Central Virginia Electric Cooperative (CVEC) embarked on an aggressive $150 million buildout of a system-wide fiber optic communication network that provided much needed high-speed communications across the electric distribution system. This new communication system allows CVEC to improve electric operations for every CVEC member, and serves as a solution for members to overcome the lack of reliable, affordable, high-speed internet across CVEC’s territory.
The original plan was to complete the fiber network build in 5 years. However, the need for internet access in rural increased exponentially when COVID caused a global push towards remote work and learning. CVEC expedited the project timeline and installed over 4,000 miles of fiber-optic cable, bridging the digital gap in just 4 years.
The fiber network is also improving electric service for all CVEC members. As part of its strategic planning process, CVEC is leveraging the improved communication system to reduce costs, increase security, and reduce outage times for members.
The fiber build project was by far the largest project ever undertaken by CVEC since it began building the first power lines in 1937. Our entire cooperative employs just over 100 people to handle all normal business. The fiber project had more than 175 people, almost all contractors, working every day in design, material management, administration, make-ready construction, fiber construction, and other aspects of the job. As 1 example, there were 3 people who worked full-time just submitting information and managing the permits necessary for our construction. As another example, in a normal year CVEC replaces about 150 to 200 poles due to normal maintenance and line upgrades; the make-ready work for this project required replacing about 1,600 to 2,000 poles each year. This was a huge project.
This year, CVEC was inducted into the Conexon 100 Club which honors electric co-ops around the country that have reached the milestone of fiber-to-the-home network completion to 100% of its membership. Only 25 cooperatives in the nation were inducted in this inaugural year and CVEC is the first Virginia cooperative to complete a system-wide fiber build.
Funding & Outside Support
This project was made possible through partnerships, grants, and loans. CVEC financed the fiber system with a RUS smart grid loan, which provided enough funding to cover approximately the first 3 years of construction for the fiber project.
CVEC, both directly for the Cooperative and in partnership with its subsidiary, Firefly Fiber BroadbandSM, also successfully pursued several outside sources of support, including:
- FCC Connect America Fund
- Virginia Telecommunications Initiative (VATI) grant
- Two Tobacco Region Revitalization Commission (TRRC)
- County partnerships with Albemarle, Amherst, Appomattox, Buckingham, Cumberland, Fluvanna, Goochland, and Louisa
- USDA-RUS ReConnect grant/loan
Frequently Asked Questions
Virginia state regulations do not allow electric cooperatives to sell internet service, but they do allow electric cooperatives to own a subsidiary that may engage in any business legal in Virginia. The intent of the rule is to ensure that electric rates do not subsidize other business ventures.
Because of this ruling, CVEC reopened its wholly-owned subsidiary, Central Virginia Services, Inc. which provides telecommunications and internet services to CVEC and the public as Firefly Fiber BroadbandSM.
CVEC also cannot share any joint marketing with Firefly, so we cannot provide pricing or other service information related to Firefly products. Questions about internet services or can be found on Firefly’s website.
CVEC owns all of the fiber that was installed in its territory and leased the fiber to Firefly. CVEC does not own fiber in the territories of other electric providers. Firefly and other internet providers can partner with the other electric service providers to lease their fiber. Firefly also owns some of its own fiber outside of the CVEC footprint. To see if you can get Firefly, visit the Firefly website and click “Check Availability.”
Members who live in areas where fiber has already been installed will have a short wait while Firefly gets a fiber service drop built from the mainline fiber to the member’s home or business. Members should visit Firefly’s website to register.
For members or non-members who are seeking service in areas where fiber has not yet been installed, the fiber construction process is complex and lengthy. Numerous contractors are involved and the entire process can take 6 to 12 months to complete, depending upon the length of the circuit, the terrain and soils, weather, and other external factors. You can find more information about the steps of fiber construction on Firefly’s website.
