Grant PUD increases fiber rates
Increases begin in October
EPHRATA - Grant County PUD commissioners approved increasing fiber access fees by $2.50 per month for residential subscribers and an $8 per month for businesses Monday.
The resolution lists a $24 monthly access fee per residential subscriber (previously $22.50) and a $37 monthly access fee per business subscriber (previously $30).
A $1 monthly data port fee is also listed and applies to residential and business subscribers.
New rates begin in October.
The data port fee brings the residential Internet access fee to $25 per month, said Kelly Ryan, CEO of Ephrata-based iFiber Communications.
He said Chelan County PUD is charging $18 per month for Internet, which is substantially less than Grant PUD's fee.
Grant County Technology Director Gary Baker said he expects the county will pay $10,742.86 per month for 16 Virtual Local Area Network (VLAN) connections instead of its former monthly bill of $770.
"The people who are on special VLANs will get this huge increase," he said.
Direct Internet service providers will ultimately decide how much of the increases they'll pass on to customers.
The increases have been discussed extensively at commission meetings this year and were brought forth because the utility is trying to make the fiber-optic program self-sufficient.
The commission recently restarted the utility's five-year expansion of its fiber network by 15,000 homes for about $50 million.
Commissioners OK'd the resolution in a 4-1 vote with Commissioner Randy Allred voting against the increases.
He said he supported the resolution, but took issue with the $1.50 monthly video port charge because it was a "give-away." He hadn't heard of a shortage of video providers in the county, Allred added.
"Would you rather market to nine out of 10 homes than four out of 10 homes?" Ryan asked. "It just doubles the size of the market we go after. Nine people out of 10 in Grant County own a television and four out of 10 own computers."
Commissioner Bob Bernd said the utility previously spent $100 million on the fiber program and wouldn't be able to replace the money unless it went forward.
Commissioner Tom Flint said the resolution is a great step forward for the district to meet its financial obligations. If the increases don't work into the fiber business plan as expected, the utility will have to look and see how it can do better, he added.
Commissioner Greg Hansen said he thinks the prices are whittled down to a point where the PUD will subsidize more and take a hit. He added the resolution is an improvement over current rates.
PUD Assistant General Manager Chuck Berrie said the increases won't pay for existing capital expenses from the past. The increases will cover depreciation on equipment and operations and maintenance spent from this day forward, he added.
A new $55 gateway installation fee was also approved. The installation fee applies to where fiber has been extended and a hub is in place.
Increased VLAN rates are: $100 (setup fee per port) and monthly charges of $100, $470 and $2,500, depending on the megabits per second.