Internet Expansion Update from the CEO

Tennessee Emergency Broadband Fund (TEBF)

Quick Review:
The State of Tennessee selected and approved PES’s grant area for internet expansion through the TEBF program. PES divided this area into four phases. Each phase includes work like clearing trees, preparing poles, and building the fiber network.

• Phases 1 and 2 are finished, bringing high-speed fiber internet to 868 new homes and businesses.
• In addition, PES also built fiber to nearby areas outside the grant zone, reaching another 945 locations.
• In total, 1,813 new locations now have access to fast fiber internet, with speeds starting at 300 Mbps for both upload and download.

Current Update:

• Phase 3 was supposed to be done in January, but there have been delays.
  • Out of 9 parts, only areas 1, 2, and 3 are complete.
  • Area 4 is now expected to finish by May 30, and Area 5 by June 30.
  • It’s still too early to say when areas 6 through 9 will be ready.
• Phase 4 is still on schedule. It has 5 areas:
  • One is done.
  • The second should finish in the next 3 weeks.
  • A third is planned for June, and the fourth for July.
  • The final area is the most complex due to being the last of the 33-million-dollar project. While we’ve prepared, some materials take up to 15 weeks to arrive. The grant doesn’t pay for extra supplies, so we’re careful with every dollar.

Broadband Equity, Access, and Deployment Program (BEAD)

Quick Review:
BEAD is a $42.45 billion program to expand high-speed internet across the country. Tennessee received $813 million. In Giles County, 78 locations were marked as eligible for help. After the comment period, we expect this number to drop to 27.

• 45 of the 78 locations are near Lake Logan. PES already covers this area, and Ardmore Phone is building there too.
• Since two providers will serve these homes, they should not qualify for BEAD funding.
• PES has also already built fiber to 6 more of the 78 locations.
• This leaves 27 truly eligible locations.

Giles County is divided into three areas called Project Area Units (PAUs).

Current Update:
PES is a finalist for BEAD funding in two of these areas. The other finalist is a satellite company. PES did not apply for the third area because most of those homes are outside our electric service area, and state law doesn’t allow us to provide internet there.

BEAD awards are expected in early 2026.