POWELL, Tenn. — Thousands of people are asking for change as high water bills continue to frustrate customers of the Hallsdale-Powell Utility District. The company has implemented yet another rate hike, and customers are demanding to know where it stops.
After several years of water leaks and climbing debt, the company now faces a state investigation.
Knox County Commissioner Rhonda Lee said almost everyone she spoke with while knocking on thousands of doors in District 7 shared a similar concern about their water bills. She says the price hikes are so high that some people are having to choose between groceries and water.
“I know people that have four in their family are telling me their rates are over $200, which is a car payment to some people,” she said.
This sparked the state comptroller’s office to launch an investigation in April. Lee said the company has over $100 million in debt and doesn’t have a solution for how they’re going to address the water and sewage rate.
Russ Rymer began advocating for change in the company more than a decade ago when he noticed his son was having some skin issues. He looked at how much they paid for water and was shocked. It was $200 back in 2012. Since then, he’s gotten thousands of neighbors to sign a petition against high rates.
"My son was having some skin issues. I looked and saw how much we paid for water and I am like, 'What in the world?'" he said.
In 2012, the company’s revenue was $27.6 million dollars. In 2022, that climbed to nearly $38.9 million.
"There's no end in sight. They have never said there is any light at the end of the tunnel," Rymer said. "I'm concerned. I grew up in Halls. I've lived here all my life. My family has been here. We're not going anywhere so it's all like, 'Leave it better than you found it kind,' of thing, but it's progressively gotten worse."
HPUD’s rates have been a source of frustration for customers, but according to HPUD General Manager Darren Cardwell, there are 14 other utilities in the 16-county East Tennessee Development District with higher water charges.
Cardwell said that utilities with infrastructure needs have only one way to pay for them. An estimated 500 to 600 lots are expected to come online in the area just the following year.
Carwell said for the past 20 years, HPUD has been committed to aggressive infrastructure rehabilitation. These capital improvements are the direct result of two consecutive consent orders administered by TDEC and deteriorating water pipes.
"HPUD has remained committed to excellence in not only the services we provide but our conservative fiscal management practices. We have worked diligently to prevent rate increases in 5 of the last 10 years while completing major infrastructure improvements to a once-failing system. Our goal is to not only meet the current demands of our growing communities but ensure the protection and availability of resources for future generations," he said. "HPUD is committed to cleaning up the environment throughout the district because of sanitary sewer overflow that the state and EPA prohibit."
For information on how HPUD’s rates compare to other utilities in the East Tennessee region, Carwell encourages the public to visit the East Tennessee Development District’s website to see the results of their most recent rate survey.