Tennessee American Water Submits 2016 Water Infrastructure Projects to TRA

Tennessee American Water has submitted its 2016 infrastructure projects to the Tennessee Regulatory Authority (TRA).

Approved in 2014 by the Tennessee Regulatory Authority, the new alternative rate mechanism requires Tennessee American Water to annually submit its capital infrastructure projects for the following year and the costs associated with those projects to the TRA.

Infrastructure capital projects planned for 2016 total almost $15 million. The largest capital infrastructure project planned will be an $8.6 million improvement at the Citico Water Treatment Plant, which will renovate a sedimentation basin to ensure Tennessee American Water continues to meet all state and federal drinking water standards.

The filing is a 4.40 percent increase applied to all water charges. It would be effective January 1, 2016. This represents a $0.95 monthly increase on the average City of Chattanooga residential customer bill and allows Tennessee American Water to ensure continued investment in local water systems while reducing the possibility of large rate increases.

Historically, general rate cases filed have asked for increases at a larger percentage. The alternative rate mechanism gives customers rate stability and allows Tennessee American Water to accelerate the replacement of aging water infrastructure, comply with increasing environmental standards, and support local economic development.

“Our customers play an important role because each time they make a water bill payment, they help to make critical improvements to the local water system,” said Valoria Armstrong, new President of Tennessee American Water. “We plan these projects based on greatest need, balanced by the price our customers pay. We are also very careful to manage our costs by operating as efficiently as possible.”

ABOUT TENNESSEE AMERICAN WATER

Tennessee American Water, a subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water services to more than 370,000 people in Tennessee and northern Georgia. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found by visiting www.amwater.com .