Traverse City Light and Power approves fiber optic internet

GRAND TRAVERSE COUNTY, Mich., (WPBN/WGTU) -- A project to bring faster internet to thousands of northern Michigan customers took a step forward Tuesday night.

During a Traverse City Light and Power (TCLP) Board meeting, members decided to finance the first phase of a fiber optic internet project.

Members of the public expressed concerns over a public utility getting involved with something they think should be for private companies.

But others think the investment in fiber optic internet could be good for bringing tech businesses to Traverse City.

"Why is the government in competition with private companies?," said Barb Willing, concerned about fiber internet project. "That should be the major question that you're asking."

People stood at the podium Tuesday night during a public hearing to express concerns about the Traverse City Light and Power Board moving forward with a fiber internet project.

Concerns ranged from a public utility competing with private companies to what will happen if not enough Light and Power customers subscribe to fiber optic internet.

"If they aren't able to recover that investment what's going to happen is they're going to have to find some way to recover that money," said Gerald Degrazia, a concerned citizen about fiber optic internet. "Really the only way they can recover that money is to raise the rates for the electric customers."

TCLP executive director Tim Arends believes they will be able to pay back the nearly $3.5 million loan for phase one of the project.

"Even if the numbers do not come out to be what's projected the Fiber fund from the businesses that we currently operate and have been operating provide enough revenue to pay back the electric utility fund over a period," said Arends.

Others like Lowell Gruman, who has invested in high tech businesses like Atlas Space Operations and 20Fathoms said investing in high-speed fiber optic internet is a no brainer.

“High-speed fiber is absolutely the way to go at this moment. We have no time to lose," said Gruman, principal at Boomerang Catapult LLC. "Other cities and communities are ahead of us. We’ve got to catch up quickly. We’ve got to keep paddling quickly.”

A representative from Charter Spectrum was also at the meeting and said they already provide high-speed fiber optic internet to residents and businesses in Traverse City.

Phase one is expected to serve about 2,200 customers and will include Downtown Traverse City as well as Eighth Street and Woodmere.

If Traverse City Light and Power decides to expand the service for all customers it could cost $16 million.