PUD halts new dark fiber sales

Utility currently leases fiber to three companies

EPHRATA - Grant County PUD commissioners unanimously agreed this week to stop offering new dark fiber service and license agreements for an estimated two to three weeks while staff studies the matter.

Dark fiber is unlit fiber without the equipment installed. The utility currently leases dark fiber to three companies, said PUD General Manager Tim Culbertson on Thursday.

The motion to approve the moratorium was not on Monday's agenda and was voted on after the scheduled motions and calendar items later in the afternoon.

Earlier during the meeting, Bill Mattson of Northwest Telephone Inc. asked commissions to open a public comment period before making any changes to the dark fiber wholesale program.

The Wenatchee-based company had tried to buy dark fiber from the PUD for the past two months and wanted to enter into a 10-year contract with the utility that would amount to $2 million, he said.

Before commissioners voted, PUD project specialists Warren Miller and Russ Brethower gave a presentation to commissioners about the fiber program.

Miller said he thought some people might take advantage of the situation before rates are established. He also said the PUD has some ability to add service level agreements for dark fiber.

Miller added that he opposed the PUD selling dark fiber because it's a "great waste" to sell it at a low rate.

The PUD is capable of providing lit service agreements that are acceptable to carriers, Miller said.

Commissioner Randy Allred made the motion to approve the moratorium and Commissioner Terry Brewer seconded the motion.

Before he voted, Allred said he never wanted dark fiber because of the revenue impact on the district.

Culbertson later said the PUD staff is looking at the advantages of lit fiber versus dark fiber.

"I think it's just taking a look at the business case," he said. Culbertson said the moratorium could last between two to three weeks before a decision is made.

The moratorium's approval comes after PUD staff recently told Internet service providers they will be likely face a new fee on June 1 for gateway installation at customers' homes and businesses and a fee for VLAN (virtual local area network) connections. Miller mentioned new costs totaling $180 per installation Monday.

The providers told staff members that such a quick increase would likely put them out of business and would prevent customers from signing up for the service.

The increases are being proposed as the PUD begins the expansion of its fiber-optic network by 15,000 connections this year. The utility doesn't want to subsidize the operations and maintenance of the program.

At a recent commission meeting, an increase of $2 per month for current fiber customers was discussed, but the increase wasn't adopted.