04-25-2022_MIdco - How Best to Move ForwardMidCo Future Builds 2023 and Beyond - Key Points
(From Conversation with Justin Forte 4-25-22)
1. Scandia’s Doing This the Right Way
a. Providing cash commitment up front.
b. Support by Scandia dealing with other government agencies, i.e., Washington
County Grant Program, DEED, etc.
c. Above average Take Rate.
d. Professional and positive relationship.
2. Scandia in a ‘Sweet Spot’ for MidCo Size-Wise
a. Small enough to not require higher approvals within MidCo which can cause
delays.
b. Use of MidCo in-house (regional) construction crews.
c. Projects fall within normal incremental expansion to existing service area,
‘Organic Growth’.
d. We are not competing with larger project for approval as a result.
e. Costs better understood closer to construction. Out years are harder to predict
with inflation, supply shortages, etc. Easier to plan on short-term.
f. MidCo continues to expand in adjacent communities, Franconia approved
franchise agreement in April. This should help Scandia along northern border.
3. Continue With the Winning Formula
a. Commit to project for following year in the fall of preceding year to allow MidCo
to get Scandia in their planning queue.
b. Continue to work on grant funding opportunities with MidCo. More support
coming for 2023, 2024 as Washington County, DEED, State Line Extension
Program, Federal ARP, RDOF and NTIA funds made available. This will help keep
local costs lower. 25/75 grant matching will be very important when moving to
less dense areas with much higher installation costs.
c. Encourage high take rate in expansion areas and get commitments from
residents for service before construction if possible. This makes the rate of
return calculation attractive.
d. Things may take a bit longer than planned but costs will be more manageable.
Be patient.