MARCH 2021
3
WFEC Renewables Report
3
A supplement to the Oklahoma Living
4
Three ways to save in the kitchen
Lig ght Post
the
Air Fryer Potato Wedges
PUBLISHED FOR MEMBERS OF KIAMICHI ELECTRIC COOPERATIVE
ceo’s report
BRETT ORME
C HI E F E X E C U T I V E O F F I C E R
KEC Conducts a Fiber Feasibility Study As a cooperative, we are interested in improving the quality of life for our members and communities. Over the last couple of years, KEC has researched and evaluated broadband needs and existing services in and around our area to determine if KEC’s investment in a fiber-to-the-home project would make sense. We understand there is a desire from our members to have better internet service. There are many factors that must be considered before any financial risk is taken that could put the electric system in jeopardy. The KEC staff worked with a third-party consultant to conduct a feasibility study for providing fiber to all KEC members. The results of the study were reviewed by the board and a determination has been made not to move forward with a fiber project at this time. The feasibility of fiber-tothe-home does deserve continued research and consideration. KEC will continue to monitor ongoing changes, developments, grants and reevaluate, as necessary.
KEY REASONS FOR THIS DECISION: • The estimated cost of making available fiber service to every member was more than $80 million. To put this in perspective KEC’s total assets are currently around $100 million. • The study included an evaluation of potential government grant funding of up to $30 million, but there is no guarantee of grant funds and this would still leave KEC with over $50 million in financial responsibility in the best-case scenario. • Even if KEC received grant funding, the cooperative would still have to borrow money to complete the project. Based on the feasibility study estimates, this would cause KEC to double the cooperative’s debt in a relatively short period of time. • Existing internet service providers in the area may prevent some members from needing or choosing to utilize fiber service offered by KEC, which would negatively impact the estimates on project success and the cooperative’s return on investment.
• If the feasibility study estimates on overall cost, project success (take rate) or grant funding were inaccurate, it could negatively impact electric rates for all KEC members. We know members depend on safe, reliable and affordable electricity. Based on the results of the feasibility study, the KEC board did not feel it was in the best interest of the members or cooperative overall to move forward with a fiber project at this time. KEC will continue to monitor options and opportunities that might change the feasibility of providing fiber service to members in the future. At Kiamichi Electric Cooperative we are always focused on doing what’s right for our member-owners while working to ensure the long-term sustainability of your cooperative. Your cooperative keeps a close eye on new developing technologies including fiber-tothe-home. KEC staff and board of trustees are focused on our responsibility to provide safe, reliable, affordable electricity in a financially responsible manner to you – our members.
