Chattanooga, Tenn. (April 16, 2018) – The Tennessee Public Utility Commission (TPUC) approved on April 9 the infrastructure surcharge for 2018 Tennessee American Water projects that improve the community water system.
“Our investments are focused on making sure that water is always there when we need it - for our homes, businesses, public health and firefighting protection,” said Val Armstrong, Tennessee American Water president. “We are committed to high standards in water quality and reliability of service for our customers.”
Infrastructure capital projects planned for 2018 total $20 million and include construction of a new facility for bulk bleach for disinfection, which is a safer alternative to handle and store than the chlorine gas it is replacing. Replacement of approximately 16,000 feet of water main is also included in the capital plan.
The Environmental Protection Agency (EPA) recently released Sixth Report to Congress on “Drinking Water Infrastructure Needs Survey and Assessment” shows that Tennessee has $8.7 billion dollars in drinking water infrastructure needs (based on 2015 dollars).
“Tennessee American Water makes continuous investments in our drinking water system to keep drinking water affordable, safe, clean and reliable,” Armstrong said.
The surcharge, which is effective on April 10, 2018, is a 2.48% increase applied to all water charges and appears on customer bills as the line item “Capital Recovery Riders”. The rider reflects a $0.54 monthly increase for the average City of Chattanooga residential customer bill. Tennessee American Water will continue its systematic investment in improving the local water system.
TPUC (formerly known as the TRA) approved in 2013 an alternative rate mechanism with Tennessee American Water annually submitting capital infrastructure projects and costs for the upcoming year. This approach leads to better planning of projects and associated costs.
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ABOUT TENNESSEE AMERICAN WATER
Tennessee American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to approximately 375,000 people in Tennessee and northern Georgia. With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly-traded water and wastewater utility company. The company employs more than 6,900 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 46 states and Ontario, Canada. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. More information can be found by visiting www.tennesseeamwater.com.
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