Media - Fight the Hike

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September 24, 2008
Regulators Limit Cost Recovery in Water Case
Excerpt: Tennessee regulators’ long-standing practice has been to let utility companies seeking rate increases pass along to consumers their full costs for lawyers, expert witnesses and other items associated with pursuing a formal regulatory proceeding. But in this week’s ruling on the Tennessee-American Water Co.’s rate increase request, Tennessee Regulatory Authority directors partially shut off the tap. Dealing with the fourth rate hike request from Tennessee-American officials in 61 months, the authority’s directors ruled the water company only can recover half of its estimated $550,000 costs in the latest case.

September 23, 2008
Tennessee-American Gets Only Fraction of Rate Increase
Excerpt: Veteran Regulatory Authority Director Eddie Roberson said the decision was what was “just and reasonable.” “Overall, in my opinion, the company did not meet the burden of proving the rate case they filed,” he said.

September 22, 2008
Regulatory Board Votes Smaller Water Rate Increase
Excerpt: The Tennessee Regulatory Authority voted two to one this afternoon to reduce substantially the Tennessee-American Water Co.’s proposed rate increase for Chattanoogans. Instead of a 21.7 percent percent increase for Chattanooga residential, industrial and commercial users, the increase will be 4.37 percent. Director Eddie Roberson, who made the motion, said rates for the average Chattanooga residential user would go up by 72 cents a month versus the $3.65 average increase sought by Tennessee-American.

September 22, 2008
Tennessee American Water Co. Gets 4.4% Rate Increase
Excerpt: Randy Baker, Fight the Hike, "We hope that the effort by the citizens of Chattanooga will be sort of a baseline model for other municipalities that are looking at these same increases." Fight the Hike savors success with its campaign against a 20 and a half percent water rate increase. Baker said "At the end of the day we did raise public awareness so we're pleased with the effort." The Tennessee Regulatory Authority approved only 4.4 percent. Tenn Am says that means around $.72 cents more for a typical customer, instead of $3.65.

September 22, 2008
TRA Chops Down Water Company Rate Request to 4.37% Hike
Excerpt: “The people of our fine city and county have spoken and voiced their immense displeasure with the growing business plan of TAWC coming back year after year asking for totally unsubstantiated rate increases,” said Chattanooga businessman Randy Baker, chairman of the Fight the Hike citizens’ campaign.

September 22, 2008
Tennessee-American Only Gets 4.37% Rate Increase
Excerpt: The Tennessee Regulatory Agency announced Monday that it will only approve a 4.37 percent water rate increase, one-fifth of the 20.58 percent requested by the Tennessee American Water Company.

September 20, 2008
TRA’s Roberson Proposes Only 4.3 Percent Increase for Tennessee-American Rate Hike
Excerpt: A state regulator is aiming a hose at Tennessee-American Water Co.’s request for a 21.7 percent increase in Chattanoogans’ water rates, arguing the water company deserves only a fifth of the $7.64 million increase it is seeking.

September 4, 2008
Final Pleas Made in Water Rate Case
Excerpt: Attorneys for the city of Chattanooga contend that Tennessee-American Water Co.’s corporate parent is trying to pump up its stock price by seeking large rate increases through its subsidiaries such as Tennessee-American.

September 4, 2008
The Battle For The Water Company, Take Two
Excerpt: Not everyone feels the same way. The Fight The Hike organization has been active in trying to correct what it feels is a pattern of misinformation being promoted by the water company. A common belief is that we have very inexpensive water, but a spokesman for the organization claims that is far from the truth. “According to the state’s Consumer Advocate and Protection Division, our tap water from Tennessee-American Water Company is the most expensive among the state’s six largest cities,” he stated. “Water rates for businesses in Chattanooga are higher than you might have imagined...higher than the rates in Philadelphia, Cincinnati, San Francisco and Reno.” But even it haven’t yet gone as far as calling for a government takeover of the utility. Its fight—for now—is solely against the rate increases. Tennessee-American does not operate in vacuum. It has to answer to the Tennessee Regulatory Agency, which makes the final decision on rate hikes. It has long been a practice for the water company to request a much higher rate increase than it receives. For example, in May of last year TAWC requested a 19.7 percent hike, but was only granted a 12.3 percent increase. “That’s how the game is played,” explained Commissioner Adams. “It’s like haggling at a yard sale.”

August 29, 2008
Soaring Costs Hurt Water Utilities
Excerpt: Almost everyone in Northwest Georgia and Southeast Tennessee is paying less for water than Chattanoogans who buy from Tennessee-American Water Co. Chattanooga’s privately owned Tennessee-American Water Co. drew fire when it sought a rate increase to fund a $21.3 million capital program and to cover soaring costs for gas, chemicals and electricity.

August 29, 2008
Brooks Seeks Help for Small Utilities
Excerpt: “We have to do something as a county to help some of the smaller water districts and to ensure that our citizens get water at a reasonable cost, not that we’re subject to these continual raises just to satisfy Wall Street,” Mr. Brooks said.

August 28, 2008
Consultant Challenges 'Management Audit' of Tennessee-American
Excerpt: A consultant for the city of Chattanooga on Wednesday questioned the validity of a "management audit" performed on behalf of the Tennessee-American Water Co. to help justify its current rate increase case. Expert Michael Majoros said the audit, which was ordered in last year's rate case by the Tennessee Regulatory Authority, was intended to examine the appropriateness of service costs charged to the water company by its parent company, American Water Works Co., or a subsidiary, American Water Works Service Co.

August 27, 2008
Tennessee-American Water Company Increases Differ
Excerpt: But the size of the increase for the company’s 74,000 customers actually depends on where they live, company officials have acknowledged. In a PowerPoint summary of his testimony, figures provided by Tennessee-American’s own engineering consultant, Paul R. Herbert, state that Chattanoogans’ rates would increase by 21.7 percent under the company’s rate request. The request is pending before the Tennessee Regulatory Authority. Water rates for Lookout Mountain, meanwhile, would go up 13.2 percent, while rates for Lakeview would soar 27 percent, according to the document. The communities of Lone Oak and Suck Creek would not see increases, according to the summary.

August 27, 2008
Utility Rate Increases Hit Hard
Excerpt: “Now that (gasoline) prices are up, everybody thinks they can increase their price,” said Elaine Amberson, 54, of Soddy-Daisy. “I think they’re just taking advantage of the situation.” Ms. Amberson, who is disabled and receives Medicare benefits, said her bills are going up but her income is not. She said that’s happening to a lot of Hamilton County residents whose wages aren’t going up with the cost of living.

August 24, 2008
$2 Million Battle Over Water Rates
Excerpt: The 2006 rate increase sought by Tennessee-American cost the company more than $1 million in legal and processing fees. In the end, the company was granted a 12.3 percent rate increase that generates an extra $4 million a year for the company. Dale Grimes, an attorney for the Nashville-based Bass, Berry & Sims who represents Tennessee-American, said the water company expects to spend at least as much this year as it did on its previous rate case. In fact, the water utility is trying to recover expenses involved in its last rate case in its current request to the TRA.

August 23, 2008
Water Hearing to Resume in Nashville
Excerpt: Mr. Walker said the water company spent $100,000 for a study by economist Michael J. Vilbert that recommended an 11.75 percent return on equity. Mr. Walker accused Mr. Miller of filing for a higher return in the case and then filing an amendment saying the company would accept an 8.08 percent return. Mr. Miller denied that allegation. Instead, he suggested all parties work things out before going to a full hearing.

August 21, 2008
Water Rate Hike Opponents Address County Commission
Excerpt: Commissioner Warren Mackey said the city and county should consider taking ownership of the company. “It has become apparent that they will continue with these rate hikes,” he said.

August 20, 2008
Commissioners Want to Fight the Hike
Excerpt: Warren Mackey says, "A community I think needs to protect its vital resources and I think in this case water is a vital resource that the community cannot live without." Commissioners say they should either support competition in water companies or have it regulated by the government. Fred Skillern says, "I don't see how it could be anything but cheaper to have a utility run it with an elected official as the leader appointing the people that are going to run it."

August 20, 2008
Water Numbers Suggest High Profit
Excerpt: The last item before the total line is income taxes. Note that the income tax rate is 9.69 percent. For there to be income taxes, there must be net taxable income. This would be income after all deductible expenses. The chart has no net income (profit) on it. How can there be income taxes if there is no profit? Answer: There cannot be. The lowest corporate tax rate is 15 percent and the highest is 35 percent. Assuming TAWC has an effective tax rate of 25 percent, that means that $1.60 is 25 percent of the taxable profit. Which means the taxable profit is $6.40. So, let’s do the math: 6.40/16.54 equals 38.7 percent taxable profit. A very handsome rate of return indeed! A rate that should make any investor proud. Yet, they want an additional 20.58 percent increase on 39 percent? Perhaps we should all go into the for-profit water business.

August 20, 2008
Economists, Lawyers Debate Water Utility’s Profit Rate
Excerpt: The consumer advocate office believes the utility should be allowed to earn a maximum of 7.5 percent return on equity, based on a study of eight other water companies, Dr. Brown said. “Tennessee-American Water Co. is a monopoly,” he said. Rick Hitchcock, an attorney for Chattanooga, said that American Water Works, Tennessee-American’s parent company, has written off $1.1 billion since 2003 and aggressively has pushed for rate hikes for its subsidiaries to make up the difference. The current rate case was filed 10 months after Tennessee-American received its last increase and six weeks before American Water became a publicly traded company, he said

August 19, 2008
Manufacturers Fight Proposed Water Rate Hike
Excerpt: That hike would cost R.L. Stowe Mills an extra 100 thousand dollars a year. The yarn dying company uses 1 million gallons of water a day. Division President Jack Callaghan says, "Since 2003 the water company has had 23 percent increase, now they're asking for 21 percent increase, that's outrageous."

August 19, 2008
Koch Foods Official Says Utility Prices Threaten Jobs
Excerpt: Mr. Nuckolls said a proposed 20.6 percent water rate increase proposed by Tennessee-American Water Co., coming a year after a 12.3 percent hike in water rates, threatens to make Koch’s 335-employee Chattanooga plant less competitive than the company’s other poultry facilities. The proposed water rate increase, if accepted in full by state regulators, would boost Koch’s annual water bill by more than $100,000.

August 19, 2008
Littlefield Tells Regulators Neither Water Rate Increase Is Justified
Excerpt: The 12.20 percent increase that the Tennessee Regulatory Authority already approved for Tennessee-American Water Company was not justified – much less the additional 20.58 percent increase that TAWC is seeking now, Mayor Ron Littlefield told TRA directors Tuesday morning. Chattanooga is appealing the previous increase, and also has intervened in opposition to the additional increase TAWC is seeking.p>

August 18, 2008
Hearing Underway For Your Water Rates
Excerpt: Vance Broemel with the Tennessee Attorney General's office told TRA members "we are opposing this rate increase because it is not justified under Tennessee law." The TRA got a petition from Tennessee-American in April to hike water bills by almost 21%. The water company got a more than 12% hike 10 months prior.

August 18, 2008
Regulators Hear Opponents, Proponents Of Tennessee-American Rate Increase
Excerpt: Monday evening, state Rep. Richard Floyd and other opponents noted that this proposed TAWC rate increase comes on top of last year’s 12 percent increase – and predicted it soon will be followed by another. “I’d be willing to bet my retirement they’ll be back again next year,” said Rep. Floyd, who told regulators his phone has been ringing off the hook with calls from constituents upset about the proposed increase. Other opponents, representing area businesses, said the rate increase could have a devastating impact on some employers.

August 14, 2008
McCormick Calls for 'Prudent Decision' on Water Rate Hike
Excerpt: In the letter, Rep. McCormick stops short of calling for a rejection of the company’s request. But an accompanying news release says he considers the company’s latest request “grossly excessive” and quotes him as saying Tennessee-American “needs to act responsibly and in the public interest. I don’t think they are doing that right now.”

August 13, 2008
Don’t Let Water Utility Take a Mile
Excerpt: We live in a great country where we are assured certain rights. While we may not have the constitutional right to affordable drinking water, we have the freedom to fight for what’s in the public interest. Don’t let Tennessee-American bilk you for all you’re worth, Chattanooga. If you give them an inch, they’ll take a mile. Fight for affordable water.

August 11, 2008
It’s OK to Demand Fair Price for Water
Excerpt: Affordable water is a right, not a commodity. In the six years that Cal-Am, a company under the same ownership as Tennessee-American, owned the Felton, Calif., water system, our rates more than doubled. For no good reasons, and without our consent. We said enough is enough.

August 11, 2008
City of Chattanooga Appeals State Decision on Water Hike
Excerpt: The City of Chattanooga has appealed a 2007 decision of the Tennessee Regulatory Authority granting a 12.2 percent rate increase to Tennessee-American Water Co. In a filing with the Tennessee Court of Appeals, city attorney Mike McMahan said the regulatory authority did not adequately review the rate increase originally sought by the water utility in 2006. The court appeal of last year’s water rate increase comes as the city also is opposing another rate increase of more than 20 percent sought this year by Tennessee-American.

August 9, 2008
It’s Time to Rethink Buying Water Utility
Excerpt: I’m not opposed to allowing companies to make a profit, but there is a limit when the business holds the public interest in its hands. Typically, we can go elsewhere to do business if we’re not happy with a company’s prices. But because Tennessee-American has a monopoly on the system, we don’t have the option of shopping for less expensive water. If you believe that water is a right — like the air we breathe, then we should urge our elected officials to ensure access to affordable water by regaining control of our water.

August 9, 2008
Chattanooga: Groups Join Water Rate Hike Fight
Excerpt: Opposition to a proposed water rate hike continued to grow Friday even as Tennessee-American Water Co. sought to defray concerns by pointing out that some of the increase in water bills is because of hikes in the city’s sewer charges.

August 8, 2008
NAACP Opposes Water Rate Hike
Excerpt: The Chattanooga area chapters of the Urban League and National Association for the Advancement of Colored People (NAACP) announced today they are joining forces with the Fight the Hike campaign. Fight the Hike, a coalition of citizens and businesses backed by the Chattanooga Manufacturers Association, Chattanooga Mayor Ron Littlefield and Hamilton County Mayor Claude Ramsey, announced last month a movement to oppose the 20.58 percent water rate hike proposed by Tennessee-American Water Company (TAWC).

August 6, 2008
Urban League Joins The Fight Against Water Rate Hike
Excerpt: Warren Logan says "You often hear about persons having to choose between medical, pharmaceutical products verses that of other basic needs so this kinda boils down to that. So water being a necessity of life as we know..to put the interest of the stock holder before that of the consumer is just totally unfair."

August 6, 2008
The Chattanooga Association of REALTORS Join The "Fight The Hike”
Excerpt: Chris Sexton with the Chattanooga Association of REALTORS adds, "The greater Chattanooga area has a great quality of life and we don't want to detract from that at all. Having these high rate increases going on all the time...is just not good for people looking to relocate to the area."

August 6, 2008
Chattanooga: Realtors Join Campaign Against Water Rate Hike
Excerpt: The Chattanooga Association of Realtors cited several reasons for joining Fight the Hike, pointing out that the Chattanooga area has the most expensive water rates out of Tennessee’s six largest cities and referring to the state’s announcement that Tennessee-American’s customers are currently overcharged by $1.6 million. Chattanooga businessman Randy Baker, chair of the Fight the Hike campaign, said he was encouraged by the growing support for the campaign.

August 6, 2008
Chattanooga Realtors Fighting Water Rates
Excerpt: The Chattanooga Realtors’ announcement comes as longtime, family-owned Loudon County companies Wampler’s Farm Sausage Co. and Family Brands International told the News Sentinel that the companies are considering relocating out of Loudon County because of high water rates charged by Lenoir City Utilities Board.

August 6, 2008
Realtors Joining Fight The Hike
Excerpt: Pam Duffy, CAR president, said, “While realtors in the area are spreading the word about Chattanooga’s ideal housing market, we have been challenged by national headlines that don’t reflect the true state of the market here; now a new challenge lies before us. For too many, the cost of living is already high enough – our water rates cannot keep rising. We don’t want to detract from all the positives that contribute to our quality of life and make this community such a great place to call home."

August 3, 2008
Water in Chattanooga is pricey
Excerpt: The tap water that flows from Tennessee-American Water Co.’s pipes into the average Chattanooga home is the most expensive among the state’s six largest cities, according to the state’s Consumer Advocate and Protection Division. In testimony filed with the Tennessee Regulatory Authority, which is considering Tennessee-American’s latest rate request, state regulatory analyst Terry Buckner said officials “should be mindful” of how the investor-owned utility ranks with its counterparts in Memphis, Nashville, Knoxville, Murfreesboro and Jackson.

July 31, 2008
Fight the Water Rate Hike
Excerpt: There appears to be ample reason to fight TAWC’s pernicious trend of large rate hike requests. No wonder the state’s consumer advocate is arguing that TAWC customers deserve a $1.6 million rate cut. With the latest rate increase filing, it also appears there are grounds for the city to reinstate a public bid again to takeover TAWC. Felton, California, won a similar battle earlier this summer against California-American Water Co., another American Water subsidiary of RWE, becoming the second California town to beat the German behemoth. Chattanooga should talk to their lawyers while it fights TAWC and its corporate masters on this new rate hike.

July 30, 2008
Chattanooga: Group makes waves over water rate hike
Excerpt: Standing on the north shore of the Tennessee River that supplies Chattanooga’s water, Mayor Ron Littlefield described the utility’s request to raise water rates for the second year in a row as “excessive.” For consumers already struggling with higher energy costs, the increase is “something we cannot accept,” he said.

July 29, 2008
Consumer Advocacy Group Forms to Fight Chattanooga Water Rate Hike
Excerpt: The coalition of citizens, businesses and politicians says if the latest 20.4% hike is approved, Chattanoogans' water rates will have increased faster than cable and even gasoline. "We would like to attract more industry back to the city of Chattanooga and increasing the cost of doing business is not the way to get that done," adds Mayor Littlefield.

July 29, 2008
Water Rates Could Increase
Excerpt: The coalition believes higher prices will amount to less interest in the city of Chattanooga among businesses, and hurt customers who are feeling the pinch from other soaring costs. The group also questions the equation used to determine rates and how the company is spending its funds.

July 29, 2008
Advocacy Group To Fight Water Rate Increase
Excerpt: Historically, the TRA approves a lower percentage increase than the water company requests. In May 2007, the regulatory agency that provides utility oversight approved a 12.3 percent increase in response to the water company’s requested 19.7 percent hike. Still, Fight the Hike notes that the 2007 increase was the single highest increase to date, and the proposed increase for 2008 represents the largest increase in the company’s 138-year history.

July 29, 2008
Fight the Hike
The above is a link to News Channel 9’s story on Fight the Hike and more information about Tennessee-American’s rate request.

July 29, 2008
Chattanooga: Coalition to fight water rate increase
Excerpt: “Mayor Ron Littlefield called the latest rate request by Tennessee-American “excessive” following another double-digit rate increase last year. Chattanooga businessman Randy Baker, chair of the “Fight the Hike” campaign, said if the latest rate increase is adopted water costs will have jumped by 35.1 percent in just over a year.”

July 29, 2008
Tennessee-American Rate Hearing Set Aug. 18 in Chattanooga
Excerpt: “The consumer rates set in this proceeding will affect the pocketbooks of Chattanoogans for a long period of time,” attorneys had argued in their appeal. “It is therefore better to set these rates correctly rather than quickly.”

July 13, 2008
Chattanooga: City, State Want Water Rates Set 'Correctly,' Not Quickly
Excerpt: “The consumer rates set in this proceeding will affect the pocketbooks of Chattanoogans for a long period of time,” attorneys had argued in their appeal. “It is therefore better to set these rates correctly rather than quickly.”

July 4, 2008
Water Rate Hearings Extended
Excerpt: The company filed the request March 14 -- less than a year after the TRA granted a 12.3 percent hike over city, state and businesses' objections.

June 29, 2008
Tennessee Regulatory Authority Limited in Scope of Power
Excerpt: “The history behind (the regulatory authority) is to regulate the profits of investor-owned utilities,” Phil West, a spokesman for the Tennessee Regulatory Authority, said. “Publicly owned utilities, they’re not supposed to make profits.”

June 25, 2008
State, City Won’t Use Disputed Consultant in Tennessee-American Rate Case
Excerpt: Tennessee-American lawyers and officials quickly objected, arguing that Mr. Impagliazzo’s severance agreements with American Water prohibited him from consulting for the state. They also objected to the resume’s listing of his achievements at American Water, arguing it was confidential information.

June 21, 2008
Tennessee: Resume in Water Company Case Removed from Web
Excerpt: Attorneys in a contested Tennessee-American Water Co. rate case agreed Friday to remove from a state Web site the resume of a former American Water Works Co. executive now affiliated with a state-retained consulting firm.

April 27, 2008
Chattanooga: Water Rate Hike Won't Immediately Trickle Down to Municipalities
Excerpt: Extra water costs from Tennessee American’s rate increase, if approved by the Tennessee Regulatory Authority, could affect those water utilities once the contracts expire, Mr. Watson said.

April 15, 2008
Chattanooga to Intervene in Proposed Water Rate Hike
Excerpt: The assistant city attorney calls the 20 percent increase outrageous, especially after the Tennessee American Water Company got a 12 percent increase last year.

April 11, 2008
Hamilton County Commission Unanimously Opposes Water Rate Hike
Excerpt: After stinging Tennessee-American Water Co. officials with questions about the financial motives of its parent companies, the Hamilton County Commission voted 7-0 Thursday to oppose the utility’s requested 20.58-percent rate increase.

April 10, 2008
Video: Water Hike Issues Discussed
Excerpt: Officials from the Tennessee-American Water Company at a Chattanooga Times Free Press editorial board meeting discussed a proposed rate increase and commented on the logistics of moving Tennessee River water to Atlanta.

April 3, 2008
Water Rate Hike Protest Planned
Excerpt: Hamilton County Mayor Claude Ramsey on Wednesday said he wants city and county officials to pass a joint resolution opposing a proposed Tennessee-American Water Co. rate increase.

March 30, 2008
Water Rate Hike Makes Waves with Lawmakers
Excerpt: Rep. Richard Floyd, R-Chattanooga, said he may go before the Tennessee Regulatory Authority to oppose the increase, which comes on top of last year’s 12.3 percent increase.

March 14, 2008
Tennessee-American Water Seeks Highest Rate Hike in History
Excerpt: “I’m very disappointed they’re asking for such a large increase after receiving the 12.3 percent increase,” Chattanooga Mayor Ron Littlefield said. “We contested that one. I’m confident we’ll contest this request as well.”