The South Cumberland Utility District’s Board of Commissioners set to vote Tuesday on a potential merger with the Cumberland Plateau Water Authority.
Cumberland Plateau Water Authority General Manager Jeff Dyer said South Cumberland is one of two utility districts that have merger offers from the water authority. Dyer said district would see increased pay for staff and a five percent decrease in water rates. Dyer said reducing debt and operational costs is how a merger can bring water rates down.
“We’ll be able to pull down that current pricing for their water,” Dyer said. “But as we continue to work on sources and other connections, our goal is, after the first year, to do another rate study, as we continue to get more efficient in operations is to continue to pull that rate down over time.”
Dyer said the South Cumberland Utility District and the West Cumberland Utility District both purchase water from other entities, which makes it hard for them to lower rates. Dyer said that’s where all the utility districts merging can be a big benefit.
“Where regionalization makes the most sense is in scenarios exactly like this,” Dyer said. “We are coming together, working as one unit, we can start to maximize operational efficiencies, economies of scale, leveraging off each other’s strengths, and continue to have equalizing fair water rates around the entire plateau.”
Dyer said he has had conversations with South Cumberland since January. Dyer said he feels like the authority has been able to answer all of South Cumberland’s objections.
“I feel confident that we are going to be able to work in some capacity moving forward,” Dyer said. “But again, that will be up to that board. It’s a three-person board, and we will continue to answer any questions that they may have on Tuesday.”
Dyer said the water authority is in conversations with Granview Utility and the City of Crossville. Many may wonder why it is taking so long for utility districts to decide whether to merge or not merge with the Water Authority. Dyer said he believes all the information needed is in front of the utility districts.
“They should have all the material they need to make a decision; it’s a matter of where are they with their current customers,” Dyer said. “What is their particular path moving forward look like. And if that path is better than the path that CPWA can present, then that’s good for them. But if the path is not better than what we can do as one united utility. I’m hoping that each of these utilities realizes that together we are much stronger and we can move forward quickly.”
The South Cumberland Utility District will meet at the South Cumberland Utility District Office on Tuesday at 9am.