Business

Westfield G+E is reaching out to the hilltowns

DAN HOWARD

WESTFIELD – It’s hard to go to a meeting in the hilltowns these days without someone mentioning Westfield Gas & Electric, who many believe could be a key to solving long-delayed access to hi-speed internet in their towns.
WG+E General Manager Dan Howard said most of the hilltowns in the WiredWest consortium had to become municipal lighting plants (MLPs) as they pursued broadband access through the Massachusetts Broadband Institute (MBI) and WiredWest.
“We’ve been an MLP since our inception in the 1890’s. Many of these towns have been following Whip City Fiber. They approached us. We answered their questions. They’ve contacted us because of our ownership in Westfield. A lot of them want to own their own system,” Howard said.
What has held up the process in the hilltowns was a falling out in December of 2015 between MBI and WiredWest. Since that time, MBI has been holding on to approximately $40 million in funds allocated for engineering and design costs to help underserved and unserved towns obtain broadband connectivity.
According to an article from the Berkshire Eagle, reprinted on the WiredWest website, WiredWest now proposes to help towns operate their eventual broadband networks. Previously, before the falling out with MBI, it sought to build and own those networks on a cooperative basis with member towns, by acting as a municipal light plant under state law.
At the meeting of stakeholders and MBI in late February described in the article, the towns demanded that MBI release the funds for design and engineering. Soon afterwards, MBI agreed.
Howard said that MBI sent out a request for proposal (RFP) to providers in late 2016. MBI asked what their model was, and how much penetration rate they could have, Howard said.
“Out of all those respondents, we were unique, because we wanted the towns to have ownership, being MLPs. It’s a culture – to help others when you can,” he said.
Senator Adam G. Hinds (D-Pittsfield) spoke about WG+E during a visit to Huntington on Monday, when he was speaking about the towns efforts to get broadband. Hinds said a lot of towns are eager to work with WG+E as one MLP to another MLP.
“WG+E coming on to the scene is a bit of a game-changer, a very hopeful sign. Makes it a lot simpler to deal MLP to MLP,” Hinds said. He said it’s a positive development for them because of the lack of experience that a lot of small towns have.
In reality, WG+E is not looking to own other towns’ infrastructures, but to assist in design, building and operating their systems, according to Howard.
“There are fixed costs we’re already incurring, such as engineering, customer service, help desks, and technical supports, and we have a system in place. We can aggregate those costs. Some towns may want to operate the system themselves, or may want someone else like WG+E or others to operate it. It’s a win-win for everybody,” Howard explained.
As to how this outreach would impact the Whip City Fiber buildout in Westfield, Howard said not at all. He wanted to make two things clear. No Westfield funding would be used in any of these towns. It would all remain in Westfield.
Secondly, it wouldn’t impact the plans for Whip City Fiber; slow it down or speed it up. Howard said the recent $15 million bond approval by the Westfield City Council coincides with a two-year build out of Whip City Fiber. He said they are set to connect 70% to 75% of the city over the next two years, and the funding needed was the Bond.
Howard said Westfield’s design and engineering is ready to go, and they have RFPs in place to contract a lot of the work out. “You have to get outside help for every buildout,” Howard said.
Howard said the Westfield design phase was done with help from outside professional people. “We’ve developed good relationships with many different firms. That’s what the hilltowns are looking for. Rather than have them look for a firm, we’ve already developed a relationship. Those towns would purchase those services themselves,” he said. He also said that WG+E would be a good facilitator for the towns, as each seeks to develop its own relationships.
Howard said that WG+E is in the position to assist the hilltowns in their efforts “without taking anything away from the City of Westfield whatsoever.”
“I think it’s an exciting time for them. I think it’s an exciting time for Westfield, too,” Howard said.
WG+E already has an agreement with the town of Otis, according to Howard, who said a lot of the town’s design and engineering has already been completed. He said other towns are looking to see how Otis progresses. He said that town is moving forward, and doing a good job.
Another town that has an interest in working with WG+E is Blandford. Select Board chair Adam Dolby said he is excited about the possibilities.
“We have all those positive developments. We’re finally moving,” Dolby said. In particular he pointed to the money being released by MBI for engineering services, which will allow the town to start the engineering process. He also said he was encouraged by WiredWest’s outreach to WG+E.
“The town will end up with its own contract with Westfield Gas & Electric, with the assistance of WiredWest,” Dolby said.
He said right now they are looking to start the work of pole surveys and engineering, and are waiting for “validation from the Bond folks, to say that the financing is o.k.”
Dolby said he hopes to get a green light letter from the Bond Counsel in the next 3 months to 6 months.
As to working with WG+E, Dolby said, “If I understand the new WiredWest model correctly, WG+E will connect to the internet. The potential is they should be working with all of the WiredWest towns,” he said.
Dolby said he likes the idea of working with an MLP that has been in business for 150 years, and one that is accessible, that he can go talk to. He also sees the value of being in a regional association of MLPs with WiredWest.
“For us, it’s an absolute lifeline for the hilltowns. I work from home, using hi-speed Verizon. We have a great area that could potentially be attractive to a lot of people. I’m super-excited,” Dolby said.
Access to broadband is one of two goals the town of Blandford had in mind when joining the Community Compact and the Hilltown Collaborative, which organized out of it last year. The other goal was a Blandford exit from the Massachusetts Turnpike. While that idea is not dead, but “breathing on its own,” he said there has not been a lot of movement.
“I expect to be streaming Netflix into my home a lot earlier. I’ll be riding the information highway before taking the turnpike to Blandford,” Dolby said.

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