Title
Draft Resolution - Approval of Findings Regarding Broadband Business Opportunities
Other Info
Submitted By: Audri Nelson
Department: Board of Directors
Financial Impact and Cost/Benefit Considerations: None at this time other than staff time to implement adopted findings, communications, and as presented in Background, Analysis & Considerations and Findings.
Discussion
BACKGROUND
For more than 80 years, Pedernales Electric Cooperative ("PEC") has provided low-cost, reliable electric service to the Texas Hill Country when for-profit electric utilities would not. The reason PEC was able to transform lives throughout the Hill Country by bringing its Members badly needed electric service was that PEC was (1) a not-for-profit electric utility (as a cooperative), and (2) the Federal Government awarded PEC approximately $1.3 million in loans to build its electric lines (about $25 million today).
Today, PEC proudly provides reliable, safe electricity to almost one million people at rates more than 10% below the average competitive areas. PEC has achieved this while also increasing system reliability to its highest historic level in 2020.
Recently, some of the Cooperative's Members have requested that the Cooperative become involved in the provision of broadband accessibility or connectivity, harkening back to the Cooperative's roots. Accordingly, the Cooperative has extensively reviewed strategies and data regarding this business of providing broadband, as well as reviewing Members' access to broadband connectivity. In October 2015, the Board began hearing presentations and reports on what financial, operational, and regulatory impact broadband services would have on the Cooperative and its Members. Then, in May and June of 2016, the Board discussed the need for broadband in Texas' rural areas and referenced this issue during the Annual Meeting presentation and the Board President's remarks. Later that year, the Board was notified of the broadband topics dis...
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