A reliable source of water is essential, and fortunately, most of us don’t have to dig wells or dip from rivers or creeks to get water. In our area, we are assured an abundance of purified, good-tasting water delivered by Tennessee American Water.
The company has asked state regulators for a 28 percent rate increase – reportedly estimated to be about $50 more a year for a home customer, more for industries or big water users. The company says it needs the money for maintenance and capital projects.
Naturally, nobody wants to pay more for anything. So what should a fair rate be? It should cover the company’s costs in providing good service, plus a reasonable profit for stockholders, who put up the money to make the water service possible.
Since water service in our area is a monopoly, state law provides for the Tennessee Regulatory Authority to consider the facts and seek to arrive at a charge that is fair and reasonable, while assuring good service.
The water company’s rate request unfortunately has dragged on for six months without TRA resolution. So on or after Thursday, the company may go ahead and raise its rates – though it could have to return part of the resulting revenue if the TRA later approves a smaller increase.
Under these drawn-out circumstances, doesn’t that seem reasonable?