NASHVILLE - Most local customers of Tennessee American Water Co. will pay 12.72 percent more on their water bills instead of up to 35 percent under a settlement accepted today by the Tennessee Regulatory Authority.
TRA members approved the deal and complimented the company, state attorney general's office, the city of Chattanooga and other interested parties for reaching it instead of battling it out in an expensive rate case hearing.
The settlement authorizes a rate increase of $5.2 million of the $10.6 million sought by Tennessee American.
Water company officials also agreed to drop several proposals that state Attorney General Bob Cooper's office said could have increased rates an additional 10 percent. The company originally sought a 24.9 percent increase plus
Residents served by the town of Signal Mountain and Walden's Ridge Utility District will see no increase at all under the agreement. Officials there have threatened to bolt the investor-owned utility.
The Chattanooga Regional Manufacturers Association also signed on to the agreement.