The Greeneville Energy Authority Board approved a resolution Tuesday morning for the issuance of a $53 million bond that will fund several projects for the local utility, from broadband to building upgrades.
The majority of the funds will go towards completing the power provider’s new fiber internet network, in an effort to provide broadband internet services to all of Greene County. Currently the network, known as GEA Connect, is available in the Town of Greeneville and some portions of western Greene County. The county section was built with the help of grant funds.
GEA will be receiving about $10 million more dollars in Broadband Equity, Access, and Deployment reimbursable grant funds, which will be matched with $10 million of local funds to build out the network in southern, eastern, and northern portions of Greene County. Another roughly $20 million in funding from the bond issuance will be used to fill in the gaps between the grant areas, and will give every household and business in Greene County access to the locally provided network. About 291 miles of cable will have to be installed to cover the county.
Another $12 million of proceeds from the bond will be used to rebuild circuits and fencing at Tusculum substation, and an additional $6 million will be used to build a new warehouse addition for GEA.
There are four single phase units at the Tusculum site currently. GEA has already made a $1.3 million partial payment on the purchase of two three phase units to replace the 60+ year old units. The Tusculum site, which already serves around 30% of GEA customers, will be supplying electricity for all the additional state and county owned properties on the Greene Valley site.
As for the warehouse, following construction in 1974, around 48 employees were in the facility in 1989, compared to around 80 currently. A new 9,000 square foot, two story addition will be constructed using the bond funds.
Officials plan to take the bond issuances to market in July. The bond resolution must go to the State Comptroller’s Office for review. GEA’s estimated net margin divided by its expected annual debt service payment results in a debt coverage ratio of 2.4 to 2.8, well above the required 1.2 by the state.
Other Business
In other action Tuesday morning, the board voted to also send it’s broadband business plan to the State Comptroller’s Office for consideration. The state office is required to sign off on the plans before the network buildout can continue.
Greeneville Energy Authority Director of Broadband Phil Bradley said he hopes to be able to begin building out the network further in the fall once all approvals are received.
The board also approved paying Robert E. Lamb Architects around $380,000 for designs for GEA’s warehouse expansion.
In addition, the board approved a change to it’s policies that allows GEA customer’s to speak on anything germane to the utility’s operations. Previously, members of the public had to limit remarks to agenda items until a recent change in state law. Members of the public wishing to speak must still notify the GEA’s office 48 hours prior to a meeting.
