Blog Archive

Friday, October 24, 2008

Broadcast Brouhaha Breaks Out

For the last few weeks the EPB and the broadcast television stations have been in a high stakes game of chess on your behalf. This match is between the EPB Cable Television operation and the broadcast stations that make up about 16 channels of our basic service. Every three years our contracts which cover the permissions for us to carry the broadcast stations (the ones that are actual television stations like WBKO, WNKY, WAVE, WLKY, etc.) expire and must be renegotiated. Historically that has been a relatively simple process wherein the broadcasters ask for certain channel positions and other minor concessions in return for giving us permission to carry their signals. This year, just when we are all being rocked by the turmoil in our economy, we are seeing a new resolve from all of the broadcasters to also ask us to pay them large amounts of money for this permission! You can read more about this issue here.

While we have yet to get formal requests from all of the stations we presently carry, it appears that all but the local low-power station (channel 18 from Scottsville) and the KET/PBS non-profit stations, are going to ask us to pay them large amounts if we wish to continue carrying their programming on our cable system. This is truly bizarre and, considering the strife in our economy, exceedingly poor timing for them to start showing this level of greed. While anyone can still put up an antenna and pick up these broadcasts for free, if we put up that antenna and facilitate the delivery of the signal though our cable system, they feel we should pay about $44,000 per year, per station! Since we presently have nine of those stations, we are talking about a new expense of over $390,000 per year. Obviously, we simply cannot absorb that cost. Something will have to give.

To make matters worse, the two broadcast stations in Bowling Green have used their new digital transmission capability to expand from two broadcast affiliations to five. WNKY is an NBC and a CBS affiliate. WBKO is an ABC, Fox, and CW affiliate. That is important because the networks have been busy working with the affiliates to keep us from being able to shop for the best deal we can find from a broadcast affiliate for each station. It is really too complicated to fully explain here, but the Bowling Green stations have also been granted special rights to either force us to pay their price or they can keep us from getting programming from Louisville or Nashville to replace their programming through “network non-duplication” rights. In other words, if we don’t like their price and we want to drop their programming in response, they can prevent us from importing another signal from NBC, CBS, ABC, Fox, and CW, we have to get it from the Bowling Green broadcasters, period. In effect, even though our economy is collapsing, largely due to the fact that several large banking institutions have become so big and powerful that they are de facto unregulated monopolies, our lawmakers are allowing these broadcast stations to also establish unregulated monopolies! We appear to be in a position wherein we are forced to pay the fees they are requesting unless we want to offer a cable service with no, or very limited, feeds from any of the major broadcast networks. We all know that is just not acceptable to our customers.

Further, even if we cave in and pay WBKO and WNKY their “ransom”, we will still face the wrath of our customers if we raise rates to pay off WBKO and WNKY as well as the fees demanded by the Nashville and Louisville broadcast stations. On the other hand, we face unhappy customers if they lose all of the Nashville and Louisville stations. Thus we are facing a no-win scenario, all because the broadcasters and the legislators and regulators have agreed to put us in this situation. Keep watching here for updates as this “discussion” rages on. We would love to hear your feedback on this matter, just sign in and leave your comments here.

Friday, October 10, 2008

Watching the Meltdown from Glasgow

One thing none of the talking heads on television is talking about during this economic meltdown is the matter of how this stock market crash is going to affect us here in Glasgow. As the chief purveyor of the television signals that carry these talking heads, we thought we should correct this oversight. So, here goes.

First, before you read another word, you should know that the writer is not an economics expert. Rather, the author is simply a local person with some opinions on the subject and access to the internet such that my opinions can easily be plastered across this page. If you are reading this expecting more than that, please look elsewhere.

However, no one can dispute that this present crisis is rooted in the bursting of a very large bubble of inflated housing prices. But since housing prices have never been terribly inflated here locally, Glasgow really didn’t participate in that part of the crisis. The bursting of the bubble lead to widespread losses in many large financial institutions, but Glasgow does not house any of those so, once again, not a big deal here. It is true that many of us helped inflate that bubble by financing our own homes with “secondary market” mortgages. We did that for the reason that so many of us do so many things . . . they were cheaper. But even though many locals have mortgages, my family included, that may indeed be lost somewhere in this financial morass, so long as we keep making our payments there should not be a big impact on Glasgow.

Of course many local folks own stock through mutual funds, 401K’s, and other investment and retirement plans, and the value of those investments is presently in free-fall. It is certain that some local retirees are living off of the income generated by those investments and they will certainly see their incomes decrease. Other locals that have investment accounts targeted at future retirement may be looking at working longer than they had anticipated, but that should not force any locals to look for a tall building to jump off of. Those of us in that age bracket could not make it to the top of one anyway. Local investment advisors are not winning any popularity contests of late, but, their income should be quite secure because most of them get paid when we buy or sell stock, it is our problem if we lost money on the transaction generally, not theirs.

There could be dramatic impacts on Glasgow if this “crisis of confidence” results in the collapse of the automotive industry and a general resistance to folks shopping and spending. Many locals work in factories and industries and dealerships that depend upon the sale of trucks and cars and everyone with a job depends on someone being willing to purchase the products that person’s business sells. If there is anything that we really should be worried about right here in Glasgow that might be it. There is no quick fix to that, but, long term, we should be electing folks that recognize our long-term need to promote localism and growing our economy from within instead of putting all of our hope in the attraction of another outside industry. Generally however, that is a national issue that we must rely on strong national leadership to solve. This is why we should be very afraid and ready to demand more.

WARNING - POLITICAL OPINIONS COMING. For many years now we have elected leaders who employed the philosophy that government’s job is to help businesses pursue profits, and that business, in turn, should (and would) distribute that wealth among the rest of us. In the 1980's President Reagan espoused this philosophy when he said, in his first inaugural address, “Government is not the solution to our problem, government is the problem.” That truism continued to echo through the Newt Gingrich revolution of the mid-90's and it can even be witnessed today from presidential debates all the way to the uber popular Glasgow Forum on Topix.com. The only problem with the philosophy is that Wall Street is now proving what we all should have learned in American History class, that Reagan had it dead wrong. In fact, the demonization of government is now having results that none of the proponents, from Reagan to Gingrich and their descendants, ever intended. It turns out that a town without a Sheriff is not a pleasant place to live. What a pity we did not learn that from the warnings issued by Hamilton in the Federalist Papers or from the experience of our parents who lived through the Great Depression! While we certainly cannot fix any of that from our position here in Glasgow, we, along with the residents of ten thousand other cities like Glasgow across the United States can certainly fix it, and we must.

Our decades-long love affair with dismantling our federal government is at the very core of the problems facing our economy today. We crashed our ship upon the rocks while we listened to the siren song of “returning power to the people,” but it turns out that dismantling regulatory agencies by slashing their budgets and appointing clueless leadership, did not return power to us at all, instead, it turned power over to the great rival of national government, the large corporations and the business community. Now we can see that getting government off the back of business simply means putting business on the back of government, and, in turn, on my back and your back right here in Glasgow.

This is not a Republican or a Democrat issue, it is about greed from both sides of the political aisle, the sort of greed that can be carried out while we regular citizens are busy trying to make a living and raise our children. What we need today are leaders like the Roosevelts, both the Republican, Theodore, and the Democrat, Franklin. Both of them saw the national government, not as a menace to be denounced and feared, but as an instrument of greater democracy and as a vital means of helping people to help themselves. Both of them were fought, every step along the way, by short-sighted men of wealth and privilege. Still, it is said that Franklin Roosevelt rescued capitalism from the capitalists. We need leaders like the Roosevelts again, both nationally and locally.
Tuesday, October 7, 2008

Something Simple

If you are like me, you wish that we did not have so many news channels on our cable lineup of late. The news has been so complex and scary that no one really wants to see it. So, perhaps it is time for a very simple and useful post from us that might take your mind off of some of the depressing economic news. So, here goes.

One of the blogs worth reading out there on the world wide web (other than this one) is David Pogue's light hearted, informative, and funny information on computers and other digital gadgets. Recently he did a post on 'The Basics' of computer use and it was shocking how many simple things about using computers and Windows that he knew, while most folks do not. All of us at the EPB use computers every day. In turn, we chat with customers thousands of times a month and most of those conversations include some amount of transferring information about tips and shortcuts that most people are not aware of. Even still, a lot of the things on David's list were new to us!

Before I can even link you to the wonderful list of information submitted by David Pogue, we need to talk for just a minute about the first tip...just what is a 'link?" A link is a graphic or even a word that appears in a different color, like this, in a blog or a web page. When you see one of these words in a different color, you can use your mouse to move the cursor over the link and then press the left mouse key. Instantly, after "clicking on the link" you are transported to another web site with new or additional information. Therefor, please click on this link to be transported to a wonderful list of useful shortcuts that will make your computer usage much more efficient and fun. Go ahead, click it!
Wednesday, October 1, 2008

October 1 2008, A Day Which Will Live in Infamy

While our congressional representatives debate in Washington, D.C. about a very controversial bill aimed at saving our economic system from a total meltdown, a very similar crisis, albeit on a much smaller scale, is looming right here in Glasgow. That statement is not made to sound overly dark, but October 1 is the day that the largest increase in the cost of TVA electric power in many decades takes effect. So, in an odd sort of fashion, the pursuit of light is setting us up for economic darkness.

Nationally the proliferation of variable rate mortgages is said to be the chief cause of our economic distress. As the interest rate on those mortgages spiraled upward, many have not been able to make the larger payments. The result has been that thousands of families have seen their homes repossessed and that has resulted in the general reduction in value of all of our homes. Thus, banks who secured loans based upon the inflated values of the real estate, have become insolvent because they cannot sell the repossessed homes at anywhere near what they thought they would be worth. But you did not come here for my explanation of the national economic crisis.

The point is that the situation here in Glasgow is eerily similar to our national situation. Instead of variable rate mortgages, all of us are facing variable rate energy bills. In particular, your electric power bill from the EPB, depending on how much electricity you use and where you use it, just went up around twenty percent. For many in Glasgow that increase will be quite painful. For many more, the increase will be the “straw that breaks the camel’s back” relative to their personal finances. More folks than ever will face termination of their electric service due to their inability to pay their bill and that will send ripples throughout our local economy. The EPB certainly does not look forward to increasing the number of electric service terminations, but we don't really have any other tools to use since any amount of electricity not paid for by one customer is ultimately paid for by the rest of the customers. So far, the rest of the customers have been unwilling to subsidize those who cannot pay. Meanwhile, even folks who can tighten their belt enough to deal with this increase will also contribute to the destabilization of Glasgow’s economy simply because this rate increase, should it stay in place for a year, will extract an additional $4 million from our local economy! That means every church, charity, and non-profit agency that depends on contributions from locals to survive will feel the pressure. Four million dollars is so much, when pulled from a community the size of Glasgow in one year, that none of us will be able to avoid feeling the impact.

The national economic crisis generally results from the unmitigated greed of several folks with Wall Street work addresses. Our local energy-derived economic crisis comes from many years of TVA rates which encouraged us all to use energy as if it were a limitless resource. As a result, we have all become addicted to cheap and abundant energy but now the supply is suddenly expensive and very finite. I am not at all sure which of those sins is the more damaging. Nationally, our congress will likely vote to rescue the Wall Street sinners by borrowing more money from China, Germany, and Russia. Locally, your rescue might come from a number of actions, but being saved by Congress is not on the list possibilities. First, you could redouble your efforts to use less electric power (you know how to do this, just turn thermostats down and appliances off). Next, you could offer up effective prayers for rain (TVA can make really low-cost power with their hydroelectric dams, but those need to be attached to reservoirs full of water, and for the last couple of years they have been at record lows due to persistent drought.). Finally, you might get ready to embrace a new electric rate environment wherein you will save money by moving your electric power consumption to off-peak times (this is the savior we have been hoping for over the last several years but TVA is glacially slow at delivering to us).

Of course, no discussion about our economy can take place without also mentioning that localism, making every possible effort to buy your needs from locally owned businesses, is also a great way to blunt the impact of this economic crisis. TVA has just opened up a huge new hole through which lots of money will drain away from our local economy. Meanwhile, you have the power to start sealing that hole by trapping more money in our local economy. Whatever you buy, think about how you can buy it from a local merchant first. It might be a long process of encouraging more local folks to offer the goods and services that we all need, but even the journey of one thousand miles begins with the first step!
Sunday, September 21, 2008

The Pride of Sideview Tennessee

If you use 31E to avoid the traffic and construction on I-65 to get to Nashville, you have driven through the community of Sideview. If you have been to Sideview you have also virtually driven right by the home of one of the titans of our generation, Johnny H.Hayes. While it is safe to say that most folks in Glasgow have never heard of Johnny, the converse is not true. Johnny certainly knew and cared about Glasgow, and millions of others like us in hundreds of other communities.

Johnny Hayes succumbed to stomach cancer yesterday, and we all lost a great friend. I am not qualified to tell you all about his life, as I was only lucky enough to know him for about twenty years. A really good summary of his life is available in this obituary written by Ken Whitehouse. I can tell you that he was a behind-the-scenes political operative extraordinaire. He was appointed to the TVA Board by President Clinton. He befriended me, and Glasgow, when we really could do nothing for him -- even though he had the power to do a lot for us. Inequalities like that meant nothing to Johnny. He just wanted us all to progress and prosper, and, occasionally he wanted me to stop by and just chat with him . . . mainly about how my kids were doing and his.

He was not a technical whiz. In the mid-90's when I prevailed upon him to support our efforts to combine broadband with our electric power network, even though almost everyone else at TVA thought it a bad idea, he supported us with his influence and even some of TVA's money. He was not sure what broadband was or if it really was a great idea, but he believed in the people that live in Glasgow and that was enough.

It is likely that, perhaps, ten thousand people counted Johnny as a personal friend. He had that kind of gravity. Any of those folks would make the same observation of Johnny. He could walk into any crowd of people, be it a crowd of ten or a thousand, and each of the people in that crowd would feel that Johnny was there just to see them. He gave of his soul and love so readily, it is not surprising that he succumbed so early. His defenses were weak because he gave so much of himself away. Glasgow, and the world, lost a great friend and a boundless wellspring of good on Saturday, September 20.
Thursday, September 18, 2008

There but for the grace of God go I

According to Wikipedia, those words were first uttered by John Bradford while he was imprisoned in the Tower of London. According to legend, he was watching a criminal going to his execution. For the last week, we have been uttering those words as we watch utility crews from Galveston to Owensboro to Louisville, and on to Cincinnati, battle to return power to hundreds of thousands of homes. Galveston seems far away and easy for us to ignore, but Owensboro and Louisville are within a hundred miles of us. We cannot ignore what is going on there. This article is from Friday's Courier Journal and it offers all of us plenty of warning about what could be happening right here in Glasgow.

The lessons are very clear for the EPB and we are scrambling trying to put those lessons into action (well, scrambling as much as is possible while we are on our knees giving thanks for the close calls as opposed to a direct hit). The lessons include a reaffirmation of the need for us to aggressively trim trees. This is one thing we were already doing, so we hope that the weight of this lesson will fall squarely on those who have been vociferously protesting our aggressive trimming practices. If anyone needs any more explanation than that found in the Courier Journal for our decision to trim trees so radically, then they are never going to be convinced of anything. We are also learning a lot from the words of LG&E customers in their responses to LG&E’s efforts on the Courier Journal web site. It seems that the biggest complaints folks have about their efforts relate to LG&E’s failure to adequately inform the community on where they are working and what progress they are making. Since we happen to own and operate a broadband network and have the capacity to control web sites and television media as well, we are hatching a new plan for how we could keep our customers better informed about our progress when a disaster like this hits Glasgow, and, mark my words, it will.

We will be redoubling our efforts to establish working relationships with other utilities so we can get help when we need it. We will be having new conversations with all of the other local utilities and DES folks to make sure we know how to communicate during a crisis. We will be working with them to review our priority loads and work out plans to make sure that we all agree on which facilities should get power first after a disaster. We will be working to establish relationships with local tree trimmers, fuel providers, motels, groceries, and restaurants to make sure the community can have the basics; like food and water, after a sweeping disaster like that which has struck Louisville. In short, we are watching them closely and trying to learn from their mistakes.

There are lessons for each of you as well. Have enough food, water, and fuel on hand to get you through a week without electricity. Have working flashlights, batteries, and a battery operated radio. No matter what plans we make for restoring power, an outage lasting this long is still very possible. You too should learn from the lessons being learned in Louisville. Then, together we can all plan for the disaster we hope will not come. For me, well, I have to get back down on my knees and keep offering thanks.
Monday, September 15, 2008

Localism

In the last few days it seems like the news is more ominous than ever before. Hurricane Ike came to Galveston Texas and continued up through Louisville and beyond. In Ike’s wake are over two million homes without electric power in Texas and Louisiana. Today’s Courier-Journal says that 275,000 homes and businesses are without power in the greater Louisville area. Our supply of oil, gasoline, and natural gas has been destabilized and crippled as well and it only took a few hours for the impact to be felt right here in Glasgow. At the same time, our currency is being threatened by the failure of massive investment banks like Lehman Brothers, and let’s not forget the dramatic effect that TVA’s electric rate increase (which takes effect October 1) will have when it takes another $4 million per year out of our local economy right here in Glasgow.

No matter how you look at it, no matter what your political leaning, one thing is certain; we can no longer count on our state or federal governments to protect us and care for us. Over the last several years, the government institutions that we counted upon to regulate, and protect us from raging greed, have become best friends with those they were supposed to tame. It is happening in Washington and it is happening in Frankfort. As a result, no one is really looking out for us anymore. It seems that the forces of greed overwhelmed our government's ability to look after us. So, let’s do it ourselves! If we want safety, security, and the comfort that comes from a stable local economy and low crime rates, it is becoming more clear every day that we are going to have to take care of ourselves. There is a philosophy that we need to embrace and pursue and that philosophy has a name . . . localism.

While not simple to define, my definition of localism is the desire to make the place where we live better by reinforcing our local economy. We can do that a lot of different ways, including: identifying, and bending over backwards to patronize, locally owned businesses, encouraging local entrepreneurs and the jobs they can create, identifying holes where money leaks out of our local economy through the purchase of goods and services from non-locally owned businesses, focusing tax dollars on the provision of infrastructure that is needed to support local businesses and a durable local economy, and so forth. All of these ideas, and many more, are at the very center of the EPB’s mission and you will be hearing a lot more in the future about our efforts to support and encourage localism, but here are a few initial ideas.

There is an ocean of information on the web about the concept of localism and why we are actually paying ourselves when we purchase goods from a locally owned business. One such web site, local harvest, has an outstanding narrative about the virtues of buying locally:

Most produce in the US is picked 4 to 7 days before being placed on supermarket shelves, and is shipped for an average of 1500 miles before being sold. And this is when taking into account only US grown products! Those distances are substantially longer when we take into consideration produce imported from Mexico, Asia, Canada, South America, and other places.

We can only afford to do this now because of the artificially low energy prices that we currently enjoy, and by externalizing the environmental costs of such a wasteful food system. We do this also to the detriment of small farmers by subsidizing large scale, agribusiness-oriented agriculture with government handouts and artificially cheap energy.

Cheap oil will not last forever though. World oil production has already peaked, according to some estimates, and while demand for energy continues to grow, supply will soon start dwindling, sending the price of energy through the roof. We'll be forced then to reevaluate our food systems and place more emphasis on energy efficient agricultural methods, like smaller-scale organic agriculture, and on local production wherever possible.

Cheap energy and agricultural subsidies facilitate a type of agriculture that is destroying and polluting our soils and water, weakening our communities, and concentrating wealth and power into a few hands. It is also threatening the security of our food systems, as demonstrated by the continued e-Coli, GMO-contamination, and other health scares that are often seen nowadays on the news.

These large-scale, agribusiness-oriented food systems are bound to fail on the long term, sunk by their own unsustainability. But why wait until we're forced by circumstance to abandon our destructive patterns of consumption? We can start now by buying locally grown food whenever possible. By doing so you'll be helping preserve the environment, and you'll be strengthening your community by investing your food dollar close to home. Only 18 cents of every dollar, when buying at a large supermarket, go to the grower. 82 cents go to various unnecessary middlemen. Cut them out of the picture and buy your food directly from your local farmer.

Even though the newspapers and television bring us tidal waves of bad news about our economy and our future, Glasgow is not helpless and totally dependent on the global economy for our daily bread and our ongoing happiness, but we still have a lot of work to do. Our forefathers built us a great foundation for sustainability when they established a locally owned water and sewer system, electric power and broadband network, as well as wonderful parks, roads, sidewalks, and even recent additions like The Plaza Theater and the EPB’s Jama M. Young Technology Center. But even those systems are not perfect. While the EPB is locally owned, the electric power we sell is not produced locally and thus we are subject to rampant cost increases. In addition to our technological assets, we are blessed with fertile land and folks who know how to use it. They have established cattle farms, dairy farms, and abundant crops of all sorts. We have a lot of assets going for us so we don’t have to start from scratch to focus on localism. But we do have to start looking at things differently. We are surrounded by rich farm land that produces large amounts of food, dairy, and beef, but practically none of it is sold and consumed here. We have a lot of work to do to make it possible for our local food economy to flourish and become sustainable.

The localism movement can flourish if we look at today’s headlines, not with fear, but with the resolve to create solutions that will allow Glasgow to thrive in the new world we have created. As we see news reports of the devastation of Galveston (and even Louisville) we should see ourselves as similarly vulnerable. We should assume that fuel supply will be interrupted more often and that it will become ever more expensive. In such a world we need to develop more ways to fuel and feed ourselves from our local resources and farms instead of just taking what TVA has at whatever the cost and waiting at the tailgate of a truck just coming in from afar with our food. We should learn how to use our local talent and infrastructure to entertain ourselves locally without having to drive to Bowling Green, Louisville or Nashville to take in a show. We can also assume that many national banking and investment houses will fail, but we can invest locally and expect the return on our investment in both dollars and in a better life for ourselves instead of distant bank executives. Instead of giving foreign companies our tax dollars to entice them to come to Glasgow, we need to use our tax dollars to pay for the things that make it easier for local farmers to sell their products locally and create a durable and more enjoyable place for us all to live. With a sustainable local economy, those outside businesses and industries will be attracted to Glasgow because it is a great place for their employees to enjoy their lives instead of just because we are willing to pay them for coming. In the long run, sustainable development will flourish more with those incentives than it has using our old formula.

The world is giving us every reason to embrace localism right here in Glasgow. The time has come and the movement is alive. Stay tuned to this blog for more and more information about how we can make Glasgow better without constantly asking for more and more.