SVEConnect

Tennessee American Water Asking for First Rate Increase since 2012

Tennessee American Water has filed a petition with the Tennessee Public Utility Commission (TPUC) for approval to adjust rates. The request reflects $173 million in water system investments made by the company since its last general rate increase in 2012 through December 2025 to continue providing clean, safe, and reliable service. The request reinforces the company’s commitment to investing in its water system to replace aging infrastructure, provide reliable service, enhance water quality, and comply with environmental regulations.

“Our approach for long-term, efficient, and consistent investment in our water system helps us deliver high-quality, affordable, and reliable service to our customers,” said Grant Evitts, president of Tennessee American Water. “By making prudent, ongoing investments, Tennessee American Water is committed to protecting public health and safety in the communities we serve. At the same time, we remain committed to addressing the needs of our most vulnerable customers.”

The company’s last general rate increase was filed with the TPUC in June 2012. Since then, the company has made over $173 million in capital investments. These projects are important to continue providing quality water, increasing fire protection, and service reliability for our customers. The investments have included:

  • Replacement of two water basins that had reached the end of their service life with newer, more efficient technology.
  • Installation of two new water tanks in Whitwell and emergency interconnects with the Dunlap water system.
  • Completion of twelve tank rehabilitations, including two water tanks on Lookout Mountain.
  • Completion of a disinfection building that enhances public and employee safety standards at the treatment plant.

Tennessee American Water’s rates are based on the cost of providing water service as reviewed and approved by the TPUC. If the company’s proposed rates are approved as requested, the water bill for the average Chattanooga residential customer would increase by approximately $4.00 per month.

Part of today’s filing with the TPUC includes a proposal for a new universal affordability tariff to help provide eligible customers bill payment assistance.  Customers who are at or below 150% of the federal poverty level would qualify for a tiered discount.  Tennessee American Water offers customer assistance through the Project Water Help program, payment plans, and budget billing. To request assistance through Project Water Help, customers can call United Way 2-1-1.  Information about this and payment plans and budget billing are available at the company’s website.

Final rates are subject to the TPUC’s approval, which includes a thorough public review of Tennessee American Water’s rate request. The TPUC’s rate review process offers opportunities for customer involvement. Customers can participate through the submission of written comments and providing oral comments at a future public meeting. For more information on the company’s rate proposal and to find out what actions customers may take, visit https://www.amwater.com/tnaw/Customer-Service-Billing/Your-Water-Rates/.

The proposed rates in the request are not effective until a ruling by the TPUC. Once a decision is made, customers will receive information on the new bill rates and their website.