Wholesale Water Customers Protests Unexpected 25% Rate Hike

The Crossville City Council met for their August work session on Tuesday. Jeff Dyer, of the Cumberland Plateau Water Authority (CPWA), and Rick Bilbrey of Grandview Utility District voiced  opposition to a recent 25% wholesale water rate increase. Dyer noted that while the city had discussed adjusting inside/outside retail utility rates to equalize costs, wholesale customers received no advance notice or justification for a jump from $4.57 to $5.71 per 1,000 gallons. Dyer warned that the automated contract escalation could cost regional utilities hundreds of thousands of dollars annually. Council members acknowledged the unintended consequence of the contract trigger and agreed to place the matter on next week’s agenda.