Companies upset over likely fiber costs

Grant County PUD mulling new fee

EPHRATA - About 20 irate Internet service providers met with Grant County PUD staff Thursday to talk about the added costs their businesses will likely bear with the upcoming fiber-optic expansion.

The providers said they feared the possible increased costs will put them out of business.

The PUD plans to stop paying for the preliminary fiber equipment installation and require the work to be done by someone who has completed a two-year apprenticeship program, PUD staff said.

The cost is expected to be $10 per installation at each home or business, with an additional $42 to $47 per hour to perform the installation work. No final amount has been officially set and there is currently no installation fee, said PUD project specialist Warren Miller.

But PUD project specialist Russ Brethower said the PUD's goal of the upcoming expanded system is to cover operating expenses and depreciation on equipment.

Miller added the requirement was put before staff in order to reach the PUD's financial goals.

"I can honestly say you just nixed my business," said provider Ed Baxter.

With the proposed added installation costs, Baxter said it would wind up costing potential customers $100 to have fiber installed plus another $50.

Provider Carl Highland said the implementation due date of June 1 needs to be revisited and the deadline should be postponed for another six months to a year.

"The state Legislature has put us in the position that we're in bed together to get this to the public," Highland said.

State law doesn't allow public utilities to directly retail Internet service.

Provider Drew Zabrocki asked if there was anyway to compromise on the costs because he couldn't afford to not be compensated. He also said adjustments need to be done in a rational and reasonable way.

"That's going to be extremely damaging," he said. "If this is your opinion, it's ludicrous, it's absolutely insane."

Miller said it would be of high value for the providers to speak directly with Grant County PUD commissioners.

PUD commissioners voted last month to spend $50 million over five years to bring high speed Internet to 15,000 more homes and businesses in Grant County.

Their vote came after a two-year halt to expanding the fiber-optic network for more study on the matter.

Before the build-out stopped, the PUD installed the necessary equipment - the gateway - for free at homes and businesses, said PUD spokesperson Dorothy Harris.

The gateway sits outside a customer's home and is the conduit for the fiber connection, she explained.