Submitted by BGMU
Many of you know that BGMU’s Electric Division purchases electric power from the Tennessee Valley Authority (TVA), a federal power agency serving nine million people over seven states, including portions of Kentucky. The Electric Division ventured into the electricity business in 1942. For 75 years, BGMU and TVA have provided reliable, low-cost electric power to the citizens of Bowling Green.
Can you imagine a world without electricity? Think for a moment how electricity intersects with your modern day life. What did you do when you woke up this morning? If you’re like me, did you turn on some lights? Turn on the TV to catch up on the news and weather? Turn up the heat to take the chill off? Make a cup of coffee? Grab some milk out of the refrigerator? Toast a bagel? Run a load of laundry? Electricity intersects with all of those activities and so many others as we go about our daily lives. I don’t know about you, but I cannot imagine modern life without the availability and reliability of electricity.
So what about pricing? In 1942, the average Bowing Green household used 50 kilowatt hours (kWh) in a month and paid a blended rate of about 4.9 cents per kWh. Factoring in inflation since 1942, one would expect today’s rate to be approximately 73 cents per kWh; however, current residential rates are around a dime. So in 75 years, rates have just barely doubled. That’s pretty remarkable! The price change is a little different for gasoline. In 1942, gasoline was about 15 cents per gallon; because of inflation, you would expect to pay about $2.24 per gallon, which happens to be close to what we pay for gas. Gasoline has had a 15-fold increase since 1942, while the cost of electricity has only doubled. Locally, BGMU’s residential and small commercial rates are in the top 20% of affordability benchmarked against all TVA local power companies and in the top 10% for all medium and large commercial and industrial rates. Of course, it must be noted that the average US householduses about 900 kWh per month, so we hope you enjoy the energy-saving tips we provide on our social media pages and participate in our Levelized Payment program. Follow us on Facebook (BGMU, @bgmunicipal) and Twitter (BG Municipal, @BGMU) if you don’t already!
Statewide, water and sewer rates are regularly surveyed by a Knoxville engineering firm. According to their survey, the average cost for 5,000 gallons of water (the average monthly consumption by a residential customer) in the Commonwealth has increased from $32.59 in 2011, to $37.66 in 2016. BGMU’s 2016 rates applied to the same 5,000 gallons would yield a bill of $23.66, which is over a third cheaper than the statewide average and less expensive than Kentucky’s two largest cities. BGMU’s 2016 sewer rates would produce a $28 bill, which is 27% lower than the statewide average of $38.63.
What does all this mean? I hope it demonstrates that BGMU has taken seriously its commitment to be focused on its customers, and we work hard to keep our rates affordable. BGMU is proud to be your provider of electricity, water and wastewater services. Our mission is to improve our customers’ quality of life by providing reliable, safe and efficient utility services.
BGMU Fiber also serves commercial customers and has been part of the community for 15 years. We know that keeping your business connected is essential. BGMU Fiber is the only all-fiber network in Bowling Green offering the highest standards of commercial grade fiber links to connect businesses locally and globally. Like our electric and water/wastewater divisions, customers have 24/7/365 support with BGMU Fiber and speak to a local person when they have questions or issues. We pride ourselves on offering competitive services and demonstrating the highest level of customer service. As we continue to grow, we will always stay mindful of our main priority – giving customers what they need at a fair cost.
Thank you for allowing us to be your hometown utility provider. From our family to yours, we hope you have a happy holiday season and a wonderful, prosperous 2018! Remember, we’re only one phone call away when you need us.
BGMU – Connecting Bowling Green
