PORT TOWNSEND — Jefferson County Public Utility District commissioners have voted 2-0 to accept a $1.8 million state Public Works Board broadband loan awarded in late July.
“I’m uncomfortable that we don’t have enough metrics to see if we can pay this back,” said PUD Commissioner Dan Toepper, who voted to abstain on the issue at the Friday morning special meeting.
Said PUD Commission President Kenneth Collins: “One reason I am 90 percent comfortable is because we are giving access to the internet in places that don’t have it.”
Will O’Donnell, communication director for Jefferson County PUD, said this approval allows the PUD to begin the Port Townsend Business Fiber Project.
“We hope to begin construction after the first of the year, with initial connections in the spring,” he said.
The project is expected to be completed by the end of 2024.
“That’s when we hope to have 225 connections. That’s our goal,” O’Donnell said.
The special meeting was called to allow the PUD to move ahead with the loan as soon as possible, O’Donnell said.
The Business Fiber Project is expected to connect up to 225 of 375 businesses to high-speed internet service with 10-gigabyte upload and download speeds.
The $1.8 million, 15-year state loan requires a $204,000 match.
O’Donnell said when the loan was awarded in July that both the upload and download speeds were “extraordinary” and that the loan was “intriguing” because no ISP in the county could provide those speeds.
The PUD plans to cover the loan’s $135,000 annual cost by getting at least 106 subscribers. Once the project begins, people can begin reserving service through the PUD’s website at jeffpud.org/. The connection fee will be $1,200. Monthly rates haven’t been set yet.
O’Donnell said the loan will cover the construction and the connection fees will cover the loan match. The ongoing costs will be covered by the monthly fees from the anticipated 106 connections.
“Our goal is for the entire fiber buildout to have loans to cover construction, then enough customers for maintenance and operation and any future capital buildout. If we are successful, we will have enough money for future capital projects,” O’Donnell said.
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Reporter Brian Gawley can be reached at [email protected]
