The Tennessee Attorney General's Office has announced a significant decision by the Tennessee Public Utility Commission regarding a proposed rate increase by Tennessee-American Water Company. The commission denied nearly all of the company's request for a $13.9 million annual rate hike, granting only $1 million. This outcome is considered a success for the Tennessee Attorney General’s Consumer Advocate Division, which represents consumer interests in utility cases. The City of Chattanooga also opposed the increase.
Attorney General Jonathan Skrmetti commented on the ruling, stating, "Thanks to the hard work of the Consumer Advocate Division, utility customers in and around Chattanooga saved almost $13 million a year."
Following this decision, it is estimated that customers within Chattanooga will see their water bills rise by just $0.38 per month on average. Customers outside the city limits are expected to experience increases ranging from $0.44 to $1.34 monthly.
The commission also denied Tennessee-American's proposal to raise its rate of return on capital investments from 7.94% to 6.85%, reducing the revenue requirement by over $3.25 million. Additionally, efforts to consolidate rates across various communities in and around Chattanooga were rejected.
For further information, interested parties can access the full decision online.