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CA utility officials could unplug a $37.5M plan to bring fast, reliable internet to Catalina Island
Catalina Island is home to more than 4,000 residents, who live with slow, unreliable internet connection.
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Zaydee Sanchez
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LAist
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CA utility officials could unplug a $37.5M plan to bring fast, reliable internet to Catalina Island
California’s Public Utilities Commission will decide on Thursday whether to claw back or keep $37.5 million in grant funding meant to bring fast, reliable internet to Catalina Island. LAist's Nereida Moreno spoke with the CEO of AVX Networks, the company that was awarded the grant.
California’s Public Utilities Commission will decide on Thursday whether to claw back or keep $37.5 million in grant funding meant to bring fast, reliable internet to Catalina Island.
The island is home to more than 4,000 residents, and it draws thousands of tourists each year. Its slow, unreliable internet connection affects everything from remote learning to emergency response.
Lance Ware is CEO of AVX Networks, the company awarded the grant from the CPUC in December 2025. He told LAist host Nereida Moreno that the island depends on a very limited wireless internet link.
“When the town is busy, for instance, a cruise ship comes … the internet just gets crippled along with all the telephone services,” Ware explained.
Months after AVX Networks was awarded the grant, CPUC staff accused the company in July 2026 of breaking federal spending rules, citing insufficient justification and documentation for invoices.
The proposed plan would build the fiber-optic network under the San Pedro Channel from two points on Catalina Island to landings near Huntington Beach. Those cables will then connect to the Middle Mile Broadband Network in Stanton.
Where do things stand today?
CPUC staff allege that AVX Networks violated several program requirements, according to records.
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“Since the award, AVX Networks has not shown itself to have the requisite administrative, technical, and operational capacity to deliver on its project, and AVX Networks has failed to comply with the terms and conditions of its award,” the CPUC agenda item records state.
Ware said he “vehemently disagrees” with those statements.
“There are allegations on things in there that do not make sense to us in that we've had no due process or cure and correct period to address,” Ware said.
What’s next?
If the commission terminates the contract and pulls the funding, Ware said the project will be delayed, but not stopped.
“This is not curtains down for us,” Ware added. “It's gonna take longer, and we'll have to find some other way to finance it, but we certainly haven't given up.”
How to participate in CPUC meetings
California’s Public Utilities Commission meets on Thursday, Oct. 29 at 11 a.m. You can watch the meeting remotely here.
To make public comments over the phone: Call (800) 857-1917. When prompted by the operator, unmute your phone and press *1 (star one). You will be prompted to state your name and/or organization. The operator will call on you when it’s your turn to speak.
To make a written comment: You can submit comments on the CPUC docket page.
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Nereida Moreno contributed to the reporting of this story.
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