Moving recovery of certain expenses from the reconcilable rate to be charged to the users of the broadband facilities
If enacted, HB4665 will amend existing regulations concerning the cost recovery mechanism for broadband services provided by electric utilities. It will allow these utilities to recover costs associated with the development and operation of their broadband infrastructure through a reconcilable rate charge to users, thereby streamlining processes that currently hinder broadband service expansion. The implications of this could result in more efficient deployment of broadband in areas lacking service and could potentially reduce the disparity in internet access afforded to different demographic groups, especially targeting low-income households and the elderly.
House Bill 4665 focuses on the expansion of middle-mile fiber broadband infrastructure in West Virginia. The bill aims to eliminate surcharges associated with the Middle-Mile Fiber Broadband Infrastructure Expansion Program, which is crucial for enhancing internet access, particularly in underserved rural areas. The legislative findings assert that access to broadband services is essential for economic development, education, healthcare, and public safety, thereby improving the quality of life for citizens. The bill emphasizes the role of electric utilities in constructing middle-mile fiber assets, leveraging existing infrastructure to facilitate broader broadband coverage.
The sentiment surrounding HB4665 is mixed among stakeholders. Proponents argue that the removal of surcharges will expedite broadband expansion and support economic opportunities in rural communities. They highlight that reliable broadband access is a critical utility equivalent to water and electricity, necessary for modern living. Critics, however, may raise concerns about potential costs to consumers and the balancing act of utility regulation with equitable access to broadband services. Overall, discussions indicate a recognition of the necessity for improving broadband infrastructure while considering the economic implications.
Notable points of contention include the balance between utility regulation and the need for broader access to essential broadband services. Some stakeholders may express concerns about how eliminating cost recovery surcharges will impact overall service pricing for consumers and whether it ensures fair competition among broadband providers. Additionally, there may be hesitation regarding the operational control electric utilities will have over middle-mile broadband projects, particularly relating to their management and oversight by the Public Service Commission.