Notice to Electric System Consumers of Investment in Commercial Broadband

Cleveland Utilities (CU) requested authorization from its regulator, the Tennessee Valley Authority (TVA), to invest electric system revenues in its commercial broadband division. This notice is being provided to CU’s customers pursuant to TVA’s regulatory transparency requirements.

Previously, CU filed an application with TVA requesting authorization to invest electric system revenues in its broadband division. Specifically, the commercial broadband division, will use electric system revenues to finance the deployment of commercial broadband equipment and start-up its commercial broadband business in its service territory over multiple years.

The total combined fiber investment for electric and commercial broadband purposes is projected to be $72 million. Of this amount, CU plans to loan $8 million to its commercial broadband division, for commercial broadband purposes. Per TVA requirements and conditions of TVA’s authorization, the commercial broadband division is required to repay CU this amount, plus interest, in twenty years or less. It is estimated that the total investment for both electric and commercial broadband will not have any rate impacts.

Any questions regarding this broadband investment should be directed to CU’s Tim Henderson at Post Office Box 2730, Cleveland, Tennessee 37320-2730 or by email at broadbandfeedback@clevelandutilities.com or by phone at (423) 472-4521.