Chattanooga backs lead service-line programme with cents-per-month rate impact
City of Chattanooga Waste Resources Division, Tennessee · Meeting date: November 3, 2026 · Published: November 4, 2026
City Council approved support for Tennessee American Water’s comprehensive lead and galvanized service-line replacement programme to meet EPA lead and copper rule improvements. The utility expects to seek recovery of customer-side replacement costs through its regulated capital-cost mechanism rather than billing affected customers individually.
Key points
- Council approved support for replacement of both utility-owned and customer-owned portions of lead and galvanized water service lines.
- Tennessee American Water estimates about 3,600 lead service lines were originally installed, subject to field verification being undertaken with TDEC.
- The utility put average full replacement cost at about $10,000 per line, including an estimated $2,500 customer-side portion.
- Replacing 360 lines a year over 10 years would create roughly $900,000 in annual customer-side capital costs, equal to an estimated 3.65 cents per month on the average bill in the first year.
- Cost recovery would be subject to annual review by the Tennessee Public Utility Commission through the utility’s annual review mechanism.
Full report
Chattanooga City Council has approved a resolution supporting Tennessee American Water Company’s comprehensive programme to replace lead and galvanized water service lines, including the portions located on customers’ property.
The resolution aligns the city with the utility’s planned response to the US Environmental Protection Agency’s lead and copper rule improvements. Tennessee American Water counsel Ryan Freeman told council that the company is first building and verifying its service-line inventory before establishing the programme’s final cost.
Company records indicate that approximately 3,600 lead service lines were originally installed in its local territory. Tennessee American Water is carrying out field verification in coordination with the Tennessee Department of Environment and Conservation to confirm whether those lines remain in place and identify any additional lines.
Freeman said the utility is working on an average replacement cost of about $10,000 per service line, with roughly $2,500 of that amount attributable to the customer-owned section. Rather than requiring individual customers to pay that portion when their line is replaced, the company intends to ask the Tennessee Public Utility Commission to allow it to recover the costs as capital expenditure through rates.
Using the 3,600-line estimate and a 10-year replacement timeframe, the utility outlined a replacement rate of 360 lines a year. This would represent about $900,000 a year in customer-side capital costs. Freeman estimated that recovery through base rates would add approximately 3.65 cents a month to the average customer bill in the first year.
The charge would be considered within Tennessee American Water’s annual review mechanism, under which the company submits its prior-year capital investments to the utility commission for review and recovery through a surcharge. Freeman said the lead-line expenditure would form part of the utility’s regular capital programme rather than a separate immediate bill increase for customers.
Councilwoman Noel had sought assurance that the programme would not result in sharp increases in household bills. Freeman said customers would not see a $50 or $60 jump attributable to the replacements, describing the estimated effect as close to four cents a month.
The council adopted the resolution without opposition.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council, City of Chattanooga Waste Resources Division