In March of 2008, Chattanooga based Tennessee-American Water Company (TAWC) announced that it would be petitioning the Tennessee Regulatory Authority (TRA) for a 20.58 percent increase. If that request were granted it would equal an increase of 32.1 percent in just a little over a year.

Research showed TAWC's parent company, foreign-owned American Water, has been systematically raising rates for the majority of its customers in all 32 states in which it owns various water companies. Time and time again the company asked for enormous rate increases in order to negotiate a slightly lower rate, repeating the laborious process soon after an increase had gone into effect. TAWC insisted the rate increases were necessary and that the amount would be minimal for the average consumer. However they continued to ignore the significant burden that would be placed on large businesses and the City government nor would they offer transparent documents to City officials explaining the need for such significant increases.

In addition to the increases, TAWC spent more than $1.2 million in legal and expert fees for the last two rate proceedings in Tennessee. These expenses alone raise rates by nearly four percent. TAWC demanded that ratepayers - not its owners - pay these fees. City political leaders and the Chattanooga Manufacturers Association approached Waterhouse Public Relations in hopes of bringing awareness to the issue. They felt that it was time to show TAWC they would not stand by while these large rate increases continued from year to year.

Objectives

1. Educate citizens across Hamilton and the surrounding counties affected by the hike about the dubious practices of American Water
2. Encourage citizens to contact the TRA and state politicians to speak out against the rate increase
3. Garner a decision from the TRA that enacted a fair rate increase, and stopped TAWC from passing 100 percent of legal and lawyer fees on to local consumers

Strategy

Waterhouse PR developed a campaign entitled "Fight the Hike" that encompassed both community and media relations. Through aggressive media relations, Waterhouse PR was able to disseminate on a large scale statistics and comparison charts developed through meticulous research. At the same time, Waterhouse PR developed a Web site (www.fightthehike.org) to further inform the public about the campaign as well as to bring to light the goings-on of American Water. Through the site and with ongoing community relations, Waterhouse PR was able to provide a voice for TAWC customers as well as to connect them with the appropriate TRA and State elected officials to express their concern for the unfair rate increases proposed by TAWC. With such creative marketing tactics as a comparison to cable and gasoline rates, TAWC customers were able to see just how much of an impact the proposed increased would have on their monthly water bills.

Waterhouse PR worked with local business leaders to ensure they understood the full impact the proposed increase would have on their operating costs; these companies and organizations quickly joined the coalition. Through press conferences as well as media releases and relations, Fight the Hike was a main focus in the media for the duration of the campaign. As awareness increased, customers banned together under the Fight the Hike name and, in response to countless letters, the TRA opted to hold weeklong hearings in Chattanooga - two of which were open to the public - to more closely evaluate TAWC's proposed increase.

To further demonstrate the importance of community cooperation, Waterhouse PR recruited other coalitions and activists across the country that had fought similar battles with American Water's subsidiaries and their incessant rate increases. These groups were coordinated by Waterhouse PR in order to communicate to Chattanooga citizens why their communities had fought rate increases and in some cases even bought the local water company. Through letters to area newspaper editors these groups gave firsthand accounts of successes in their own communities and encouraged Chattanoogans to voice their concerns about the increase. Waterhouse PR addressed the rate increase with local editorialists and bloggers and demonstrated the long-term effects continued hikes could have on the local economy. This direct communication resulted in dozens of pieces encouraging local citizens to "Fight the Hike" and let the TRA know how this increase would affect their homes and businesses.

Result Highlights

• "Fight the Hike" received national attention from the media, bloggers and other communities.
• The media campaign reached an estimated print circulation of 15,843,000 as well as a strong presence in television and internet media.
• In Sept. 2008, TAWC was awarded a 4.37 percent increase, only a fraction of their original rate increase request.
• The TRA denied the company the right to recover the total costs of its filing. Unlike prior cases, the TRA ruled the water company could only recover half of its estimated costs.
• To date, TAWC has not attempted to appeal the court's decision.