By Lewis Loflin
In 2007, Bristol Virginia Utilities (BVU) announced its return to the Tennessee Valley Authority (TVA) as its wholesale power provider, effective January 1, 2008, serving ~16,165 customers in Bristol, VA, and parts of Washington and Scott Counties. The decision followed stints with Cinergy (1998–2004) and American Electric Power (AEP, 2005–2007). BVU’s board, Bristol City Council, and TVA approved a 20-year contract in September 2007, citing long-term rate stability. Bristol Herald Courier, 2007
[](https://heraldcourier.com/news/bvu-counting-down-switch-from-aep-to-tva/article_b2b7a5d3-50d3-5f82-8993-5c8fef47f10c.html)TVA, the nation’s largest public power provider, serves ~9 million across seven states. BVU’s CEO, Wes Rosenbalm, emphasized the switch would align rates with TVA’s structure, avoiding volatility experienced with AEP’s 40% hike in 2005. However, the transition required adjustments that raised customer costs.
BVU implemented a 17.9% blended rate increase, with residential customers facing ~18%, split into two phases: July 2007 (for June usage) and June 2008 (for May usage). This aimed to match TVA’s rates. In February 2008, BVU announced an additional ~15% hike, driven by TVA’s 7% increase and a fuel adjustment charge effective April 2008. A regional drought reduced hydroelectric output, forcing TVA to rely on costlier coal, gas, and purchased power. Bristol Herald Courier, February 20, 2008
[](https://sullivan-county.com/id6/tva_sucks.htm)Rosenbalm, a TVA board member, acknowledged the timing was challenging but supported TVA’s goal of stability. The combined hikes significantly raised bills, with some residents reporting costs exceeding prior years’ averages ($119 vs. $145 for December, post-adjustment).
In October 2007, BVU and Washington County reached a wastewater treatment agreement, resolving a dispute over annexation for a strip mall that cost ~$2 million in legal fees. The county gained capacity for its west end without building a $30 million plant, while BVU received funds to reduce its ~$50 million debt, partly tied to its OptiNet broadband division. The deal, pending final legal details, avoided further costs after a 2006 ruling favored the county. Kingsport Times-News, October 3, 2007
The agreement reflected BVU’s efforts to stabilize finances amid rate hikes and OptiNet’s challenges, though it didn’t directly offset electric costs for customers.
The rate hikes sparked frustration among Bristol, VA, residents, particularly low-income and elderly households. Many struggled with bills, with some reporting costs consuming half their monthly income. Community forums criticized BVU’s OptiNet venture, suspecting its $50 million debt contributed to hikes, though BVU denied direct links. Others questioned executive salaries, noting Rosenbalm earned $120,536, and TVA’s CEO, Tom Kilgore, received ~$2.7 million in 2008. Concerns also arose about BVU’s monopoly, with calls for transparency and competition. Bristol Herald Courier, 2008
[](https://sullivan-county.com/id6/tva_sucks.htm)Rosenbalm’s dual BVU-TVA role drew scrutiny, later compounded by his 2015 conviction for fraud-related charges, including soliciting vendor gifts. He resigned in 2013, paying $200,000 in restitution and forfeiture.
[](https://www.fbi.gov/contact-us/field-offices/richmond/news/press-releases/former-ceo-of-bristol-virginia-utilities-authority-pleads-guilty)BVU sold OptiNet to Sunset Digital in 2016 for $50 million, becoming a city utility (electric, water, sewer) serving ~16,300 customers. A 2024 TVA 5.25% rate hike added ~$1/week to bills, with BVU offsetting costs through prior reductions. Bristol, VA’s economy relies on retail and call centers ($12–$15/hour), with high-tech jobs under 1%. Population has declined 2–4% since 2010. Virginia’s $1.48 billion broadband funding (2024) improved access but not job diversity. WJHL, August 26, 2024
[](https://www.wjhl.com/news/local/slight-rate-increases-expected-for-bvu-customers-after-tva-approves-hike/)TVA remains BVU’s provider under the 2008 contract, with occasional outages (e.g., 2024) but stable service. Economic challenges persist, reflecting broader Tri-Cities trends.
BVU’s 2008 TVA switch aimed for stability but brought significant rate hikes, straining residents during economic hardship. The sewer pact eased debt, but public trust waned amid transparency concerns. Bristol’s ongoing reliance on low-wage jobs underscores the limits of utility-driven development. Clear communication and equitable cost-sharing remain critical.
Originally posted February 2008. Updated April 15, 2025.
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.
