Tennessee American Water Receives Approval from the Tennessee Regulatory Authority for 2015 Infrastructure Surcharge

The Tennessee Regulatory Authority (TRA) has approved a surcharge for 2015 Tennessee American Water projects that will 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 new job- creating business sites.

Historically, general rate cases filed have asked for increases at a larger percentage. The surcharge, which represents a $1 monthly increase on the average residential bill, will help lessen the impact of future rate increases. The revenue generated by the surcharge is used to pay for eligible water system improvements Tennessee American Water makes in the time period between general rate cases. These eligible improvements are submitted to the TRA for approval.

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.

“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 Deron Allen. “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.”

The surcharge, a 4.64% increase, appears as the “Capital Recovery Riders” line item on a customer’s bill.

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 more than 370,000 people in Tennessee and northern Georgia. Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,600 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 40 states and parts of Canada. More information can be found by visiting www.amwater.com .