Residents of rural areas in northeastern Louisiana are one step closer to getting broadband internet.
The Louisiana Public Service Commission on Wednesday gave the Northeast Louisiana Power Cooperative of Winnsboro final approval to enter the Internet business.
The committee voted unanimously to approve a $45 million loan request for Volt Broadband, the subsidiary of NELPCO, NELPCO General Manager Jeff Churchwell said in a press release.
“The biggest thing missing in northeast Louisiana is connection with the world,” Churchwell said. “We are delighted to be able to offer this service.”
The nationwide electricity cooperative and its subsidiary will partner with Conexon Connect, an Internet service provider in Kansas City, Missouri, to conduct a two-year rollout of its fiber-based Internet service. Conexon is currently working with power cooperatives to provide broadband services in Colorado, Georgia, Missouri, Mississippi and Florida.
CoBank of Washington, DC, a lender to the country’s electric cooperatives, will provide the loan.
June 2021:NELPCO approves plan to provide broadband services in rural areas
Louisiana Public Services Commissioner Foster Campbell said the committee has been fighting to get high-speed Internet service for rural Louisiana and the Northeast Louisiana Power Co-Op has been working hard on the initiative.
“We put it together and so any member of their co-op can get high-speed internet in their home if they want to,” Campbell said. “It is a good program that they have mapped out. We have looked at it inside and out. Financially I think it will work.”
Luke Piontek of Baton Rouge, attorney for NELPCO, said members of the Winnsboro Cooperative will be able to sign up for the Internet during the two-year construction phase. He said prices will start at $59 per month.
“That was one of the most important things we could do to make sure the service would be affordable for the people,” Campbell said. “I’m really looking forward to it. I’ve worked hard with those people there. They’ve done well.”
Construction of the broadband service is expected to start next month.
“We surveyed our members at the request of Commissioner Campbell and found overwhelming support” for their entry into the Internet business, Churchwell said. A follow-up survey by mail of all 11,500 NELPCO members confirmed their interest, he said.
Campbell said he was initially skeptical and concerned about the proposal because of the impact on co-op electricity rates.
More:Many still don’t have broadband access in Louisiana
“I just want to make sure it worked and it was successful,” Campbell said. “If it wasn’t, when they borrowed this money, it would have to be paid back and they wouldn’t have to go back on all their members and say, ‘We’re going to have to have a rate increase.'”
Campbell said Northeast Louisiana has the cheapest utility rates in the state, and some of the cheapest rates in the country.
“We love the rates there because it helps people and attracts industry, but we need fast internet to complement the really reasonable rate.” he said. “I wanted to make sure this would be a success.”
Campbell said he expects Homer’s Claiborne Electric and Jonesville’s Concordia Electric to be the next cooperatives in Louisiana to offer Internet services.
“I want all the people in Northern Louisiana to be connected,” Campbell said.
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