Consumer Advocacy Group Forms to Fight Chattanooga Water Rate Hike

Fight the Hike wants the turn the tide on a proposed Tennessee American Water Company rate hike.

Chattanooga Mayor Ron Littlefield spoke on behalf of Fight the Hike Tuesday.  "We still have a number of industries that are water-dependent in Chattanooga," he said, "so it's very important we question these increases."

The coalition of citizens, businesses and politicians says if the latest 20.4% hike is approved, Chattanoogans' water rates will have increased faster than cable and even gasoline.

"We would like to attract more industry back to the city of Chattanooga and increasing the cost of doing business is not the way to get that done," adds Mayor Littlefield.

Tennessee American Water officials say the rate increase means $0.12 extra per day for a typical family.

Tennessee American Water Company John Watson was also at Tuesday's newser.  "Our [rate increase] is $3.65 a month. That's less than the price of a gallon of gas."

Watson says the hike is due to rising costs for power, chemicals and transportation in addition to wages.  "All of the things that any other business has. And the fact of the matter is we have to consume those because we have to provide the service. Water service is essential."

The water company president says part of the increase is to pay to pump the water up the mountains. But Mayor Littlefield says there should be an alternative to an across the board hike.

"They might want to increase their rates selectively, maybe," he said.

Mayor Littlefield is also concerned the hike may go toward executive salaries for people outside of Chattanooga, but Watson said the March 14th petition is public record.  "So far we have furnished 60,000 pages of data to support our application and to respond to the questions that have been asked," adds Watson.

But Mayor Littlefield disagrees.  "It's not that transparent. It's just like drinking from a fire hose when you ask for information," he adds.

The Tennessee Regulatory Authority has to approve any rate increase.

The Tennessee Regulatory Authority scheduled public hearings on the rate hike in Chattanooga beginning August 18th.