Will broadband users share operational costs?

The “formerly known as” Arrowhead Electric Cooperative recently announced the pricing structure for its broadband and phone services which are thought to be made available later this year. What the “now named” Arrowhead Cooperative hasn’t revealed to prospective customers as yet is whether or not a monthly service connection fee will be charged for fiber optic. A service charge, $43.50 per month, is currently paid by all Arrowhead Cooperative members to cover operational costs for electric service connections.

It has been Arrowhead management’s long-standing contention that all electric customers should pay an equal amount, regardless of their power usage or service plan, to cover operational costs. If the operational costs for broadband, phone and possible TV access are to be included in fiber optic rates, how do they justify why electric operational costs aren’t rolled into per kWh rates. Arrowhead Cooperative’s new broadband and phone service business is purported to become as extensive as its current electric business and is certain to incur similar operational costs.

The same right of ways need to be cleared, poles maintained or replaced, vehicles purchased and serviced, linemen, office support, management, etc. will be required for broadband as is now required for electric services.

Will Arrowhead’s electric customers continue to bear all these operational costs through monthly electric service fees, whether or not they sign up for fiber optic services? For three years prior to receiving federal funds, Arrowhead Electric Cooperative members/owners have already borne the financial burden for the planning, promotion, construction loan interest and additional monthly board of director meetings for countywide fiber optic. Grand Marais Public Utility customers will now be offered fiber optic service without having contributed to these costs.

It seems only fair, in alignment with Arrowhead management’s belief in equally shared operational costs, that all fiber optic customers should pay an equal share of these costs regardless of usage levels or the service plans they opt to receive. If not… perhaps Arrowhead’s management should readjust their thinking caps with regard to the monthly fee they charge for electric service.

Bob LaMettry
Grand Marais