Chattanooga manufacturers object to any increase in natural gas rates during the current recession, Chattanooga Manufacturers Association President Ray Childers said today.
Mr. Childers said his group is opposing a request by the Chattanooga Gas Co. to raise its rates by $2.6 million a year, plus recover $750,000 in legal expenses from a previous rate filing.
“When you are down and gasping for breath, whatever the reason for an increase, we feel like we have to oppose it at this time,” Mr. Childers said today.
The Tennessee Regulatory Authority is considering the request by Chattanooga Gas to boost its rates and to restructure its pricing to ensure an adequate profit even if it encourages customers to conserve and buy less of its product.
“Tennessee’s current rate design is outdated and flawed because it ties energy consumption to a utility’s earnings,” said Tami Gerke, a spokeswoman for AGL Resources, the Atlanta-based parent company for Chattanooga Gas. “As a result, utilities lack incentive to promote energy efficiency.”