posted August 20, 2008
Finally, someone is going after the root of the utility problem. Memphis Light, Gas and Water is asking TVA to delay its proposed rate increase citing that the recently announced increases would be "just too much" for customers in Memphis.
While there is not a lot of logic associated with the "it's just too much" argument, it is interesting that the state’s largest publicly owned utility is feeling the same cost pressures as Tennessee American Water. I was under the impression that government ownership of utility systems would somehow immunize them from current economic realities.
The reality is that TVA can raise their rates at whatever interval their board of directors feels appropriate without the benefit of governmental oversight or regulation and without comment and input by those who are affected by the increase – customers. The decisions made by the three member board of directors have a trickle down effect on all other utilities operating in the region and their customers.
Tennessee American has been asked to try and make up some of the cost increases through added efficiencies and is being scrutinized by the state regulators, the local and county governments, the Fight the Hike group and many others. I think it is time for all the organizations involved in attacking this private company to start focusing their resources and efforts on the root cause for everyone's increased costs – TVA.
We as a community should join Memphis Light, Gas and Water to try and bring pressure upon TVA to see if they can find any efficiencies where they could reduce their costs rather that arbitrarily raising rates every time they spend all their money.
Ashley Cowen
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