Tennessee American Water Co. executives are feeling out city and county leaders this week about their requested 28 percent rate increase.
Tennessee American President and General Manager John Watson said the company also is speaking with officials representing all "large customers" in the area, including North Georgia.
The company has asked the Tennessee Regulatory Authority for a rate increase of more than 28 percent. If granted, it would add $4.68 to the typical Chattanoogan's monthly home water bill. TRA has six months to rule on the request.
"This was a recommendation I'm following up on from the last case in 2008," Watson said. "You want to learn some lessons and do some things that will help."
When Tennessee American proposed an increase of more than 20 percent in 2008, city and county elected officials joined the Chattanooga Manufacturers Association in opposition. The company eventually was granted a 4.37 percent increase.
Watson said the company wants to pursue the increase "in a more communication-friendly way" than it did in 2008.
"We're not asking for agreement or endorsement," Watson said. "We're just trying to educate."
Tim Spires, president of the Chattanooga Manufacturers Association, said last week he would need to review the company's request before deciding whether to fight the new proposal.
County Commissioners and City Council members had differing views on the company's intentions - some thought it simply informative, others viewed it as lobbying - but none of those interviewed said they were in favor of the rate hike.
Commission Chairman Fred Skillern said he received a call before the company announced its plans, describing it as a "courtesy."
"That call was more information," Skillern said. "I said, 'Listen, I certainly wouldn't commit to you that I won't fight it, not knowing what it would be.'"
Commissioner Chester Bankston believes the calls were meant to ward off opposition, but he said he hasn't decided whether he would support higher rates.
"It's just not a good time with the economy like this. It hurts the taxpayer," he said.
Commissioner Larry Henry said he's not in favor of any kind of increase.
Commissioner Jim Coppinger said he met with water company officials Monday.
"They were just trying to bring us up to speed on what they were doing," Coppinger said.
Councilman Peter Murphy said the proposed increase "shocks the conscience."
Murphy said he received an e-mail and a voicemail from Tennessee American and had an idea what they were about.
"They want me to not oppose their rate increase," he said.
Richard Beeland, spokesman for Mayor Ron Littlefield, said the company's outreach to officials was expected.
Chattanooga increased stormwater fees 220 percent in the past year. Littlefield said last week the city would study whether the company's request is "justified."
Council Chairman Manny Rico thinks Tennessee American is contacting all council members "to try and lobby their position," he said.
"I don't think they want us to fight it," he said.
Staff writer Cliff Hightower contributed to this story.
Contact Dan Whisenhunt at dwhisenhunt@timesfreepress.com or 423-757-6481. Follow him on Twitter at http://twitter.com/DWhisenhunt.
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