Hamilton County: Utility rate increases hit hard

Over the next year, Hamilton County residents could end up paying several hundred dollars more than they paid last year for utility services, without using a drop more water, burning any more gas or turning on any more lights.

Tennessee-American Water Co., TVA and power distributors, the city of Chattanooga and the Hamilton County Water and Wastewater Treatment Authority are planning water, electricity and sewer rate increases in the next few months. Chattanooga Gas and Comcast cable put rate increases in place earlier this year.

“Now that (gasoline) prices are up, everybody thinks they can increase their price,” said Elaine Amberson, 54, of Soddy-Daisy. “I think they’re just taking advantage of the situation.”

Ms. Amberson, who is disabled and receives Medicare benefits, said her bills are going up but her income is not. She said that’s happening to a lot of Hamilton County residents whose wages aren’t going up with the cost of living.

John Holt, 56, of Dunlap, Tenn., said he moved out of Hamilton County a few years ago in part because of rising utility costs. But he said the Tennessee Valley Authority’s 20 percent electricity increase, which he called ridiculous, is going to affect him. He’ll simply have to figure out a way to budget for the extra expense, he said.

“You try to get by any way you can,” he said.

Utility increases could mean around $307 in extra costs for the average Chattanooga customer who gets Tennessee-American water, Chattanooga sewer service, Chattanooga Gas service, Comcast cable and power from EPB, according to a Times Free Press analysis. Residents of Hamilton County who are on the wastewater authority’s sewer system, Comcast cable, EPB power and Chattanooga Gas could pay about $345 more.

Some officials have said they’re worried about the dent those expenses will put in constituents’ wallets.

“I don’t know anything we can do about (some of the increases),” Hamilton County Commissioner Curtis Adams told his fellow commissioners. “But I want y’all to worry about it.”

Matt Murray, an economist at the University of Tennessee in Knoxville, said the worst of the increases may be over after this round, at least for a while. He said a decrease in worldwide demand for fuel, the result of a weakening worldwide economy, may bring some utility rate relief.

“The pressure is off on energy prices,” he said.

Dr. Murray said the economy may charge back up next year, however, which could mean prices heading up again.

The wastewater authority and TVA’s increases are done deals, having received approval from governing boards.

County and city officials have taken the fight to at least one of the increases: Tennessee-American’s proposed 20 percent rate increase. Opponents of the increase have spent about $270,000 to “fight the hike.”

The City Council must approve the city sewer rate increases, but council members have said they expect to approve them.

Each of the utilities has argued that its increases are necessary to pay for needed infrastructural improvements or increased fuel costs.

The county wastewater authority has approved an $8 monthly fee for about 24,000 customers, but it has held off implementing it while it holds public hearings to explain it to customers. The authority will use the fee to pay for repairs to lines that connect homes to the main sewer line.

The authority is under order from the Tennessee Department of Environment and Conservation to reduce the amount of rainwater — which comes in through cracks in lines — that it sends to the Moccasin Bend Wastewater Treatment Plant.

The city of Chattanooga’s proposed sewer rate increases likewise are aimed at making sure the system complies with state and federal environmental standards, Public Works Deputy Administrator Lee Norris said.

TVA officials have said the agency’s rate increase is necessary to foot the bill for the increasing price of coal, natural gas and purchased power. It will go into effect in October. According to The Associated Press, the TVA hike will mean $15.80 to $19.80 more per month for residential customers.

Tennessee-American’s company officials estimate the water company’s increase would cost customers $3.65 more per month, or about $43.80 per year. The money will help pay for a $21.3 million upgrade to Tennessee-American’s system, officials have said.

“We are not going to apologize for the rate increase, because it is what we need to do to operate this business responsibly,” Tennessee-American President John Watson has said.

The water company implemented a 12 percent increase last year.

Chattanooga Gas officials had filed for a rate increase to go into effect Aug. 1, but in July the price of natural gas started to drop so they held off, said Jack Holt, a spokesman for the utility. He said rates in place since July 1 still are in effect.

“Natural gas really spiked out,” Mr. Holt said.

The gas company’s rate increased 18 percent between May and June, but it came back down 1 percent in July. The company also had an increase of 3 percent in April and 6 percent in January.

Mr. Holt with Chattanooga Gas said it is hard to tell what the price of natural gas will be in the coming months, as the price of the fuel fluctuates.

Comcast basic cable customers began paying $2.51 per month more starting in January. A spokesman for the company said the increase reflected the cable provider’s growing library of services, such as more digital channels.