Oak Ridge flags new water plant operating uncertainty, TVA compliance and AMI pilot in utilities budget

City staff briefed council on utility-related elements of the draft budget, including the new water treatment plant, electric fund compliance with TVA, an AMI pilot for metering and ongoing wastewater work.

Staff said the new water treatment plant is expected to be operable by spring, but that staff will need time to understand its ongoing operating costs; they plan a water and wastewater master plan in fiscal 2026 and a rate study to determine future water and sewer rates. Staff indicated a likely path of modest annual rate increases (staff suggested roughly 1% per year as a baseline) but cautioned that master-plan findings could change that trajectory.

On the electric side, staff reported receipt of a TVA compliance letter and said the utility fund is in compliance with TVA reporting requirements; as a result, staff proposed a PILT transfer from the electric fund in the current budget. Staff also said the city will begin an AMI (advanced metering infrastructure) implementation with a pilot this fiscal year and that full deployment will take several years.

Wastewater capital work underway includes biological process upgrades and a chem-flocculator upgrade; staff also noted multiple capital maintenance projects that will continue. Staff flagged a pending major debt related to the new water plant and said they will model operating costs and report back to council as the plant comes online.

Ending: Staff committed to return with the water/wastewater master plan and a rate study as the basis for any future utility-rate changes.