Tennessee American Infrastructure Projects Total Over $20 Million; Carries 3.83% Rate Increase

Tuesday, November 7, 2017

Tennessee American has made its 2018 submission of capital infrastructure projects and the associated costs to the Tennessee Public Utility Commission (formerly known as the Tennessee Regulatory Authority).  The capital plan is submitted annually to the state Commission for approval of the proposed adjustment to the surcharges. 

Infrastructure capital projects planned for 2018 total over $20 million. This includes construction of a new facility for bulk bleach for disinfection, which will replace the use of chlorine gas, and the rehabilitation of an existing sediment basin with more efficient technology.  Replacement of approximately 16,000 feet of water main is also included in the capital plan.

The filing, which would be effective Jan. 1, 2018, is a 3.83 percent increase applied to all water charges and appears on customer bills as the line item “Capital Recovery Riders”.  The request would be a $0.82 monthly increase for the average city of Chattanooga residential customer bill. Tennessee American Water will continue its systematic investment in improving the local water system.

“Our investments are focused on making sure we continue to deliver safe, clean and reliable water that meet our community’s needs,” said Tennessee American Water President, Valoria Armstrong. “Our capital plan takes into account our preparedness and resiliency to provide water during significant weather events like the unprecedented natural disasters that have occurred around the country.”

Tennessee’s 2016 Report Card on Infrastructure published by the American Society of Civil Engineers grades the State’s Drinking Water Systems as a “C”.  The report indicates that Tennessee needs to spend $2.7 billion over the next 20 years to keep up with drinking water infrastructure, water company officials said.

The Tennessee Public Utility Commission approved in 2014 an alternative rate mechanism with Tennessee American Water annually submitting capital infrastructure projects and costs for the upcoming year. This approach leads to better planning of projects and associated costs.


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