Aided by the continuing growth of its fiber optics business, EPB plans to hold both its own power and telecom rates constant in the next fiscal year.
Electric rates will still vary each month according to changing fuel expenses, which will edge electricity rates up a fraction this month over May’s level. The Tennessee Valley Authority, which supplies all of the power sold by EPB, also is expected to nudge its base rates slightly higher in the fiscal year that begins in October, similar to the 1.5 percent rate hike adopted last year, and EPB will pass along those higher wholesale rates.
But EPB plans no increase in its own portion of its video, internet electric rates in the 2017-2018 budget year. EPB Chairman Joe Ferguson said Wednesday a lot of the credit for not having to raise rates goes to the utility’s Fiber Optics network, which not only provides a smart meter system for the electric system but also allows EPB to offer internet, telephone and video services.
“The amount of increased revenue coming in from fiber optics as a result of now more than 90,000 subscribers has been a huge benefit to us and we estimate has helped to keep our electricity rates about 7 percent below what we otherwise would have to charge if we didn’t have the money flowing from our fiber optics side of the business to our electric system,” Ferguson said. “We’ve been extraordinarily pleased by the acceptance of our fiber optic services.”
EPB projects the video, internet and telephone services that its fiber optic network provides along its electricity lines across Chattanooga will generate $159.9 million in revenues next year, providing just over $39 million to the electric system for lease payments and other income for sharing the fiber optic lines.