Union City, Tenn.–Effective the first of the year, Union City Electric System will officially become Union City Energy Authority.
Jerry Bailey, Manager of Union City Electric System, will be CEO of the new entity. He said that other than a new logo and the name change, customers probably will never notice the difference. “We will have the same board of directors, employees, buildings, trucks and rates,” Bailey said. “Since we are now in a competitive business selling high-speed internet to our commercial customers, we did not want any potential borrowing to present any risk to the city. Although not anticipated in the foreseeable future, creating the new entity will allow us to borrow money for the internet or electric business without being a financial burden to the city. The change allows the city some arm’s length from involvement in competitive areas like internet and removes perception that the city is competing in the internet business. “
Bailey also stated the ability to partner with other private companies as the need arises is also something that was not possible being part of the city.
Bailey added that the move would also make sure the entity could not easily be bought by another company without a referendum by the people. “In order for us to be in a competitive business such as fiber optic internet, we needed to make sure it would be a stable business for the benefit of all the people in Union City,” Bailey explained.
The City Council will still appoint the board, and if the system were to ultimately be sold, the assets would revert back to the city.
Internet sales continue to grow with about 135 commercial and industrial customers connected or awaiting service. Jackson’s E+ Broadband phone service using the fiber optic system has also seen rapid growth. “The number of customers connected to date has greatly exceeded our expectations,” he continued. “Word of mouth about the reliability and speed and being the local option have been the best selling points,” Bailey added.
The area from the Huddle House east down Reelfoot Avenue to the Hospital has already been “turned on” and is connecting customers. The downtown areas were the first connected and have had the service available for several months.
According to Bailey, the next areas to have the service available will be West Main Street followed by the area around the industrial park. He added customers are already calling from these areas wanting to know when it will be available. “We hope to have the West Main Street area on in the very near future and the area around the industrial park ready by the end of March,” he stated adding that “Other areas will be turned on later after construction is completed.”
Bailey thanked the local businesses for their support with the new venture into the fiber optic system. “Customers have been very supportive of our efforts for this new service. We are already seeing a positive cash flow from the system while giving customers a competitively priced, reliable service that is vital to their business.”
Any business wanting more information or to find out if it is currently available in your area may call 731-885-9212.
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