Chattanooga’s municipal utility will take advantage of cheaper interest rates, continued growth in its internet service, and a pandemic credit from its power supplier to keep its electricity rates flat for another year.
EPB, the city-owned utility which has not raised its portion of local power rates since 2015, had projected it would need a local rate increase in its electricity charges last year. But EPB decided against raising rates last year during the coronavirus pandemic and favorable weather and continued growth in its fiber-optic business should allow EPB to keep electric rates stable for another year.
A budget plan presented to EPB directors Friday for the fiscal year that begins July 1 envisions only a slight increase in power and internet revenues in the next year.
Electricity sales are projected to rise about 4% from about $566 million this year to $589 million next year, primarily due to differences in weather and the growth in new homes and businesses in EPB’s 600-square-mile service territory.
EPB’s fiber-optic division, which includes both telecom and internet services, is forecast to remain relatively stable at about $181.6 million in total sales next year. Since its start in 2009, EPB’s fiber-optic service has grown to more than 120,000 commercial and residential customers with the first citywide high-speed broadband service available to all homes and businesses anywhere in North America.