August 1, 2000

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EWEB Commissioners to Consider Contract with SIGCORP Communications for Telecom Feasibility Study and System Design

Eugene Water & Electric Board (EWEB) Commissioners will consider a contract between the community-owned utility and SIGCORP Communications at tonight’s Board meeting. If approved, the contract will enlist the assistance and expertise of Evanston, Indiana-based SIGCORP in the completion of the feasibility study and business plan for EWEB’s proposed telecom expansion.

The Board will also consider the approval of a Letter of Understanding. This letter provides that, if EWEB and its customers choose to proceed with the system expansion, the utility will consider entering a development agreement for the expansion using SIGCORP as its partner. If this partnership were to proceed, SIGCORP would provide a portion of the system funding.

Selection of a development partner has been underway since December 1999. A Request for Proposals (RFP) was sent to approximately 30 telecom companies and was advertised nationally in early 2000. Since then, EWEB has compared its needs with the capabilities of all companies that responded and found SIGCORP to be the best fit.

The last month or so have consisted of discussion of contract terms and a “due diligence” study of SIGCORP. In this process, EWEB reviewed the company’s references, financial stability, internal operations and performance. As part of the “due diligence” study, EWEB staff visited SIGCORP’s headquarters several weeks ago and discussed the scope of work, approach to the project and other details.

If approved, SIGCORP would assist EWEB with the following elements of the utility’s telecom planning:

  • Assessment of the current situation of telecom infrastructure and services in Eugene.
  • Additional marketing analysis.
  • Collaboration with EWEB to prepare a summary of legal and regulatory issues.
  • Research, assessment and recommendations on potential service/content providers and service strategies
  • Detailed design for approximately 100 miles of the system to determine customer densities and system logistics.
  • Assessment and recommendation on system technology and configurations.
  • Completion of the business plan.

Assistance with development of a financing strategy, including recommendation on strategy, potential investors and more.

This feasibility study and business plan will be used to help the EWEB Board in its final decision on development of the telecom system. The plan will also be used in discussions with the financing community, City Council and EWEB customers. Any final decision on system financing will be taken to the Eugene voters.

Again, EWEB has specified that in order to proceed with a system expansion, the following would need to be confirmed:

  • The system would be self-supporting and would not increase electric or water rates.
  • Multiple service providers could use the system.
  • All EWEB customers would have access to the system.
  • The expansion would have minimal impact on neighbors or the environment.
  • The system would provide capacity for various electric and water utility system and business applications.
  • The system would be capable of switched, digital and broadband services and be technically and physically capable of supporting voice, video, data and Internet applications and services.
  • Final development and operating structure would be handled locally. This includes service policies, procedures and rates.

For more background about SIGCORP Communications, visit www.sigcomsrv.com. For more about EWEB’s telecom project, visit www.eweb.org/telecom.

 

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