Tennessee American Water Receives Approval from the Tennessee Regulatory Authority for 2016 Infrastructure Surcharge

The Tennessee Regulatory Authority (TRA) has approved the infrastructure surcharge for 2016 Tennessee American Water projects that improve the community’s water system. The surcharge is used to recover the costs associated with renewing and replacing pipes, meeting ever-stringent Environmental Protection Agency (EPA) requirements and supporting local economic projects like putting in new pipes for job- creating business sites.

“Our customers play an important role because each time they make a water payment, they help to make critical improvements to our water system,” said President of Tennessee American Water Valoria Armstrong. “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.”

Infrastructure capital projects planned for 2016 total almost $15 million. The largest capital infrastructure project is an $8.6 million renovation of a sedimentation basin at the Citico Water Treatment Plant. Currently under construction, the renovation of the basin ensures Tennessee American Water continues to meet all state and federal drinking water standards.

The approved surcharge is a 4.66 percent increase applied to all water charges and appears as the “Capital Recovery Riders” line item on a customer’s bill. It is effective beginning March 15. This represents a $1.00 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.

According to the American Society of Civil Engineers 2013 “Report Card” on water infrastructure, there are $3.5 billion in needs over the next 20 years to renew and replace water infrastructure in Tennessee.

Tennessee American Water will host a Waterfest where residents are invited to see first-hand the basin project and learn more about the water cleaning process. This free community event will take place on July 12, from 6 to 8 p.m.

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.amwater.com .