Tennessee American Water Files Rate Request Driven by $173 Million in Water System Investments

CHATTANOOGA, Tenn.–(BUSINESS WIRE)–Tennessee American Water filed today a petition with the Tennessee Public Utility Commission (TPUC) for approval to adjust rates, reflecting $173 million in water system investments made by the company since its last general rate increase in 2012 through December 2025, to continue providing clean, safe, and reliable service. The request reinforces the company’s commitment to investing in its water system to replace aging infrastructure, provide reliable service, enhance water quality, and comply with environmental regulations.

“Our approach for long-term, efficient, and consistent investment in our water system helps us deliver high-quality affordable and reliable service to our customers,” said Grant Evitts, president of Tennessee American Water. “By making prudent, ongoing investments, Tennessee American Water is committed to protecting public health and safety in the communities we serve. At the same time, we remain committed to addressing the needs of our most vulnerable customers.”

The company’s last general rate increase was filed with the TPUC in June 2012. Since then, the company has made over $173 million in capital investments. These projects are important to continue providing quality water, increasing fire protection and service reliability for our customers. The investments have included:

• Replacement of two water basins that had reached the end of their service life with newer, more efficient technology.
• Installation of two new water tanks in Whitwell and emergency interconnects with the Dunlap water system.
• Completion of twelve tank rehabilitations, including two water tanks on Lookout Mountain.
• Completion of a disinfection building that enhances public and employee safety standards at the treatment plant.

Tennessee American Water’s rates are based on the cost of providing water service as reviewed and approved by the TPUC. If the company’s proposed rates are approved as requested, the water bill for the average Chattanooga residential customer would increase approximately $4.00 per month.

Part of today’s filing with the TPUC includes a proposal for a new universal affordability tariff to help provide eligible customers bill payment assistance. Customers who are at or below 150% of the federal poverty level would qualify for a tiered discount. Currently, Tennessee American Water offers customer assistance through the Project Water Help program, payment plans and budget billing. To request assistance through Project Water Help, customers can call United Way 2-1-1. Information about this as well as payment plans and budget billing is available at the company’s website.

Final rates are subject to the TPUC’s approval, which includes a thorough public review of Tennessee American Water’s rate request. The TPUC’s rate review process offers opportunities for customer involvement. Customers can participate through the submission of written comments and providing oral comments at a future public meeting. For more information on the company’s rate proposal and to find out what actions customers may take, visit https://www.amwater.com/tnaw/Customer-Service-Billing/Your-Water-Rates/.

The proposed rates in the request are not effective until a ruling by the TPUC. Once a decision is made, customers will receive information on the new rates on their bills and on our website.

ABOUT AMERICAN WATER

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to more than 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s 6,500 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders.

For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

ABOUT TENNESSEE AMERICAN WATER

Tennessee American Water, a subsidiary of American Water, is the largest regulated water utility in the state, providing high-quality and reliable water services to approximately 420,000 people in Tennessee and north Georgia. For more information, visit www.tennesseeamwater.com and connect with us on Facebook, X, Instagram and YouTube.

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Contacts

Media:
Daphne Kirksey

Manager, External Affairs

Tennessee American Water

Daphne.Kirksey@amwater.com