| Resource Type | Article |
| Author / Source | La Plata Electric Association |
| Publication Date | November 2023 |
| Location | Colorado (framework applicable nationally) |
| Initiative Type | Partnership, Program |
| Project Complexity | Intermediate |
| Recommended For | Board, Staff |
Estimated reading time: 5 minutes
Why This Matters for Rural Electric Co-ops
This is the counterexample to build-and-own, and it matters because operating a broadband business is not every co-op's strength. LPEA had co-owned a regional fiber company, FastTrack, but concluded it was not equipped to scale fiber-to-the-home service or compete, so La Plata Electric Association (LPEA) sold it to a provider better positioned to do so.
The transferable idea is the board-level strategic frame. LPEA's board set a goal to enable broadband access for all members by 2030 without raising electric rates, and is pursuing it through partnerships and joint grant applications with broadband providers rather than by running a network itself. A co-op can use this to weigh the partner-and-enable model against direct ownership, especially where protecting electric rates is a hard constraint.
Key Takeaways
| › | Enabling broadband through a partner, rather than owning the network, is a valid way to meet a member-access goal. |
| › | A board-level goal with an explicit rate constraint sets the boundaries within which staff can pursue partnerships. |
| › | Divesting a sub-scale broadband asset to a stronger operator can expand fiber faster than continuing to run it. |
| › | A co-op can apply for broadband grants jointly with a provider partner, helping fund buildout without operating the service. |
Implementation Considerations
- Regulatory or Governance Considerations: LPEA's board set the strategic goal and the no-rate-increase constraint first, which framed the sale and the partnership. Co-ops should establish those guardrails before negotiating with providers.
- Staffing or Technology Requirements: Running a competitive fiber-to-the-home business demands scale and expertise the co-op's sub-scale fiber company lacked. Co-ops without that capacity may be better served enabling a partner than operating a network themselves.
Notable Examples
- La Plata Electric Association: Member-owned co-op serving La Plata, Archuleta, and parts of southwest Colorado. Sold its majority stake in FastTrack to pursue broadband for all members by 2030 through partnerships.
- FastTrack Communications: Regional fiber company co-owned by LPEA (about 70 percent) and Empire Electric Association (about 30 percent), sold to Clearnetworx in 2023.
- Clearnetworx: Montrose-based fiber-to-the-premise provider, part of the Vero family of companies, expanding fiber across southwest Colorado.
Estimated reading time: 5 minutes
Related to
Comments
0 comments
Please sign in to leave a comment.