah, named an "All-Star Community" in part due to benefits from their internal fiber network, is now exploring new ways to utilize MetroNet. According to a recent Decorah Newspapers article, the six community anchor institutions (CAIs) that collaborated to deploy the network recently met with the city council to discuss the future.

The 11-mile network began serving CAIs and an additional 18 facilities in 2013. After a 2008 flood that knocked out communications, the city, county, and school district began planning for the network. Eventually, the project grew to include Luther College, the Upper Explorerland Regional Planning Commission, and the Winneshiek Medical Center. BTOP funds paid for much of the approximate $1 million deployment but contributions from participants supplied an additional $450,000.

According to the article, MetroNet supplies each institution with its own fiber, leaving plenty to spare. Decorah City Manager and Chair of the MetroNet Board Craig Bird says that the network has a "vast amount" of dark fiber available that is not being used. Members of the community have approached the Board about using the fiber for better connectivity beyond current uses:

Bird said the MetroNet Board has to decide how to respond to a grassroots petition committee of citizens “demanding access to the MetroNet and faster broadband speeds and fiber capacities” for Internet access to private homes and businesses.

“The MetroNet Board is now starting to look at the future and what the MetroNet holds for the six anchor members, but also for the community,” he told the Councils.

At the city council meeting, Bird discussed the possibility of creating a municipal Internet utility, creating a cooperative, forming a nonprofit, or leaving MetroNet as a service for the existing members and facilities. They also considered the option of leasing dark fiber to private providers.

Bird also told the council that the MetroNet Board has agreed to participate in a regional feasibility study to include northeast Iowa. The Iowa Association of Municipal Utilities has commission the study that will include a number of towns:

“The feasibility study is going to look at a lot of...

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Posted March 17, 2015 by lgonzalez

Remember Waverly, Iowa? We introduced you to the town of 10,000 back in 2013 when they revived the community choice to develop a telecommunications utility. Recently in February, the Waverly Light and Power Board of Trustees approved a long awaited gigabit project reported American Public Power.

According to a WLP press release, the $12 million project will be financed with revenue bonds which have already been secured. As we note in our Financing Municipal Networks fact sheet [PDF], this is one of the most common ways of funding deployment. Revenue from subscribers pays the private investors that buy the bonds used to finance the deployment.

Construction is scheduled to begin in May and WLP expects to begin serving customers in 2016. WLP serves approximately 4,800 customers in town and in the rural areas around Waverly. Early plans include incentives for early sign-ups such as a free first month of service and a reduced installation fee. The fiber network will also be used for smart metering.

From the WLP press release:

“It may have taken 15 years of planning and hard work to finally come together, but knowing what’s to come, it’s worth the wait,” explains Ael Suhr, Waverly Light and Power Chairman of the Board. “This approval opens the door for new alternatives for high-speed internet, cable and phone services in Waverly for both residents and businesses.”

Posted March 3, 2015 by christopher

As high quality Internet has become more essential for business and quality of life, those who realized that the existing telecom providers had no intention to invest in better connections in their rural Missouri communities began to ask their electric cooperative - Co-Mo - to step up and do it.

This week, we talk with Randy Klindt, General Manager of Co-Mo Connect, which is building a gigabit fiber network out to its members despite having not been chosen to receive any stimulus funds.

We discuss how they have structured the network, why they felt compelled to get into the business, and some of the results from their approach.

Read the transcript from our discussion here.

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

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Posted January 16, 2015 by lgonzalez

The Roanoke Valley in Virginia has taken a deliberate pace on the road to improving local connectivity. On December 10th, the Roanoke Valley Broadband Authority (RVBA) released an RFP for proposals for an open access fiber optic network.

The RVBA is seeking a partner to build the network that will remain a publicly owned asset but will be managed by a private partner. According to the RFP, the City of Salem Electric Department has fiber in place that will be integrated into the the network. The RVBA has already invested in design, engineering, and permitting of 42 miles of a fiber network to jumpstart the process. Construction should begin this year.

In November, the Richmond Times-Dispatch reported:

The valley is often described as being caught in a “doughnut hole” for broadband service because it’s not a large enough area for the marketplace to drive creation of a truly high-speed network, but it’s too large to qualify for grants available to more rural locales.

The Times-Dispatch reports the estimated cost for the project is $4 million. 

Posted January 3, 2015 by lgonzalez

The community of Rock Falls, Illinois, recently decided to move ahead with a project to develop a municipal broadband utility, reports SaukValley.com. At a City Council meeting in early December, members unanimously voted to accept the findings of a feasibility study and move on to develop a formal business plan and preliminary engineering design. From the article:

Alderman Glen Kuhlemier said the table has been set for this project, and it would be foolish not to take advantage of what has already been done.

"To go backward is untenable after the foresight of the past," Kuhlemier said.

Rock Falls has an advantage because it already has substantial fiber resources in place. In the 1990s, the municipal electric utility installed fiber to connect substations. Thinking of the future, the electric utility installed ample fiber, which will significantly reduce the cost and burden to establish a network for business connectivity.

Rock Falls is no stranger to improving local connectivity. In the past, they used excess capacity to connect the city's schools and municipal facilities, reported American Public Power Magazine in 2010. The electric utility partnered with Essex Telecom, an ISP located in nearby Sterling, leasing some of their excess capacity to Essex so they could serve commercial customers.

The plan proposed by consultants would expand the network to connect half of the 350 businesses in the community. The consultanting firm estimates the deployment would cost $700,000 and the city would break even in 7 years.

Rock Falls, population approximately 9,200, is located on the Rock River in the northwest corner of the state; Sterling is immediately across the river. The community's municipal electric utility uses the river to generate hydroelectric power and customers pay rates 10-30% lower than those offered by neighboring investor-owned and cooperative utilities.

In recent years, the population has started to decline. Community leaders intend to jumpstart economic development with the added investment in fiber infrastructure.

Posted December 31, 2014 by lgonzalez

SpringNet has spurred economic development in Springfield, serving small businesses but also providing high-speed data to big employers such as Expedia. The network has steadily increased revenue over the years, even though it serves only commercial and public sector customers.

Demand for services has lead to the need to expand so SpringNet is opting to go lean. In 2002, the utility developed SpringNet Underground, a secure data and colocation center. The venture has been successful, says General Manager Scott Miller, but SpringNet sees investing the fiber network paramount and recently sold the facility. Bluebird Network purchased the facility for $8.4 million and will continue to serve the existing customers.

OzarksFirst recently ran the story:

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