Tag: "utility"

Posted September 11, 2013 by lgonzalez

Okanogan County, located along the extreme north central border of Washington State, is expanding its wholesale fiber optic network to more small local communities. The Okanogan Public Utility District (PUD) received a $5.5 million grant and a $3.7 million loan through the American Recovery and Reinvestment Act (ARRA) and will extend service to about 80% of the PUD service area. The county is home to about 41,000 people.

According to a recent Methow Valley News article, the construction began in February and the project is schedule for completion by the end of 2013. The network will be about 200 miles long and will also include 143 wireless access points along the power line route. Construction will also include new poles, tall enough to host both power and fiber optic lines. According to the PUD's director of power:

Some people who will now have the option of faster Internet connections were previously served only by dial-up or satellite services, said [Ron] Gadeberg. Even with the expanded “last-mile” network, “there are still tons of unmet needs, because it’s such a big county and some people are so remote that it is cost-prohibitive to serve them,” he said.

A local ISP, MethowNet.com, offers service to customers on the PUD's existing fiber network and will expand northward to serve additional communities north of its current service area.

Posted August 29, 2013 by dcollado

Located in the northeast corner of Tennessee, Morristown Utility Systems (MUS) offers gigabit broadband throughout a region that covers 30,000 residents and businesses. I recently spoke with MUS General Manager and CEO, Jody Wigington, about FiberNET’s progress and he had much to report, starting with over $5 million in cost savings for local businesses, residents, and the local government itself.

Asked about cost savings to Morristown’s city government, Wigington pointed to $840,000 in total savings from a smart meter program - a combination of lower annual power consumption and operational efficiencies. Another $20,000 in annual savings is due to the county not having to pay out-of-town IT contractors to maintain its network because the required expertise can now be found locally thanks to MUS’s dedicated network specialists.

Morristown businesses and residents are also saving, to the tune of $3.4-million annually thanks to FiberNET’s introduction of lower prices in the local broadband market. That’s $3.4-million, every year, which can be spent locally rather than being siphoned out of the community to corporate shareholders.

In terms of revenue, FiberNET generated $8.6-million during the most recent fiscal year and is projected to generate $8.8-million during the current one. FiberNET's solid financials have translated into increases in MUS’s payments in lieu of taxes (PILOT) to the city, which now amount to $350,000 per year, up from $150,000 in 2010. FiberNET’s strong financial performance resulted in MUS becoming cash flow positive just two years after launch, and net income positive after five years. Both of these key milestones were reached significantly quicker than initially projected.

MUS FiberNET’s impact on economic development is also notable. Oddello Industries, a contract furniture manufacturer that relies on FiberNET for its communications, recently announced a $4-million expansion in Morristown, resulting in 228 new jobs. Oddello CEO, Tom Roberts, cited “reliable utilities” among the reasons for investing in Morristown. This growth is part of a larger trend for Oddello, which has grown its Morristown presence from 35 to 415 employees in just the past year. 

Another sign of FiberNET’s impact on economic development is the recent decision by Molecular...

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Posted August 12, 2013 by dcollado

As we reported back in May, Cedar Falls Utilities (CFU) now offers citywide gigabit broadband. Mudd Advertising is one local company poised to take full advantage of the new blazing speeds. Mudd invited officials from CFU into its studio for a live panel discussion about the new gigabit service and what it means for the community. The video is embedded below and is available via MuddTV - look for the 6/19/2013 archived show.

When asked what gigabit service means for the community, CFU’s Director of Business Management Rob Houlihan said “We have a lot of businesses that transfer huge files to and from their customers and this enables them to do even more of that activity.” Houlihan elaborated by saying that gigabit broadband opens up “a whole new host of opportunities for them to innovate.”

The panel was moderated by Mudd’s Gary Kroeger...

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Posted August 6, 2013 by christopher

In Florida, Lakeland is one of several communities that has built a dark fiber network in a low-risk bid to expand connectivity for anchor institutions and to spur economic development. City of Lakeland Fiber Optics Supervisor Paul Meyer joins us for episode #58 of the Community Broadband Bits podcast.

Meyer explains why Lakeland began offering dark fiber leases and how it has benefited the community - most notably by allowing ultrafast communications at low rates. The network has expanded several times over the years in conjunction with other projects, including bringing smart traffic management to more intersections.

In addition to saving money for municipal buildings and the school district, the network has helped the hospital take advantage of modern technology and helped to lure new businesses to the community. This interview complements our previous story about Lakeland's fiber network.

Read the transcript from this show here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 22 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

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

Find more episodes in our podcast index.

Thanks to Break the Bans for the music, licensed using Creative Commons.

Posted August 1, 2013 by lgonzalez

Near the center of Florida sits Lakeland, the largest city between Orlando and Tampa with 98,000 residents. The area boasts 38 lakes, citrus crops, and a growing healthcare industry. Lakeland also owns a fiber optic network serving education, business, and government. To learn more, we spoke with Paul Meyer, Lakeland Electric City of Lakeland Fiber Optics Supervisor.

The city's municipal electric company, Lakeland Electric, began generating and providing electricity to customers in its service territory in 1904. In the mid 1990s, the utility began replacing older copper connections between substations with fiber-optic cable. Soon after, the Polk County School District asked Lakeland Electric to connect school facilities via the fiber network for video transmissions. By 1997, almost 50 school facilities were connected to each other via using dark fiber provided by Lakeland Electric. In 1994, the District paid $219,582 $84,737 to the utility to design, construct, and install equipment for video connections in four schools. The school received an indefeasible right of use for two fibers for twenty years. over which Verizon delivers data and voice services to the School District on its own lines.

Meyer noted that the fiber project likely cost more than the school paid but the installation gave them the opportunity to expand the network. Further expansion connected the police department, libraries, and water facilities. Over time, the electric utility has incrementally expanded to every building engaged in city business. The network is aerial, using the utility's own poles to mount the fiber.

Like a few other communities on our map, including Martin County Florida, Lakeland took advantage of the opportunity to expand when the state's...

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Posted July 31, 2013 by lgonzalez

A part of the Cincinnati metro region, Hamilton sits in the extreme southwest corner of Ohio. The community of 63,000 will soon expand its fiber resources to spur economic development and improve education opportunities. Eric Schwartzberg from the Journal News reports that the City Council recently voted to support the city-owned electric utility's proposal to create a broadband utility and build a data center. Hamilton is a full service community, also offering sewer, water, and gas.

Hamilton's municipal facilities have used the city's fiber I-Net for over nine years, reports Schwartzberg, and they believe it now makes sense to connect schools and local businesses while opening the network to independent service providers. 

[Mark] Murray [a project manager for the city’s underground utilities] said the opportunity to offer broadband to businesses and schools is similar to what Hamilton does with the electricity it generates.

“If we were putting up poles and stringing wires and only providing that to city institutions or city buildings … why wouldn’t we offer electric to businesses?” he said. “Well, that’s the same question that’s being asked of our fiber optic network. We’ve made great use of it here within the city, but why not take this asset and offer it as a service to the businesses?”

...

“When you start to see this type of facility go in, it’s not unusual for regional or national start ups to want to take advantage of the opportunity to tap into our fiber network,” [Murray] said.

In January of 2012, the City's We Connect People Sub-Committee began investigating how best to use the City's fiber. They hired Magellan Advisors who estimates the project costs at $4.3 million to expand the fiber network, purchase equipment and build the data center, and to use for future capital improvements and maintenance. Murray said positive operating revenue would be expected in 2017 and 2018 would very likely show net income.

In addition to serving local business, the utility also hopes to establish the Hamilton City School District as a community anchor institution. Murray noted that the utility is not interested in providing phone, video, or data to the school; they will build the infrastructure for private providers...

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Posted July 30, 2013 by christopher

Jim Baller has been helping local governments to build community owned networks for as long as they have been building them. He is the President of and Senior Principal of the Baller Herbst Law Group in Washington, DC. Jim joins us for Episode #57 of the Community Broadband Bits podcast to discuss some of the history of community owned networks.

Jim has a wealth of experience and helped in many of the most notable legal battles, including Bristol Virginia Utilities and Lafayette.

We start by noting some of the motivations of municipal electric utilities and how they were originally formed starting in the late 19th century. But we spend the bulk of our time in this show focusing on legal fights in the 90's and early 2000's over whether states could preempt local authority to build networks.

In our next interview with Jim, we'll pick up where we left off. If you have any specific thoughts or questions we should cover when we come back to this historical topic, leave them in the comments below or email us.

You can learn more about Jim Baller on his website at Baller.com.

Read the transcript from this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

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

Find more episodes in our podcast index.

Thanks to Break the Bans for the music, licensed using Creative Commons.

Posted July 26, 2013 by lgonzalez

The Longmont community will soon have the chance to decide how quickly they want ubiquitous FTTH. On July 23rd, the City Council unanimously approved a proposal to ask voters in a referendum if they want to bond for funds to speed up construction of the LPC fiber network. Absent bond financing, the network will expand much more slowly over many years.

Readers will remember the 2011 referendum to allow the electric utility to offer broadband services to the people and businesses of Longmont. At the time, Comcast spent over $300,000 via the Colorado Cable Telecommunications Association to fund an unsuccessful Vote No astroturf campaign. The community approved the measure with 60% of the vote. There was an earlier referendum in 2009 that ended in a victory for Comcast following a successful astroturf campaign. Records showed a similar infusion of cash to sway the vote. 

In the recent meeting, some Council Members expressed concern over the city bonding to invest in the telecom business. The Longmont Times Call reported on the meeting:

"We're again a government playing in the private world of capitalism," [Councilman Brian] Bagley said. "What if we don't know what we're doing?"

City Manager Harold Dominguez noted that even if voters approved a bond, the city could still take on a partner. If it passes, he said, the city would have a pretty good idea of how big a piece of the market it could get. And implementation wasn't a huge risk, he said, because the city already knew it could provide the service; it had been doing so for itself, the school district and a few other large users for years.

"Based on the information we've received, yes, we can do it," Dominguez said.

Finance Director Jim Golden outlined several options, including sales tax bonds, utility bonds, and certificates of participation, which use existing city assets as collateral. After discussion, Council agreed that the revenue bonds from the electric utility was the best option. If the voters approve the referendum, the City will bond a total of $44 million for capital costs ($35.4 million), interest, and...

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Posted July 9, 2013 by christopher

For our 54th episode of the Community Broadband Bits podcast, we are back in Tennessee to interview Brian Skelton, General Manager of the Tullahoma Utilities Board. They built the network in 2008 and have weathered the tough economy, meeting the business plan while greatly benefiting the community.

This is a particularly content-rich interview, covering the importance of non-gimmick pricing, benefits to schools, local programming, and why they decided to become a gigabit community.

They haven't increased prices of the Internet or telephone service even though they have increased speeds five times for subscribers and added new telephone features. Despite facing tough competition and deep discount pricing, Tullahoma has experienced extremely low churn, which itself is a sign of how valued the service is. You can read our historic coverage of Tullahoma here.

Read the transcript from this show here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

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

Find more episodes in our podcast index.

Thanks to Eat at Joe's for the music, licensed using Creative Commons.

Posted June 24, 2013 by lgonzalez

The Waverly City Council in Iowa recently voted 5-2 to establish a communications utility and to move ahead with a feasibility study. We spoke with Diane Johnston, Waverly Light and Power (WLP) General Manager, who told us the decision to get this far started over a decade ago.

In 2000, the community passed two ballot measures that sat dormant until this year. At the time, incumbents Mediacom and Qwest (now CenturyLink) did not meet the needs of residents, who were increasingly frustrated with poor service and shoddy customer relations. Incumbents cherry-picked the local commercial segment, ignoring smaller businesses and establishments more challenging to serve. When asking for better connectivity, Johnston says local businesses "hit the wall." Incumbents flatly refused to invest in Waverly.

The 2000 ballot measures, establishing the municipal telecommunications utility per Iowa law (requiring a majority vote) and having the entity governed by WLP's board of trustees passed with 86 percent and 80 percent of the votes. Clearly the public wanted more choices but Johnston told us the time was just not right. A feasibility study, focused on phone and video service, prompted Mediacom and Qwest to make some improvements and improve customer service. As far as WLP was concerned, the problem was solved and Ordinance 970 went on the shelf.

Since 2000, businesses and residents have approached WLP about establishing the utility but the proposal did not gain traction until six months ago. When reviewing the strategic plan for the electric utility, WLP's Board of Trustees concluded that Waverly and WLP needs a telecommunications utility to stay vital.

Johnston notes that advanced metering infrastructure is essential for the future of electric services. WLP wants to be able to provide customers with the ability to monitor their electric usage, control the use of appliances, and conserve. The utilty also needs its own connectivity. Johnston and WLP recognize that access to a high speed network is critical to economic development and WLP needs economic development for healthy electricity sales. In order to supply affordable electricity for all customers, WLP's wants to continue to increase sales. A fiber ring around the city provides connectivity between substations today and will...

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