The Advocate and Democrat

SUB’s governing board approved the new rates this week and they are designed to update the rate structure and prepare for expensive projects SUB will undertake in the coming years, including the construction of a new multi-million dollar sewer treatment plant.

“It looks like it will cost somewhere around $10 million,” SUB General Manager Robert Bettis said of the new sewer plant.

SUB must submit plans for the new plant to the state by the end of this month.

Sweetwater Utilities Board will then have a better idea of a timetable for construction of the plant.

Bettis said work could be under way on the new plant in 12 to 18 months depending on several factors.

SUB hired a utilities consultant, Roger Coffelt, earlier this year and he has been working with the utilities provider for months on a new rate structure for sewer and water service to meet the costs of government mandates and new projects.

“Gentlemen, you are going to need more revenue,” Coffelt told the SUB’s governing board.

Bettis said in January a statewide survey had showed SUB had the 19th overall lowest sewer and water rates out of 265 providers in Tennessee.

Beginning the first of next month, the charge for the first 2,000 gallons of water for residential water customers inside the city limits will increase from $8.97 to $10.

The current charge for the next 8,000 gallons is $2.26 but that will increase to $3.58 Aug. 1.

For SUB water customers outside the city limits, the current rate for the first 2,000 gallons of water is $13.46 but that will increase to $15 on Aug. 1.

The charge for the next 8,000 gallons of water for customers outside the city will jump from $3.39 to $5.37 Aug. 1.

SUB’s sewer customers face similar increases.

The first 2,000 gallons of wastewater now cost residents inside of the city $8.97 with a jump to $10 next month.

The next 8,000 gallons of wastewater currently costs $2.18 but that will jump to $3.94 Aug. 1.

For customers outside the city, the first $2,000 gallons cost will jump from $13.46 to $15 Aug. 1.

The cost for the next 8,000 gallons of sewer is now $3.27 but that will increase to $5.91 next month.

Bettis said if government mandates are not delayed for utilities providers, more sewer and water rate increases would be on tap for the summer of 2009.

In a meeting with his board of directors earlier this year, Bettis said state and federal regulators are tightening restrictions on utilities providers when it comes to environmental regulations and even accounting procedures.

Effective on the first day of this month, Bettis said SUB had to pass on to its customers another 2.25 electricity rate increase by TVA.

tommy.millsaps@advocateand democrat.com | 337-7101