Electric co-ops want RDOF defaulters to pony up

As the Federal Communications Commission (FCC) considers pleas for more lenient Rural Digital Opportunity Fund (RDOF) fines, electric co-ops are saying it's time for defaulters to own up. Internet service providers (ISP) have been defaulting on RDOF grants for years and have been struck with sizeable penalties from the FCC as a result. Last month a coalition of ISPs, unions and local officials penned a letter to the FCC appealing for a brief amnesty period, during which defaulting companies could surrender their contracts with reduced penalties. The proposal has triggered a public comment process, and some aren’t so keen on the idea of default forgiveness. Electric co-ops contend that granting amnesty won’t deter future defaults but will have the opposite effect. In a letter to the FCC, the National Rural Electric Cooperative Association (NRECA), which represents nearly 900 rural electric co-ops, said the proposed remedy to RDOF defaults would set a “dangerous and disruptive” precedent for bailing out defaults in future grant programs.