That brought to mind my recent conversation with Larry Owens, manager of customer services at Silicon Valley Power. The Santa Clara, Calif.-based municipal electric utility built fiber between its subsystems to increase the organization’s reliability. But Silicon Valley Power overbuilt that network, which enables it to lease dark fiber to the school district and service providers via its SVP Fiber entity. The electric company also purchased MetroFi, a free Wi-Fi services company that fell on hard times, to connect new smart energy meters to its offices. Those Wi-Fi assets also are being leveraged to deliver free outdoor Wi-Fi access to anyone within Santa Clara.

The technology and added bandwidth capacity allow teachers to hold virtual field trips and will eventually allow students who are unable to attend school the opportunity to join their classrooms via a home computer, Silicon Valley Power said. Download speeds have made classrooms more efficient, the utility said. "Before the fiber network, the download process was very slow and sometimes wouldn't work at all when my class tried to use streaming video to add to our lessons," said Jennifer Rodriguez, who teaches a fourth- and fifth- grade combo class at Katherine Hughes Elementary School. "Now I can utilize instructional videos off the web and stream them quickly, making the lesson more interesting and the learning more fun for my students."

We've been raving about Chattanooga' FTTH network and smart-grid for quite some time now, but others are just learning about it. Chattanooga's Electric Power Board serves some 170,000 households and businesses across 600 sq miles. Though we have mostly focused on the triple-play benefits of the network

Chattanooga had been named one of the 2011 Top 21 Intelligent Communities of the year previously, but more recently made the cut to a Top 7 Intelligent Community. Time will tell if is awarded the Intelligent Community of the year.

Green Tech Media covered the completion of the network pass and activation of electric grid smart switches at the end of 2010.

[A]ll of its 170,000 electricity customers could benefit from the infrastructure. The network will serve as the conduit for 80 billion data points on electricity use per year that could help the utility run more efficiently, reduce outages, and give customers more control over their monthly electricity expenses.

“Chattanooga is the epicenter of energy technology,” said Harold DePriest, president and CEO of EPB. “One of our biggest jobs is to exploit this technology for the benefit of our community.”

With power outages previously taking a $100 million/year bite out of private businesses served by EPB, the new FTTH network will enable a much smarter network that will radically decrease those outages and thereby make businesses more productive. By mid 2012, businesses will see a 40% decrease outage time. Over time, as EPB's grid grows ever "smarter," those losses will likely decrease further while also providing energy users (residential and business) more opportunities to manage their power consumption.

For those who only associate the smart-grid with enabling time-of-use pricing (paying more electricity during periods of high demand), there are other important, if hidden benefits:

EPB contracted with Alcatel-Lucent as its GPON network supplier. "We've designed our network a little bit different, with our control center located where our operations center is," says Wade. "We've designed a series of fiber rings that circle our city, allowing us to have multiple 10 Gig MPLS rings, terminating in 17 communications hubs connected back with our control center."

As far as the cost savings of the smart grid are concerned, users often don't realize that it costs several times more at certain times of day to generate electricity than it does at others, says EPB COO David Wade.

We are ahead of our business plan projections for this time frame. Since our launch last September (2009), we have signed up 18,873 homes to our EPB fiber optics services. That is a 15.45% take rate. Our goal is a 35% take rate, and we believe we will reach that in 2 years. Of our EPB fiber optics customers, 81% are receiving our Fi-Speed internet service. We are still building out fiber optics as well, and our entire 600-square-mile customer service area will have access to these advanced services by the end of the this year (2010).

Reliability is a good economic development tool, he said. One business looking at Chattanooga asked about the cost of a redundant feed. After EPB explained its smart grid plans, the company chose Chattanooga and decided it didn’t need a redundant feed, he said. In talking to businesses, "I can tell you ... that they get it and they get the importance of this level of automation."

Perhaps the most eye-opening benefit is that Ponca City offers all of its 26,000 citizens free WiFi service. The city uses its fiber network to sell broadband services to businesses (one has requested 300 mbps service) and those sales pay for the free WiFi, Baird said. The network is basically support-free, said Baird, adding that he gets one or two calls per week. And the free WiFi is "a huge economic development draw," he said.

Green Tech Grid asks, "Are Munis and Co-Ops Leading Smart Grid?" And the rest of the article says, "YES." This should come as no surprise for readers of this site. The dynamics, and even players, in smart-grid are very similar to those of community networks. There are essentially two approaches to smart-grid: that of the investor-owned utilities that see smart-grid investments as an opportunity to raise rates, and that of munis and coops who see an opportunity to cut costs and better serve their ratepayers.

In Leesburg's case, they knew that just an advanced meter deployment would cut their cost. "We told our commission we're not going to increase our rates because we're rolling this out," said Paul Kalv, Electric Director of Leesburg Power. "And we know we'll be reducing the customer charge to share those savings." So far the city has saved about $1 million. Kalv talks a lot about his customers. When one guy complained about his smart meter, Kalv personally went over to his house to check it out. It is that sort of on-the-ground interaction that is simply not possible for the CEO of investor-owned utilities, like Florida Power & Light Company, where Kalv worked for 22 years.

I raise this issue to note that the article discusses Leesburg and Lake County, Florida, without mentioning their investments in broadband. But when Leesburg applied for the Google Gigabit project, they noted their fiber-optic assets.

Jackson Energy Authority in Tennessee, long the largest community fiber network in the US, is investing in greater smart-grid capabilities. If you aren't already familiar with this network, an article in Electric Light & Power offers some history:

After receiving local government support and revenue bond issue funding, JEA went ahead with the $54 million project. Now its FTTP network boasts 16,500 cable, 10,843 Internet and 7,000 telephone subscribers. JEA is preparing for the next phase of its FTTP deployment with a smart grid initiative expected to begin in 2010.

The article also makes an important point that many find confusing in understanding the economics of these community fiber networks:

In the early years, JEA focused on subscriber growth as its key performance metric, rather than average revenue per user (ARPU). The capital-intensive cost of acquiring and hooking up new customers, however, can create significant cash flow problems for a network operator, especially when growth substantially exceeds the business plan. JEA had to secure more financing to support its incremental growth. The utility also adjusted its business model to focus instead on ARPU and increasing the number of existing subscribers using two or three services. JEA employed special promotions and service packages that took advantage of the huge bandwidth capabilities of its fiber network to build customer loyalty and overcome the customer churn typical of the industry. Today, JEA’s network has passed more than 30,000 homes, more than 16,000 of which are subscribers.

This is a good example of a community encountering a problem and overcoming it. The article also offers other lessons learned along the way. Moving forward, JEA has decided to work with Tantalus to add smart-grid capabilities to the fiber network.

Only Hong Kong and a few other cities in the world offer such lightning-fast service, and analysts say Chattanooga will be the first in the United States to do so. “This makes Chattanooga — a midsized city in the South — one of the leading cities in the world in its digital capabilities,” said Ron Littlefield, the city’s mayor.

The city hopes this will give it a competitive advantage; on the new website promoting the service, the city's Electric Power Board pitches its country-leading broadband as "a test bed for next generation technology," as "the ultimate tool for entrepreneurs," and a place where "bandwidth is no problem." The consistent theme: you should move to Chattanooga.

EPB says that their 100 Mbps service is now costing $140 a month and the 1 Gbps service will cost $350 a month.

It’s a great day for Opelika. It’s a great day for our future. It’s a terrible day for Charter,”

Jack Mazzola claims to be a member of Concerned Citizens of Opelika and has become a de facto spokesman in the local press.  He claims he is “30 years old and have been a resident of Opelika for almost two years.” During that time, he evidently forgot to update his active Facebook page, which lists his current city of residence as Atlanta, Georgia.  Suspicious readers of the local newspaper did some research of their own and claim Mr. Mazzola has no history of real estate or motor vehicle taxes paid to Lee County, which includes Opelika.

“Shall the City of Opelika, Alabama, be authorized to acquire, establish, purchase, construct, maintain, lease and operate a cable television system for the purpose of furnishing cable service to subscribers?” That’s what the ballot will read in Opelika on Aug. 10. 
And the answer: absolutely yes.