Tennessee AG Reaches Proposed Agreement With Tennessee American Water Regarding 12.72% Rate Hike

Tuesday, October 2, 2012

The Tennessee Attorney General’s Consumer Advocate and Protection Division announced that it has reached a proposed agreement with the Tennessee American Water Company (TAWC) on a rate increase request. 

The proposed agreement, subject to approval by the Tennessee Regulatory Authority (TRA) at its next meeting on Oct. 15, means classes of customers will pay 12.72 percent more for water instead of an increase of up to 35 percent if all of the company’s proposed rate increases and adjustments were approved, officials said.

The proposed settlement has been agreed to and been signed by representatives of the city of Chattanooga, the Chattanooga Regional Manufacturers Association, Walden’s Ridge Utility District, and the Town of Signal Mountain.

TAWC’s requested rate hike is the utility’s sixth requested increase in the past nine years and the highest proposed to date.

Numerous consumers complained about the rate hike during a public hearing held Sept. 20 in Chattanooga. The AG Office filed testimony of numerous experts supporting the need for no more than $2.8 million rate increase for Chattanooga area residents based on information available at the time of filing. TAWC, a monopoly, has about 74,500 customers in Chattanooga and Hamilton County and surrounding areas. The settlement authorizes a rate increase of $5.2 million of the $10.6 million sought by TAWC. The Company has also agreed to drop several rate adjustment proposals which could have increased rates an additional 10%.

“We feel this is an appropriate settlement for consumers while giving TAWC an acceptable rate of return,” Attorney General Bob Cooper said.

Deron Allen, water company president, said, "We are pleased that all parties in the case were able to work very hard towards a proposed agreed resolution of the matter, and we look forward to the TRA's consideration of it."

A separate hearing on the merits of the case was scheduled for Oct. 15, but may not occur if the TRA accepts the agreement.

Over the past nine years, the TRA has granted six rate increases to the TAWC. The last rate increase resulted in new rates effective April 2010. The Attorney General has intervened in each of the five previous cases as have the city of Chattanooga and the Chattanooga Regional Manufacturers Association.

For more information on this case, see filings at the TRA website athttp://www.state.tn.us/tra/dockets/1200049.htm.


1st Tennessee Bank On Highway 58 Robbed On Monday

A First Tennessee Bank was robbed Monday morning.   At approximately  11:35  a.m., the Chattanooga Police Department responded to the First Tennessee Bank at 4430 Highway 58 for a robbery.   Officers learned that a white male entered the bank and presented a teller with a note which stated he had a firearm and to give him cash.  ... (click for more)

Bradley County Work Release Facility Set For Completion In September 2016

Bradley County Commissioners heard an updated presentation on the proposed workhouse release program which includes plans for a new $2.9 million jail addition. It will be designed by Cope Architecture.   The building and release program were approved by the Bradley Commission in February and are intended to serve employed, non-violent criminals currently occupying ... (click for more)

What Is #NoogaStrong

I've seen some recent posts asking exactly what Chattanooga Strong means. This week I have seen enough that I believe I can give you a definition of this glorious word.   As a city everyone will not always get along or agree. Often we may ask ourselves what is wrong with these nuts. Often we run across the rude, crude and ugly. But when tragic happens, we all come together ... (click for more)

Roy Exum: Chanie's Puzzling Poem

Ronnie Joice was in a bar in north London when he spied a poem tacked to the wall. The more he studied it, the more it revealed and, suddenly, he was floored. I don’t need to tell you it has gone viral, cheering people up particularly in England, but it is fun to know it was written by an 11 th -grader at an all-girls school in New York. Chanie Gorkin first posted it on her page ... (click for more)

Former McCallie Swimmer Qualifies For 2016 Olympics

Sean Ryan, a 2010 graduate of McCallie, qualified for an Olympic swimming competition early Monday morning. His fourth-place finish in the 10-kilometer open-water race July 27 at the FINA World Championships earned him a spot on the United States Olympic Team for next year’s Olympic Games in Rio de Janeiro, Brazil. The race took place in the Kazanka River in Kazan, Russia, ... (click for more)

Chattanooga Football Club To Host National Semifinals Saturday

Saturday  Chattanooga Football Club won the National Premier Soccer League (NPSL) South Region Championship over the Myrtle Beach Mutiny – its second title in a row. That win puts CFC in the final four teams in the league still competing for the national title. By winning the South Region, Chattanooga FC became the number two seed in the country and will host the third-seeded ... (click for more)