Tennessee – The Tennessee Public Utility Commission denied nearly all of a $13.9 million annual rate increase requested by Tennessee-American Water Company, according to an announcement from the Tennessee Attorney General’s Office this week.
The decision marked a victory for the Attorney General’s Consumer Advocate Division, which represents Tennessee consumers in cases involving for-profit utilities. The City of Chattanooga also opposed the rate increase.
“Thanks to the hard work of the Consumer Advocate Division, utility customers in and around Chattanooga saved almost $13 million a year,” said Attorney General Jonathan Skrmetti.
The Commission approved only $1 million of the proposed increase. As a result, the Consumer Advocate Division estimates that the average Chattanooga customer will see a minor monthly increase of $0.38, while customers outside the city may see increases ranging from $0.44 to $1.34 per month.
Additionally, the Commission rejected Tennessee-American’s request to raise the rate of return on capital investments from 7.94% to 6.85%, a decision expected to reduce the adopted revenue requirement by over $3.25 million.
The Commission also denied the company’s proposal to consolidate rates across various Chattanooga-area communities, including Lookout Mountain and Jasper Highlands.