You have probably seen the KUB Fiber promotions on local TV news every morning; or the numerous billboards throughout Knoxville pitching KUB Fiber; or perhaps the daily paper aka #TheBigMetalShedontheHill full page ads or maybe the Facebooks’ frequent KUB Fiber advertisements. But I doubt many of you have seen the One Knoxville SC soccer team jerseys that have KUB Fiber printed in bold letters in the front.
Did you know that KUB Fiber is the presenting sponsor of One KnoxvilleSC? A better question is, do you know who is paying for the massive advertising campaign? If you are a KUB electric customer in Knox, Grainger, or Union Counties then YOU are!
In July 2021, the Knoxville City Council approved the broadband business with the creation of a KUB Fiber Division. To fund this effort KUB received $15 million in American Recovery Plan Act (ARPA) dollars (your federal income taxes at work). It also loaned the KUB Fiber Division funds from it’s Electric Division. But wait, KUB also announced in 2021 a three-year 3% electric rate increase, that is 3% in 2022, and another 3% in 2023 and another 3% in 2024 for a cumulative increase of 9%. To add to this rate increase misery TVA raised electric rates 4 1/2% this year and is predicting another rate increase next year. Of course, KUB passed this TVA rate increase directly on it’s customers. With these multiple rate increases, you can readily see what is happening to your KUB utility bill.
Now, let’s look at KUB’s consolidated financial statement prepared by Coulter & Justus PC for 2023. The financial statement for KUB Fiber Division reports $800,000 in revenues but $1,900,000 in advertising, for 2023. Yes, almost $2 million in advertising and promotions for KUB Fiber. Think about that the next time you go to a One Knoxville soccer match or better yet, the next pay you pay your KUB electric utility bill.
