The Chattanooga Association of Realtors announced today support for Fight the Hike, a coalition of government and business groups fighting the 20.58 percent water rate hike proposed by Tennessee-American Water Co.

Pam Duffy, president of the 1,900-member group, said the proposed water utility increase — coming just a year after Tennessee-American raised its water rates by 12.3 percent in May 2007 — is creating a challenge for those trying to sell Chattanooga as a place to live.

“For too many, the cost of living is already high enough; our water rates cannot keep rising,” she said. “We don’t want to detract from all the positives that contribute to our quality of life and make this community such a great place to call home.”

The Chattanooga Association of Realtors cited several reasons for joining Fight the Hike, pointing out that the Chattanooga area has the most expensive water rates out of Tennessee’s six largest cities and referring to the state’s announcement that Tennessee-American’s customers are currently overcharged by $1.6 million.

Chattanooga businessman Randy Baker, chair of the Fight the Hike campaign, said he was encouraged by the growing support for the campaign.

In its filings with the Tennessee Regulatory Authority, Tennessee-American claims the rate increase is needed to compensate for higher fuel, chemical, electricity and labor costs. Although Tennessee-American has higher water charges than most other major cities in Tennessee, the utility said its hookup fees for new customers are often less.

See tomorrow’s Chattanooga Times Free Press for complete coverage.