Hearing held on proposed water rate increase

NASHVILLE, Tenn. (WDEF)- A hearing has been held Monday on a proposed water rate increase by the Tennessee-American Water Company.

The hearing was held in Nashville by the Tennessee Public Utility Commission.

While the company says rates on average would only rise by four percent, Chattanooga Mayor Tim Kelly accused them of raising city resident’s rates by 25 percent at the expense while not doing so for residents in rural areas.

A representative for the company, Bill Lane, explained to the commission that the increase is to make up for an expected revenue shortfall.

However, representatives of the commissions asked why customers will be expected to pay certain fees that they may not expect to apply to them, especially for over 16-thousand people below the poverty line.

One commissioner asked Lane, “The point is, some of the 16,700 people do not use a credit card, they would paying that part of the credit card fee that others use correct?”

Lane responded, “Yes.”

The Public Utility Commission has not made a decision on when they will decide to approve or reject this rate increase.