Chattanooga water rates will increase by 3.83 percent next year if state regulators approve plans by Tennessee American Water to make more than $20 million in capital upgrades to Chattanooga’s water system in 2018.
The typical residential water user in Chattanooga would pay an extra 82 cents a month under the proposed capital spending plan, company spokeswoman Daphne Kirksey said.
Tennessee American said Tuesday its capital plans for next year include construction of a new facility for bulk bleach for disinfection, which will replace the use of chlorine gas, and the rehabilitation of an existing sediment basin with more efficient technology. The water utility also plans to install about 16,000 feet, or more than three miles, of new water main lines.
The improvements must by approved by the Tennessee Public Utility Commission, which likely will decide upon the plans within the next few months. State law allows the utility to pass along the costs of any approved capital improvements to ratepayers as a “capital recovery rider” on their monthly water bills.
“Our investments are focused on making sure we continue to deliver safe, clean and reliable water that meet our community’s needs,” Tennessee American Water President Valoria Armstrong said in a statement Tuesday night. “Our capital plan takes into account our preparedness and resiliency to provide water during significant weather events like the unprecedented natural disasters that have occurred around the country.”