CCU Approves Transmission Framework For Data Center Utility Reports $3.3 Million Net Gain

By Editor | February 24, 2026 |

by Megan Wylie

The Clarksville Connected Utilities (CCU) Commission approved a transmission service agreement term sheet related to the proposed Serverfarm ARK1 data center project during its combined January and February regular meeting held Monday. Commissioners also approved utility relocations tied to the project, received a clean audit report and acted on several infrastructure and policy items.

The vote allows General Manager Roy Young to sign a preliminary agreement with an unnamed transmission provider. The document outlines plans for a new high-voltage power line that would bring electricity from two locations west of Clarksville to a new “Charlie” substation in the city.

According to the agenda memo, the transmission system would be built to serve the data center. The memo states CCU and the City of Clarksville would not be financially responsible for the transmission facilities. The data center customer would pay 100% of the costs for transmission infrastructure upgrades required for the site.

The proposed line would be either 345-kilovolt or 500-kilovolt. Once in service, the agreement calls for a 15-year term in which CCU would reserve a set amount of transmission capacity. The exact megawatt amount and cost figures were redacted in the public version of the document and were not discussed in open session.

The agreement includes development-phase payments, known as Contribution in Aid of Construction, and monthly transmission charges once the line is operating. It also includes confidentiality and exclusivity provisions.

Data Center Water Line Replacement

Commissioners approved a water line relocation requested by Serverfarm after it acquired property where a 20-inch CCU water main currently crosses.

Young said Serverfarm requested the water line be relocated along the property boundary and has agreed to cover the cost. Since the existing 20-inch main ties into larger 24-inch lines on both ends, he recommended installing a 24-inch replacement to ensure continuity in the system and prevent potential flow restrictions.

Under the approved agreement, Serverfarm will cover relocation costs, with CCU contributing up to $105,000 toward installation of the larger 24-inch main.

Data Center Power Line Relocation

The relocation of a power line crossing property recently acquired by the data center was also approved.

Young said the data center requested the line be moved along the property boundary and has agreed to assume all costs associated with the relocation.

The Commission authorized Young to enter into a contractual agreement with the data center to reroute the line at no cost to CCU.

2025 Audit Presented

The Commission also received the results of CCU’s Fiscal Year 2025 audit, conducted by Hubbs & Whitehead, CPAs, in accordance with generally accepted auditing standards and Government Auditing Standards. CPA Justin Anthony of Hubbs & Whitehead presented the findings.

The audit resulted in an unmodified, or “clean,” opinion, meaning CCU’s financial statements fairly present the utility’s financial position. Auditors reported no material weaknesses or significant deficiencies in internal controls and no instances of noncompliance, indicating the utility’s accounting practices and oversight systems are functioning properly.

Anthony reported CCU improved its overall financial position in 2025, with net position increasing by $3.3 million to $59.3 million. He said a 17% increase in electric revenue was the primary driver of the improvement. Total operating revenue rose to $29.3 million, up $3.24 million from the previous year, and net profit before contributions and transfers increased to $3.38 million. Long-term debt declined by nearly $1 million, and year-end cash increased to $12.2 million, strengthening the utility’s liquidity and financial stability.

Electric revenues reached $18.4 million despite a 6% decline in kilowatt hours sold, indicating the revenue growth was largely attributable to rate adjustments rather than increased usage. Water revenue rose nearly 8% to $6.2 million, with water usage also increasing over the prior year. Sewer revenue increased nearly 4% to $2.29 million, and broadband revenue grew to $2.34 million as the department continues to expand.

Anthony noted CCU’s retirement plan with Lincoln Financial was not included in the audit, meaning net pension liabilities and related disclosures were not part of the review. However, he said the utility remains in a strong position regarding its pension balances.

Anthony also commended Finance Officer Dana Frizzell, stating she has done “a great job of reflecting the items auditors look for,” which helps streamline the audit process and ensures the utility’s financial information is clear and transparent.

The Commission voted to accept the audit findings as presented.

Annual Rotation of Commissioners

The Commission approved its annual rotation of officer positions. LaShainea Pollander will serve as chairman, Freeman Wish as vice chairman and Jennifer Risinger as secretary for the coming year. Pollander’s term runs through Dec. 31; Wish’s through Dec. 31, 2027; and Risinger’s through Dec. 31, 2028. Ethan Powell, whose term expired this year, was reappointed and will serve through 2030. Roger Brooks’ term runs through 2029. The annual officer rotation is conducted in accordance with the board’s staggered terms.

Other Matters

–Commissioners voted to allow Young to coordinate with Tyson for installation of an additional 2,200 linear feet of security fencing at the Pollution Control Facility (PCF) to enhance security and safeguard infrastructure at a cost not to exceed $120,000. The improvements are intended to limit unauthorized access to treatment components and strengthen regulatory compliance.

–The Commission approved purchase of a sewer pond vault and two flow meters for the PCF, as recommended by PCF Manager Porsha Russell.

Russell said more accurate flow data is needed for Olsson Engineering to properly plan upcoming facility upgrades. Because water is diverted to the ponds during high-flow events, the plant’s main meter does not reflect total flow, and aging pond pumps no longer provide reliable measurements.

Two flow meters, due to different pump and pipe sizes, will be installed, along with a vault, at a cost of approximately $25,000. The Commission approved purchasing the vault from Holland Concrete and the meters from Henard Utility Products.

–A new Artificial Intelligence (AI) policy was approved to establish guidelines for responsible use of AI tools in utility operations and administrative functions. The policy outlines expectations regarding data protection, confidentiality and oversight of AI-generated content. The policy will allow staff to utilize emerging technology while protecting customer information.

–Commissioners approved spending $12,000 to replace the engine in one of two one-ton service trucks previously approved for trade-in.

Chad Kendall reminded the Commission that in November 2025 it approved the purchase of two 2026 Chevrolet Silverado 3500HD service trucks, with $180,000 budgeted in the 2024–25 capital expenditure (CapEx) budget for the replacements. Both existing trucks were to be traded in once the new units arrive. However, while still in use, one of the trade-in trucks suffered a blown motor. The estimated cost to replace the engine is $12,000 for parts and labor, including a three-year/100,000-mile warranty.

Kendall said the dealership confirmed it will still honor the $19,000 trade-in value if the engine is replaced and the vehicle is fully operational. Commissioners agreed replacing the motor would preserve the higher trade-in value and approved moving forward with the repair.

Top of Form

Bottom of Form

–The Commission approved a change to the date of the May 25 regular meeting to May 18 due to the Memorial Day holiday.

Financial

Frizzell presented the financial reports for November and December.

November

Compared to November 2024, year-to-date operating revenue was up 13.94%, with electric, water, sewer and broadband revenues up. Power purchased was up 13.17% compared to the previous year, while other direct expenses were down 3.54% and general expenses were up 12.29%.

Income for the month was:

–electric, $84,065.

–water, $150,454.

–sewer, $51,424.

–broadband, $15,515.

Disbursements for November were approved as presented.

December

Compared to December 2024, year-to-date operating revenue increased 10.46%, with gains in electric, water, sewer and broadband revenues. Power purchase costs rose 10.03% over the previous year, while other direct expenses declined 2.7% and general expenses increased 22.37%.

Frizzell attributed the increase in general expenses largely to timing, noting the audit was paid in December rather than April as it was the prior year. She said dues and subscription payments were also made earlier than last year and should normalize over time.

Income for the month was:

–electric, -$32,589.

–water, $80,630.

–sewer, $27,330.

–broadband, -$15,756.

Disbursements for December were approved as presented.

Special Meeting Called To Advance Data Center Agreements

Immediately following the regular meeting, the Commission convened a special called meeting to consider additional agreements tied to the proposed data center project. Commissioners approved four non-binding memorandums of understanding and related term sheets associated with securing potential power-generation sources to support the project’s phased development. The documents were provided in redacted form, and the company or companies involved were not publicly identified.

Commissioners described the action as another step in advancing the project toward construction and noted there is no financial commitment associated with the agreements at this stage. The Commission authorized Young to sign the documents pending review and approval by CCU legal counsel Jason Carter.

Powell, Pollander and Wish were present, with Risinger and Brooks absent from the meetings. The next regular meeting of the CCU Commission is scheduled for March 16 at 4:30 p.m. in the CCU business office at 400 W. Main Street. All meetings are open to the public.

Read this story and others in the Feb. 25 issue of The Graphic, available online and at businesses throughout Franklin and Johnson counties. Subscribe or donate here to support more hometown journalism.