TN Attorney General’s Consumer Advocate Division Announces Big Win Preventing Major Increases in Consumers’ Water Bills

NASHVILLE—The Tennessee Attorney General’s Office announced this week that the Tennessee Public Utility Commission denied almost all of a $13.9 million annual rate increase requested by Tennessee-American Water Company. This decision is a victory for the Tennessee Attorney General’s Consumer Advocate Division, which represents the interests of Tennessee consumers in cases involving for-profit utilities. The City of Chattanooga also joined in opposing 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.

In its ruling, the Commission granted only $1 million of the requested $13.9 million increase. The Consumer Advocate Division estimates that the average customer in the City of Chattanooga will see a minimal increase of $0.38 per month. In contrast, customers outside the city will experience a slightly higher increase, ranging from $0.44 to $1.34 per month.

The Commission denied Tennessee-American's request to increase the rate of return on capital investments in the water system from an overall desired rate of 7.94% to only 6.85%. This lower rate is expected to reduce the adopted revenue requirement by over $3.25 million. Additionally, the Commission rejected Tennessee-American’s attempt to consolidate rates across various communities in the Chattanooga area, including Lookout Mountain and Jasper Highlands.

For more details, you can read the full decision here.

###