Nobody likes to see the price of any necessity go up.
So it is not a welcome thing to learn that the Tennessee Regulatory Authority, which has jurisdiction over seeking to set fair rates for some public services, has approved a 14.76 percent increase in the rate that Tennessee American Water customers will pay.
Chattanooga water customers are fortunate to have plenty of pure, good-tasting water delivered to our homes and businesses. The water company must charge enough to its customers to cover operational costs and a reasonable return to stockholders, whose investments make the service possible.
But customers of a public utility generally are in no position to know exactly what a fair price is for a given service. And no customer wants to pay an unreasonable price. That’s why TRA directors examine operational and other costs and set rates to cover them, along with a fair return on investment.
As a result of that process, Tennessee American has been allowed to raise local water rates roughly 15 percent, effective yesterday.
What will that mean in actual dollars paid by customers? The amounts will vary according to the volume of water used. But it is expected that the average home water bill will rise about $2.45 a month, to $19.07.
We certainly want to have good water service at our homes and businesses. So we have to pay for it, just as we have to pay for all sorts of goods and services.
The TRA evidently believes, after examining the available financial facts, that the approved increase by the local water company is reasonable and justified.