Utility Commission also denies Tennessee American Water Company request to
charge Chattanoogans more to benefit rural water users
Chattanooga, Tenn. (January 9, 2025) - In a victory for Chattanoogans,
today the Tennessee Public Utility Commission 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. “As we battle the nationwide increase in cost
of living, the last thing Chattanoogans needed was a big increase in our
water bills. Our experts and the Utility Commission’s consumer advocates
should be commended for presenting a strong case and getting the job done.”
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%.
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.