State Legislative Challenges toCommunity Broadband

Wisconsin Act 278 sets up barriers to entry

David J. Benforado, Executive Director

Municipal Electric Utilities of Wisconsin

(608) 837-2263

dbenforado@meuw.org

2004 APPA National Conference

June 21, 2004

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Intro/Background of Muni Telecom in Wisconsin 1999 first Muni CLECs approved May 1, 2004 – 29 total; four non public

power communities Incumbent-led legislation Senate Bill

272/Assembly Bill 588 marked the 11th and 12th attempts to limit, inhibit or prohibit muni telecom in Wisconsin

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

2003-04 Legislative Session In February 2003, Senate Bill 54/Assembly Bill

110 introduced by Republican sponsors Third attempt at such legislation (99-00; 01-02) The legislation was intended to limit a municipal

cable television system’s financing options Bill passed Senate committee, but not scheduled

for a full Senate vote as (SB 272) follow on legislation would replace it

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

2003-04 Legislative Session – cont’d

Senate Bill 272 introduced on October 9, 2003 Sent to Committee on Transportation and

Information Infrastructure; rather than the Energy and Utilities Committee

Passed Senate on November 13 (23-9) Passed full Assembly on March 9, 2004 (voice

vote) Signed into law on April 16, 2004

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Senate Bill 272 (Wisconsin Act 278)

Three components, four amendmentsCable system financing

non subscriber money not allowed

Ordinance requirements: If a community wishes to create a telecom

ordinance authorizing a telecom utility, they must have a public hearing and open the business plan for 30 days prior to the hearing, and publish notice of the hearing.

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Senate Bill 272 (Wisconsin Act 278) (cont’d)

Total System Long Run Incremental Cost calculations (TSLRIC)

Four amendments: A community is exempt from the provisions of the statute (under certain conditions) if:CLEC granted prior to 11/1/03; AND the

telecom project is subjected to an advisory referendum within the community

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Senate Bill 272 (Wisconsin Act 278) (cont’d)

Community submits request for service to incumbent cable television and telephone providers and are turned down (unable to or refuse to serve area within 9 months)

A community may own and operate a wholesale services network if area is currently served by less than two providers

Your community is currently operating a cable television system (only two in Wisconsin)

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Incumbent tactics/strategies

Capitalized on make up of Legislature; sentiment of “beat up on local gov’t”

“Bipartisan” support for bills Bill was not “outright prohibition,” rather it is “just

to level the playing field.” Business group support Soft pedal Bill written to limit financing methods of

municipal networks

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Our Response

Municipal groups support MEUW on issue (Municipal Telecom Consortium)

Grass roots stories to individual Legislators

Public hearing attendance Editorial boards

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Lessons Learned

Need to increase level of awareness sooner and continually

Reach out to unlikely groups for support Members must be energized and

passionate, which means YOU must be energized and passionate

You will not win the philosophical debate

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Lessons Learned Have sound legal counsel (Anita Gallucci,

Boardman Law Firm) Lean on regional and national support (Jim

Baller, APPA, Fiber to the Home Council) Expect to be outmanned, outgunned, out-

financed, and deceived Don’t be fooled – there is a tremendous

amount of money at stake

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Never, never, never give up

April letter from APPA President Alan Richardson – appeal for help with federal telecom re-write

If we, public power communities do NOT stand up, together, speaking for the consumer, who will?

2004 APPA National ConferenceSeattle, WashingtonJune 21, 2004

Remember…

“The legitimate object of government, is to do for a community of people whatever they need to have done but cannot do, at all, or cannot so well do, for themselves – in their separate and individual capacities.”

--Abraham Lincoln, 1852