Manufacturers to fight water rate increase

The Chattanooga Manufacturers Association filed a petition with state regulators today to oppose the 28 percent increase in water fees proposed by Tennessee-American Water Co.

Tim Spires, executive director for the Chattanooga Manufacturers Association, said such a rate increase, if granted, "would be very difficult for our members to absorb."

The filings for rate increases by the water utility "seem to keep getting bigger and more frequent," Spires said today. "The economy is still tough for manufacturing and it's very, very hard to pass along any cost increases, let alone one of this size."

Tennessee-American Water Co. filed for a rate increase of nearly $10 million last month, the first rate increase for the Chattanooga utility since it last raised rates in the fall of 2008. The water utility claims it needs the increase to stay profitable and to offset higher operating expenses.

CMA has intervened in rate cases before the Tennessee Regulatory Authority for each of the increases sought in the past two decades by Tennessee-American.

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