Electric cooperative asking for regulatory flexibility with proposed state legislation

(Dec. 19, 2019) Choptank Electric Cooperative, which began providing power to homes and businesses on Maryland’s Eastern Shore in 1938, is lobbying for state legislation next year to provide broadband services to more than 54,000 member customers in nine counties.
In a recent plea for Eastern Shore customers to contact area legislators to communicate the lack of adequate Internet service in the largely rural region, Choptank CEO Mike Malandro said the Federal Communications Committee is slated to auction off more than $20 billion to support broadband delivery to rural communities next year.
“I’d like to position Choptank to bid on those funds to provide broadband to members faster and more comprehensively than other start-ups,” he said.
In August, the FCC announced that $20.4 billion would be earmarked to establish the Rural Digital Opportunity Fund, which seeks to provide broadband service to roughly 4 million homes and small businesses in rural areas that currently lack access to digital services.
Recognizing the critical need for broadband access in rural areas to foster economic development, create employment opportunities and provide educational advancement, last year the FCC provided $1.48 billion through its Connect America Fund to develop universal service support over the next decade. The action is anticipated to provide improved Internet access to more than 700,000 homes and businesses in 45 states.
Prior to pursuing the FCC funding, Choptank wants to be sure sufficient regulatory flexibility exists to build an economic formula that meets minimum upload and download speeds.

Choptank Electric Cooperative Board of Directors and executive staff.

To that end, Malandro is requesting members to contact their state delegates and senators to lend support to a bill permitting the electric cooperative to be classified as “member regulated,” like more than 80 percent of comparable entities in the U.S.
The change would provide Choptank’s board of directors sole discretion to establish rates and services.
The Choptank board consists of 10 seats, including one for each county on the Eastern Shore and the Ocean Pines District. Board members are elected for three-year terms at the cooperatives annual meeting.
For more information or to support the effort visit https://supportchoptankfiber.com/