Serves Knox and parts of six surrounding counties More than 5000 miles of electric line 688 square miles 212000 customers Approximately 150 miles of fiber optic line Fiber is the Key to the Electric Grids Future ID: 929479
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Slide1
May 26, 2021
Broadband Public Forum
Slide2Serves Knox and parts of six surrounding counties
More than 5,000 miles of electric line
688 square miles
212,000 customers
Approximately 150 miles of fiber optic line
Slide3Fiber is the Key to the Electric Grid’s Future
Customers require reliable electricity
Fiber provides high speed communication for system controls
Future applications will support reliability and energy efficiency
Electric system fiber enables broadband service
Slide4Opportunity to Reduce the Digital Divide
Pandemic revealed a significant need in our area
Portions of KUB’s service area with no or inadequate internet service
Many customers only have access to one provider
Potential low-income program will support students in need
Slide5Fiber is a Community Investment
“The
true economic value
of the fiber optic infrastructure for EPB’s customers is
much greater than the cost of installing and maintaining
the infrastructure. Our latest research findings show that Chattanooga’s fiber optic network provides additional value because it provides high speeds, with symmetrical uploads and downloads, and a high degree of responsiveness which
are necessary for the smart grid
and other
cutting-edge business, educational, and research
applications.”
-Dr. Bento Lobo, head of the Department of Finance and Economics at the Rollins College of Business, University of Tennessee at Chattanooga
Slide6Fiber Division Highlights
Fifth KUB utility division
Service available to all electric system customers without installation costs
Adds approximately 200 KUB jobs
Enhanced technology with competitive pricing
Slide7Residential Product Offerings
1 Gbps symmetrical standard internet
$65 per month
No contracts
No data limits
24/7/365 local customer service and technical support
2.5 Gbps symmetrical internet option available
Slide8Residential Product Offerings
Managed router service
$15 per month
Home installation of equipment
Enhanced customer and technical support
Basic, expanded and premium TV
Available with internet service
No set top boxes
Stream on multiple devices
Slide9Additional Product Offerings
Phone
Unlimited long distance
Enhanced features including caller ID
Business Internet
Enhanced customer and technical support
Managed router service option
Custom enterprise solutions
Slide10Buildout Plans and Costs
5,000 miles of distribution fiber
Seven-year buildout schedule
Projected $702M in new electric system costs over 10 years
Balanced funding approach utilizing debt, rates, and fiber access payments
Slide11Electric Rate Forecast
Ten-year financial plan includes three consecutive 3% annual rate increases
Rate increases fund the high-speed fiber network and other electric system improvements (Century II)
Funding the fiber network requires planned
rate increases to
be slightly higher and sooner
No rate increases anticipated for the following seven years
Long-term impact of funding the fiber network is
$3.60
on the average residential monthly bill
Slide12Long-Term Residential Bill Impacts
kWh Used
Current Monthly Bill
Bill Increase for both Century II and Fiber Network
Bill Increase for Century II
Bill Increase for Fiber Network
500
$64.40
$4.90
$3.25
$1.65
750
$86.30
$7.40
$4.90
$2.50
1,000
$108.25
$9.80
$6.50
$3.30
1,100
$117.00
$10.80
$7.20
$3.60
1,250
$130.20
$12.30
$8.15
$4.15
1,500
$152.10
$14.75
$9.75
$5.00
1,750
$174.05
$17.20
$11.40
$5.80
2,000
$196.00
$19.65
$13.00
$6.65
Slide13“You Are Here”
May 2021
Board consideration for seeking public input
Knoxville City Council vote to authorize KUB to provide broadband services
May 2021
Public hearing with KUB Board of Commissioners
Board consideration of establishment of Fiber Division and request to City Council for approval
May 2021
Receipt of Comptroller review letter
March 2021
Board consideration of business case for submission to TN Comptroller
Slide14Public Comments Process
Key question for attendees:
Should KUB proceed with this plan?
Staff on hand to answer questions after hearing
In order to hear everyone, please keep comments brief (3 minutes or less)