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EDITORIAL: Solid Reasons for Separation of BVU From City
Friday, October 23, 2009 9:55 AM


(Source: Bristol Herald Courier)trackingBy Bristol Herald Courier, Va.

Oct. 23--Next week, the Bristol Virginia Utilities Board, created as a division of the city, will make the second of two requests to reinvent itself as a separate authority. The plan has the unanimous support of the BVU board and three members of the City Council.

On Tuesday, proponents hope to get unanimous support from the council members.

Two weeks ago, this newspaper urged clarity and explanation on how and why this move would be an improvement for existing ratepayers and the city taxpayers, who deserve to benefit from any change. In an editorial board meeting with this newspaper Wednesday, we got the answers we sought.

BVU CEO Wes Rosenbalm and a team of board members and utility officers made their case that a separation from the city is in the best interest of ratepayers -- and taxpayers.

Some of the reasons are financial.

BVU has multiple audiences because it provides multiple services -- water, sewer, electricity, cable television, telephone and Internet. But for each, the fundamental mission is the same: To provide quality, reliable, low-cost service to customers.

In the case of water and sewer, BVU is the only likely provider to ever bring service to Bristol, Va., residents. The cost is too great and the lines are already laid. Plus, Bristol's system is leaking water to the tune of about $275,000 a year. To repair the leaks, the system needs a $30 million upgrade. That's an investment that could prove burdensome for a cash-strapped city, but could be covered more easily using revenue bonds issued by a separate authority.

Some of the reasons for the spinoff are for proper service to customers.

Rosenbalm pointed out that some service measures would not increase revenue, but still are important for customers. Among them are so-called "smart meters" that would allow customers to regulate their water and electricity use more efficiently, but would cost an estimated $6 million. Is Bristol going to fund that expense, especially considering it leads to less consumption, and potentially less revenue? Still, the result would be cost-savings for the customer, something BVU should be focused on as a good steward, Rosenbalm stressed.

We agree. Customers need tools to manage their costs and they expect a modern utility provider to offer those tools.

A big reason to support the split is growth.

Rosenbalm noted that BVU increasingly has developed broadband Internet outside the city of Bristol, and those projects are bringing hundreds of jobs to the region. Much of that work was funded by grants, according to BVU CFO Stacey Bright.




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