The Tennessee American Water facility in Chattanooga is shown in this aerial photograph.
Staff File Photo by John Rawlston/Chattanooga Times Free PressChattanooga's water utility got its biggest rate increase in history in April after claiming it needed the 14.8 percent increase, in part, to pay the rising costs of its 110-employee operation.
But since regulators granted the rate hike, Tennessee American Water has cut its Chattanooga staff to 100 workers.
A union leader for utility workers on Monday called the water company's actions "an unconscionable gaming of the system" that could undermine the delivery of water in Chattanooga.
"Not only is the company understaffed to maintain its valves and deliver its customer services, but this company has never really fully staffed to the levels that the regulators have authorized," said Mark Brooks, a Nashville attorney for the Utility Workers Union of America, which represents many of the 82 hourly workers of Tennessee American.
But Jessica Presley, an external affairs specialist for Tennessee American Water, said the utility is operating effectively with a leaner staff and the company has no immediate plans to add more workers.
"We're serving our customers well and we're comfortable right now with our staffing levels," Presley said.
In its rate request last year, Tennessee American initially requested funding to support 114 full-time employees, but the TRA set its rate increase based upon a staff of only 110. But Presley said state regulators didn't grant enough money in the rate increase it approved to pay the pension expenses for all 110 employees so staff cuts were required.
Presley said pension costs, along with energy and chemical expenses, have been rising. Tennessee American Water initially requested a 30 percent increase in its rates last year, but TRA directors cut that request in half and allowed the utility to get an extra $5.5 million a year from its April rate hike.
The utility workers union has petitioned the Tennessee Regulatory Authority to order the utility to hire more workers to ensure the utility improves its valve maintenance program, which union attorney Scott Strauss said is inadequate.
The utility workers union has filed similar petitions with state regulators at three other utilities owned by American Water Works Co., including one in West Virginia where regulators granted an injunction to limit planned layoffs at West Virginia American Water.
"Unfortunately, this understaffing seems to be a pattern with American Water Works companies," Brooks said.