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

Tuesday, October 02, 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.


Recently Found Audio Of Ronald Reagan's Visit To Chattanooga In 1976

This recently found audio of Governor Ronald Reagan's visit to Chattanooga, on May 21, 1976, on a campaign stop. He spoke at Tennessee Temple College. At the end of Mr. Reagan's talk there are remarks by then Chattanooga Mayor Pat Rose and Dr. Lee Roberson, longtime pastor of Highland Park Baptist and Tennessee Temple. (click for more)

Walker County Arrest Report For Aug. 25-31

Here is the Walker County arrest report for Aug. 25-31: ALEXANDER    MATTHEW    TODD    W/M    35    Officer CARTER    BATTERY FVA RUSSELL    CASEY    LEWIS    W/M    30    Officer OWENS    SUSPENDED ... (click for more)

Decimating The Chattanooga Public Library

Corinne Hill claims that the library is just undergoing a normal weeding process for eliminating books.  She has bragged that she's responsible for the elimination of over 100,000 books - with more to go. "Normal" weeding is not rampant throwing away.  Yes, books go to the Friends for their sale - where they get $2 for a $75 book and thousands wind up being recycled ... (click for more)

The Many Lessons I Learned From Helen McDonald Exum

Helen McDonald Exum was my friend and mentor. As I think of her passing I can only imagine the celebration that is happening in heaven as the news of her arrival is being told. I am sure that there is a party that not only has she organized but that there is not a detail that has been left to chance. I am sure that it is the grandest of events, for you see, she has been planing ... (click for more)

Worley-Powered Vols Clobber Utah State, 38-7, In Opener

KNOXVILLE, Tenn. – Tennessee, trying to snap out of the doldrums of four consecutive losing seasons, started its 2014 campaign in fine fashion Sunday night before a season opening sellout crowd of 102,445 that endured a heavy rain story 30 minutes prior to kickoff. And senior quarterback Justin Worley, who missed the final four games in 2013 after undergoing thumb surgery, was ... (click for more)

Lookouts Reach Southern League Northern Division Playoffs With Doubleheader Win Over Smokies

The Chattanooga Lookouts are now playoff bound after sweeping a double-header against the Tennessee Smokies  to clinch the Southern League North Division for the second half of the season. The first game of the double-header was backed by a masterful gem of a game thrown by the starter for the Lookouts, Steve Smith (W, 3-2). Smith dominated the Smokies' lineup from top ... (click for more)