Utility rate changes in 2017
EPB Fiber: Increases an average 13 percentComcast cable: Increases an average 3.8 percentTennessee American Water: Increases 3.57 percent, pending regulatory approvalEPB electricity: January rate is down 1.1 percent from December but 3.9 percent above a year agoSources: EPB, Comcast, Tennessee American Water
The new year will ring in higher cable TV rates and perhaps higher water bills for some Chattanoogans, and while electricity rates will slide a tad from December, they're still higher than a year ago.
In most instances, homeowner rates for cable TV, water and electricity this year will raise at twice the rate of inflation, which the U.S. Bureau of Labor Statistics said averaged only 1.8 percent in the past 12 months.
EPB is boosting cable TV rates by more than 13 percent, effective today, while Comcast rates will rise nationwide by an average 3.8 percent. The cable TV providers blamed higher costs for content for most of those increases.
EPB, the largest cable provider in Chattanooga, last raised its rates for EPB Fiber TV customers in January 2015, the third increase since it rolled out the service in 2009.
"For two years, we've held the line on TV pricing for our customers despite double-digit increases in the fees networks charge for programming, but unfortunately, we've reached a point where it is necessary to pass these content costs along to subscribers," EPB President David Wade said after utility directors approved the rate hike last fall. EPB's fiber internet service rates are not changing.
Comcast, which typically raises cable rates yearly, is imposing a smaller increase than it did a year ago.
"We continue to make investments in our network and technology to give customers in Chattanooga more for their money – like faster internet service and more Wi-Fi hotspots, more video across viewing screens, better technology like X1 and a better customer experience," said Alex Horwitz, vice president of public relations for Comcast in Atlanta.
"Unfortunately, the costs we are charged to carry popular networks continue to increase significantly, especially broadcast television and sports programming, which are the largest drivers of increases in price adjustments."
Horwitz said the customer rate increases are less than half of what Comcast projects this year in higher programming expenses.
Rates for Comcast XFinity TV are rising anywhere from 1.2 percent to 47 percent for different options. The digital preferred rate will increase by a dollar a month to $79.90, while the broadcast TV fee, rates for each digital adapter and the regional sports fee will each increase by $2 a month.
Comcast is reducing some internet charges including its top-of-the-line Extreme 150 internet, which is being cut by $30 a month. But internet service attached to Comcast's cable TV or phone service is going up to $9 a month.
Horwitz said Comcast is hiring more than 5,500 customer service representatives at its call centers nationwide and spending more than $300 million improve customer service and shorten appointment windows for service calls from four hours to two hours. When technicians are late for appointments, Comcast pays the consumer $20.
"In Chattanooga this year, we deployed a 10-gig network for the business community, unveiled X1 DVR with Cloud Technology for residential customers, and launched 200 more Wi-Fi hotspots, bringing the total to 10,000 across Chattanooga," Horwitz said.
Higher water bills
Chattanooga water users also are likely to see rates rise. Tennessee American Water Co., the state's biggest privately owned water system, has asked state regulators to approve a 3.57 percent rate increase starting today.
If the Tennessee Regulatory Authority approves, a typical residential customer will pay 77 cents more a month. Tennessee American says it will pay for nearly $16 million of new water lines, treatment facilities and other infrastructure this year. The charge will appear on bills as a line item for capital recovery.
The biggest project is a $2 million river crossing to reinforce service north of the river. Last year, Tennessee American had to make an emergency replacement of 25,500 feet of water main after problems developed along the aging water lines.
Cheaper fuel lessens electric rates
The Tennessee Valley Authority says cheaper fuel and a diverse mix of power generating sources will lower the monthly fuel charge on ratepayer bills next month by about 5 percent.
January's fuel cost portion of power bills will be about 20 percent below the peak reached last summer, although overall bills, including a 2 percent base rate increase in October, are still up from a year ago.
In Chattanooga, rates for the typical EPB residential customer who uses 1,295 kilowatt-hours of electricity in an average month will go down about 1.1 percent, cutting the average monthly bill by $1.55 to $141.79 per month.
But EPB rates are still up by 3.9 percent from a year ago, or about $4.38 a month.
TVA spokesman Scott Brooks said the utility generates and buys electricity from nuclear, coal, natural gas, hydroelectric dams, solar and wind power generation.
"Just like your retirement portfolio, you avoid putting all of your eggs in one basket if you want safe, reliable returns over the long haul," Brooks said. "We want the ability to switch between the cheapest fuels to keep power bills as low as possible."
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.