POWELL, Tenn. — After complaints, challenges and a state investigation over rates charged by the Hallsdale-Powell Utility District — the company's general manager said he's confident the district will be able to recover.
Darren Cardwell said he took over a system that did not have any major improvements over decades and is having to catch up. He said the Tennessee Department of Environment and Conservation has issued consent orders against the utility for overflowing sewage into the community.
"Water main breaks are carrying sanitary sewer overflows throughout the system," said Cardwell.
He said that's one of the main challenges his utility is working to fix, but he needs money to do it.
"A lot of our system is over 45 years old," said Cardwell. "We're trying to fix those deteriorating systems."
To fund those fixes, Cardwell said the utility district had to take on debt. The Tennessee Comptroller's Office said Hallsdale-Powell owes about $167 million on $306 million in total assets. A report by the Comptroller's Utility Management Review Board staff said the district also doesn't sell 46% of the water it produces.
"We have concerns with the rates set at what they are and the district's level of debt," said Ross Colona, the Assistant Director of the Utility Board staff. "We are still seeing compliance issues."
Customers have complained Hallsdale-Powell charges too much for water, but Cardwell said it's not the costliest in East Tennessee. Colona said an investigation found the utility's rates were justified.
Cardwell pointed to a Utility Rate Survey by the East Tennessee Development District, which said Hallsdale-Powell's rates, through miles of hilly and rural areas, are comparable to KUB's rates in Knoxville.
The study found 2,000 gallons would cost Hallsdale-Powell customers around $28.77 a month, while it would cost KUB customers in Knoxville around $21.78 a month.
Hallsdale-Powell said its average customer uses 4,000 gallons of water a month, which including water and wastewater, would cost about $115 per month.