TRA Chops Down Water Company Rate Request to 4.37% Hike

The Tennessee Regulatory Agency this afternoon ruled on the rate increase requested by the Tennessee American Water Company.

Tenn-Am asked for a 20.58% increase.

The TRA agreed on a 4.37% increase instead.

"Overall, in my opinion, they [Tennessee American Water Company] did not meet the burden of proving the rate case they filed," said Director Eddie Roberson, presiding chairman of the hearing.

Representatives of the group, Fight The Hike, are happy with the decision.

“The people of our fine city and county have spoken and voiced their immense displeasure with the growing business plan of TAWC coming back year after year asking for totally unsubstantiated rate increases,” said Chattanooga businessman Randy Baker, chairman of the Fight the Hike citizens’ campaign.

“We are pleased that the TRA did a thorough analysis of the facts and determined that a 35.1 percent increase in little over a year was unreasonable.  I truly hope this helps other communities across the country in their stance against this corporate irresponsibility and that it sends the message to American Water that they are not immune to the economic realities that should compel them to govern their business in a responsible manner and not just assume unsuspecting customers will finance their growth and profits.”

Tennessee American Water Company representatives did not like the outcome.

In a release this afternoon, Kim Dalton said:

"We are disappointed with the outcome of the TRA decision and we do not believe the decision is in the best long-term interest of our customers or the water system. We'll review the order and have to make some tough decisions."