The proposed merger between the Elizabethton Electric System and BrightRidge of Johnson City is a discussion that should not even be happening.
The Elizabethton Electric System is one of Elizabethton’s most treasured assets and is a source of pride for the community. It is especially heartwarming to see those big white bucket trucks parked on neighborhood streets when the electricity is knocked out by a winter storm, a fallen tree, or a car accident. When you’re down, they’re up.
We are especially glad that Elizabethton residents have the final say in the proposed merger — not the Elizabethton Council or BrightRidge. Why should BrightRidge not just jump at the idea to acquire the Elizabethton Electric System? It’s a profitable venture. But, big is not always better.
BrightRidge CEO Jeff Dykes knows the value of the Elizabethton Electric System. He grew up in Elizabethton and was manager of the EES for a brief period of time.
For Elizabethton Electric customers, it will mean higher rates, perhaps not the first year, but during years two through five an annual increase of $13.75. Should the EES stay put, residents perhaps would probably not see an increase at all.
Also, the City of Elizabethton would receive less revenue from a payment in lieu of taxes, or PILOT arrangement. According to figures presented by BrightRidge CEO Jeff Dykes to Johnson City commissioners, Elizabethton would receive $1.08 million less annually because of the shifted payments from Elizabethton to Johnson City. Thus, any merger could mean an increase in property tax rates to offset the revenue loss.
BrightRidge is the 10th largest public power provider in the TVA system with 78,000 customers. Elizabethton Electric has 26,068 customers.
BrightRidge proposes paying Elizabethton somewhere in the neighborhood of $28.6 million to $33.9 million for the EES and assume $31 million of electric system debt held by the city.
However, EES is part of the city’s revenue steam, as well as Carter County, Watauga, Unicoi County, Washington County, and Johnson City. BrightRidge would still be responsible for making payments in lieu of tax to the city but at reduced amounts. But the amount of tax payments made by BrightRidge would be reduced over time, until no payments would be made. And, not only will your electric bill go up, but so will your property taxes.
All nine of the EES substations have been rebuilt over the past few years, which means the substations have about 50 years of life in them before the City or BrightRidge will have to make any major expenditures.
These numbers mean a lot to Elizabethton residents, but not as much as the pride we have in what is ours and what has been ours for years. Do we not have any pride at all in our community and what we have built over the years? Do we not want to grow? Are we willing just to sell out and put a closed sign at the entrance of our community? If we sell the Elizabethton Electric System, then we are saying we no longer want to take responsibility for maintaining our community.
There’s no good reason to sell EES to BrightRidge.
Folks, it’s time to wake up, take pride in Elizabethton, and work to keep what we have, and decide we are going to be the best we can be. If our present council doesn’t want to be part of this effort, then they need to resign and step aside and let someone else do the job.