Utilities Improving Broadband

Mountain Connect, Vail ColoradoJune 8, 2015

Electric Utilities have the potential to play various roles in improving broadband services.◦ Different roles and business models.◦ What’s right for the utility, potential partners, and

the community? Panelists:

◦ Reuben Bergsten, Utilities Director, Town of Estes Park◦ Jasen Bronec– CEO, Delta Montrose Electric Association ◦ Loren Howard, CEO, San Luis Valley Rural Electric

Cooperative, INC.

Overview

Estes ParkReuben Bergsten, Utilities Director, Town of Estes Park

We are a Municipal Electric Utility. Our service territory is 300 square miles centered

around the Town of Estes Park. Account density is 33 meters per line mile. There are five broadband ISPs within the Estes

Valley. Outside the Estes Valley coverage is minimal to none.

The Town acts to facilitate broadband through pole attachments and installation of spare conduit on public projects. Broadband alternatives are being research by the Estes Park Economic Development Corporation.

Estes Park

Estes Park - Meter Density

DMEAJasen Bronec– CEO, Delta Montrose Electric Association

Delta Montrose Electric Association (DMEA) ◦ Member Owned Cooperative

Serve Delta and Montrose Counties◦ Western Slope of Colorado

DMEA serves 32,500 meters at 9.9 meters mile of distribution line

Telecommunication providers include: Charter, CenturyLink, independent ISP providers.

Past: REANet Future: Business Plan for Fiber To The Home

DMEA

SAN LUIS VALLEY RECLoren Howard, CEO, San Luis Valley Rural Electric

Cooperative, INC.

Not-for-profit private corporation 7,500 existing electric utility members Serve 7 counties 51 employees $30 million annual gross electric revenue

San Luis ValleyRural Electric Cooperative

SSAN LUIS VALLEY REC

Sample Design Area

% Aerial % UG

Passings

Passings per Mile

Materials per

Passing

Labor per

PassingTotal per Passing

Stockade2 100% 0% 82 2 $1,015 $3,839 $4,854

Stockade 97% 3% 42 3 $696 $3,226 $3,923

Crooked Creek 85% 15% 121 7 $552 $2,512 $3,064

Spring Creek 95% 5% 62 10 $358 $1,986 $2,344

Capulin 100% 0% 235 7 $453 $1,452 $1,905

Lime Creek 100% 0% 37 11 $313 $965 $1,277

FSR 516 100% 0% 67 11 $320 $944 $1,264

Seepage Creek 100% 0% 96 13 $292 $832 $1,124

Hermit 100% 0% 98 20 $286 $797 $1,084

Texas Creek 100% 0% 70 16 $281 $741 $1,021

Lakeman Lakes 91% 9% 79 18 $236 $661 $897

Baca 0% 100% 228 20 $246 $560 $806

Rio Grande 86% 14% 192 27 $181 $436 $617

Weighted Averages

90% 10% 1,409 9.1 $373 $1,271 $1,644

San Luis ValleyRural Electric Cooperative

Residential Internet

10 mbps $39.95

50 mbps $64.95

100 mbps $84.95

1000 mbps $129.95

Commercial Internet

25 mbps $59.95

100 mbps $89.95

1 GBPS $499.95

Residential Phone

Full Service $39.95

Commercial Phone

Full Service $49.95

San Luis ValleyRural Electric Cooperative

2nd Quarter 2012 – Initial feasibility study3rd Quarter 2013 – Initial fiber cable order executed4th Quarter 2013 – Contract for electronics executed1st Quarter 2014 – Second market assessment complete2nd Quarter 2014 – Second financial analysis complete2nd Quarter 2014 – First fiber cable installed3rd Quarter 2014 – FTTH pilot passing 20 residences1st Quarter 2015 – Ciello brand launch event2nd Quarter 2015 – First large marketing activities

Discussion

Is it appropriate for Utilities to enter the broadband market and compete with existing service providers?

Policy & Values

Why are electric utilities getting involved in telecommunications services?

What can an electric utility bring to the table?

What don’t they have and need help with?

Utility Operational Capabilities: Potential Synergies and Gaps

What expectations do communities regarding Utility involvement in Broadband?

Are these expectations different from those for private providers?

Are these expectation realistic?

Community Expectations

What are the key issues do utilities need to take into consideration when becoming involved with broadband service?

Key Considerations for Utilities

Other Questions