We're not in a position to judge easily whether Tennessee American Water Co.'s request for a 28 percent local rate hike next year is reasonable. The company says it needs the money to pay higher operating costs and to fund upgrades to its system.
Rates rose about 4.4 percent two years ago. That was far less than the increase that the company had asked the Tennessee Regulatory Authority to approve at that time. Tennessee American says it now needs another rate increase or it will lose money next year.
The justification for an increase will have to be studied closely by state regulators so they can determine whether the full request or a smaller increase is appropriate.
But a Times Free Press article on the requested increase provided some interesting comparisons that make it clear what a bargain water is in Chattanooga. The article noted that the typical household in the city pays:
- $83.05 per month for electricity.
- $56.99 per month for cable TV.
- $56.80 per month for natural gas.
- $29.99 per month for phone service.
- $16.62 per month for water.
Even if the entire 28 percent rate increase that has been requested by Tennessee American is approved, it would add only $4.68 per month to the typical Chattanooga household's monthly water bill, bringing the total to $21.30.
That would still be only a little more than a third of what an average household pays for cable TV - and certainly a good, clean supply of water is far more essential than the latest TV sitcom.
Regulators and the general public are entitled to look into whether Tennessee American's request for a $4.68-a-month rate hike on the average Chattanooga household is justified. But on the whole, local water is good - and a bargain.