infrastructure. infrastructure. infrastructure

Click here to load reader

Post on 01-Feb-2016

55 views

Category:

Documents

0 download

Embed Size (px)

DESCRIPTION

2009 APPA National Conference Broadband: Meeting National & Local Opportunities and Customer Needs June 16, 2009 Terry Huval Lafayette Utilities System Lafayette, Louisiana. America has a unique opportunity to “Re-invent Itself” - PowerPoint PPT Presentation

TRANSCRIPT

  • 2009 APPA National Conference Broadband:Meeting National & Local Opportunities and Customer Needs

    June 16, 2009

    Terry HuvalLafayette Utilities SystemLafayette, Louisiana

  • Infrastructure. Infrastructure. Infrastructure.America has a unique opportunity to Re-invent ItselfCommunities can respond as they did when they built their own electric utility systemsStimulus dollars can helpBut, community vision and entrepreneurial spirit are more importantBroadband can be an important key for the future of your communityand your utility

  • CommunitiesIts where it all startsWe want our communities to be vibrant and healthyEconomic Development is a very competitive effortHistorical Highways of CommerceRiversRailroadsElectricityInterstate HighwaysBroadbandThe Future Highway for Commerce and Education

  • Envision the Community of TomorrowYour UtilityLiterally the Energy Feedstock for your communityWhat does the future hold for electricity?Climate ChangeRenewable Electricity StandardsYour customers already want more real time interaction with youTo pay bills online or through the phoneCommunicate with you on their scheduleThey want real time information about their service with youThey expect you to know when their lights are out (and to let them know when their power will be restored)They want products and features that save them money and protect the environment

  • Envision the Community of TomorrowThe Future of Commerce - BroadbandThe U.S. does not even rank in the top 10 nations in broadband deploymentJapan, Korea, Canada, European nations are ahead of usOffering 100 Mbps as a standard feature, moving to 1 GbpsFiber to the Home and Business is the most future-proof platformIt is also affordable, proven and scalableStatus of Fiber-to-the-Home (and Business) Deployments in the U.S.?Available to 3 million households & businessesOnly 100 million to go! The Future for Your Utility and Your Community?Implementing community-wide fiber connectivity and use it to provide advanced utility services

  • I want itwhen I want it!Cell Phone, Internet, BlackberrysInstantaneous Access to Information Customers are demanding more immediate access to informationThey want more personalized treatmentEnter: A New Generation of Expectations

  • Opportunity: Public Power is Well-PositionedThe Future of Commerce BroadbandCustomer-Focused and Community ConsciousMotivated to Help Customers Manage CostsLess RuralCan Bundle New ServicesTelecommunications is Tomorrows Highway for CommerceSystem AutomationBut your community has to trust you

  • Lafayettes StoryLafayettes vision is far beyond just providing basic TV and Phone services Just as important as Lafayette Utilities System (LUS) creation by a vote of the people in 1896Lafayette is an oil and gas based community is very conservative, but has always had a wildcatter entrepreneurial edge

  • Community Benefits of FiberCommunities with a fiber-based infrastructure have a distinct edge in bringing in new businessesA Canadian Call Center has created over 600 new jobsOthers are watching as LUS Fiber becomes a realityLafayette, Louisiana (2008)Named one of the Top 10 Places in the South for the Creative ClassRanks 14th among Americas Best-Performing Cities 2008: Where Americas Jobs Are Created and Sustained - Milken InstituteBoth cited the Lafayette Fiber to the Home initiativeCreate new Economic Development opportunitiesProviding high-tech opportunities for our kids to return homeNew Educational Experiences for todays students

  • Construction PlanHead end construction began in February 2008Electrical substations were designated to serve as Hubs for the fiber system Field construction begin in March 2008Fiber placed on:Existing poles (60%)Underground (40%)Using boring and hand digging

  • Infrastructure LayoutSubstations (14)

  • InternetPhoneCable

  • Business Plan and PricingBonds issued in June, 2007 - $110.4 million25 yearsIncludes Working Capital60,000 homes and businesses in LafayetteAssumes 50% take rate (as compared to 70% customer interest)Business plan is viable with 23% take rateLUS Fiber pricing structure is simple and straightforward with all discounts applied to individual service offeringsMeeting the (on average) 20% discount of standard competitor pricingIncluding an $85 Triple Play and addressing the Digital DivideWorking hard to keep the trust of our community

  • VIP Bundles Providing customers the whole package

  • Residential VIP Bundles (Video Internet Phone)VIP $84.85* Includes:3-Way CallingCall WaitingAnonymous Call Rejection 5 per minute long distance (Continental U.S.)International long distance with 5 per minute for many countries in Europe and the Americas

    Expanded Basic Video (more than 80 channels)$39.95

    10 Mbps Internet (Download AND Upload)$28.95

    Phone Service*$15.95

    VIP Total (Plus Applicable Fees and Taxes required by all providers)$84.85

  • Residential VIP Bundles (Video Internet Phone)VIP Silver $137.21** Includes:Automatic CallbackAuto RecallCall ForwardingDo Not DisturbIntercomOutgoing Call BlockingSelective Call RejectionSelective Call AcceptanceSpeed DialingCaller IDVoicemail 3-Way CallingCall WaitingCall Waiting IDAnonymous Call Rejection 5 per minute long distance (Continental U.S.)International long distance with 5 per minute for many countries in Europe and the Americas

    Digital Plus Video (over 250 channels including High Def) $63.31

    30 Mbps Internet (Download AND Upload)$44.95

    Phone Service w/Premium Phone Features Package**$28.95

    VIP Silver Total (Plus Applicable Fees and Taxes required by all providers)$137.21

  • Residential VIP Bundles (Video Internet Phone)VIP Gold $199.99*** Includes:Automatic CallbackAuto RecallCall ForwardingDo Not DisturbIntercomOutgoing Call BlockingSelective Call RejectionSelective Call AcceptanceSpeed DialingCaller IDVoicemail 3-Way CallingCall WaitingCall Waiting IDAnonymous Call Rejection 5 per minute long distance (Continental U.S.)International long distance with 5 per minute for many countries in Europe and the Americas

    Digital Plus Video (over 250 channels including High Def) AND Premium Movie Suites (40+ channels including HD)$98.09

    50 Mbps Internet (Download AND Upload)$57.95

    Phone Service w/Premium Phone Features PackageAND Unlimited Long Distance***$43.95

    VIP Gold Total (Plus Applicable Fees and Taxes$199.99

  • BusinessBusiness Services 10 Mbps (Download AND Upload)$ 64.95 50 Mbps (Download AND Upload)$119.95100 Mbps (Download AND Upload)$199.95Will develop customized solutions for business telephone and video

  • Notable Features

    100 Mbps Peer-to-PeerIncluded with every LUS Fiber internet productOpens new doors for citizens and businesses TV Web PortalBasic Internet access w/o a computer (remember the $85 Triple Play)Included with Digital Basic Video package Digital Basic package ($51.44) plus basic phone ($15.95) = $67.39An Even Better Arrangement then we promised

  • Community Vision:

    Virtual Reality TeleconferencingReducing trips for meetingsDistance LearningBetter traffic monitoring and smart signalizationReducing traffic congestionProviding for better law enforcement

  • New Economic Development OpportunitiesCommunities with a fiber-based infrastructure will have a distinct edge in bringing in new businesses

    Fiber communities have already seen an enhancement in Business Development and Retention

    Creating high-tech opportunities for our kids return home

  • Back to the Topic: Benefits of Broadband Connectivity to Basic Utility Services

  • Time of Use Metering and BillingTEST:What is the difference in fuel cost for an Electric kwh generated at 4 pm on a hot summer day compared to 4 am on that same day?4 pm 15 -18 per kwh or MORE4 am 4 - 6 cents per kwh

  • Basic Fundamentals of the Smart GridReal-Time Customer MeteringLetting customers know on a when they want to know basis as to their current charges in real timeConnect/Disconnect electric service remotely

    Uh, how close can I GUESS this meter reading?

  • Basic Fundamentals of the Smart GridSo, why do I have to call you to tell you my lights are out? Pro-active Outage ManagementImmediate knowledge of customer outagesWith automated updatesRemote control of the entire utility systemSmart Appliances

  • Basic Business Case for LUS Smart GridEstimated Capital Costs - $22 million (about $200 per electric and water meter)New Annual O&M - $100,000Expected Financial Benefits are a reduction in:Meter Reading FTEs from 22 to 6Unbilled electric and water lossesCollections write-offsField labor for cut-on and cut-offsOff Cycle readsIncreased generation, transmission and distribution capacityCash Flow (a one-time feature of about $1.5 million)Total About $3.3 million per year (plus other quality benefits)Payback About 7 years (15 to 20 year asset)We will need additional funds to support this (Bond financing, Stimulus funding)

  • Public Power happened because of a VisionTo bring the new technology of Electricity to their communitiesTo bring significant value in terms of price competitiveness, customer service, reliability, Payments in lieu of taxes to their communitiesTo be on the front edge of new technologies and new approaches to the businessWe suggest that Smart Grid is the next step

  • Visions From the PastThe citizens of Lafayette have put themselves on record as being unequivocally in favor of progress and improved methods in matters that concern their well being and Lafayette has served a formal notice to the outside world that hereafter it proposes to occupy a position in the front rank of up-to-date towns on the American continent.In common with the rest, The Advertiser is highly elated over the new order of things in course of development for Lafayette.The Advertiser predicts that with the advent of waterworks and electric lights Lafayette is going to begin making history. Watch us!-Lafayette Daily Advertiser March 28, 1896

  • Visions For the FutureIn the years ahead, progress in Lafayette and around the world will be via the Information Highway. Becoming a leader in telecommunications will position Lafayette for powerful economic growth.The movement of information will be as much a focus of business and industry - or even more so - than the movement of cargo on today's air, rail and highway transportation infrastructure.The availability of advanced, affordable telecommunications services will be a priority of businesses looking for places to locate or expand operations. The fiber-to-the-home plan will draw them to Lafayette.

    -Lafayette Daily Advertiser, January 29, 2009

  • Visions For the Future (cont.)That will mean more good-paying jobs and a better quality of life for our people. Lafayette gained strong, favorable national attention simply for proposing the Fiber for the Future program. It was immediately seen by national publications as a visionary, pioneering step toward a place of leadership in the global economy.While generating revenue is essential to paying off the bonds and keeping up with constantly changing technology, revenue is not the basic goal.Competition will result in better rates, but as desirable as that is, it is still not the focal point of the administration vision. The vision is one of technological leadership that will result in explosive economic growth.It is an exciting vision. We look forward eagerly to its fulfillment.

  • Thank youwww.LUSFiber.com