I was the first to post Commissioner Justin Biggs letter about KUB and it’s desire to begin a fifth utility on the backs of the Electric customers. Well, the KUB President Gabriel Bolas, II was quick to respond (likely from it’s PR ghost writing shop of Cynthia Moxley) Remember back in 2015, when I exposed how much money KUB was paying for Influence peddling, here.
KUB’s quick response of Commissioner Biggs
page two of KUB
Well, what KUB is missing is that Knox County Mayor Glenn Jacobs, at Large Commissioner Jacob Larsen Jay and Justin Biggs are elected by the Knox County citizens (which include every City of Knoxville resident) All Biggs is asking for is transparency and the commitment KUB made to have a public process, which has been sorely lacking. If KUB had perfected one of the four utilities they currently provide, it could be different, in my humble opinion.
Well, Biggs has responded and will not again. It is time for KUB to either be men and women of their word and have an open, transparent process or don’t and take it to the dark smoke filled back rooms of Knoxville, Union and Grainger and enrich a few cronies on the backs of electric customers.
Biggs Response
June 25, 2021
Dear Gabe,
I read your letter and appreciate your response. However, I do not agree with your philosophy or your interpretation.
I do not necessarily oppose KUB entering the broadband business as you said in your letter. I do oppose spending $700 million of ratepayers’ money and having a 9% rate increase without a full hearing on the issue.
Early on, KUB committed to having public meeting in every council district – but that is no longer the case. Instead, KUB has only had two lightly publicized meetings, which is why constituents across Knox County were not aware of the electric rate increases that are part of this plan.
The County is focused on getting affordable broadband to those who do not have access and would like to weigh the various options on the table. That’s why Mayor Jacobs asked for a meeting with KIB and broadband providers to discuss the proposed plan and other options. KUB, however, refused to attend the meeting.
Also, as you are aware, several private sector companies provide programs to serve low-income residents. Therefore, it is disingenuous to act like KUB’s plan is new and innovative.
Taxing your ratepayers to give Knox County more money in lieu of taxes is an interesting business strategy. Knox County has not raised property taxes in over two decades because of solid economic growth and sound fiscal management. I find it unlikely that many citizens like the idea of their electric bills going up to get more in lieu of tax payment money to any government entity. This is a much better accomplished through economic growth and sound fiscal management.
I hope you will join me in ensuring transparency and welcome the idea of a workshop so collectively, our community can move forward with a comprehensive plan to provide broadband for all our citizens.
If the KUB plan is a good idea on June 29 why would it not still be a good idea on August 29 after the public has an opportunity to engage on this matter fully?
I greatly appreciate your thoughtful consideration.
Best Regards,
Justin Biggs
Knox County Commissioner At-Large
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June 24, 2021
Dear City Council Members:
Earlier today, County Commissioner Justin Biggs sent a letter objecting to KUB’s plans to enter the broadband business, providing high speed internet services to 100% of our electric system customers in Knox and surrounding counties. While Commissioner Biggs is entitled to his own opinion of this proposal, there are several statements in his letter I feel compelled to address. Specifically:
98% of the public already have three distinct options for broadband service. Although some portions of Knox County do have multiple options for some level of broadband services, 60 percent of KUB customers only have one internet service provider option, and in significant areas outside Knox County many KUB customers have no options at all. KUB’s proposed offering of 1 Gig symmetrical upload and download speeds is an option that is only available in limited portions of our service area. We will offer fiber to the home to 100% of our customers, not only in areas that are most profitable.
An additional barrier is affordability, KUB addresses tis by providing service with no upfront installation fees, by providing internet service at a lower rate than current private sector offerings, and by committing to develop a program to serve low income customers, modeled on the successful EdConnect program developed by EPB in Chattanooga.
The electric rate increase impact on Knox County will result in $4.5 million expense over 10 years that could spent on other County priorities. Electric rate increases will be needed to fund this proposal, but Knox County will benefit from it as well. At full deployment, KUB’s payments-in-lieu-of-taxes (PILOT) to Knox County will increase $4.1 million/year over current levels. Over the first 10 years as these payments ramp up, they will more that offset the increased electric costs. The net benefit to Knox County for the first 10 years alone will be roughly $20 million, funds which can be used to support any number of County priorities.
Over the past year, KUB has conducted a robust review of this issue, and has engaged elected officials in regular communication about our work. We have submitted our plans for review to both the State Comptroller and TVA for review and both have found the plans to be feasible. We have sought public input and found overwhelming community support. And finally, our Board has considered all the information and voted to move forward. We believe our plans are solid and in the best interests of our customers. We look forward to Council’s consideration of our proposal, and we stand ready to answer any questions you may have.
Sincerely,
Gabriel J. Bolas, II
President and CEO
