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President Trump last week reignited the debate over the proper role of government in the power industry by proposing the Tennessee Valley Authority and other power utilities owned by the federal government sell their transmission assets. Such sales could help pay for Trump's $1.5 trillion infrastructure program, but U.S. Sen. Lamar Alexander, R-Tenn., immediately dismissed the president's proposal as "looney" and predicted Congress will reject the proposal.
 
 
   
A proposal by the Trump Administration that calls for divesting the transmission assets of the Tennessee Valley Authority and Bonneville Power Administration "is likely to raise transmission rates for BPA and TVA customers because the new private owners would have higher capital costs that would need to be recovered in rates," Moody’s Investor’s Service said in a Feb. 14 report.
 
 
   
A court-ordered plan to dig up and relocate coal ash stored at TVA's Gallatin Fossil Plant in Tennessee threatens to push up TVA's electricity prices without necessarily helping the environment more than capping the ash residues where they are now, TVA customers and 18 attorneys general said in new court filings.
 
Utility poles are the literal backbone of the electric utility industry. With an estimated 180 million or more in the nation’s power grid, it’s not hard to imagine the monumental task associated with assessing and maintaining the integrity of the U.S. power system. Whether worrying about woodpeckers, vandals, or wind and ice storms, the responsibility to keep poles and transmission systems healthy falls to a vast team of maintenance workers and inspectors who will soon have the cloud to thank for making their jobs safer and their findings more accurate.
 
 
   
Memphis attorney John L. Ryder, who served as general counsel at the Republican National Committee from 2013-17 and is a long-time GOP activist, has been picked to fill the last open seat on the board of directors for the Tennessee Valley Authority. President Donald Trump nominated Ryder to fill one of the nine seats on the board that oversees America's biggest government-owned utility, giving Republicans a majority of the 9-member panel for the first time in nearly eight years.
 
Utilities’ pursuit of a modern grid to maintain the reliability and safety pillars of electricity delivery has raised a lot of questions about the third pillar — affordability. Utilities are seeing rising penetrations of emerging technologies like distributed solar, behind-the-meter battery storage, and electric vehicles. These new distributed energy resources (DER) do not eliminate utilities' need to keep distribution systems safe and reliable. But the need for modern tools to manage DER imposes costs on utilities that some regulators, lawmakers and policymakers are concerned could drive up electricity rates.
 
 
   
January brought the coldest streak of weather in the Tennessee Valley in a decade, setting three of the top 12 all-time winter peaks for TVA and the biggest one-day consumption of electricity in TVA's 85-year history. But last month's weather-induced boost in power consumption probably won't last. TVA's total power load last year was down by more than 10 percent from a decade ago and the federal utility projects demand for electricity will be essentially flat or down even more over the next decade. TVA, which long banked on annual electricity growth of as much as 7 percent, now predicts power demand in 2027 will be nearly 13 percent below the peak level reached 20 years earlier in 2007.
 
Association News
 
   
In response to the proposal by President Trump to sell TVA's transmission assets, the Tennessee Municipal Electric Power Association, the Tennessee Electric Cooperative Association, and the Tennessee Valley Public Power Association issued a rare joint statement in support of the public power model and the negative effects the divestiture of transmission assets would bring.
 
 
   
The American Public Power Association is disappointed to see that Fiscal Year (FY) 2019 budget request released by President Trump proposes to divest the transmission assets held by the Tennessee Valley Authority (TVA) and three of the Power Marketing Administrations (PMAs): Southwestern Power Administration, Western Area Power Administration, and Bonneville Power Administration. We will adamantly oppose any effort by the federal government to privatize TVA and PMA assets that have been paid for by electricity customers.
 
My first exposure to economics as a science occurred in the fall of 1969. As I began the pursuit of my MBA, one of the topics covered in Economics 601 included the fiscal dilemma faced by the federal government: the expenditure balance between the military (guns) and social welfare (butter). The origin of that phrase familiar to anyone who sat (or slept) through an Econ course at college is unclear, but it’s one of those hooks your never forget.
 
 
   
Most readers of this column are general managers or CEOs who want to help their utility communicate effectively and tell their story in the best way possible. We have spoken to CEOs who want to provide the best resources for their communicator but aren’t sure how to do that. To that end, our team has a resource that we’d like to share with you today: the StoryConnect 2018 conference.
 
 
   
TMEPA is excited to launch our new website. The new site brings a modern look along with a better user interface. "This was a top priority when I was hired. We are very pleased with the finished product and the update features," said Brian Solsbee, Executive Director.
 
Cleveland, TN - Cleveland Utilities recently hosted Utility Board Member Training for several southeast Tennessee board members from various utilities. "Cleveland Utilities is very grateful for the opportunity to host these mandatory trainings sessions for the benefit of our own board members as well as others in the surrounding area. The course material is useful and informative, and the instructors have made the sessions interesting. Thank you TMEPA and MTAS," said Aubrey Ector, Chairman, Cleveland Utilities.
 
Tomorrow’s Smart Grid. Today.
Tantalus Systems, Inc.
Tantalus provides TUNet® an award winning, multi-purpose platform that enables Smart Grid applications such as AMI, load management, and grid optimization for electric, water and gas Municipal & Cooperative utilities. TUNet utilizes IP and RF communications for a hybrid network that helps utilities improve reliability and reduce operational cost through applications that leverage distributed computing capability embedded at every endpoint.
www.tantalus.com
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Legislative Updates
 
   
TMEPA held its annual Legislative Rally & Reception Tuesday, February 13th, at the Hermitage Hotel. Managers, staff and board members from dozens of municipal electric utilities met with legislators last week in Nashville. With several bills at the legislature this year that affect municipal electric utilities, our time on the hill was perfectly scheduled. We always appreciate everyone’s help in making the day a success, both with meeting with legislators in their offices and at our evening reception. Now the hard work starts as we lobby for and against many bills that already are being scheduled for committee meetings
 
 
   
The legislature is revving up this month as it works toward adjournment around early to mid-April. Also in early April is the filing deadline for candidates to be on the ballot in the fall elections. This means legislators on the fence about running for another term will have to make up their mind soon. Retirement announcements have slowed down somewhat, but they are likely to pick up soon. Let's update our monthly tally of the newest developments in Tennessee politics, setting up this year to be one of the most active election seasons in the state's history.
 
 
   
Secretary of Energy Rick Perry is establishing a new Office of Cybersecurity, Energy Security, and Emergency Response at the Department of Energy and $96 million in funding for the office was included in President Trump’s Fiscal Year 2019 budget request to bolster DOE's efforts in cybersecurity and energy security. The new office will be led by an Assistant Secretary who will focus on energy infrastructure security, support the expanded national security responsibilities assigned to the DOE and report to the Under Secretary of Energy, the DOE said on Feb. 14.
 
About 15 minutes after the Amtrak train transporting Republican members of Congress left Charlottesville, Virginia, on Wednesday, there was a loud impact that knocked several people down, U.S. Rep. Phil Roe said the day after the accident. Roe, an obstetrician from Johnson City, Tennessee, was on the train heading to a legislative retreat in West Virginia when it crashed into a trash truck, killing one man and seriously injuring two others.
 
At the Legislative Rally in February, the American Public Power Association will share the resources and connections to help public power communities make their voices heard in Washington, D.C. As an advocate for public power, you are in the best position to talk to Congress about the direct impact of federal action at the local level. You represent your local community as well as 49 million other Americans served by public power.
 
Service Electric Company
Naylor Association Solutions
Member Spotlight
 
   
Located just outside of Nashville and serving 36,000 homes, businesses, and industries spanning parts of five counties, Dickson Electric System (DES) is at the heart of a midstate area that is booming with economic growth making it an ideal destination for families, businesses, and new industries. By providing safe, reliable, low cost power with friendly, efficient service, DES has played a key role within the many communities served by the municipal electric system for well over a century.
 
Training & Education
 
   
TMEPA's Spring Engineering and Operations Conference has just been announced. It will be held April 5 and 6 at the Holiday Inn Worlds Fair Park in Knoxville, TN. The conference provides information on topics utilities are facing today, and it allows for engineers and operations staff to network and hear how their peers deal with similar issues. The program for the two-day meeting is being finalized. Registration and Sponsor Exhibitor information is attached and can also be found on the TMEPA website.
 
NTIA’s BroadbandUSA and the Tennessee Department of Economic and Community Development (TNECD) for is hosting a Broadband Summit, "Creating Partnerships to Ensure Access for All" on March 20 in Nashville, Tennessee. This is a no-cost regional workshop intended for broadband stakeholders at the local, regional, state and federal level as well as internet service providers and community organizations. Attendees will explore ways to partner to increase broadband deployment and improve broadband adoption to advance their overarching goals. This Summit will highlight the activities and initiatives achieved through the newly enacted Tennessee Broadband Accessibility Act which promotes broadband deployment through grants to providers, tax credits, deregulation, and education.
 
 
   
Free Utility Board Training – Sponsored by the Comptroller of the Treasury and Jackson Energy Authority Jackson Energy Authority is partnering with the State Comptroller’s Office to provide Utility Board Member Training on March 1, 2018 at Jackson Energy Authority, Jackson, TN.
 
 
   
The Tennessee Job Training & Safety Program is planning to present an OSHA 30 Hour Construction Course. The program will be conducted March 12-16, 2018. It will be held at the Murfreesboro campus of the Tennessee College of Applied Technology Murfreesboro, Room 136.
 
Jobs
 
   
Works with various Electric Department crews in installing or repairing high voltage electrical distribution system components, electrical meters, traffic signals and controllers, and electric fixtures in City facilities. Must perform both underground and overhead work.
 
 
   
Newport Utilities has an immediate opening for an Occupational Safety, Health & Security Technician. The OSH&S Technician will be responsible for assessing operations of NU crews in the field for safety, health, environmental and regulatory compliance. This position may regularly conduct classroom and technical training for all job classifications within NU.
 
 
   
Morristown Utilities is currently seeking a driven individual to be responsible for monitoring, disseminating, and communicating organizational information to the media, public, and internal organization. Ideal candidates will possess experience with public relations and government affairs with a minimum of a Bachelor’s degree in a related field.
 
 
   
Rockwood Electric Utility is seeking qualified applicants for the position of Journeyman Lineman. Responsibilities include various duties related to the construction, maintenance, and operation of the Rockwood Electric system by installing, repairing, replacing, inspecting, or removing equipment and material required for both underground and overhead distribution facilities.
 
MuniNews
 
   
Memphis’ scrap over rising gas and electric rates marks the beginning of a long haul to keep costs stable in the city-owned utility. Memphis Light, Gas and Water Division’s new chief executive officer is coming from an Atlanta-based utility noted for its profit mindset. Incoming utility boss Jarl T. Young could usher in higher rates for electric customers, fewer and more streamlined jobs, a new strategy for reducing the frequent service outages, smoother customer relations, better deals with power wholesaler Tennessee Valley Authority and, some consumer advocates say, a possible exit from the TVA system.
 
 
   
Employees at Greeneville Light & Power System have heard all kinds of billing complaints, but the utility wants to help the public better understand power usage and its commitment to accurate billing. "It is our mission to provide the most accurate and reliable bill we can for our customers," said Patricia Kirk, director of office operations. A cutting edge digital system is at the center of the effort by which the utility not only reads customer meters but also monitors usage to help pinpoint possible trouble spots.
 
The Tennessee Valley Authority says its diverse energy production portfolio has kept its power rates in the lowest quartile of utilities and its reliability among the best in the industry. The same advantages of diversity also are key in the staffing and supplier sources at TVA and other energy companies, top utility leaders said during a Black History forum Tuesday at TVA's power headquarters in Chattanooga. To be successful, EPB Human Resources Vice President Marie Webb said utilities and other businesses need to provide the right culture, the right environment and the right boss to recruit and retain the best talent.
 
 
   
Winchester Utilities is set to represent Franklin County at the national level at The Great American Water Taste Test in Washington, D.C., on Tuesday and Wednesday. After coming up short in previous years at the state competition, the breakthrough came last October, and now Winchester Utilities personnel will get to represent Tennessee in the water industry’s equivalent to the National Football League’s Super Bowl.
 
 
   
Tennessee needs at least $45 billion of public infrastructure improvements during the five-year period of July 2016 to June 2021—a $2 billion (4.7%) increase from the year before—according to a new report by the Tennessee Advisory Commission on Intergovernmental Relations (TACIR). Improvements needed for Transportation and Utilities has always been the single largest category of the six in the report, with a current total need of $24.8 billion.
 
 

 

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