Air, food, water and many other things obviously are necessary for our lives. Air is free. Food, water and other essentials have their costs.
We are fortunate in Chattanooga that Tennessee American Water Co. long has delivered good, purified water to about 350,000 residents as well as businesses and industries in the Southeast Tennessee and Northwest Georgia area.
Because plenty of water is available from the Tennessee River and is purified and delivered by pipes to our homes and businesses by the water company, we may tend to “take it for granted.” And our water “tastes good,” too.
But substantial costs are involved. How much?
The water company says it needs an extra $4.68 per month for the average customer. That would be a 28 percent rate increase.
The last time the water company got a rate rise was in 2008, when the company asked for a 20 percent increase but received approval from state regulators for only 4.37 percent.
A company spokeswoman points out that even with the extra $4.68 per month added to a typical customer’s bill, local water is “the lowest utility bill of the month customers pay.”
We should understand that our local water bills include not only the charge for the good water “coming in,” but also the charge that the city has to assess for sewer service for water “going out.”
Obviously, most water customers at homes, businesses and industries do not want a big water cost increase. The Tennessee Regulatory Authority must study the financial facts and seek to make a reasonable decision that should be fair for all.
Collecting, purifying and delivering water through pipes to our homes and businesses clearly is not a simple service. Most of us as customers are not really in a position to judge exactly what the charges should be. That’s why there is governmental regulation. The company is entitled to sufficient income to cover its necessary operational expenses plus a reasonable profit for its service to us all.