Co-op CEO Addresses Fiber Internet, Power Costs at Member Meeting
by
JOHN DAVIS
United members gathered for an open forum meeting at the co-op’s Meridian office, where CEO Cameron Smallwood fielded questions on topics ranging from the co-op’s internet project to electricity costs and potential power needs for data centers.
Smallwood opened the meeting by emphasizing that the cooperative belongs to its members and that the evening was designed as an opportunity for open discussion.
“This co-op belongs to you, the members,” Smallwood said. “We’re here to answer whatever questions you may have.”
Attendees began the conversation with questions about the future of the cooperative’s fiber internet service. Smallwood provided a detailed update on the project, which began after members overwhelmingly approved the initiative in 2019.
When planning began, about 90 percent of members lacked access to high-speed internet. Today, Smallwood said, roughly 90 percent have access. The cooperative has invested more than $300 million in broadband infrastructure.
Though the cooperative originally planned to use a combination of fiber and wireless, field studies revealed that terrain, trees and other obstacles limited the effectiveness of wireless service.
“We were not satisfied that our members were going to be happy,” Smallwood said. “Too many trees, too many hills.”
After years spent preparing a comprehensive application for a Broadband Equity, Access and Deployment (BEAD) grant to help fund future internet phases, Smallwood said that federal guidance prioritized wireless internet providers over fiber, and that competing providers, including Nextlink and Starlink, received the grants to serve unconnected areas.
Without federal funding, the cooperative has paused plans to extend fiber into some of the most sparsely populated regions—now to be served by grant awardees Nextlink or Starlink—because doing so without grant support would place significant financial strain on the electric utility.
“The investment for us to get to a home in those areas is about $30,000, and we’re charging $60 a month,” Smallwood said. “You see the problem.”
Several members voiced concerns about internet access in underserved areas and questioned whether grant recipients would fulfill their commitments. Cooperative officials said they intend to monitor the rollout closely and advocate for residents if promised service is not delivered.
As the conversation shifted to electricity rates and power supply management, Smallwood reviewed the cooperative’s response to the aftermath of Winter Storm Uri and the bankruptcy of wholesale power supplier Brazos Electric Power Cooperative.
Following emphatic member feedback, the cooperative chose not to participate in retail electric competition and instead continued managing power supply on behalf of members. Smallwood presented historical rate data showing that cooperative rates have remained relatively stable while market prices fluctuated.
“Our goal is stability,” he said. “We believe our members want stability in the rate.”
Members also discussed the cooperative’s community solar program, which officials said saves participating members between $250 and $500 annually. Additional 2 KW and 4 KW subscriptions are expected to become available later this year.
The meeting concluded with a discussion of growing electricity demand from data centers. Smallwood noted that Texas faces challenges in meeting future power needs, but said these types of entities could ultimately help offset costs for members and be required to pay the full cost of infrastructure upgrades.
After nearly two hours of questions and discussion, the evening ended with a prize drawing and a reminder that cooperative leaders remain available to address member concerns.
