By Lewis Loflin
In 2007, Bristol Virginia Utilities (BVU) reported a quarterly loss of approximately $50,000 for its fiber-optic division, OptiNet, a significant improvement from earlier projected losses in the millions. This followed several rate increases for electric customers and the use of economic development grants. BVU’s total debt, largely tied to OptiNet, was estimated at $50–$60 million, with about half attributed to borrowing from its electric division.
While BVU’s financial management stabilized, the anticipated economic benefits for Bristol residents remained limited. Electric rate hikes in 2008 were influenced by broader industry trends, though OptiNet’s debt contributed to customer costs.
Despite expectations, BVU’s fiber-optic initiatives did not generate significant private-sector jobs for the general public in 2007. The primary employment gains were within BVU itself, with salaries notably higher than local private-sector averages. Local media reported concerns about hiring practices and a $24,000 scholarship program, criticized for favoring higher-income families’ children over others with stronger academic records. These issues were later addressed.
Residents in unserved areas of Washington County, who contributed to BVU’s debt through electric rates, expressed frustration over delayed fiber-optic access. Promises to extend services in 2008 added millions to the debt, raising public skepticism about the utility’s priorities.
In 2007, BVU launched BVU FOCUS, a division of OptiNet aimed at providing telecommunications consulting to municipal utilities. BVU President Wes Rosenbalm stated the initiative would generate revenue without impacting local service. The first contract, a five-year agreement with MI-Connection in North Carolina (serving Mooresville, Davidson, and Cornelius), was projected to bring $11 million.
Created as a division of BVU OptiNet, FOCUS stands for Finding Opportunities for Communities Throughout the United States. At its Aug. 16 meeting, the BVU Board of Directors voted to accept BVU FOCUS’ first customer, MI-Connection, a cable and Internet company located north of Charlotte, N.C.
MI-Connection faced financial challenges and was sold in 2018, suggesting limited long-term success for BVU’s consulting efforts. The initiative relied heavily on prior government subsidies, and local job growth remained negligible.
BVU proposed a $16 million expansion of OptiNet to Abingdon, Washington, and Scott Counties, expecting to serve 3,500 new customers. The plan included $12 million in grants from the Virginia Tobacco Indemnification and Community Revitalization Commission and $4.5 million in loans, with $500,000 allocated for a new website, www.accessbristolva.com.
Public opposition was strong. Bristol resident Nancy Marney criticized the debt, stating, “We’re in debt over our eyeballs.” Katherine Jewell questioned why Washington County wasn’t funding its share, noting electric customers bore the cost. The City Council approved the funds, but skepticism persisted.
Bristol Herald Courier (August 29, 2007) reported BVU’s revenue bond debt at nearly $50 million, half tied to OptiNet, with additional borrowing from the electric division exacerbating customer costs.
In 2007, BVU CEO Wes Rosenbalm testified before the U.S. House Subcommittee on Telecommunications and the Internet, discussing BVU’s role in providing broadband to Southwest Virginia. The hearing, tied to the Community Broadband Act of 2007 proposed by Rep. Rick Boucher, explored municipal broadband and competition. Rosenbalm highlighted BVU’s pioneering status, but local residents voiced concerns about debt and unfulfilled service promises.
Kingsport Times-News (August 28, 2007) noted that while major telecom providers testified, citizen groups opposing BVU’s approach were excluded.
In February 2012, the promised job growth from $120 million in Virginia Tobacco Commission broadband investments had not materialized. The region’s economy showed little improvement since 2000, with call centers remaining the primary job source. This page serves as a historical record of BVU’s efforts.
BVU sold OptiNet to Sunset Digital in 2016 for $50 million, reducing debt. Now operating solely as a city utility (electric, water, sewer), BVU no longer manages telecommunications. Southwest Virginia’s job market in 2025 remains focused on retail, hospitality, and call centers, averaging $12–$15 per hour, with limited high-tech growth. Virginia’s $1.5 billion broadband investment since 2021 has improved access but not significantly altered employment trends. Bristol and nearby counties have seen a 2–4% population decline since 2010.
Bristol Herald Courier, February 13, 2005, by Lewis Loflin:
I’m joining the Herald Courier to express my deep concerns with Bristol Virginia Utilities being exempted in any form from the Virginia Freedom of Information Act. At the invitation of Bristol Virginia Mayor Paul Hurley, I’ve been attending BVU board meetings and wish to commend Wes Rosenbalm and his staff. They go to great lengths to make sure everything is done within the law. I don’t believe they’re doing anything illegal. Also notable is the BVU program to help needy people with electric bills. BVU will match any donations.
BVU is an operating division of the city of Bristol, and the board consists mainly of local politicians. Some also operate the economic development department housed within BVU’s building. Funds are borrowed/loaned between BVU and the city government. BVU gives away assets under board direction (Red Lobster, Trainstation, library, etc.), and BVU can’t be separated from city politics. Sprint doesn’t borrow from the electric company or use the city attorney to handle legal fights.
OptiNet borrows from the electric company to cover losses/costs. The OptiNet financial statement for May 31, 2004, shows another loss of $2.3 million and total liabilities of more than $41 million. Heavy borrowing from the electric company by OptiNet (and for other costly projects around Exit 7) has led to massive borrowing by the whole utility. External debt alone is $50 million and is a factor in recent spiraling utility rates. OptiNet won’t even start paying on those loans from BVU until 2005. They recently lowered credit requirements for customers (29 percent rejection rate) to up cash flow.
Sprint doesn’t get economic development funds, but BVU does—receiving $3 million to $5 million in tobacco/EDA funds for fiber-optic alone. They don’t have a single private-sector job or new business to show for it that anyone will name. I brought this grant issue up with Sen. William Wampler, and I’m dismayed we get more secrecy bills. Two earlier secrecy bills (SB280 and SB282) didn’t pass. Passing this bill will block citizens, the press, etc., from getting information and must be opposed.
They keep things legal because they know they are being watched. Otherwise, OptiNet must be barred from any further loans from the electric company, BVU barred from any more tobacco/EDA grants, and have economic development completely severed from BVU and removed from their building. This will prevent corporate welfare (incentives) and asset giveaways being shifted onto utility bills. That will level the playing field for everyone.
Lewis Loflin, Bristol, Va.
Below are salaries for key BVU and city positions in 2007, compared to Bristol’s per-capita income of approximately $17,000:
| Name | Position | Salary |
|---|---|---|
| Wes Rosenbalm | BVU President/Chief Executive Officer | $120,536 |
| Bill Dennison | City Manager | $111,000 |
| Stacey Bright | BVU Executive VP/Chief Financial Officer | $104,985 |
| Robert Kelley | OptiNet VP of Operations | $99,329 |
| Mark Lane | Network Architect | $97,854 |
| Robert Snodgrass | VP of Operations - Electric/Water/Sewer | $93,418 |
| Stacy Evans | Network Engineer | $86,888 |
| Jerry Brown | Economic Development Director | $85,437 |
| William Price | Police Chief | $78,024 |
| Luther Minor | Clear Creek Golf Club Manager | $76,839 |
| Bob Childress | Parks and Recreation Director | $73,720 |
A LENOWISCO study foresaw non-unionized call centers’ collapse, warning of offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms exploiting subsidies, like VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Education gaps—~50% no diploma in Dickenson County (2008)—worsened vulnerabilities. LENOWISCO Study, sullivan-county.com
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting with drafting and refining this article. The final content reflects my own analysis and edits.
