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Editorial


Front Page - Friday, November 30, 2018

TAW submits infrastructure projects for approval




Photograph provided Tennessee American Water plans to replace this 126-year-old basin in 2019. The project is one of several the company says will cost over $20 million. - Photograph provided

Tennessee American Water has submitted its 2019 list of capital infrastructure projects and associated costs to the Tennessee Public Utility Commission. The capital plan is submitted annually to TPUC for approval.

Tennessee American Water has proposed that the project costs be offset by income tax savings resulting from the Tax Cuts and Jobs Act, which would result in passing these savings on to Tennessee American Water customers.

“Our investments are focused on making sure we continue to deliver safe, clean, reliable and affordable water that meets our community’s needs,” said Tennessee American Water President Val Armstrong.

“According to the latest report card issued by the American Society of Civil Engineers, our state’s drinking water systems received a grade of ‘C,’” added Armstrong. “The report indicates that the state of Tennessee needs to spend $2.7 billion over the next 20 years to maintain its drinking water infrastructure.

“Tennessee American Water’s proactive capital plan replaces assets that have reached the end of their useful lives and saves money in the long run by strengthening our water systems and protecting public health.”

Infrastructure capital projects planned for 2019 total over $20 million and include construction of a new basin to replace an existing basin built in 1892. The replacement will allow Tennessee American Water to clean water more quickly and efficiently.

Capital projects also include a new facility, scheduled for completion in 2019, which will enhance the company’s disinfection treatment process.

The filing will be effective Jan. 1, 2019 and would represent a 4.57 percent increase to all water charges. However, Tennessee American Water is proposing that additional savings from the 2017 Tax Cuts and Jobs Act be used to offset the increase so customers would see no change from their current bill.

The capital recovery riders and Tax Cuts and Jobs Act savings would appear on customer bills as the line item “Capital Recovery Riders.”

Source: Tennessee American Water

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