Rural electric cooperatives in Arkansas are stepping up and making the investments to bring broadband connectivity to their members. We recently described plans taking shape from North Arkansas Electric Cooperative. This month, construction began in the northeast region on infrastructure that will provide both broadband access and improved smart grid technology in the eight counties of Craigshead Electric Cooperative Corporation (CECC).

A Multi-Year Investment

The cooperative will deploy approximately 5,000 miles of fiber on utility poles and underground over the next five to seven years. Empower, a subsidiary of CECC, will offer Internet access to more than 30,000 members and non-members in its service area northwest of Memphis by the time construction is finished. FCC data has determined that about 44 percent of CECC’s members aren’t able to subscribe to broadband at the 25 Megabits per second (Mbps) download and 3 Mbps upload minimum threshold because there is no option in their territory.

CECC wants to make use of smart grid technology in order to improve delivery of electric services. Since fiber optic Internet infrastructure and smart grid can exist hand-in-hand, and the region is in desperate need for better connectivity, CECC and Empower will offer high-speed Internet access where incumbents won’t.

The cooperative will spend approximately $100 - $110 million to complete the project; construction on the first phase began in July and should be finished by the end of 2018. In addition to the economic development benefits that will come to the region as the infrastructure attracts new business, 30 new permanent positions which will be created to manage and operate the network.

Residents of northern Arkansas will soon be able to obtain high-speed Internet access through their local electric cooperative. North Arkansas Electric Cooperative (NAEC) recently received approval from its Board of Directors to expand its residential broadband pilot program, NEXT, Powered by NAEC. This expansion will bring Fiber-to-the-Home (FTTH) connectivity and one gigabit speeds to the co-op’s entire service area. 

Origin of NEXT, Powered by NAEC

We first covered NEXT last year on Community Broadband Bits episode 243, when we talked to Mel Coleman, the CEO of NAEC.

While on the podcast, Coleman discussed how rural electric co-ops brought “the next greatest thing,” electricity, to their members. He views the provision of Internet services as following in the same historical tradition: “What we like to think is, ‘This is the next “next greatest thing,”’ and that is broadband in your home, true broadband.”

To bring broadband to their members, NAEC created the subsidiary NEXT to develop the fiber network and connect residences.

Developing a Successful Pilot

In 2016, the NEXT pilot program was launched in three locations in Baxter and Fulton counties. The pilot area included both urban and rural communities as well as portions of the small town of Salem, where NAEC is headquartered. Internet, voice, and video services were offered to approximately 1,500 co-op members within the pilot program’s targeted areas, according to the press release carried by Areawide News.

Since NAEC already owned a fiber backbone to manage its electrical system, the co-op simply had to build out from the existing infrastructure to connect residences. Eligible members could subscribe to symmetrical gigabit services for only $79.95 per month.

“We exceeded our goal of [pilot program] subscribers,” said Coleman, as quoted on the NAEC site, “and many have shared with us the benefits true broadband internet has brought to their families and businesses.”

What’s Next for NEXT?

Earlier this year, we shared the story of Clarksville, Arkansas, and described how they used supervisory control and data acquisition (SCADA) to make efficiencies in their municipal electric utility. The resulting fiber optic infrastructure reduced energy costs and allowed them to better manage other utilities but also gave Clarksville the opportunity to explore high-quality connectivity for the community. Their investment is paying off and bringing new jobs to Clarksville.

Stepping Up Economic Development

In a recent press release, the Clarksville Regional Economic Development Organization (CREDO) announced that Monro Shoe has entered into a partnership with Clarksville Light & Water (CL&W), the city, and CREDO to expand its production and add 25 new positions. The community’s gigabit fiber optic network played an instrumental role in the expansion. In addition to better connectivity, CL&W will provide an energy audit to help the company cut production costs.

Serving The Clarksville Community

Clarksville’s population is just under 10,000 with Tyson Foods, Haines, and motor control manufacturing processor Balder as some of the largest employers. University of the Ozarks also employs many of the people in Clarksville. CL&W plans to connect the University to the network in the near future.

Community leaders wanted to be sure to use the network to serve all sectors of Clarksville when they pounded out their plans for the network in 2015. They chose to allocate a designated number of strands each for educational facilities, healthcare institutions, public safety needs, and government facilities. The municipal utilities used another segment, and a sizable segment was left open for future economic development use, such as the connectivity arrangement for Munro Shoes. As Clarksville’s network serves more entities we expect to see more positions added to the community; after all, they're just getting started.

Supervisory control and data acquisition (SCADA) systems allow utility systems to gather and analyze real time data. The computer system reduces outages, keeps the utilities running efficiently, and allows staff to know where problems arise. Municipal utilities that use SCADA systems are increasingly taking the next step - using the fiber-optic infrastructure that supports SCADA to bring better connectivity to town. Clarksville took that route and is now considering ways to become one of the best connected communities in Arkansas.

"I Don't Think We're In Kansas Anymore"

As the seat of Johnson County, Clarksville is located in the northwest area of the state along I-40 and is home to just under 10,000 people living at the foothills of the Ozarks near the Arkansas River. The area is known for its scenery and its tasty peaches and every summer, the county holds a popular Peach Festival. The nearest urban areas are Little Rock, about 90 minutes to the east, and Fort Smith about an hour west. 

Large employers in the community include University of the Ozarks, Tyson Foods, Haines, and Baldor, a motor and control manufacturing processor. There’s also a Walmart Distribution Center in Clarksville.

When he began as General Manager of Clarksville Light and Water (CLW) in 2013, John Lester realized that one of the challenges the municipal electric utility faced was that it did not have a SCADA system for managing the electric, water, or wastewater system communications. Even though the Clarksville utility system was well cared for and managed, a SCADA system could push it to the next level in efficiency and services.

Lester had been instrumental in optimizing the use of the fiber-optic network in Chanute, Kansas, which had been developed for the municipal utilities. He understood the critical nature of fiber connectivity to utility efficiency, public savings, and economic development. Over time, the Chanute network had attracted new jobs, opened up educational opportunities for K-12 and college students, and created substantial savings. 

This is the transcript for episode 243 of the Community Broadband Bits podcast. Mel Coleman, the president of the National Rural Electric Cooperative Association and the CEO of the North Arkansas Electric Cooperative, explains how electric co-ops can provide high-quality, high-speed Internet service to their rural members. Listen to this episode here.

Mel Coleman: It is on fire and I think it something that most co-ops will, at the very least, be looking at very strongly within the next year or two, if they're not already.

Lisa Gonzalez: This is Episode 243 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. This week Mel Coleman joins Christopher for a talk on high-quality connectivity in America offered by rural electric cooperatives. Mel is CEO of the North Arkansas Electric Cooperative and president of NRECA, the National Rural Electric Cooperative Association. The NRECA represents more than 900 consumer-owned, not-for-profit electric cooperatives, public power districts, and public utility districts in the US. Mel and Chris get into the purposes of the organization and how broadband has become such a growing interest for cooperative members. They also discuss the North Arkansas Electric Cooperative's new project to bring high-quality Internet access to its rural members with a phased approach. Mel shares information on their progress and their expectations. Learn more about the next project at naeci.com.

Christopher Mitchell: Hey, folks. This is Chris Mitchell, the host of Community Broadband Bits, and I just wanted to ask you if you could do us a real big favor to help us spread this show around, and that's to jump on iTunes or Stitcher, or wherever you found this show, and to give us a rating, give us a little review, particularly if you like it. If you don't like it so much, then maybe don't do that; but, if you're enjoying this show, please give us a rating and help us to build the audience a bit. Thanks.

This article was co-written with ILSR's Energy Democracy initiative research associate, Karlee Weinmann, and is cross-posted on ILSR.org.

Ouachita Electric Cooperative, nestled deep in south-central Arkansas, is an unlikely innovator in a pair of industries struggling to adapt to shifting market dynamics: electricity and broadband.

Despite rising demand for energy efficiency and renewable electricity generation, large investor-owned utilities -- and many rural electric co-ops -- have resisted programs to address those needs. Likewise, corporate Internet service providers frequently offer shoddy service at high rates, a particular problem in rural areas with limited competition.

But Ouachita Electric found a way to do both things better, with complementary technologies. Fiber-optic network investments provided lower cost Internet access, but also provide an information backbone for the electric utility that can reduce outage times and verification for energy savings programs. The network and the efficiency programs reduce costs for a customer base dominated by low-income households that can now reinvest their earnings elsewhere in the community.

Inclusive Financing

The utility’s tariff-based, on-bill financing program -- known as HELP PAYS -- allows customers to invest in energy efficiency upgrades at their homes, like insulation and heat pumps, with no upfront cost. Ouachita Electric covers eligible expenses, then recoups its buy-in through payments from participating customers on their monthly bills. Customers immediately pay less thanks to utility-financed energy-saving improvements.

Unlike other energy efficiency programs, the opt-in “inclusive financing” program, HELP PAYS, enables all Ouachita customers to capture significant benefits:

Conway, Arkansas, has been offering Internet access for approximately 20 years; in December, it will begin offering Gigabit (1,000 Megabits per second) download connectivity to the community. Conway's highest tier Internet access will cost $94.95 per month. According to Conway Corp.'s announcement, the utility will use a 32-channel cable modem to deliver the faster download speeds via the current infrastructure. Upload speeds will be 50 Mbps.

In a statement, reproduced in Multichannel News, CEO Richard Arnold said:

“Internet usage has grown and will continue to as cloud-based products and services become more prevalent. Gigabit download speeds seem a luxury today, but may be tomorrow’s necessity.”

Between 1995 and 1997, the utility completed a citywide cable rebuild in which they used both fiber and coaxial cable. The $5.6 million project allowed them to offer Internet access to Conway subscribers. As an early adopter of municipal Internet access, Conway’s move toward Gig connectivity makes sense:

“For several years, we have been on a strategic path toward gigabit service,” said chief technology officer Jason Hansen in a statement. “With this initiative, Conway Corp is embracing its position as an Internet technology leader.”

Conway Corp’s Internet rates also include:

• Basic : 6 Mbps download / 1 Mbps upload - $36.95 per month
• Broadband 25 : 25 Mbps / 3 Mbps - $41.95 per month
• Broadband 50 : 50 Mbps / 5 Mbps - $51.95 per month
• Broadband 100 : 100 Mbps / 10 Mbps - $84.95 per month

Ozarks Electric Cooperative has a plan to bring fast, affordable, reliable connectivity to northwest Arkansas and northeast Oklahoma.

Fast, Affordable, Reliable Connectivity At Last

OzarksGo, a wholly owned subsidiary of the electric co-op, will provide Fiber-to-the-Home (FTTH) Internet service with symmetrical speeds of up to a Gigabit (1,000 Megabits) per second. The fiber network will cost $150 million to build over the next six years.

ArkansasOnline and local news station KSFM reported on the future network. The residential FTTH service will have no data caps and OzarksGo will offer additional services, such as telephone and video. At the end of the project, all co-op members will have access to the network's services.

According to the FCC 2016 Broadband report, 25 percent of all Arkansas residents don't have access to broadband (defined as 25 Megabits per second (Mbps) download and 3 Mbps upload). In Oklahoma, the FCC puts the numbers higher at 27 percent. Rural areas are even higher with 48 percent lacking in Arkansas and 66 percent missing out in Oklahoma. Considering the data collection process depends on self-reporting by ISPs, those numbers are considered low. The number of households that do not have access to federally defined broadband, especially in rural areas, is higher.

Soon though, these Arkansas and Oklahoma residents will have access to fast, affordable Internet access. General manager for OzarksGo Randy Klindt, who previously worked on Co-Mo Electric Cooperative's FTTH network, explained in the video below that the price for a Gigabit will be less than $100, which is an entirely opt-in service.

On this week’s community broadband media roundup, we have more reverberations from Next Century Cities, a forward-thinking coalition of cities that promises real progress in establishing or restoring local authority for broadband networks. For the inside scoop on the launch, we suggest taking a look at Ann L. Kim’s Friday Q&A with Deb Socia, the executive director of the organization. 

Here’s an excerpt: 

Q: So when you say you work with cities that are either looking to get next generation broadband or already have it, what does that entail?

A: …We are working with elected officials and also employees, like CIOs and city managers and so forth, and the goal is to really help them figure out their pathway. This is pretty hard work and we recognize that there’s always a local context and so we don’t advocate any one way to do this work, but we help cities think about it.

So [are] you gonna work with an incumbent provider, are you gonna build your own, are you gonna work with a private non-profit? How are you gonna make it happen? What are the alternatives for you? And how can we best support you?

Multichannel’s Jeff Baumgartner covered the launch in Santa Monica as well. The bipartisan coalition offers members collaboration opportunities and support for those communities that face incumbent pressure when they announce plans to move forward with publicly-owned broadband programs. According to China Topix’s David Curry, neither Comcast nor Time Warner Cable have made announcements about gig networks, “with Time Warner Cable even go as far as saying "customers don't want 1Gbps Internet speeds", a statement ridiculed on the Web.”  

Rest assured, there will be much more coverage on this organization’s work in the weeks to come.