Many favor fiber stimulus funds

EPHRATA - Most people who spoke at a public meeting in Moses

Lake agreed Grant County PUD should accept federal stimulus funds

to expand Internet service.

The majority of telephone survey results shared Monday at a

commission meeting also shared the same sentiment.

EPHRATA - Most people who spoke at a public meeting in Moses Lake agreed Grant County PUD should accept federal stimulus funds to expand Internet service.

The majority of telephone survey results shared Monday at a commission meeting also shared the same sentiment.

"A near-majority of customer owners, 47 percent, supports the fiber build-out at an unknown cost and unspecified rate increase; a clear majority of customer-owners, 57 percent, supports the build-out with a specified cost, the federal stimulus package, and a known rate increase of 1.6 percent, or about $1.20 in monthly electric rate increase," according to the survey's summary.

Grant PUD is gauging the public's response about whether to accept stimulus funds if they're awarded to the district later this month.

The money would be used to help deliver high-speed Internet service to unserved portions of Grant County.

In March, Grant PUD applied for $50 million in federal funds, a $25 million grant and $25 million in federal loans to expand Internet access in Grant County.

With the stimulus money, about 20,500 more homes and businesses could receive service.

During the meeting in Moses Lake, Grant PUD General Manager Tim Culbertson thanked Chelan County PUD's commissioners and staff for sharing details about the process they went through while evaluating their decision to move forward.

Chelan PUD was awarded stimulus funds earlier this year and decided to accept a $25 million fiber grant in August.

As a result, Chelan expects to raise rates by roughly 2 to 4 percent.

Commissioner Tom Flint said a financial analysis presented by Grant PUD staff was a bit misleading because it didn't show revenue to the system.

The district is more than likely to experience a similar take rate, he said.

Culbertson said it was a generalized analysis and a combination of two technologies, a further deployment of wireless and hard fiber.

They don't know what the take rate would be.

"You deploy it and expect revenues would increase," he said.

While revenues are expected to increase, it's not clear if the take rate would increase or decrease.

It appears the take rate would increase, but it's not clear what the operations and maintenance costs would be.

Moses Lake Mayor Jon Lane said he had a personal interest in the fiber expansion.

He just signed up for fiber optic service and he supported the PUD accepting the stimulus funds.

Don Long, of Ephrata, a retired PUD employee, said he urged the commission to accept the funds for the benefit of all ratepayers.

Accepting the funds is a better economic alternative.

"For example, one half of the surplus sales revenue that would otherwise have been used to build out fiber-optics, according to the commission's current policy, can be used to repay the loan," he said.

"That leaves the other half available to keep electric rates lower than they would be if you didn't accept the stimulus funds," Long added.

Don Beckley said he doesn't have fiber, but lives near downtown Moses Lake.

He read an advertisement from a former area newspaper called the Neppel Record, about the benefits of telephone service.

The advertisement stated a good telephone would solve many a problem and is worth more than gold.

It appears he was speaking to the benefits of keeping up with technology.

Mick Qualls, president of the Grant County Fiber Active Group, said he was in favor of accepting the money.

William McCormick, of Moses Lake, said his concern is watching the increases. He asked if money would be returned to ratepayers through decreased rates.

Commissioner Bob Bernd said there wasn't anything automatic about any of them.

Commissioner Flint reminded the audience the PUD is overhauling its turbines and generators.

Ed Stubbington, of Moses Lake, said there needs to be a return value on an investment. The expansion wouldn't pay for itself.

He also mentioned the idea of having willing customers pay for the work without increasing rates.

Dale Walker, of Moses Lake, encouraged commissioners to accept the grant.

He spoke about the fiber system showing a substantial net profit.

James Sanders, of Moses Lake, also encouraged commissioners to accept the grant.

In response to comments about dam improvements, he said it was understood at the time, the work wouldn't be cheap and rates would increase.

"Nine times out of ten, people don't get that," Sanders said.

Vern Corkins, of Ephrata, said he has fiber and credited his grandchildrens' career success to having fiber access.

Corkins also spoke of the benefits of having voice over Internet protocol, which helps people with hearing problems use the phone.

Before having the service, his wife used to help him make phone calls.

Joel Hobson, of the firm Sequity, said he had worked in information technology for the past 23 years.

He asked how the PUD was going to monetize the network and said it was excellent the funds were available.

"It's not about getting it to the home, it's about getting it to the premise," he said. "How do we use this network to propel economic development to this county? How do we get people to recognize the fact you have a backbone like no other?"

"You have all sorts of land to attract customers on a global basis," Hobson commented.

He charged the economic development community and area chambers of commerce to find customers.