Utility commission rejects major Chattanooga water rate hike

CHATTANOOGA, Tenn. (WDEF) —  The Tennessee Public Utility Commission (TPUC) delivered a win for Chattanooga residents today by rejecting Tennessee American Water Company’s proposed 19.7% rate increase for city water users.

Instead, the Commission approved a significantly smaller 1.45% increase.

Chattanooga Mayor Tim Kelly applauded the decision, emphasizing the importance of affordability for residents amidst rising living costs.

“This is a big win for the people of Chattanooga.  I want to thank the Public Utility Commission for recognizing the truth: Chattanoogans are already paying enough in their water bills to cover the cost of the infrastructure and staff needed to provide our city with water.  As we battle the nationwide increase in cost of living, the last thing Chattanoogans needed was a big increase in our water bills. Our experts and the Utility Commission’s consumer advocates should be commended for presenting a strong case and getting the job done.”

-Chattanooga Mayor Tim Kelly

The TPUC also rejected a controversial proposal that would have shifted additional costs onto Chattanooga ratepayers to subsidize lower rates for residents in rural areas.

If approved, this combined increase could have pushed water bills for city residents up by more than 25%.