Tough Choices Are Ahead With City Grid

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The electric outages in the city Sunday morning and again Monday morning created a lot of buzz, especially on social media. This is a probably a good time to provide a little clarity on the situation. First, the recent outages were not related to the outage in January that shut the entire city down. The January outage was caused by a problem at the aging substation. The recent outage was triggered by a hot wire clamp that burned Sunday, causing one of the wires to fall to the ground.

The repair was completed Sunday, but as the power load increased Monday morning there was a problem at the same area, which was repaired. That is a simple explanation, I am not an electrician.

Before we go any farther, there are other details that are important to share. The workers at the electric department work hard, day and night, to keep the lights on. Brandon Richardson, the department’s new superintendent, was in the grocery story Sunday morning when the lights first flickered. By the time he got to the shop, his phone was buzzing. Brandon and Michael Richardson and the crew, like others before them, have put their lives on hold countless times to jump into action. The calls come when they are at church, ballgames and other inopportune times. They are dedicated to the citizens of Water Valley.

Second, the problem with the aging substation and power grid in the city didn’t happen overnight, and it cannot be fixed overnight. It will take a substantial investment and years to make improvements. Water Valley isn’t the only municipality facing challenges, infrastructure across the nation is failing.

Now to funding, the electric department is funded by the rate payers on the system. The electric department purchases electricity from Tennessee Valley Authority and resells it to city customers. City taxes or other revenue doesn’t subsidize the electric department, instead revenue generated from the electric department helps fund city government. Approximately $40,000 is transfered from the electric department to the city each month. The monthly transfer is called a payment in lieu of taxes, similar to tax payments other utilities make on the assessed value of equipment and infrastructure.

The electric department has also been able to save a little money over the years to build a fund to help with the anticipated work at the substation. The report at a January city meeting was the fund had almost $500,000 in it, but a slight decline in power usage in recent years has chipped away at it.

Now it is time to talk about the solutions. City leaders are working hard to  find funding solutions. The list includes an estimated $4 million to refurbish the substation or possibly build another one, plus millions for upgrades across the city.

So where does this funding come from? City leaders are exploring all options, understanding that we are on thin ice with the power grid. Conversations are underway with federal officials including Congressman Bennie Thompson to see if grants  or other funding is available.

There is no question the city is facing some tough choices. The monthly $40,000 payment to the city could be reduced to provide more capital to invest back into the system. Last month the Board of Aldermen authorized Mayor Donald Gray to discuss the a possible deal to sell the entire system to Tallahatchie Valley Electric Power Association as another option that can’t be ruled out.

It may be weeks and months before the wrinkles are ironed out, but I feel confident that the hard-working city crew will keep us going in the meantime.