Water Company Files For Additional Revenue Under New Section Of State Law

Friday, October 4, 2013

Tennessee American Water on Friday filed a request with the Tennessee Regulatory Authority (TRA) for three riders and an expense tracker that, if approved,  collectively covers approximately $7.5 million in local water infrastructure improvements that the company has made or will make in 2014. 


Officials said, "Today’s filing is the first of its kind by Tennessee American Water. According to company officials, today’s filing is the implementation of new state legislation passed by the Tennessee General Assembly. The new law encourages the TRA to consider alternative rate mechanisms to ensure continued reliability and quality of service, as well as to promote local economic development."

 According to Deron Allen, president, Tennessee American Water, similar alternative rate mechanisms have been used in other states to encourage ongoing infrastructure replacement (pipes, pumps, hydrants, etc) at necessary levels while holding down the overall costs for the filing and administration of general rate cases with state commissions. 

“We’re proud of the reliability and quality of the water system serving Chattanooga and local communities,” said Mr. Allen. “Our goal is to keep the water system strong and viable today and for generations to come. Ignoring the infrastructure needs of our water system, over time, would be a dis-service to our customers and community.”

He said, "Communities across the country are facing challenges of operating aging water infrastructure and the need to increase rates to fund critical improvements.  According to the American Society of Civil Engineers 2013 Report Card, communities throughout Tennessee collectively will need to spend approximately $3.5 billion during the next 20 years to renew and replace their water infrastructure needs."

He said the goal of the filing for new riders and an expense tracker "is to allow Tennessee American Water to continue making necessary investments in the local water system’s infrastructure with minimal impact to customers’ rates. The average total impact for a residential customer in Chattanooga, as proposed, would be approximately 24 cents per month for all three riders and expense tracker combined, or less than $3 per year total. If approved by the TRA, the cost for local drinking water service will remain less than a penny per gallon. The average monthly bill for a residential customer in Chattanooga today is $21.56 (based on 4.154 gallons used per month)."

The filing, if approved, would add a surcharge to all Tennessee American Water customers that would be trued up annually and reset to zero after the next general rate case order.   All changes in rates and costs for Tennessee American Water must be determined by the TRA.  This request will be closely reviewed and scrutinized in an open, transparent process by the TRA.  the Consumer Advocate and others before a decision on the proposed surcharge is made.

A look at components of today’s filing:


·         The Qualified Infrastructure Improvement Program Rider is an incremental surcharge to a customer’s bill to cover the replacement of replacement of water mains, fire hydrants, water meters, production plant structures and equipment, etc. 

·         The Economic Development Investment Rider is an incremental surcharge to a customer’s bill to cover the capital investment and operational expenses related specifically to economic development.  Examples include water main construction to new development areas or projects that may add jobs to the area.


·         The Safety and Environmental Compliance Rider is an incremental surcharge to a customer’s bill to cover the capital investment and operational expenses related specifically to safety and environmental compliance.  . 


·         The Purchased Power, Chemical, Purchased Water, Waste Disposal and TRA Inspection Fee tracker allows these expenses to be trued up for increases or decreases within a given year.  The current filing has no increase, and will be trued up in January 2014.


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: BAILEY, CORDARRIUS DEQUAN  1612 TRUMAN AVE EAST RIDGE, 37412  Age at Arrest: 18 years old Arresting Agency: Hamilton County CONTEMPT OF COURT (VIOLATION OF COMMUNITY PLACEMEN --- BELL, RONALD KEITH  631 DOGWOOD DR THOMSON, 30824  Age at Arrest: 38 years old Arresting Agency: Hamilton ... (click for more)

Upcoming City Council Agenda For Tuesday

Here is the upcoming City Council agenda: I. Call to Order. II. Pledge of Allegiance/Invocation (Councilman Gilbert). III. Minute Approval. IV. Special Presentation. “Mediation Awareness Week Proclamation” By Councilwoman Carol Berz V. Ordinances – Final Reading : (None) VI. Ordinances – First Reading : POLICE a. An ordinance to amend Chattanooga ... (click for more)

Chattanooga's Citizens Are The Best

Today, when I finished my shift, my wife and I had a rare kid-free time where she and I could enjoy a nice quiet dinner. So, when I left my extra job and she left her job, we met at a neat local place in St. Elmo. She and I had been looking forward to and planning this dinner all day. You see, between my work with the city of Chattanooga, my many hours of extra jobs, and our responsibilities ... (click for more)

My Garden In October

Just when you thought the weather would never break, the heat was on low this morning as Tide and I stepped from the house to study our October garden. Falling leaves and the dog’s dirty tennis balls aside, let’s praise the Lord that, as a new month dawns, we are still blessed with orchids and onions galore. The dog asks that I include the fact October is National Pet Adoption month ... (click for more)

Ooltewah Demolishes Soddy-Daisy 62-7 In Homecoming Blowout

Ooltewah exploded for 31 first-quarter points, kept the pedal to the metal and steamrolled Soddy-Daisy 62-7 Friday night in a Region 4-5A football whuppin’ that left the Trojans shaking their heads and the Owls celebrating an eye-popping homecoming triumph at James N. Monroe Stadium. It was Ooltewah’s sixth straight win against the Trojans and the average score in those games ... (click for more)

McCallie Routs Baylor, 42-7

McCallie’s high-powered offense – averaging 45 points in its four wins prior to Friday night - is as good as advertised and it’s defense –allowing only 23 points in those four victories - is rock solid. Just ask Baylor. Thanks to a clicking-on-all-cylinders offense led by senior quarterback Robert Riddle - 181 passing yards and three touchdowns – and a defense with three ... (click for more)