In a victory for Chattanoogans, the Tennessee Public Utility Commission has voted to deny Tennessee American Water Company’s proposed 19.7% rate increase for Chattanooga water users, instead allowing only a 1.45% increase.
“This is a big win for the people of Chattanooga. I want to thank the Public Utility Commission for recognizing the truth: Chattanoogans are already paying enough in their water bills to cover the cost of the infrastructure and staff needed to provide our city with water,” said Chattanooga Mayor Tim Kelly.
The Utility Commission also denied a request from Tennessee American to charge ratepayers in Chattanooga more so that people living in rural areas outside of the city could be charged less.
With the proposed area-wide 19.7% increase and the increased rate for city ratepayers combined, Chattanoogans could have seen rate increases of more than 25%.
“As we battle the nationwide increase in cost of living, the last thing Chattanoogans needed was a big increase in our water bills," Mayor Kelly added. "Our experts and the Utility Commission’s consumer advocates should be commended for presenting a strong case and getting the job done.”
The decision came after Mayor Kelly and lawyers representing the City of Chattanooga strongly opposed the proposed increase, with Mayor Kelly speaking to the Utility Commission in a public hearing on October 28th.
City representatives were joined in their opposition to the rate increase by the Utility Commission’s consumer advocate.