Alcoa, TN, October 27, 2025
News Summary
Alcoa officials reviewed a financial assessment proposing necessary rate increases for water and wastewater services due to insufficient revenue and aging infrastructure. Over two years, average water customers may face an increased charge totaling $168 annually, while mandatory upgrades to the wastewater treatment facility are planned for 2027, amounting to $10 million. Consulting expert Sarah Chandler emphasized the importance of these adjustments to prevent future financial distress.
Alcoa officials conducted a monthly work session on Friday, where they reviewed a water and wastewater assessment presented by Sarah Chandler, a principal utility consultant from Jackson Thornton. The session focused on ongoing and upcoming capital projects in the city, as well as potential changes to rates for water and wastewater services.
Chandler indicated that Alcoa currently does not generate enough revenue to sustain its water and wastewater operations, prompting the recommendation for two years’ worth of rate increases. The financial review performed by Chandler’s team analyzed a year’s worth of data against five criteria: revenue sufficiency and stability, fairness and equity, customer payment ability, implementation simplicity, and defensibility. According to Chandler, the utilities are far from breaking even, and since the last rate change occurred nearly 20 years ago, adjustments are now critical.
The need for rate increases is further exacerbated by a mandatory upgrade to the wastewater treatment plant, which is expected to cost $10 million and is scheduled to begin in 2027. Chandler emphasized that without these increases, the city may face financial distress in the future.
The proposed changes include a $1 monthly customer charge for all water customers and a 15-cent volumetric increase for wholesale and large industrial classes. This would translate to an additional $24 annually for average water-only customers after two years. For residential wastewater customers, yearly increases of $4 on the customer charge and $0.50 on the usage charge are recommended, leading to a total hike of $8 on the customer charge and $1 on usage over the same period. Non-residential classes may see increases of $15 a year on the customer charge and $1 on the usage charge, collectively estimated to generate around $1.66 million based on 2024 billing statistics.
After the proposed two-year period, average customers could face a total increase of approximately $168 annually for both water and wastewater services combined. Despite the necessity for increases to maintain adequate service levels, Chandler made it clear that these changes would not allow the city to break even immediately.
Alcoa’s Water Treatment Plant, located at 4541 Wheeler Road, follows a purification process involving multiple stages of filtration and chemical treatment. In recent years, the wastewater treatment facility has been penalized for exceeding permitted overflow limits, necessitating a consent order with the Tennessee Department of Environment and Conservation for a 10-year improvement plan.
During the meeting, Alcoa City Manager Bruce Applegate clarified that the proposed rate increases have yet to receive approval, with possible implementation not occurring until January. Customers can expect to be notified well in advance regarding any adjustments to rates.
FAQs
What was the focus of the meeting held by Alcoa officials on Friday?
The meeting focused on the city’s upcoming and ongoing capital projects, including potential rate changes for water and wastewater services.
Who presented the financial assessment to Alcoa officials?
Sarah Chandler, a principal utility consultant from Jackson Thornton, presented the water and wastewater assessment.
Why are rate increases being proposed for Alcoa’s water and wastewater services?
Rate increases are proposed because Alcoa does not currently have enough revenue to sustain its water and wastewater operations, as the last rate change occurred almost 20 years ago.
What specific increases are proposed for residential and non-residential customers?
Residential customers may see increases of $4 on the customer charge and $0.50 on the usage charge annually for two years, while non-residential classes may face increases of $15 a year on the customer charge and $1 on the usage charge.
When might these proposed rate increases take effect?
Proposed rate increases have not yet been approved, with possible implementation not expected until January.
Key Features of Proposed Rate Changes
| Service Type | Proposed Increase (Yearly) | Total Increase over Two Years |
|---|---|---|
| Residential Water Customers | $1 (monthly) | $24 |
| Residential Wastewater Customers | $4 (customer charge), $0.50 (usage charge) | $8 (customer charge), $1 (usage charge) |
| Non-Residential Customers | $15 (customer charge), $1 (usage charge) | Varies based on consumption |
Deeper Dive: News & Info About This Topic
HERE Resources
Alcoa Water Treatment Plant Honored with Public Utility Award
Additional Resources
- The Daily Times: Alcoa Officials Float Possible Water/Wastewater Rate Increases
- The Daily Times: A Clean Sweep – Alcoa Nets Award for Water Treatment Project
- Al Circle: Alcoa’s WA Bauxite Expansion Under Review Amid Water Supply Study
- Wikipedia: Water Supply
- Google Search: Alcoa Water Wastewater
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