JPUD Revises Fiber Line Extension Rates and Financing Policy

The decision, effective June 2, 2026, follows a review of construction costs, administrative requirements, and the PUDs commitment to completing grant-funded broadband expansion projects on schedule and within budget.

Under the original policy, customers could participate in a fixed fee program that assessed a construction fee of either $750 for residential fiber within grant boundaries or $1,200 for business fiber within the Port Townsend Business District. Payment of the fee could be made as a one-time payment or spread across 36 months with broadband billing. To date, more than half of the cost-share fee recipients have defaulted on the payment terms.

“The fundamental point is that a flat fee does not reflect the wide range of construction costs we see in the field,” said General Manager Joe Wilson. “In some cases, the fee may recover more than the actual cost, while in others it may recover only a fraction of the expense,” adding that broadband construction is not one-size-fits-all, and the goal is to move toward a system that more accurately reflects the actual cost of providing service in-step with the utility’s electric, water, and wastewater policies.

Wilson noted that the original cost-share structure, which was established years before, has not kept pace with increases in labor, materials, and construction expenses, and perhaps fell short of the true cost from the start.

District 3 Commissioner Dan Toepper emphasized the importance of ensuring broadband construction costs are borne by the customers receiving service rather than being subsidized by other utility customers.

“We need to recover the actual cost of broadband construction as the work is being completed,” said Toepper. “Customers who benefit from those extensions should be paying the cost of bringing service to their area, rather than shifting those expenses to electric, water, or wastewater customers.”

Existing fiber line extension agreements submitted before the June 2, 2026, date will remain in effect under their current terms. As part of the Board resolution, PUD staff are tasked with bringing payment plan options for customers seeking fiber line extensions to a future board meeting.

“Once our fiber projects are complete, the District intends to revisit long-term policies for extending service to locations outside those funded build areas,” Wilson said.

Customers seeking information about broadband availability, construction requirements, or existing agreements are encouraged to contact Jefferson PUD Customer Service at (360) 385-5800 or visit jeffpud.org/broadband.