The average Chattanooga residential water user will pay another $1 a month, starting with bills this month, under a rate hike approved by state regulators to pay for infrastructure upgrades by the Tennessee American Water Co.
The Tennessee Regulatory Authority approved a 4.66 percent rate increase by the privately-owned water utility earlier this month to pay for capital projects totaling nearly $15 million this year. The increase comes on top of a similar 4.6 percent increase granted for other construction projects by Tenn- essee American a year ago.
Two years ago, however, water rates fell slightly when operating cost savings from cheaper fuel, chemicals and labor more than offset the change in capital spending.
The TRA authorized the 2016 projects and allowed the utility to add their additional expenses on to customer bills as a “Capital Recovery Rider” line, effective with all water bills after March 15.
Tennessee American President Valoria Armstrong said the extra money will be used for new pipes and equipment. The largest capital project involves the renovation of the sedimentation basin at the Citico Water Treatment Plant, which is currently under construction.