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Hamilton County: Utility district managers cool on water authority suggestion

By: Matt Wilson
(Contact)

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Gene Huffine

The general managers of several water utility districts in Hamilton County have a familiar response to the suggestion they band together under a countywide water authority: “If it ain’t broke, don’t fix it.”

“At the moment, we prefer to operate as individual utilities,” said David Callahan, general manager of the Soddy-Daisy Falling Water Utility District. The office of Soddy-Daisy Falling Water also serves as the administrative office for the Sale Creek and Mowbray utility districts.

Hamilton County Commissioners John Allen Brooks and Warren Mackey have said they would like to create a county water authority under which water utilities jointly could operate.

“Water is one of those natural monopolies which would be better served if publicly controlled,” Mr. Brooks said.

He suggested the idea while the Tennessee Regulatory Authority was considering Tennessee-American Water Co.’s proposal to increase its water rates by more than 20 percent. The authority last week limited that increase to about 4 percent.

Dr. Mackey said he’s glad the authority made that decision, but he is concerned that Tennessee-American will continue to seek increases. He noted that water customers in some rural areas pay much less for water than those who live in Chattanooga, which Tennessee-American serves.

“The community should have ownership over the water supply,” he said. “The smaller utilities (should be) joined and unified and brought under the control of the people.”

Commissioner Fred Skillern, whose district contains many of the smaller utility districts, said he supports consolidation of the smaller utilities, but only under certain conditions.

“I don’t want it unless it benefits the ratepayers,” he said.

Kim Dalton, spokeswoman for Tennessee-American, said there has been no discussion of filing for another rate increase since Monday’s regulatory authority decision.

Dr. Mackey acknowledged that the idea of a countywide water authority probably would be hard to sell to the utility districts in the county.

And, as he predicted, local utility district managers said they don’t see a need for it.

Gene Huffine, general manager of Hixson Utility District, said he didn’t think an extra level of government authority would benefit water providers or customers. Plus, he said, he didn’t see what effect it would have on Tennessee-American, a private company.

“I don’t see what benefit that would have as far as what Tennessee-American is going to do,” he said.

Mr. Brooks said it would be his goal for Tennessee-American to come under the umbrella of the water authority.

Ms. Dalton has dismissed that idea.

“A new layer of oversight would simply add a cost to our customers that’s not necessary,” she said.

The Tennessee General Assembly would have to pass legislation to establish the authority. State Rep. Gerald McCormick, R-Chattanooga, said lawmakers would consider a request from the County Commission, but he noted that local water utilities seem to enjoy governing themselves.

The county’s eight utility districts now are run by governing boards of three members appointed by the county mayor.

County Commissioner Richard Casavant has pointed out that the county already has a water authority, the Water and Wastewater Treatment Authority, which oversees several sewer systems.

He said it would be up to the utilities and the authority to align together under the authority’s umbrella.

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