Tennessee state representative Richard FloydNASHVILLE – Calling Tennessee American Water Co.’s rate-increase requests “totally out of control,” Rep. Richard Floyd said Monday he hopes his bill can plug what he considers the utility’s “excessive” efforts to hike local water rates.
“They’re totally out of control,” Floyd said of Tennessee American, which is owned by American Water Works Co. Inc.
Floyd, R-Chattanooga, said he is working with legislative attorneys to ensure his attempt to curb the water company’s ability to increase fees is “statutorily and constitutionally legal.”
Tennessee American is owned by the New Jersey-based American Water Works and Floyd’s legislation says a privately owned public utility that supplies water to a municipal government shall not initiate a rate case more than once every six years. It also says the utility’s records would be considered a public record.
On Monday, Tennessee American was granted the largest rate increase in Chattanooga history when regulators formally approved the largest water rate increase in Chattanooga history – a 14.76 percent price jump that will raise costs across the board.