Signal sees no rate increase from Tennessee American

Signal sees no rate increase from Tennessee American

January 29th, 2014 by Kelsie Bowman in Local Regional News

The town of Signal Mountain has officially extended its water purchase agreement with Tennessee American Water.

There will be no rate increase (refer to previous coverage at

During the regularly scheduled Jan. 13 town meeting and before reading the resolution to extend the agreement, Mayor Bill Lusk commented that a letter had been sent to Town Hall from the water company in December, indicating the town's water purchase rate would increase.

Lusk said during the meeting that he saw it as "a shot across the bow" to get the town to act quickly.

In a follow-up interview, Lusk said the town should have probably taken care of the matter sooner, though it had been discussed with the water company that the agreement would be signed in January.

The council unanimously passed the resolution to extend the agreement, and the purchase rate remains the same, at $1.0344 per hundred cubic feet.

The extension was a long time coming, according to Tennessee American Water Operations Manager Kevin Rogers, who at the November regularly scheduled town meeting went before the council to request fast action.

The contract between the water company and the town expired in 2011, and Rogers said repeated attempts had been made by the water company to renew the contract.