Water service rates are based on the real costs of treating and delivering water to customers, and are regulated by the Tennessee Public Utility Commission (TPUC). To determine rates, we work with the TPUC staff to study costs of construction, maintenance, operation, administration and financing. Once the studies are complete, the company and the TPUC present any differing conclusions before an administrative law judge. Based on the judge’s opinion, the TPUC sets the water rates.

Rates charged for service may vary based on a customer’s meter size. Customers are billed based on a regular meter reading, either monthly or quarterly for residential customers as well as for commercial and other public authority customers.

Rates can vary based on the cost of providing service in each of the communities we serve. Before it reaches your home or business, water is treated through an intricate treating and testing process to help ensure it meets or surpasses rigorous drinking water quality standards.

Tennessee American Water 2024 Rate Adjustment Request

On May 1, 2024, Tennessee American Water filed a petition for approval to adjust rates with the Tennessee Public Utility Commission (TPUC) reflecting $287 million in water system investments made by the company since its last general rate increase in 2012 through December 2025, to continue providing clean, safe, and reliable water service. We have requested the rate change so we are able to continue properly maintaining and upgrading our water system to provide safe, clean, reliable service to residents and businesses in our community.

NOTE: Rates are NOT changing at this time. The new rates would only go into effect after the TPUC completes its review process and approves the new rates, which would be expected in early 2025.

The TPUC’s rate review process offers opportunities for customer involvement. Customers can participate through the submission of written comments and providing oral comment at a future public meeting.

Below is a link that provides a breakdown of the rate adjustment request for regions and type of customer (ie, commercial or residential).

Summary of 2024 Proposed Rates

Tennessee American Water Rates and Rules