Chancellor Brown To Rule Later On Comcast Lawsuit Against EPB

  • Monday, June 9, 2008

Chancellor Frank Brown, after hearing two hours of argument from attorneys on Monday morning, said he will rule later in the lawsuit brought by Comcast seeking to halt a cable TV venture by EPB.

Chancellor Brown said he may or may not wait until Chancellor Ellen Lyle of Nashville gives a further ruling in the case that was first filed with her. She earlier dismissed the case, but Comcast has asked her to reconsider the ruling.

The EPB is asking Chancellor Brown to dismiss the lawsuit.

Attorney Travis Parham said EPB is violating state law by using ratepayer funds to subsidize the cable TV venture.

He said EPB had done the same thing when setting up a Telecom arm of the company for phone service earlier. He said EPB had loaned itself $10 million for that venture, then raised it to $17 million, then $22 million and now $28 million.

He said nothing has been paid on the principal. He said, "This is in effect not a loan, but a cross-subsidy."

Attorney Joe Conner said EPB is violating no law in going ahead with a $169 million fiber-optic "Smart Grid" installation. He said the grid will benefit the system in a number of ways, and is projected to save at least $300 million initially.

He said the installation is underway. "They are already digging in my subdivision."

Attorney Conner said, "Why we are here is because Comcast is trying to keep someone else out of the marketplace."

Attorney Rich Hitchcock said TVA had approved the EPB venture and the method of financing it.

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