By Bob Katzen

Municipal light plants, which are local publicly-owned utilities, are trying to run broadband Internet in their communities. To do that, they need to attach fiber optic cables, or Internet lines, to existing utility poles, which are usually owned by private utility companies like electric or telecom companies. Instead of building new expensive poles, the municipal light plant rents space on these existing poles and pays the utility company a fee that is set by the state.

A bill, given initial approval by the House, on a voice vote without a roll call, would prohibit utility companies from compelling municipal light plants to incur unreasonable direct or indirect costs, such as requiring them to produce a surety bond (a type of financial guarantee), that exceeds the fees previously established by the state.

Supporters said the bill, sponsored by Rep. Aaron Saunders (D-Belchertown), would prohibit utility companies from charging light plants a costly and unnecessary fee, beyond the fee for the rental of the space on the poles, that utilities are currently allowed to impose on small municipal broadband providers. The surety bonds that utility companies require municipal light plants to carry are unnecessary and noted the bond functions less as a real safeguard and more as an added expense that ultimately drives up costs for customers.