PUD to continue fiber buildout

EPHRATA — The Grant County PUD will continue to build its fiber network, subject to year-by-year review and so long as it doesn’t impact the district’s finances. The areas added to the fiber network will be determined by customer interest – and not just people who say they would use fiber, but people who will commit to contracts. That was the decision reached by PUD commissioners after lengthy discussions at Tuesday’s regular meeting.

General manager Kevin Nordt summed it up as an “annual, contingent” strategy. “Let’s take it year by year, consider where we’re at year by year, to set the target as we go forward,” Nordt said.

For 2018, the PUD has some money generated through its investments, the total amount still to be determined, that will be allocated to the fiber build program. “Moving forward, we’ll assess against some criteria,” which the commissioners will determine, Nordt said.

The program will be reassessed each year, and if the money is available, the project will continue. If the conditions don’t meet the criteria, the program would be reevaluated for that year and might be deferred.

The fiber build has been the subject of study and discussion throughout 2018. The PUD’s fiber network covers about 70 percent of the PUD’s customers. The discussion has centered around what to do with the remaining 30 percent. Utility district employees, after extensive analysis, said the PUD couldn’t continue the build without looking at different ways to finance it.

Because the PUD is involved in a two-decade, multimillion-dollar project to upgrade Wanapum and Priest Rapids dams, district officials are borrowing money, and a lot of it. In order to get the most favorable interest rates, the district must meet specific criteria. Utility district analysts said the PUD doesn’t have enough money to keep building the fiber program as planned and still meet the criteria to get the most favorable interest rates.

Utility district employees offered a number of options, from putting the project on hold, to raising rates to pay for continuing construction, to using money allocated to other projects in the 2018 budget. Commissioner Tom Flint said none of the commissioners are interested in damaging the district’s financial status.

However, “I think we have enough wiggle room that we can come back every year and look at it and see where we’re going to go,” Flint said. Commissioner Bob Bernd said the PUD had made commitments to customers, and some are still waiting. But Bernd said he would not support building in areas where there wasn’t sufficient customer interest. In his opinion, customers need to commit to using the fiber network first. Commissioner Terry Brewer agreed.

Commissioner Dale Walker said he was concerned the project never would be finished if it stopped now. Brewer said there are things the PUD can do, and should do, to increase revenue in the existing program. Nordt said the PUD’s staff will have proposals on that for the commission within the next month.

Cheryl Schweizer can be reached via email at education@columbiabasinherald.com.