On May 25, Claiborne Electric’s General Manager & CEO Mark Brown issued an urgent call for Co-op members to contact their area legislators concerning Senate Bill 406.

The bill was originally an effort to grant legislative authority for electric cooperatives to provide broadband internet service. Almost immediately, however, SB 406 was targeted by large telecom companies, and amendments were added to restrict cooperatives so severely that it would be nearly impossible for an electric cooperative to offer internet service in a financially feasible manner.

Although Claiborne Electric’s members stepped up immediately and answered Brown’s call with an outpouring of messages to state legislators, the bill ultimately passed (34-0) with the restrictive amendments included.

“This is a disheartening result,” Brown said. “We had such high hopes for this bill, but the amendments put into place drastically changed the original intent of the bill. What started out as a great thing for our rural friends and neighbors turned into a bill that does more harm than good to the Co-op and its members.”

Electric cooperatives typically serve rural areas where options for true broadband internet service are nonexistent or severely lacking. More than three years ago, Claiborne Electric began the process of trying to join about 150 electric cooperatives across the country filling the rural broadband void with fiber-to-the-home internet projects. These co-ops are providing the fastest, most reliable internet available with no data caps, all at extremely competitive rates. The geographic areas where electric cooperatives are building these projects have largely been ignored by for-profit internet companies.

The current internet situation is eerily similar to electricity in the 1930s. At that time, for-profit electric companies refused to build lines to rural areas because they weren’t profitable, so farmers and ranchers created electric cooperatives to bring electricity to the countryside. To date, the large for-profit internet service providers have ignored rural America, and cooperatives have once again stepped up to provide a critical service to their members. With the amendments added to SB 406, these companies acted to obstruct genuine efforts to bring broadband internet services to rural Louisiana.

The bill, as passed, will severely limit the number of internet customers for electric cooperatives. It prohibits them from offering internet service to a significant portion of their electric members. The bill will eliminate competition and customer choice, even if the co-op could offer better service at a more affordable rate with no data caps. This bill’s amendments also require electric cooperatives to allow large telecom companies to use the cooperative’s infrastructure (physical materials owned by the co-op’s members) to deliver internet service using the cooperative’s poles and other physical plant.

If signed into law, SB 406 makes Louisiana the most restricted state in the nation where cooperative-provided broadband is concerned. This bill is anti-competitive, anti-free market, and will essentially eliminate any chance of cooperatives providing affordable, reliable, true broadband internet service to rural Louisiana.

Although the bill is a set-back for electric cooperatives wanting to provide this critical service, Brown said he still has hope for the future of cooperatives and rural broadband.

“This bill has essentially derailed our efforts to bring a Fiber-to-the-Home solution to our members,” Brown said. “However, we want our members to know we are still fighting this outcome. We hope to convince the governor to veto the bill in its present form.”

Brown said he believes SB 406 bill may violate certain state and federal laws related to the restraint of trade by preventing the Cooperative from delivering the service to all its members. He said it also likely violates the provisions of the Federal Telecommunications Act of 1996 – a bill that was designed to enhance competition for telecommunications services across the nation.

Please follow this link to show your support in encouraging Governor Edwards to veto this bill: https://www.alec.coop/legislation-regulatory/legislative-updates/

Claiborne Electric’s General Manager & CEO Mark Brown issued an urgent call today for the help of the Co-op’s 17,000 members in contacting their area legislators concerning Senate Bill 406, which is scheduled to be heard on the House floor on Wednesday, May 27.

The bill, authored by Senator Beth Mizell, was originally an effort to grant legislative authority for electric cooperatives to provide broadband internet service. Electric cooperatives typically serve rural areas where options for true broadband internet service are nonexistent or severely lacking. About 150 electric cooperatives in dozens of states are now filling that void with fiber-to-the-home internet services. These co-ops are providing the fastest, most reliable internet available to areas that have largely been ignored by for-profit internet companies.

Almost immediately, SB 406 was targeted by large internet providers in the state and amendments were added to restrict the ability of electric co-ops to offer this service. The amendments have made the bill so restrictive that it almost completely eliminates the possibility of an electric cooperative offering internet service in a financially feasible manner.

Provisions in the current amendments include allowing cooperatives to only provide service to “unserved” areas of their service territory. There are several issues with this provision. This would not allow the electric cooperative to compete with other broadband providers in an area where service is available. Even if the co-op can offer better service at a more affordable rate with no data caps, they would not be allowed to provide customers that choice. This provision would mean that Claiborne Electric would not even be permitted to provide an internet option to most of the members they already provide electric service to. Also, the term “unserved” applies by census blocks, and if one single resident in that census block has available broadband service, the entire block is deemed “served.” Finally, many current providers will likely argue that broadband internet is available nearly everywhere, although customers reliant on satellite or cell-based service know the problems with cost, unreliable service, speeds which don’t line up with what is advertised, data caps, and speed throttling on “unlimited” plans.

Another provision that has been added to the bill would require electric cooperatives to allow large telecom companies to use the cooperative’s infrastructure – the physical materials that are owned by the co-op’s members – to deliver internet service using the cooperative’s poles and other physical plant. The co-op would be restricted to an extremely limited number of internet customers, but would be forced to allow the big for-profit companies to use co-op infrastructure in delivering internet service.

These amendments are anti-competitive, anti-free market provisions that will keep our local communities from having a choice for affordable, reliable, true broadband internet service. The amendments would make Louisiana the most restricted state in the nation where cooperative-provided broadband is concerned.

In discussing the bill with legislators across the state, misinformation has come to light about the origin of electric cooperatives. Many members of the Louisiana Senate and House of Representatives are being told that electric cooperatives are government-created, taxpayer funded organizations, and these provisions would only be fair. This is simply untrue. Electric Cooperatives are private electric utilities owned by the members they serve. These co-ops were not created by government. The government created a loan program to electrify rural America more than 80 years ago. The government offered that program to the investor-owned utilities, but they rejected the offer to serve these unprofitable areas. Farmers and ranchers then joined together to form rural electric cooperatives to meet their need for electrification in those areas. They signed up for the loans, built their infrastructure, and have re-paid those loans with interest. That program has never been a taxpayer burden.

The situation today is eerily similar. The for-profit internet service providers have ignored rural America. The cooperatives have once again stepped up to the challenge of providing this critical service to their members. For-profit companies that have ignored our market for decades are now coming forward to act as obstructionists with clearly anti-competitive amendments to a bill that promises to help bring broadband internet services to rural Louisiana.

Claiborne Electric appreciates Senator Mizell’s efforts, and agrees with her that broadband is essential to healthcare, business, and education. Electric cooperatives have always been committed to rural America. The bill, with its current amendments, will essentially eliminate any chance of cooperatives entering the internet business.

Please reach out to your area members of the Louisiana House of Representatives (https://house.louisiana.gov/H_Reps/H_Reps_ByParish) and ask them to support this bill only if electric cooperatives are allowed to offer this service across their entire membership. Customers deserve a choice in their internet service provider. Help us stop these anti-competitive, protectionist, for-profit companies from stifling progress in your communities.

During the COVID-19 pandemic, Claiborne Electric wants its members to understand how we are taking care of our employees, our members, and our Cooperative during this difficult time.

As COVID-19 started to spread across Louisiana, our management team developed a work plan specific to this crisis. That plan was immediately put into action to decrease the chance of contracting or spreading a virus.

During the pandemic, our offices are closed to the public. Employees are still serving our membership full-time, but lobby areas are closed for the safety of employees and members. We are pleased to serve members in the drive-through, Kiosks, by telephone, online, and through our SmartHub app.

The Louisiana Public Service Commission has issued an order to utilities during this time to suspend disconnections due to non-pay. As with all LSPC orders, Claiborne Electric will gladly comply. We will not disconnect members who do not pay their bills while the order is in effect. However, there has been confusion about this matter, and we want our members to fully understand this issue. The order does not grant free electricity. All electricity being used will have to be paid for. If it is possible for members to pay bills during this time to keep accounts current, members are urged to do so. Claiborne Electric General Manager and CEO Mark Brown said keeping accounts current, if possible, will avoid hardship down the road.

“We don’t want our members to have an unmanageable amount owed when this mandate lifts,” Brown said. “If members are facing a financial hardship due to COVID-19, they can contact us about possible payment arrangements.”

Brown also said that members should be mindful of additional electric usage while being home more during the pandemic. The Co-op’s free SmartHub app has many convenient features, including the ability to help members monitor and manage electric usage. SmartHub can be downloaded on any Apple or Android device.

If any member has questions or concerns about their account, Member Service Representatives are available in Farmerville at 318-368-3011 or in Homer at 318-927-3504.