Approaches to Broadband-Based Economic Development at the broadband conference 2018
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The document discusses Mille Lacs Energy Cooperative's (MLEC) approach to using broadband internet access to support economic development in its rural service area. MLEC has been offering satellite and fixed wireless internet for over 15 years and received grants to expand fiber internet access. Broadband is seen as important for quality of life through telemedicine and education, and for economic development by attracting businesses and enabling home-based work. MLEC views broadband as a way to diversify revenues beyond seasonal electricity sales and provide system benefits like smart grid technologies. The cooperative aims to incrementally expand broadband access to benefit members rather than make grand investments.
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Approaches to Broadband-Based Economic Development at the broadband conference 2018
- 1. Approaches to Broadband Based Economic Development Mille Lacs Energy Cooperative October 2018
- 2. Mille Lacs Energy Cooperative • $26 million per year electric distribution cooperative • 1980 miles of line • Aitkin, Mille Lacs and parts of Crow Wing Counties • 15,215 members • 7.72 services/mile • 10 substations
- 3. Member Make-Up kWh Sales 39% Other 44% Residential 16% Seasonal Members 45% Seasonal 8% Other 47% Residential
- 4. Sales History 185,000,000 190,000,000 195,000,000 200,000,000 205,000,000 210,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Actual Sales Rolling Average 11 Year Avg .55% growth over last 11 years 2007 = 192.403 GWH 2017 = 193.446 GWH The 2014 North American cold wave was an extreme weather event that extended through the late winter months of 2013-2014 winter season and was also part of an unusually cold winter affecting parts of Canada and parts of north-central and upper western United States. The event occurred in early 2014 and was caused by a southward shift of the North Polar Vortex. Record-low temperatures also extended into kWh
- 5. Broadband Experience • Began offering Satellite and fixed wireless internet over 15 years ago • 2016 DEED Grant • Partnership with Consolidate Telephone Company • 800 passings between MLEC office and largest Substation (Spirit Lake) • 400 subscriptions • 2018 Community Connect Grant with 600 passings – awaiting decision • 2018 Aitkin County Grant – 350 passings west of our existing fiber project • Awaiting RUS program roll-out of additional $600 million
- 6. What is the definition of economic development? • Attracting or retaining businesses • (Cannot guarantee X number of new businesses, but can confidently state MLEC will not get many without broadband access) • Attracting and retaining qualified workers • Allowing seasonal members to work from cabin an extra day or two each week or a couple of weeks during the summer • Enabling pre-retirement work options • Enabling home-based businesses
- 7. Why broadband at Mille Lacs Energy Cooperative? 1. Quality of Life • Telemedicine for elderly, educational opportunities 2. Economic Development • Business attraction/expansion, home based businesses, seasonals, increase value of homes 3. Electric System Benefits • Smart Grid technologies (cap banks, voltage regulators, reclosers, pressure and temperature sensors), security cameras, metering reading collection, electric cost-savings including new load management offerings 4. Diversification - • Non-seasonal, non-weather related revenues
- 8. Economic Development •If a tree falls in the forest and there is no-one there to hear it, does it make any noise? •Does/can economic development really exist in today’s economy if there is no broadband?
- 9. Benefits to MLEC • Increased value to members • Electric sales growth • Improved educational options • Improved health cares • System benefits/savings - Increased reliability, shorter outages, improved fault location, less “false” calls, less overtime, reduced insurance premiums, operational efficiencies by managing loads and peaks
- 10. Philosophy • Not swinging for the grand slam • Not even swinging for a home run • MLEC recognizes that every trip to the batters’ box increases the likelihood we will hit a home run or grand slam • Right now we are focusing on hit singles and improving our batting average with the members we have
Editor's Notes
- A 3% yearly increase in costs translates to a 38% cost increase since 2007. $50,000 in expenses in 2007 is $70,000 now. Average residential electric bill in 2007 was $1,087.52 Average residential electric bill in 2017 was $1,496.7 Average residential electric bill is up 27%. Average electrical residential use in 2007 was 12,308 kWh Average residential electric use in 2017 was 12,205 kWh Average residential electric us is down 1%.
- Wikipedia – improvement in the economic, political, and social well-being of its an area and its people. IEDC defines the term as a program, group of policies, or activity that seeks to improve the economic well-being and quality of life for a community, by creating and/or retaining jobs that facilitate growth and provide a stable tax base. Market Business News – the process by which livings standards are improved. Cambridge Dictionary - the process in which an economy grows or changes and becomes more advanced. Typically economic development can be described in terms of objectives. These are most commonly described as the creation of jobs and wealth, and the improvement of quality of life. Economic development is a concerted effort on the part of the responsible governing body in a city or county to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth.