Progress continues on Fiber to Home project – Muscatine Journal

MUSCATINE Progress continues on Muscatine Power & Water's Fiber to the Home project. Expected to be completed in 2018, the project will provide faster internet and enhanced cable television services for customers of MP&W's Communications Utility by replacing traditional coaxial cable with fiber optic technology. On Tuesday, Tim Reed, director of utility service delivery, told the Board of Water, Electric, and Communications Trustees that 73,000 feet, or around 15 percent, of the new aerial wiring is in place, with 1,000 aerial drops completed, and 13,500 feet of new underground wiring is in place with 25 drops completed.

Reed said individual activations should begin in the fall.

"I hesitate to put a date on it because there are so many pieces that have to come together," Reed said.

During the meeting, the board authorized General Manager Sal LoBianco to enter into an agreement for competitive local exchange carrier switching services and operational support for the project. LoBianco said a five-year contract is being negotiated with ImOn Communications of Cedar Rapids to provide voice services.

"This will allow us to get into a business relationship with ImOn a little more quickly," LoBianco said.

All three utilities at Muscatine Power & Water continue to outperform the budget.

The Electric Utility was budgeted to post a deficit of $1,008,131 in May, but the actual loss was $467,510. Jerry Gowey, director of finance and administrative services, reported revenue of $7,383,000 in May was $555,000 more than budgeted. From January to May, a loss of $3,419,487 was budgeted, but the actual deficit was $1,676,283 with a cash balance of $46,227,000 and no debt.

The Water Utility was budgeted to post a loss of $27,898 in May, but the actual loss was $18,917. Gowey said May revenue of $527,000 was $6,707 better than budget. For the year to date through May, profit of $28,877 was budgeted, but actual profit of $154,816 has been posted with a cash balance of $461,000 and debt of $5.6 million. Of that, $5.5 million was to the Electric Utility and $100,000 was to Iowa's State Revolving Fund.

A profit of $147,459 was budgeted for the Communications Utility in May, but the actual profit was $210,103. Gowey said May revenue of $1,158,000 was $10,642 better than budget. For the year through May, a profit of $557,879 was budgeted, but actual profit of $918,967 was posted with a cash balance of $881,000 and debt of $9,044,000, all to the Electric Utility.

The board approved changes in its leadership, effective July 1. Board Chair Susan Eversmeyer, co-owner of River Rehabilitation, stepped down as board chair. Vice Chair Doyle Tubandt, president of Kent Corporation, will replace Eversmeyer. Keith Porter, president and CEO of Stanley Foundation, will be the new Vice Chair.

Gowey will continue as the Board Secretary.

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Progress continues on Fiber to Home project - Muscatine Journal