Regulated Utility
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Water and sewer rates don’t just go up because a private water company is operating the system. Tennessee American Water rates are regulated by the Tennessee Public Utility Commission (formerly known as the Public Service Commission or the Tennessee Regulated Authority).
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The regulated utility process ensures that our customers pay fair, just and reasonable rates based on cost of service. The Tennessee Public Utility Commission or TPUC staff of engineering, legal and financial professionals scrutinize every component of our business and provide an opportunity for customers to question the cost of rates during a rate case proceeding.
No matter what the model – public or private – the main driver of rate increases is investment to improve or maintain the infrastructure needed to provide better and more reliable service. The Consumer Advocate Unit of the Tennessee Attorney General’s is a part of the regulatory process and represents all customers.
No matter what the model – public or private – the main driver of rate increases is investment to improve or maintain the infrastructure needed to provide better and more reliable service. The Consumer Advocate Unit of the Tennessee Attorney General’s is a part of the regulatory process and represents all customers.
According to the American Society of Civil Engineers’ 2016 Report Card on infrastructure, there are $2.7 billion in drinking water needs and $2.6 billion for wastewater needs over the next 20 years to renew and replace water and sewer infrastructure in Tennessee. – 2016 ASCE Tennessee Infrastructure Report Card
Capital and Expense Riders
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TPUC allows Tennessee American Water to recover costs on projects and expenses through Capital and Expense Riders. These riders have minimal – and sometimes even positive – impact to customers.
The annual Capital Rider ranges from 3-4% on all water charges. These expenses are based on capital improvement projects related to safety, environmental, water quality, new pipes and more. The annual Expense Rider is based on budgeted expenses plus or minus what we end up actually paying. Since being implemented in 2013, the expense rider has resulted in a reduction in customer bills with electricity, chemicals and other expenses coming in under budget. |
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The Capital and Expense Riders provide rate stability for the customers while making available the full range of services and capital investment that Tennessee American Water brings to the table.
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Project Water Help
We recognize that some customers may have unplanned life events, which make paying their bill a hardship. Customers may work through our billing department to arrange a payment plan. They may also be referred to our Project Water Help program.
Project Water Help is a customer funded program with neighbors helping neighbors. Customers who want to contribute simply check the box on the back of their bill and designate a dollar amount to be contributed every month to Project Water Help.
Project Water Help is a customer funded program with neighbors helping neighbors. Customers who want to contribute simply check the box on the back of their bill and designate a dollar amount to be contributed every month to Project Water Help.