Tennessee American Water Submits 2017 Infrastructure Projects

Tennessee American made its annual submission of capital infrastructure projects and the associated costs for 2017 to the TRA for approval of the proposed adjustment to the surcharges.

Infrastructure capital projects planned for 2017 total almost $16 million. The largest capital infrastructure project will be a $2 million river crossing to reinforce Tennessee American Water’s service to the area north of the Tennessee River. The project also offsets the impact earlier in 2016 from the emergency repair on the existing river transmission main. Tennessee American Water plans to replace approximately 25,500 feet of water main to address aging infrastructure in the community.

“Our investments are focused on making sure we continue to deliver safe, clean and reliable water that meet our community’s needs,” said Tennessee American Water President, Valoria Armstrong. “With changes in technology in the water utility industry, we are investing in our system so that customers benefit from these improvements.”

Tennessee’s 2016 Report Card on Infrastructure published by the American Society of Civil Engineers grades the State’s Drinking Water Systems as a “C”. The report indicates that Tennessee needs to spend $2.7 billion over the next 20 years to keep up with drinking water infrastructure.

The filing, which would be effective January 1, 2017, is a 3.57 percent increase applied to all water charges and appears on customer bills as the line item “Capital Recovery Riders”. The request would be a $0.77 monthly increase for the average City of Chattanooga residential customer bill. Tennessee American Water will continue its systematic investment in improving the local water system.

The Tennessee Regulatory Authority approved in 2014 an alternative rate mechanism with Tennessee American Water annually submitting capital infrastructure projects and costs for the upcoming year. This approach leads to better planning of projects and associated costs.

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 approximately 390,000 people in Tennessee and northern Georgia. American Water is the largest and most geographically diverse publicly traded U.S. water and wastewater utility company. Marking its 130 ^th anniversary this year, the company employs 6,700 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.tennesseeamwater.com .