Nashville Electric Service is among the twelve largest electric transmission utilities in the United States, transmitting energy to over 370,000 clients in Middle Tennessee. The NES service area includes 400 square miles, all of Nashville and parts of the six surrounding counties. It serves all areas of Metro Nashville including the areas of Green Hills, Franklin and Brentwood and Belle Meade. The power supplied by this electric transmission utility is produced through hydrostatic generators, which are batteries.
A number of large corporations have decided to establish their own grids in Middle Tennessee due to the competitive advantages this state has to offer. PowerStar was the first company to establish a grid in Middle Tennessee, providing safe and environmentally sound electricity to its customers. This proved to be a very successful move as more companies have since considered doing the same. However, due to regulatory concerns, all new applications of Middle Tennessee power grid are required to undergo a rigorous bidding process.
Because competition in the marketplace increases, the rates charged by Nashville electric service has become more competitive. The Tennessee Department of Transportation also provides grants for local power companies to help offset the costs involved with establishing a new transmission line. There are numerous grants available and most are focused on infrastructure improvement projects.
Most electric lines in Middle Tennessee were originally constructed using high voltage lines. These lines were constructed so that there would be an inexpensive electrical distribution system in place. As time progressed, however, more efficient and lower voltage lines were constructed. Don’t be surprised if you find yourself receiving phone calls from Nashville electric service about your bill. This is simply because your local power company wants you to pay as much as possible.
In an effort to keep prices competitive, Nashville electric service offers five-year staggered terms without pay raise, as well as a two-year non-regulatory HVAC rate freeze. This is part of a plan developed by Davidson County to preserve the existing level of service. The aim is to eventually reduce energy demand by at least 5% by the end of this year.
This effort to provide safe, clean energy is being supported by the Electric Consumers’ Committee of Tennessee, which is a subsidiary of Empower. The organization is attempting to attract new customers through a program called “Let’s Get Ready for Energy.” The program is designed to educate residents on the need to conserve energy. This is only one of the many public efforts being taken to protect Middle Tennessee’s transmission and distribution resources. Exposition Power Co., a publicly owned utility owned by the Tennessee Department of Revenue, is trying to implement a plan that would allow electric companies to sell surplus power back to consumers.
A major problem facing Middle Tennessee’s transmission and distribution electric companies is aging and dwindling infrastructure. As aging and dwindling assets threaten to derail electric service, rate increases will occur. If these rate increases are not passed on to customers, they could lead to financial losses that could further erode the reliability of the electric company’s electric delivery systems. To ensure that Nashville’s transmission and distribution electric resources are maintained at optimum performance, the city’s electricity suppliers must have the ability to adjust their rates according to fluctuating market conditions.
Although the problems are unique to Middle Tennessee, it’s important to note that similar issues exist throughout the United States. These problems have led to lawsuits against power distributors in several states, and the threat of rate increases has forced Congress to create regulatory bodies to address these concerns. If Nashville residents do not see their electric providers increase their prices when the costs of doing so become unsustainable, the likelihood that they’ll experience rate hikes in the future is minimal. The steps that the Nashville Electric Service takes to preserve its competitive edge will hopefully spur improvements across the industry.