Tennessee Cable Group Maintains Opposition to Utility Plan

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Power Board's Attempt to Dismiss Case Thwarted

A Davidson County, Tenn. chancellor has rejected an attempt of the Chattanooga Electric Power Board to dismiss a state cable association challenge to the municipal utility's broadband build.

The Tennessee Cable Telecommunications Association filed suit against the EPB's fiber broadband plans in 2007 in the county's Chancery Court, alleging that the broadband plan violates state law. The TCTA asserts that the broadband plan underestimates costs and overestimates revenues and thus will require illegal cross-subsidization to survive.

The EPB countered the lawsuit with a motion of its own, asserting that the suit was filed in the wrong place: the challenge should take place in Hamilton County, the location of the state comptroller's office. That state official is charged, under state law, with vetting the broadband plans of communities. For that and other procedural reasons, the EPB asked Chancellor Ellen Hobbs Lyle to dismiss the case.

But the chancellor ruled Jan. 8 that the TCTA had filed in the correct court. State law directs plaintiffs to file suit in the county where the violation is or may take place, and that is Davidson County, home of the municipal power division.

TCTA executive director Stacey Briggs was pleased with the decision, which will allow the planned challenge of the broadband build.

The EPB is moving forward in the project, in the meantime. The utility needs to float $219 million in bonds to fund the fiber-to-the-home project, and selection of an underwriter is on the agenda this week. If the project is funded, and survives the legal challenges, the city will compete with Comcast as a telecommunications provider.


Tennessee Cable Group Maintains Opposition to Utility Plan - 1/15/2008 1:27:00 PM - Multichannel News

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City Utility Trying Again To Get Cable Association Suit Dismissed

Attorneys for Tennessee's cable association and the Chattanooga Electric Power Board will head back to court on March 7 as part of their continuing battle over the EPB's plans to launch a municipal broadband system.

The EPB wants a Chancery Court in Nashville to reconsider its January refusal to dismiss the operators' legal challenge. The Tennessee Cable Telecommunications Association sued to block the broadband build last year, arguing that it will require impermissible cross-subsidy, among other challenges.

The EPB's counter to the TCTA lawsuit is on jurisdictional grounds: the cable association filed its suit in Davidson County, where the state comptroller is located. The comptroller is involved because that office reviewed the broadband plan for feasibility. But the city utility argues the lawsuit should be heard in Hamilton County, where the utility does business.

The city's motion for reconsideration also asks that should the judge refuse to reconsider her decision, that the utility be allowed to appeal the jurisdictional issue to the Tennessee Court of Appeals.

While the sides fight in court, the City Council in Chattanooga has directed the utility to look for up to $230 million in revenue bonds. The TCTA protested this action in a letter to the council, reminding elected officials that the whole project is subject to an ongoing lawsuit and adding that the bond amount is "materially different" from the $46 million plan presented to the state comptroller last year.

The initial lawsuit by the TCTA had entered the discovery phase when the EPB decided to appeal its jurisdictional challenge, according to Stacey Briggs, executive director of the TCTA. It is not clear whether the jurisdictional appeal will stall the original litigation, she said.


Chattanooga Municipal Broadband Case Headed Back To Court - 2/20/2008 10:45:00 AM - Multichannel News

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Asks Court To Stop Competing Fiber-To-The-Home Project
By Linda Haugsted -- Multichannel News, 4/24/2008 1:53:00 PM

A Comcast division in Tennessee has taken up the legal challenge against a competitive video build in Chattanooga, filing a county lawsuit against the municipal utility in Hamilton County.

The action by Comcast of the South, filed April 22, comes one week after the court in neighboring Davidson County dismissed a substantially similar lawsuit by the state's trade association, the Tennessee Cable and Telecommunications Association.

The Davidson County judge ruled that the suit was improperly filed in his county, adding that the trade association was the wrong party to sue. The association would not be damaged if the municipal utility launches a competitive business, but an incumbent cable company might, he indicated.

Comcast of the South has asked the Hamilton County Chancery Court to stop the fiber-to-the-home project planned by the Chattanooga Electric Power Board. Cable operators allege that the build, as approved, does not accurately state the cost to build and operate a telecommunications plant, meaning the project will have to be cross-subsidized by utility rate payers.

Cable companies allege this will violate state law. Comcast also asserts that, as a city entity, the EPB has access to low-cost loans, giving it a commercial advantage.

"Our intention is to ensure that EPB complies with the Tennessee Cable Act and that Comcast be allowed to compete in a fair environment. Due to this pending litigation, we can't comment further," said Valerie Gillespie, vice president and general manager, Comcast of Chattanooga, in a prepared statement.


Comcast Division Files Suit In Tennessee - 4/24/2008 1:53:00 PM - Multichannel News

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Says Planned Municipal Cable Build Doesn’t Harm Trade Association
By Linda Haugsted -- Multichannel News, 6/27/2008 4:18:00 PM

A Davidson County, Tenn. judge Friday reaffirmed her decision to dismiss a challenge by the state's cable association of a planned municipal cable build by the electric utility of Chattanooga.

In April, Chancellor Ellen Lyle of Chancery Court in Nashville ruled that the Tennessee Cable and Telecommunications Association suit was filed in the improper court. Hamilton Count is the proper jurisdiction for the suit. Also, an individual operator might be harmed by the video system planned by the Electric Power Board of Chattanooga, but not a trade association, she opined.

Following that ruling, Comcast of the South filed a similar suit to that of the TCTA, but in Hamilton County. The operator alleges the municipal build will be improperly subsidized by utility rate-payer money, a violation of state law. A decision is pending in that case.


Judge Reaffirms Dismissal Of Tennessee Cable Association Challenge - 6/27/2008 4:18:00 PM - Multichannel News

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Jul. 12--A Chattanooga judge on Friday threw out Comcast's lawsuit seeking to block EPB from offering cable, telephone and Internet service to residential customers. 'We just received the judge's decision, and our attorneys are reviewing it now,' Valerie


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