CFEC Fiber Proposal

CFEC is evaluating a potential sale of its fiber broadband assets to Conexon, a company that specializes in building and operating rural broadband networks.

If an agreement is reached, CFEC members will vote on whether to approve the transaction.

Members are being asked to approve or reject a potential transaction involving the cooperative’s fiber assets.

The Fiber by Central Florida network has been successfully built and is operating well.

At the same time, electric cooperatives face increasing financial pressure from rising infrastructure costs, storm recovery expenses, and fuel market volatility.

The Board believes this proposal would strengthen the cooperative financially, reduce long-term risk, and position both the electric system and broadband service for long-term success.

If the proposal is approved, service would continue over the same fiber network, with the same speed, reliability, and general customer experience members have today.

The fiber lines themselves do not change hands or move. The same physical infrastructure that serves your home or business today would continue to serve it after the transaction.

Conexon operates rural broadband networks across the country, and its systems consistently earn high marks for reliability and member satisfaction. Serving rural communities is not a sideline for Conexon — it is their entire focus. They were specifically chosen because they share the cooperative’s understanding that reliability is not optional for the people who depend on this service.

If approved, Conexon would own and operate the fiber system.

CFEC’s focus would return fully to its core mission: providing reliable electric service to its members.

The people who built and operated this network matter deeply to CFEC. The cooperative has worked carefully throughout this process to make sure employees are treated fairly and have meaningful opportunities going forward.

These are members of this community — neighbors who showed up in the heat and through the storms to bring this service to fruition. Ensuring they are looked after is a core part of how CFEC has approached every aspect of this proposal.

More specific information about employee transitions will be shared as the process moves forward.

Conexon is not new to CFEC.

It was the cooperative’s original partner in designing and building the fiber network and has extensive experience operating rural broadband systems across the country.

Conexon focuses specifically on serving rural communities and partnering with electric cooperatives.

The infrastructure does not go away.

The fiber network that serves homes and businesses today will continue to operate and support the community.

This is not about removing service — it is about determining the best long-term operator for that system.

If approved, the transaction would retire all fiber-related debt, including engineering and construction costs.

It would remove significant financial obligations from the cooperative’s balance sheet and reduce risk to the electric side of the business.

This helps strengthen CFEC’s long-term financial position.

The intent of the proposal is to help protect long-term electric rate stability by reducing debt and financial exposure.

Electric rates are influenced by many factors, but reducing financial risk helps position the cooperative more favorably over time.