Tennessee American Water Co. will boost its water rates by 12.7 percent today for customers in the company's Chattanooga, Lookout Mountain, Lakeview, Suck Creek and Lone Oak service areas.
The new rates will add $2.38 a month, or 8 cents a day, to the typical Chattanooga residential water bill.
Deron Allen, president of Tennessee American, said the rate increase is needed "to pay for the ongoing maintenance and enhancements of the pipes, pumps and treatment plants that are critical to delivering high-quality, reliable water service to our customers. Despite this increase, our customers continue to receive high-quality, reliable water service for less than a penny per gallon," Allen said.
Tennessee American said the primary driver of the rate increase was the company's plan to invest about $25 million in local water infrastructure projects.
Service Electric Co. in Chattanooga has sent about 270 people to the Northeast to help restore power in the wake of superstorm Sandy.
More than 200 more could be sent in the next couple of weeks, said Jody Shea, president of the company that specializes in the construction of electrical transmission and distribution systems and storm restoration.
The first wave of 160 left Chattanooga on Saturday for Connecticut, he said. In addition, 20 people have gone to Ohio, 40 to West Virginia, and 50 to New Jersey, Shea said.