Sunday, May 10, 2009

Jackson TN Govt Utility not making a profit

and taxpayers will eventually have to pick up the financial pieces...

But energy authority officials have spent $65.6 million to build the operation center and install network lines and subscriber connections for the system that provides a fiber-to-the-home network throughout Jackson.

During its five years in operation, the utility's telecom division has lost $18.8 million as of Feb. 28 and its long-term debt has climbed to almost $80 million.

Some, including City Councilman Frank Neudecker, fear the authority's telecom debt eventually will fall on city residents to repay through tax increases. In addition, at least one local business owner believes the government-owned utility should not be allowed to compete against privately held companies for telecommunications customers.