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Electric co-ops build relationships during day on the hill

NASHVILLE – More than 175 electric cooperative leaders from across the state gathered in Nashville on Tuesday and Wednesday, Feb. 20 and 21, for the Tennessee Electric Cooperative Association’s 2024 Legislative Conference. Electric co-op members and employees in attendance had important conversations about energy and policy that will impact electric co-ops and the rural and suburban communities they serve.

Attendees at the event heard from political strategists and policy advisors as well as Tennessee leaders, including advisors to Gov. Bill Lee and Secretary of State Tre Hargett.

“Reliability took center stage during discussions with legislators this year,” said Ryan King, vice president of government affairs for the Tennessee Electric Cooperative Association. “From cybersecurity to EPA regulations, co-op leaders advocated for specific legislation that will harden the grid and protect energy supply.”

Meetings were also about building relationships. “When a bill crosses a legislator’s desk that can impact energy or rural and suburban Tennessee, we want them to know who to call,” said King. “Building strong relationships with lawmakers can have a significant impact on bills that are passed and, ultimately, an electric co-op’s ability to provide safe, reliable and affordable energy to its communities.”

“We have great legislators serving Tennessee’s rural and suburban communities, but energy is an incredibly complex industry,” said Dan Rodamaker, CEO of Gibson Electric Membership Corporation and chairman of the TECA board of trustees. “It is critical that electric co-ops are at the table, helping lawmakers understand the real-world impacts of policy and law.”

More than 100 legislative visits were made during the conference, and many elected officials from across the state attended a reception honoring members of the Tennessee General Assembly.

The Tennessee Electric Cooperative Association provides leadership, advocacy and support for Tennessee’s 23 electric cooperatives and 3 million consumers. The association also publishes The Tennessee Magazine, the state’s most widely circulated periodical. Visit tnelectric.org or tnmagazine.org to learn more.

 

Photos from the event are available here.

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Tennessee electric cooperatives respond to announcement of more than $800 million of funding to expand broadband access in Tennessee

Today the U.S. Department of Commerce and the Biden administration announced Tennessee will receive $813 million as part of the federal Broadband Equity, Access and Deployment (BEAD) program. This funding will strengthen Tennessee’s broadband infrastructure and address inadequate service that remains a challenge for many areas of the state.

Tennessee’s electric cooperatives fully support the state’s commitment to ensure that every resident has access to affordable and reliable broadband connectivity.

“Today’s announcement of BEAD resources is exciting for Tennessee,” said Mike Knotts, CEO of the Tennessee Electric Cooperative Association. “Electric cooperatives have established an excellent track record of rapidly deploying broadband networks to the most rural parts of our state. These funds will only accelerate the ability of electric cooperatives to provide that same service to even more unserved and underserved Tennesseans.”

Electric co-ops in Tennessee have taken swift action to tackle the challenges posed by a lack of reliable broadband service. Cooperatives have made remarkable progress in meeting the pressing demands for improved access. With the new opportunities presented by BEAD, electric cooperatives will continue to collaborate with partners at the Tennessee Department of Economic and Community Development to ensure the allocated resources are utilized effectively to establish robust and dependable broadband networks that will meet to the needs of Tennesseans.

“ECD is a strong partner for broadband providers in Tennessee, including electric cooperatives, and Tennesseans can be proud of the state’s stewardship of broadband deployment resources,” said Ryan King, Vice President of Government Affairs for TECA. “We have full confidence their administration of the BEAD program will hit the mark to extend broadband service to as many Tennesseans as possible, as efficiently as possible.”

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Gibson EMC Awarded Kentucky Broadband Grant

TRENTON, Tenn. — Kentucky Governor Andy Beshear announced today that Gibson Electric Membership Corporation has been awarded a grant of $4,650,880 through the Kentucky Broadband Deployment Program.  The grant will help build a broadband infrastructure to make high-speed, fiber-based internet service available to 1,763 Gibson EMC member-owners in Kentucky.

“We are thrilled that we will receive Kentucky Broadband Deployment Program funds for this important project,” said Dan Rodamaker, President and CEO of Gibson Electric Membership Corporation and Gibson Connect (Gibson EMC’s broadband subsidiary).  “Our member-owners desperately need high-speed, fiber-based internet service; and it will vastly improve the quality of life in our communities by providing opportunities for education, healthcare, jobs, entertainment and more. We sincerely thank all those who have made the grant possible and particularly Governor Andy Beshear, our legislators and members of the Kentucky Infrastructure Authority,” Rodamaker said.  “We also are grateful to our local leadership for their support and to our members for their patience as we have worked to provide broadband service as economically as possible.”

Rodamaker said Gibson EMC and Gibson Connect anticipate being able to start construction mid-July, after receiving the grant parameters and signing the grant contract. “We’ll communicate more details about the buildout soon,” he said.

“Access to high-speed internet service is truly transformational,” said Rodamaker, “and an important part of having access is affordability.  We’re working hard to manage the cost of our broadband buildout and to also enable access,” he said.  “This is why Gibson Connect offers both the Affordable Connectivity Program (ACP) and the Lifeline discounts to qualifying members to lower the cost of its residential internet plans.”

Rodamaker said Gibson EMC already has invested $3.9 million on a broadband middle-mile network in its Kentucky service area and will match the Kentucky broadband grant (of $4.6 million) with $6.4 million for a total investment of $15 million.  He said this grant award moves Gibson EMC and Gibson Connect a step closer to the ultimate goal of making the essential service of high-speed, fiber-based internet available to every Gibson EMC member.

Gibson Connect is a wholly-owned, not-for-profit subsidiary of Gibson EMC.  It was formed to make high-speed, fiber-based internet service available to members of Gibson EMC.  Members can register for internet, phone and TV service at join.gibsonconnect.com or by calling 731-562-6000.  Registration is just $20 and will apply toward a member’s first Gibson Connect bill when service is received.  Sign up now to ensure you receive service as quickly as possible.

Gibson EMC is a local, not-for-profit, member-owned and member-controlled electric cooperative serving more than 39,000 homes and businesses in four west Kentucky counties (Carlisle, Fulton, Graves and Hickman) and eight west Tennessee counties (Crockett, Dyer, Gibson, Haywood, Lake, Lauderdale, Obion and Madison).

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ML Connect hits 10,000 subscribers

Centerville, TN —  John Brennan of rural Hickman County is Meriwether Lewis Connect’s 10,000th subscriber. Service was installed June 2, 2022.

“When Meriwether Lewis Electric Cooperative announced it was bringing broadband, I thought I hope I live to see it, and now here it is,” says Brennan. “MLConnect will allow me to stream and surf the Internet, while also saving on subscription services. It is a significant upgrade and opportunity for our rural communities and gives us the flexibility to work in a place we love to live.”

Formed in 2018 in response to MLEC members requesting fiber-to-the-home, MLConnect’s goal was to finish construction in all five counties by the end of 2022. The first in-home installation happened in March 2019, and the final phase of construction (Hickman County) is on target to finish later this year. In-home and business installations will be ongoing.

“We appreciate everyone’s support of the MLConnect broadband project and what we’re trying to accomplish for those we serve,” says MLEC President and CEO Keith Carnahan. “We’re working as quickly as we can to make fast, affordable, reliable broadband an option for MLEC members.”

MLEC is a member-owned, not-for-profit electric utility that serves more than 34,500 meters in Hickman, Houston, Humphreys, Lewis and Perry counties. We are helping build brighter futures and make connections possible for those we serve. Learn more at mlec.com.

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Co-ops tell story of rural Tennessee during day on the hill

NASHVILLE – More than 140 electric co-op leaders from across the state were in Nashville on Tuesday and Wednesday, Feb. 15 and 16, for the 2022 Tennessee Electric Cooperative Association Legislative Conference. During meetings with legislators on Capitol Hill, co-op members and employees stressed the important role that co-ops play in their communities and briefed lawmakers on issues that impact rural and suburban Tennessee.

Gov. Bill Lee welcomed attendees to Nashville on Wednesday morning. “The services you provide to rural Tennesseans are incredibly important,” said Lee.

Tennessee’s electric cooperatives maintain a visible presence in Nashville and Washington, D.C., to protect the interests of co-ops and their consumer-owners. “Electric co-ops are complex and heavily regulated businesses, and the decisions made by legislators can have a significant impact on the affordability and reliability of the energy they provide to millions of families across Tennessee,” says David Callis, CEO of the Tennessee Electric Cooperative Association. “We must tell the electric cooperative story and educate lawmakers about the impact of proposed legislation.”

“Advocating for our members doesn’t stop at the edge of our service territory. It is critically important that our elected leaders keep cooperatives in mind when crafting laws and regulations that impact us,” says Dave Cross, president of TECA’s board of trustees and CEO of Plateau Electric Cooperative, headquartered in Oneida. “We have a responsibility to our communities to tell their story.”

Broadband was a topic discussed during visits with legislators. “We’ve invested heavily in broadband expansion, and you’re key to that,” said Gov. Lee. “Unless every Tennessean has access to opportunity – every kid in the urban center and every kid in the farthest-reaching rural communities – then we have not done our job. The ways we do that in large part is through the services and technology that you make possible.”

More than 100 legislative visits were made during the conference, and many legislators from across the state attended a reception honoring members of the Tennessee General Assembly.

 

FOR MORE INFORMATION
Trent Scott | Vice President of Strategy | 615.515.5534 | [email protected]

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MTE’s Chris Jones receives national communications award

Murfreesboro, Tenn. – Middle Tennessee Electric (MTE) President and CEO Chris Jones has received the 2022 J.C. Brown CEO Communication Leadership Award. The National Rural Electric Cooperative Association (NRECA) presented Jones the award at the organization’s CEO Close-Up Conference Jan. 10 in Phoenix. 

According to NRECA, the J.C. Brown Award “recognizes an electric cooperative or public power district CEO/general manager who is committed to advancing communication at the cooperative and in the electric cooperative industry.”  

Jones has an extensive background in the communications field, graduating from the University of Tennessee with a degree in communications and starting his career as a journalist and editor. He went to work at MTE in 1999, serving as communications coordinator and the VP of communications and member services before being named CEO in 2013. 

“We should understand, yet not be intimidated by, the reality that communication is work that is never finished and demands intentionality and continuous improvement,” Jones said. “I have been studying communication since college and attempting to execute it throughout my professional career, and I know I still have much to learn and improve upon. However, I am humbled by and appreciative of this recognition from NRECA.” 

Jones emphasizes the importance of clear, simple and repeated communication across multiple channels to all of MTE’s audiences, always striving to meet the goal of making the lives of MTE members better. In recent years, his leadership and robust communication efforts have navigated the organization through a major tornado in its service area, several severe weather events, the acquisition of United Communications, the merger with the Murfreesboro Electric Department, the continued impacts of COVID-19 and a complete brand refresh. 

His nomination was given a perfect score by one of the three judges who helped select this year’s winner and another mentioned his “notable” use of a strategic plan to communicate the organization’s mission and goals with both employees and members. 

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Duck River Electric Joins Project UNITE Initiative to Speed Broadband Deployment to Underserved Members

Columbia, Tenn. – Duck River Electric Membership Corporation (DREMC), an electric provider serving 2,500 square miles of middle Tennessee, and United Communications, Middle Tennessee’s leading provider of fiber and fixed wireless internet services, announced today that they are collaborating to expand broadband access to underserved areas across Middle Tennessee.

Industry data indicates that while average household demand for internet data has grown over 38 times in the past decade, approximately 18% of Tennesseans live in unserved areas for broadband internet. The lack of broadband infrastructure in rural areas has resulted in a digital divide, subjecting those without high-speed internet to a significant disadvantage in career development, telemedicine, and social engagement opportunities.

DREMC reinforces its commitment to the members they serve by advancing high-speed internet connectivity. Through the development of a robust fiber backbone that enhances service dependability, DREMC is not only delivering safe and reliable electricity at the lowest possible cost but also supporting United in building a reliable fiber and fixed wireless network in the region.

United is a subsidiary of Middle Tennessee Electric (MTE), and that partnership supports the effort to deliver high-speed internet to underserved areas in Middle Tennessee, the mission of United’s Project UNITE initiative. By collaborating to bridge the digital divide, United, MTE, and now DREMC can expedite the delivery of high-speed internet to areas of need. Specific to DREMC, the relationship solidifies expansion for broadband, especially for many communities that lack adequate internet access.

Project UNITE was initiated by United to focus on rural communities to connect unserved homes and businesses, partner with local stakeholders, companies, and governments seeking grant support, and deliver industry-leading customer experience.

The announcement was made by Scott Spence, President and CEO of DREMC, and William Bradford, President and CEO of United Communications, in conjunction with Chris Jones, President, and CEO of MTE, at the DREMC Office in Columbia, TN, on December 10, 2021.

“DREMC is proud to be part of the solution to the internet needs of members in underserved areas. The first step in this journey began in 2018 with the initial work needed to develop a 386-mile fiber backbone that allows DREMC to better serve members and provide important infrastructure for established internet providers to utilize,” said Spence. “Today, we are excited to partner with United Communications to further leverage what DREMC has built for the benefit of the members we serve. This is a key step in being part of the solution to deliver reliable, competitively priced internet with a focus on customer care.”

The effort to build out the southern Tennessee network is greatly enhanced by DREMC’s foresight and proactivity in establishing a fiber ring throughout their service area that is expected to be complete in mid-2022. United’s expertise in fiber and fixed wireless, combined with DREMC’s assets and permits, provides an effective and efficient way to enter the next phase of delivering broadband and a world-class smart grid.

“United is a local company that serves our customers with the same focus and care that Duck River Electric delivers to their members,” said Bradford. “This relationship creates a powerful bond between two companies that can benefit from each other’s resources and expedite the pathway to internet access, speed, and reliability that everyone deserves. For example, in partnership with MTE, we have been able to build and offer connectivity to over 12,000 unserved locations,” added Bradford. “We understand the special relationship cooperatives have with their members and believe we can apply the knowledge and experience we gained with MTE’s success and leverage that for the benefit of DREMC members.”

“A fundamental cooperative principle is cooperatives supporting cooperatives.” Added MTE President and CEO Chris Jones. “I’m so pleased to see MTE’s broadband company, United Communications, in a position to support our sister cooperative in expanding important service to DREMC members.”

As more planning develops, DREMC members will be able to check if their address is serviceable by United and register their interest by visiting https://united.net.

Additional information on the partnership can be found at www.United.net/DREMC or learn more about Project UNITE at www.United.net/project-unite.

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Tennessee’s Electric Co-ops Partner with Western Governors University to Offer Scholarships to Rural Tennesseans

Nonprofit, fully online university will provide $50,000 in scholarships through its “Power Your Future” initiative for new students who are electric cooperative members 

NASHVILLE, Tenn. (Oct. 28, 2021) – In an effort to empower residents in rural areas of Tennessee to go back to school and further their education, WGU Tennessee, an affiliate of Western Governors University, has announced it has partnered with Tennessee’s electric cooperatives to provide $50,000 in scholarships to residents who are served by an electric cooperative and are interested in pursuing a degree from the online, nonprofit university. The “Power Your Future” scholarship is open to new students in rural areas of Tennessee who are consumers of, or live in a household served by, one of the 23 rural electric co-ops that power rural Tennessee.

Learn more about the Power Your Future scholarship

“Electric co-ops and WGU share a mutual goal of supporting and investing in the future of rural communities,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “This partnership with WGU will provide new opportunities for the 2.5 million Tennesseans served by electric co-ops in Tennessee to pursue a degree in higher education without the barrier of cost. We are excited to be on the front lines of building a brighter Tennessee.”

WGU is a leader in providing fully online, affordable, competency-based education to working adults who are interested in furthering their skillset but need the flexibility of online education to fit their busy lives. Through the “Power Your Future” scholarships, WGU aims to empower students in rural Tennessee who are committed to going back to school to complete their undergraduate or graduate degrees. Each scholarship is valued at up to $3,000 and will be applied at a rate of $750 per six-month term.

To be eligible, scholarship applicants must be officially admitted to WGU and enrolled in one of the university’s more than 60 accredited bachelor’s and master’s degree programs in business, information technology, K–12 teacher education, and health professions, including nursing. Students must also complete the scholarship application at wgu.edu/power and be interviewed by a WGU scholarship counselor. Recipients will be selected based on academic records, financial need, readiness for online study, and current competency, among other considerations.

“We are delighted to partner with Tennessee’s electric cooperatives in this important venture, making education more accessible and affordable for working adults across Tennessee,” said Kim Estep, chancellor of WGU Tennessee and vice president, Southeast Region of WGU. “Together we seek to provide a streamlined approach and expand access to higher education, particularly for rural residents served by electric cooperatives who do not have easy access to high-quality higher education in their communities.”

Over 4,000 Tennesseans are currently enrolled at WGU Tennessee, which has conferred more than 7,000 degrees in the state.

For more information about WGU or the Power Your Future scholarship, visit wgu.edu/power.

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Congressman Kustoff Visits Gibson EMC

Congressman David Kustoff met with Gibson Electric Membership Corporation management Thursday, April 8. During the visit, Kustoff gave a Washington legislative update and asked questions about Gibson EMC’s broadband subsidiary, Gibson Connect.

“We really appreciate the information Congressman Kustoff shared with us and we are grateful for the work he is doing to help Gibson EMC and other electric cooperatives provide high-speed internet service to our member-owners and communities,” said Dan Rodamaker, President and CEO of Gibson EMC and Gibson Connect. “His discussion with us demonstrated a keen understanding of the importance of broadband to rural west Tennessee and a sincere concern for those we serve.”

Gibson EMC formed Gibson Connect in 2017 when the Tennessee Broadband Accessibility Act was passed, allowing cooperatives to provide and sell internet directly to their member-owners.

“Since then, we have worked diligently to build our fiber network and provide access to our eligible members,” Rodamaker said.  “Thanks to Congressman Kustoff and others in our state and federal government who have provided support, Gibson EMC has applied for and been awarded $7.5 million in state construction grants,” he said.  “This is extremely important to all of our members because it will enable us to provide access to this essential service more affordably.”

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Tennessee co-ops receive $5.3 million to expand rural broadband

Nashville – Today the Tennessee Department of Economic and Community Development announced that five Tennessee electric co-ops will receive a total of $5.3 million to expand access to broadband in rural Tennessee. Now in its fourth year, the Tennessee Broadband Accessibility Grant Fund has invested more than $100 million in state and federal dollars to bring fast and reliable internet access to all Tennesseans.

“Every Tennessean should have access to the same high-speed broadband, no matter what ZIP code they live in,” said Gov. Bill Lee. “Our continued investment in internet connectivity will help level the playing field for rural communities across our state, and I thank these 13 providers for partnering with us to help nearly 18,000 more Tennesseans get connected.”

Since the Broadband Accessibility Act passed in 2017, 14 of Tennessee’s 23 electric co-ops have launched broadband projects.

“Broadband access is an essential service for  families and businesses alike, and that is just as true on the farm as it is on Main Street,” said Mike Knotts, vice president of government relations with the Tennessee Electric Cooperative Association. “We appreciate Gov. Lee and ECD Commissioner Bob Rolfe’s commitment to bring high-speed connectivity to rural Tennessee, and we are honored that they have once again turned to co-ops to get the job done.”

Electric co-ops and their partners receiving grants are:

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Gov. Lee announces broadband investment during State of the State address

NASHVILLE, Tenn. – Gov. Bill Lee tonight during his State of the State address announced plans for a $200 million investment to expand broadband access in Tennessee. 

“A significant, one-time investment, combined with significant private investment, will get broadband to just about every community in Tennessee,” said Lee. “To help us achieve our goal of every Tennessean having access to high-speed broadband, my budget recommends an investment of $200 million.” 

“We commend Gov. Lee for taking bold steps to quickly bring internet access to those who need it most,” said Mike Knotts, vice president of government affairs with the Tennessee Electric Cooperative Association. “We look forward to continuing our partnership with the state to expand broadband access in Tennessee.” 

Since the passage of the Broadband Accessibility Act just four years ago, Tennessee’s consumer-owned electric cooperatives have brought robust, fiber-based internet access to thousands of homes and businesses across the state. Co-ops are uniquely positioned to build infrastructure quickly and maximize the impact of state and federal grant funds. 

“Families and businesses don’t need broadband access six years from now, they need it today,” says Knotts. “In fact, they needed it years ago. The state’s electric co-ops understand the urgency, and we are moving quickly to respond. This historic investment announced tonight by Gov. Lee will bring broadband access to more homes in a shorter amount of time.”  

Gov. Lee also announced plans to invest $21 million in rural communities and distressed counties to support rural infrastructure, industrial site development, small business development and to revitalize small town main streets. 

The Tennessee Electric Cooperative Association provides leadership, advocacy and support for Tennessee’s 23 electric cooperatives and publishes The Tennessee Magazine, the state’s most widely circulated periodical. Visit tnelectric.org or tnmagazine.org to learn more.  

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GEMC’s Phillips Honored with Community Broadband Award

FBA Recognizes Gibson EMC’s and Gibson Connect’s Charles Phillips

TRENTON, Tenn.—  The Fiber Broadband Association (FBA) recently awarded the Dr. Charles Kao Award for Community Broadband to Charles Phillips, Gibson Electric Membership Corporation VP of Technical Services and Gibson Connect VP of Operations.  The award recognizes individuals, organizations, or companies that honor Dr. Kao’s innovation and connect communities with fiber optic technology.  In its communication, the FBA said Philips is receiving the award in recognition of his work with Gibson EMC and Gibson Connect to build a fiber network throughout the cooperative’s 12-county service area.”

“We are delighted to award Charles Phillips with this honor,” said Fiber Broadband Association President and CEO Gary Bolton. “In a time when connectivity is more important than ever, we commend Charles’ commitment to providing high-speed internet to his community through state-of-the-art fiber broadband.  Congratulations to Charles and the entire Gibson EMC cooperative.”

In his time with Gibson EMC, Phillips has worked extensively with neighboring utilities to create an interconnected regional fiber network that connects 20 distribution systems. This network of independently owned and maintained fiber systems has provided the backbone for a high-speed and low latency network for intra- and inter-utility traffic, as well as inter-utility fiber contracts.

“We are extremely proud of Charles and we appreciate his excellent leadership as Gibson EMC and Gibson Connect work to provide reliable, high-speed internet access to our consumer-members,” said Dan Rodamaker, President and CEO of Gibson EMC and Gibson Connect. “Making this essential service available creates exciting opportunities for our members and communities,” said Rodamaker, “and Charles has been instrumental in the successful implementation of this project.”

Phillips has been with Gibson EMC since 1997.  In addition to his role in the broadband buildout and telecommunications business, Phillips also manages the cooperative’s technical services division.

Gibson Connect is a wholly owned, not-for-profit subsidiary of Gibson EMC formed to provide high-speed internet access to Gibson EMC’s members.  Gibson EMC is a local, not-for-profit, member-owned and member-controlled cooperative serving almost 39,000 homes and businesses in eight west Tennessee counties (Crockett, Dyer, Gibson, Haywood, Lake, Lauderdale, Obion and Madison) and four west Kentucky counties (Carlisle, Fulton, Graves and Hickman).

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Tennessee electric co-ops awarded $40 million in broadband grants

Nashville – State officials on Friday awarded $61 million in emergency broadband grants, with $40 million going to Tennessee’s electric co-ops. The grants were awarded through the recently created Tennessee Emergency Broadband Fund.

“The COVID-19 pandemic has reminded us that broadband is essential for modern life,” said Mike Knotts, vice president of government affairs with the Tennessee Electric Cooperative Association. “From telemedicine and distance learning to telecommuting and e–commerce, Tennessee’s rural communities must have reliable and affordable access to high–speed internet. Families and businesses in rural communities unfortunately understand what life is like without internet access, so today’s announcement is welcomed news.”

The Tennessee Department of Economic and Community Development worked with the Tennessee Electric Cooperative Association and other stakeholders to develop the Tennessee Emergency Broadband Fund using a portion of resources allocated to Tennessee through the Coronavirus Relief Fund. Recipients must utilize the funds before the end of 2020.

Nearly 70 percent of the funds awarded went to electric cooperatives. “When the state asked ‘Who can build rural broadband quickly?’ they turned to electric co-ops,” said Knotts. “Tennessee’s co-ops are demonstrating their ability to expand access quickly and leverage grant funds for maximum impact. We appreciate the trust and confidence Governor Lee has placed in us through today’s announcement.”

Tennessee’s electric co-ops will immediately begin construction on 29 separate projects to bring broadband to locations that currently do not have access. These projects will enable tens of thousands of people in some of the most remote parts of the state to participate in modern work, education and commerce. Broadband expansion will also improve Tennessee’s ability to respond to current and future public health emergencies.

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A portion of Coronavirus relief funds to target rural broadband 

Nashville, TENN. – Today Gov. Bill Lee announced that a portion of Tennessee’s aid from the federal Coronavirus Relief Fund would be used to expand access to broadband service. The newly created Tennessee Emergency Broadband Fund will expand broadband access to better facilitate participation in telemedicine, distance learning and telecommuting.  

“The coronavirus pandemic has underscored the digital divide that exists in Tennessee,” said Mike Knotts, vice president of government affairs with the Tennessee Electric Cooperative Association. “Never before has the need for broadband access been greater or the limitations for Tennesseans who can’t access the internet been more obvious. The Tennessee Emergency Broadband Fund will help bring this essential service to many of the homes and businesses that need it most.” 

Since the passage of the Tennessee Broadband Accessibility Act in 2017, 14 of Tennessee’s 23 electric cooperatives have launched broadband projects, and Tennessee’s electric co-ops have proven their ability to maximize state and federal funds. For every dollar of grant money received, Tennessee co-ops are investing $15 of their own money. This multiplier means that Tennessee electric co-ops are stretching grant funds further to have the greatest impact. 

“The Tennessee Emergency Broadband Fund can position Tennessee to better respond to the current pandemic and be better prepared to face the challenges that will come our way in the future,” said Knotts. “The impact of this investment will be felt for years. We appreciate the vision of Gov. Bill Lee and Commissioner of Economic and Community Development Bob Rolfe as well as Lt. Gov. Randy McNally, Speaker Cameron Sexton, Senate Finance Chair Bo Watson and House Utilities Chair Pat Marsh. Their allocation of these funds will positively impact tens of thousands of Tennesseans.” 

Learn more at tnelectric.org/broadband.

FOR MORE INFORMATION
Trent Scott | Vice President of Corporate Strategy | 615.515.5534 | [email protected] 

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Gibson Connect Phase III Advances

Gibson Electric Membership Corporation and its not-for-profit subsidiary, Gibson Connect, have announced their boards have approved moving forward with Phase III of their broadband network buildout.  Phase III work will begin in the Rutherford, Kenton and Newbern zones.  These zones have met their participation goals using Gibson Connect’s registration website, join.gibsonconnect.com.

“A start date for Phase III has not been set, but board approval will enable us to soon begin the engineering step of the buildout,” says Dan Rodamaker, President and CEO of Gibson EMC and Gibson Connect.  “We plan to start Phase III with these three zones and add more zones a little later, based on join.gibsonconnect.com registrations, as well as engineering and grant/loan requirements,” he said.

Charles Phillips, Gibson EMC VP of Technical Services and Gibson Connect VP of Operations, explains, “Gibson Connect provides its internet service through Gibson EMC’s substations, meaning work must be completed in the substation and the fiber network must be built from the substation to the zone before Gibson Connect can begin construction in the zone.  A grant or loan can impact the order of our buildout because it is typically for an area that has met grant eligibility requirements and may have deadlines by which we must complete the work to receive the funding.”

“Gibson EMC is actively seeking out and taking advantage of every grant opportunity in order to save our members’ money on construction costs,” Rodamaker says.  “Where grants are not available, we’re applying for low-interest loans.”

Rodamaker says the ReConnect loan Gibson EMC was awarded by the USDA will ultimately help construct the fiber network in certain parts of Obion County in Tennessee and in Gibson EMC’s Kentucky counties.  ReConnect also has a deadline by which Gibson EMC must complete the work, but Rodamaker says, “it allows a five-year period as opposed to the shorter deadlines of the grants.  Utilizing grants and low-interest loans will make the fiber network construction more affordable for Gibson EMC’s entire membership,” he says.

More than 4,700 consumer-members have been connected since construction started in February 2018.  “We’ve completed the initial construction in Phase I zones, and we are diligently working to connect those who have more recently signed up for the service,” Phillips says.  “Phase II is well underway, but there is still considerable work to do.  Board approval for Phase III zones will enable us to begin the initial step of the build in those areas,” Phillips said.

“We plan to ultimately provide high-speed internet access to all of our eligible members, but the buildout is a massive project that is time-intensive, he says.  “With about 3,100 miles of the fiber network to engineer and build, we knew from the time we started construction in August 2018 that it would take at least five years to provide access to all of our members.  Even so, we understand how urgently this service is needed and we are doing everything within our power to provide it as quickly as possible.”

“We began this project because our members told us they needed this service,” Rodamaker said, “and after experiencing the necessity to work and learn from home during the pandemic, we are more convinced than ever that we are doing the right thing for our members and our communities,” he said.  “Those who have already been connected are extremely pleased with and grateful for this service.”

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Tennessee electric co-ops receive $11 million in broadband grants

NASHVILLE, Tenn. – More than $11 million of $19.7 million in broadband accessibility grants announced last week by the Tennessee Department of Economic and Community Development will go to Tennessee electric cooperatives. Ten of the 17 grant recipients were electric co-ops.

“One of my top priorities is ensuring the success of rural Tennessee. With the assistance of these grants, communities across 21 counties will now have access to broadband that will aid in that success,” Gov. Bill Lee said. “I applaud the efforts of these 17 broadband providers as they play a fundamental role in our efforts to boost rural communities throughout Tennessee.”

The grants come at a time when the need for rural broadband is clear.

“We’re excited about this investment in rural Tennessee,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “The current COVID-19 crisis has confirmed what we’ve known for some time: Rural America needs reliable broadband. Education, healthcare and commerce rely on a dependable, high-speed connection to the internet. More than ever, we’re seeing how vital that connection to the rest of the world truly is.”

Electric co-ops receiving grants are:

  • Fayetteville Public Utilities: $1,750,000, serving parts of Lincoln County
  • Forked Deer Electric Cooperative: $719,921, serving parts of Haywood and Lauderdale counties
  • Gibson Electric Membership Corporation: $703,518, serving parts of Obion County
  • HolstonConnect LLC (Holston Electric Cooperative): $361,211, serving the Mooresburg community in Hamblen and Hawkins counties
  • Meriwether Lewis Electric Cooperative: $593,166, serving parts of south Perry County
  • PVECFiber (Powell Valley Electric Cooperative) and Scott County Telephone Cooperative: $1,908,811.24, serving part of Union County
  • SVEConnect (Sequachee Valley Electric Cooperative): $1,654,882, serving the Battle Creek and South Pittsburg Mountain communities in Marion County
  • Southwest Tennessee Electric Membership Corporation: $1,768,686, serving parts near the Brownsville community in Haywood County
  • Tri-County Fiber Communications LLC (Tri-County Electric Membership Corporation): $501,811, serving parts of Trousdale County
  • United Communications (Middle Tennessee Electric Membership Corporation): $1,331,504.80, serving the Eagleville community in rural Rutherford and Williamson counties

The broadband accessibility grant fund was created in 2017 as a key component of the Tennessee Broadband Accessibility Act – sweeping legislation designed to close the digital divide in Tennessee. In the years since, many of Tennessee’s electric co-ops have invested more than $187 million in broadband projects that will eventually bring high-speed internet access to more than 790,000 homes and businesses.

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USDA Awards Gibson EMC ReConnect Loan

Trenton, Tenn. — Yesterday the U.S. Department of Agriculture (USDA) Deputy Under Secretary for Rural Development Donald “DJ” LaVoy announced the award of a $31.9 million low-interest loan to Gibson Electric Membership Corporation to build high-speed broadband infrastructure in parts of western Kentucky and western Tennessee.  Gibson EMC has been working to provide high-speed internet access to its consumer-members since 2017, when the Tennessee Broadband Accessibility Act was passed and the cooperative formed Gibson Connect, its wholly-owned, not-for-profit broadband subsidiary.

“Gibson EMC is grateful our ReConnect loan application was approved,” said Gibson EMC and Gibson Connect President and CEO Dan Rodamaker.  “This low-interest loan will enable us to more affordably deploy broadband to our members,” he said.  “We will use the funds primarily in parts of Hickman and Fulton counties in Kentucky and Obion County in Tennessee, as well as some areas in neighboring Carlisle and Graves counties in Kentucky and Lake, Dyer and Weakley counties in Tennessee.”

Gibson Connect is in its second year of a 3,100-mile construction project covering parts of four Kentucky counties and eight Tennessee counties.  The project is being done in phases and is expected to take another three to four years to complete.

Gibson EMC’s members are driving the order of construction.  The co-op’s 12-county service area is divided into zones based on substations and communities. Members can show support of this project and speed construction in their area by registering for the service at join.gibsonconnect.com. Zones that have reached their participation goals and zones funded by grants the cooperative has applied for and received are being built first.

 “Ultimately we plan to provide high-speed, fiber-based internet service access to all of our members,” Rodamaker said. “Access to this essential service can enable our members to enjoy a better quality of life and help our communities thrive,” he said.  “We’re honored to partner with the USDA to help bridge the digital divide.”

Caption:  USDA Deputy Under Secretary for Rural Development Donald “DJ” LaVoy (center) and Hilda Legg, State Director of USDA Rural Development-Kentucky (at podium) congratulate Gibson EMC and Gibson Connect President and CEO Dan Rodamaker on being awarded a $31.9 million ReConnect low-interest loan.

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The Power to Be

David Callis, executive vice president and general manager, TECA

You don’t have to look far to find news stories that speak to the decline of rural America: aging population, unemployment, opioids. It can be a depressing outlook. We see it firsthand; Tennessee ranks 46th in life expectancy as rural hospitals close their doors. Schools struggle to attract teachers and provide advanced academic opportunities. And we all know that high-speed in-ternet can be unreliable, expensive or totally unavailable.

But our co-ops are uniquely positioned to have a positive impact on the rural and suburban communities we serve. Co-ops invest more money in rural Tennessee than almost any other group. They manage more than $3 billion in assets and 106,000 miles of distribution lines that stretch from the suburbs of Nashville to some of the most rugged and remote areas of the state. This year alone, co-ops have invested more than $107 million in the distribution grid — investments focused on meeting the needs of Tennesseans today and far into the future.

We also deliver power to our residential members at a price that is 16 percent below the national average. And our co-ops have significantly less debt per consumer than the national average. These stats speak to decades of thoughtful decision-making and a deliberate focus on the well-being of co-op consumer-members.

Our purpose is greater than simply keeping the lights on. Co-ops make healthcare, education, commerce and manufacturing possible in the communities we serve, empowering our consumer-members.

A solid education removes barriers and opens the doors of opportunity. That is why co-ops have a long and proud history of investing in rural youth. We want to prepare young people to be the next generation of leaders and to be fully aware of the opportunities that exist in their hometowns. That is why programs like 4-H Electric Camp, the Youth Leadership Summit and Washington Youth Tour are so vitally important. Electric co-ops give young, rural Tennesseans the power to be smarter, better educated and more prepared for the future.

From Burlison to Bristol and Clarksville to Counce, the communities we serve are remarkable. They are unlike any other place in the world. They have distinct challenges, yet offer unique opportunities. It is important for electric co-ops to be advocates for these communities — to tell the story of rural and suburban Tennessee. Decisions made in Nashville and Washington, D.C., have a significant impact on co-ops and the people we serve. So it is critical that we engage with legislators and policymakers at the state and federal levels and shape a positive image for co-ops and rural Tennessee through our communications efforts. We give rural Tennesseans the power to be heard.

Tennessee’s electric co-ops are able to merge the opportunities found in our cities with the quality of life that is unique to rural and suburban Tennessee. Our cooperatives have a legacy of fundamentally changing the communities we serve, but we can’t rest on yesterday’s successes. Our communities have new needs, and Tennessee’s electric cooperatives are here to step up and create fresh solutions.

We do more than deliver power. We empower the people and communities we serve.

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Tennessee co-ops applaud passage of Rural Act

The House on Tuesday passed the RURAL Act, protecting more than 900 electric cooperatives throughout the nation from the risk of losing their tax-exempt status when they accept government grants for disaster relief, broadband service and other programs that benefit co-op members.

The Senate is poised to pass the bill later this week, and President Trump is expected to sign it into law.

The RURAL Act was NRECA’s top legislative priority for the year because of the profound threat to the business model of not-for-profit co-ops. Tens of thousands of co-op leaders, employees and members across the country rallied to advocate passage of the bill.

Lawmakers passed the popular bipartisan legislation in the final hours of the 2019 session as part of a larger tax and spending bill that funds the government through September 2020.

“We are grateful to members of the Tennessee delegation who supported this important legislation,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “While these changes may seem subtle, they will have a meaningful impact on Tennessee co-ops and the people they serve – lowering costs, protecting rates and encouraging investment in rural infrastructure.”

The Tennessean published a guest editorial by TECA calling on lawmakers to support the Rural Act. The op-ed appeared online last week and in print today.

The bill’s passage fixes a problem created in 2017 when Congress passed the Tax Cuts and Jobs Act, which redefined government grants to co-ops as income rather than capital. That change made it difficult for many co-ops to abide by the 15% limit on non-member income to keep their tax-exempt status. The RURAL Act once again exempts grants from being counted as income and is retroactive to the 2018 tax year.

Without the fix, some co-ops would have had to start paying taxes this spring after receiving grants in 2018 or 2019 to repair storm damage, bring high-speed internet to rural communities or invest in renewable energy and energy-efficiency programs. Many co-op leaders feared they would have to raise rates for members to pay the new taxes.

The legislation attracted more than 300 co-sponsors in the 435-member House and more than half of the senators. The effort was led in the House by Reps. Terri Sewell, D-Ala., and Adrian Smith, R-Neb., and in the Senate by Rob Portman, R-Ohio, and Tina Smith, D-Minn.

NRECA lobbyist Paul Gutierrez credited the victory to a collaborative campaign strategy that included co-ops’ grassroots efforts to alert their senators and representatives to the issue.

“This was an amazing NRECA team and membership effort, including co-op members at the end of the line,” he said. “We had great legislative champions in the House and Senate, and they worked tirelessly to get this included in the final tax package.”

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Tennessean Op-Ed builds support for the RURAL ACT

The following op-ed by David Callis appeared in The Tennessean on Friday, Dec. 13. You can view the article on The Tennessean’s website.

PASS THE RURAL ACT

An op-ed by David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association

In 2016 the Tennessee legislature and the governor’s administration published reports about the lack of broadband in rural areas. A major area of concern was the prohibition on electric cooperatives providing broadband and a lack of funding.

As a result, the General Assembly passed the Tennessee Broadband Accessibility Act in 2017 to ensure that one day all Tennesseans will have access to broadband internet. The legislation allows electric cooperatives to provide broadband internet service and provides grants to jumpstart the efforts of willing providers.

Lawmakers in Washington, D.C., have also recognized the need for rural broadband deployment. Since low population density and high costs are major hurdles to successful rural broadband deployment, state and federal grants are essential tools in efforts to bridge the digital divide. Congress recently appropriated more than $600 million that will be distributed through the USDA’s Re-Connect program that focuses exclusively on expanding access to broadband in rural America.

However, another significant hurdle surfaced last year. An unintended consequence of federal tax law changes threatens to impose additional financial burdens on rural communities and hamper broadband expansion.

Let me explain. Most of the nation’s 900 consumer-owned electric co-ops are recognized as tax-exempt organizations by the IRS as long as they receive no more than 15 percent of their income from non members.

Under the 2017 tax law, federal, state and local grants now count toward that 15 percent threshold. If that limit is exceeded, a co-op will lose its tax-exempt status for that year. Lawmakers acknowledge that the threat to electric co-ops is an unintended consequence.

This undermines a successful business model that has served America’s rural communities well for decades. It doesn’t matter if the money is for storm recovery, broadband deployment or economic development. If a co-op’s non member income exceeds 15 percent because of the grant, the cooperative could be forced to pay taxes on the grant amount.

Last month, Forked Deer Electric Cooperative was the first cooperative in the nation to receive a grant from the U.S. Department of Agricutlure’s new Re-Connect program. They were awarded a $2.8 million grant that will allow the cooperative to reach areas across 425 square miles of their sparsely populated West Tennessee service area that lack broadband service. U.S. Secretary of Agriculture Sonny Purdue toured Lauderdale County, and during his speech announcing the grant, he told the audience, “We know when rural America thrives, all of America thrives.”

I couldn’t agree more.

However, receiving this grant puts the co-op dangerously close to the 15 percent limit for non member revenue. If Forked Deer Electric Cooperative is fortunate enough to receive additional grants for broadband or economic development, they could easily exceed the 15 percent limit. If a natural disaster caused significant damage to the electric system, grants from FEMA (Federal Emergency Management Agency) could also force the cooperative into becoming taxable.

Rural America faces serious challenges, and few organizations are investing more money and effort into solving these problems than consumer-owned electric co-ops.

Congress inadvertently created this problem, and now co-ops are urging Congress to fix it. Pending bipartisan legislation known as the RURAL Act (H.R. 2147 and S.1032) clarifies that government grants should not jeopardize the tax-exempt status of electric co-ops. The act, introduced by Reps. Terri Sewell (D-Ala.) and Adrian Smith (R-Neb.) and Sens. Rob Portman (R-Ohio) and Tina Smith (D-Minn.), will restore certainty and common sense.

The bipartisan RURAL Act has been co-sponsored by nearly all of Tennessee’s congressional delegation, including Sen. Marsha Blackburn and Reps. John Rose, Phil Roe, Tim Burchett, Scott DesJarlsis, David Kustoff, Chuck Fleischman and Mark Green. We thank them for their support. Their leadership and commitment to helping rural Tennessee will help ensure that co-ops won’t jeopardize their tax-exempt status. Electric co-ops should be able to focus on their core missions of providing affordable and reliable power and enhancing the quality of life in their communities without fear of a federal tax bill.

Time is running out, and lawmakers need to pass legislation this year. Passage of the RURAL Act is essential for America’s rural communities.

As co-ops across the nation prepare to apply for the next round of broadband grant funding for rural America, relief from this taxing problem can’t come soon enough.

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