Momentum for bringing fiber optic Internet to Traverse City is building as two local electric companies explore investing in the technology.

Cherryland Electric Cooperative is one of five members of Wolverine Power Cooperative partnering on a joint feasibility study to consider a statewide fiber optic project. Cherryland General Manager Tony Anderson says that in order “to meet ever-increasing federally mandated reliability standards,” Wolverine is planning to install fiber optic cable to its substations statewide over the next several years. The infrastructure upgrade offers Cherryland an opportunity to distribute fiber optic service to its Traverse City members.

“We buy all our power from Wolverine – they own the 16 substations that serve our 35,000 members,” explains Anderson. “Wolverine is committed to upgrading their substations (with fiber optic cable) and increasing their reliability over a period of time. Exactly like we do with electricity, Cherryland could pay some kind of wholesale fee to use that fiber.”

Cherryland and other Wolverine members are working together to study investment costs and revenues for adding fiber optic service to their cooperatives. The group hopes to see if “some sort of partnership or statewide fiber optic project makes sense” to help reduce each member’s individual investment, says Anderson. The study results are expected to be available by the end of the year.

While Wolverine appears committed to forging ahead with fiber optic substations regardless of Cherryland’s interest in accessing the network, Wolverine might install smaller cables or more limited infrastructure if Cherryland doesn’t want to distribute fiber optic service. A smaller-scale deployment could potentially limit the cooperative's options in the future. Anderson says Cherryland’s “dilemma” is balancing the opportunity to extend fiber optic Internet service - plus better outage reporting and notifications through fiber-connected meters - to local neighborhoods and residents against the investment and potential rate increases the project could require.

“Many think it is our duty or obligation to provide fiber to rural areas,” he says, comparing the situation to the post-Depression era when cooperatives were often the only entities willing to bring electricity into rural parts of the country. “Being a cooperative employee for my entire career, it is hard to disagree. It is also hard to disagree with the financial risk. Thus, I am honestly standing at a fork in the road.”

Anderson notes Cherryland's rates are “below Consumers Energy’s for the first time in our history. Ten years ago, we were the high-priced provider and our reliability was poor. Now our reliability is good, and we’re one of the low-cost providers. Do we want to risk that?” But knowing the “magical speed of light cable will eventually be at our doorstep in every part of our service territory” is also an opportunity the cooperative can’t ignore. Accordingly, “we are taking a cautious and calculated look into fiber optic broadband,” says Anderson. “There are many issues to address and questions to answer in the months ahead.”

Traverse Light & Power board members also voted unanimously Tuesday night to approve conceptual support for a “high-speed digital infrastructure project.” The city-owned utility is still evaluating whether to expand and “light” its existing dark fiber network with Internet connectivity that could deliver up to 1-gigabit-per-second speeds to residences and businesses. While board members stated they don't yet have enough analysis to definitively approve adding the fiber optic project to TCL&P’s capital plan, passing a resolution of support will allow the utility to pursue state funding if it decides to proceed.

“It's only conceptual,” explained Grand Traverse County Deputy Director of Planning and Development Jean Derenzy, who also provides economic development services to the city. “(The goal) is to position the city and Light and Power to hopefully get some funding for the fiber optic project if and when the city determines to move forward.” Derenzy said she’ll be going to the city, Grand Traverse County and the Downtown Development Authority (DDA) for similar resolutions of support.

Former Traverse City Mayor Michael Estes spoke at TCL&P’s meeting Tuesday in support of pursuing a fiber optic network for the community. “There is a lot of money at the state level to potentially help you with this project,” Estes told board members. “If we can get some of that money and bring this type of project (here), it will be the biggest economic boost to Traverse City we’ve ever seen.”

Photo credit: Cherryland Electric Cooperative