The Tennessee State Capitol in downtown Nashville.NASHVILLE – Legislation that would allow monopoly utilities like Tennessee American Water Co. and Chattanooga Gas Co. to seek annual rate hikes with less review moved through the House Business and Utilities Committee today.
If the bill becomes law, customers can look for more-frequent rate hikes, an attorney with the Consumer Advocate Division of the state attorney general’s office told lawmakers.
The bill “changes greatly the way rates will be set,” attorney Vance Broemel told the panel.
“What this does in our opinion is make it more likely that rates will increase for business and households,” Broemel said. The bill also greatly reduces the financial risk for regulated utilities, allowing them immediately to recover their capital costs and expenses, he said.
The bill, championed by Republican Gov. Bill Haslam, creates “alternative regulatory” methods.