By Shannon McFarlin News Director
Paris, Tenn.—At the Tuesday meeting of the Paris Board of Public Utilities (BPU), Kim Kersey with Kersey Consulting Services said the outcome of the feasibility assessment and customer survey were positive toward the prospect of the BPU offering broadband services. “This would be a good opportunity for Paris, Henry County and the BPU,” Kersey said. Ten other municipal utilities, including Union City and Milan, already are in the broadband business in Tennessee, he said, “and it seems to be doing well for their communities and their utilities.”
The BPU took no immediate action on whether to enter into the broadband business, but is awaiting the assessment of the State Comptroller’s office.
Kersey said the customer survey results were overwhelmingly positive, with 85 and 84 percent of respondents saying they would be willing to switch to BPU for both internet and telephone service if BPU could provide faster, more reliable, better supported and price competitive services.
Under the plan, the signals would come through a wholesale provider, Jackson Electric Authority, just as it is done in Union City and Milan already. BPU General Manager Terry Wimberley said the local utility is “looking very closely” at the Union City and Milan models.
Capital construction costs involved in the project would be $1.2M, with working capital at $352,200 with a 20-year bond issue at 6 percent interest, Kersey said. According to the feasibility assessment, “This would be a good project for BPU and provide additional cash for you” down the road. “We’ve seen that these projects work really well in communities your size,” he said.
BPU can provide superior broadband services for the company and be more competitive price-wise, Kersey said.
BPU Member Terry Fuller, who is also a Paris city commissioner, said Charter (Spectrum) has already begun lobbying the city against the plan. BPU Board Chair David Flowers said, “I imagine both Charter and AT&T will be lobbying hard against it because our rates would be so competitive.”
Board Member Butch Powers said, “I think this would be a good move on our part. I think people here are really interested in this. I think it’s a great plan and it’s good that it can be self-sustaining.”
The state comptroller’s office has begun the 60-day review period for the local plan and Wimberley said the BPU board most probably will be acting upon it at the December meeting.
After lengthy discussion, the board approved a 20-year agreement with TVA that will generate cost savings for the utility.
Flowers said, “This is the most significant change to come about during my tenure on the board. This is a big decision.”
New Tennessee Valley Authority CEO Jeff Lyash proposed a long-term agreement to all 154 Local Power Companies, including BPU. The stated goal is to secure the long-term success of the Tennessee valley Public Power Model by lengthening and strengthening the contractual relationship with all the local power companies.
The agreement hingers on: BPU commits to a rolling 20-year notice period for terminating the wholesale power contract and TVA commits to a 3.1 percent credit on BPU’s monthly wholesale power invoice.
Wimberley said 91 local power companies have already signed the agreement. He said, “TVA has recently committed $18.2 M to build a transmission line that will be a secondary power feed into our system that, once built, will help to increase reliability for our customers. We are grateful for TVA’s commitment to fostering long-lasting relationships with public power providers like BPU and look forward to continuing to grow that relationship for years to come.”
BPU will evaluate ways to utilize the cost savings that could potentially allow the utility to avoid debt for future projects, reduce debt on current projects or fund capital projects to increase reliability for customers, Wimberley said.
In other business:
–Wimberley updated the board on the initial success shown in the new Generator Financing Program which was approved in August. He said one loan has been approved and a generator already installed at the customer’s residence. An additional 13 loans were approved and nine are awaiting installation.
–The ribbon-cutting for the new Downtown Mural in the BPU alley is set for 10 a.m. Monday, Sept. 30.
Photo: Ken Kersey presents results of the business plan and feasibility assessment. (Shannon McFarlin photo)l
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