Columbia study session on $500M water project spotlights TDEC permits, CPWS funding plan and strong public push to pause
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Summary
TDEC officials told the City of Columbia council that Columbia Power and Water is operating at about 93% capacity and must plan for expansion; CPWS outlined a funding package that relies heavily on federal and state loans and a model that could raise rates up to about 20% per year for five years (commonly cited as a 149% cumulative figure). Dozens of residents and county officials urged a pause and regional alternatives ahead of a scheduled Thursday vote.
Mayor Mulder opened the City of Columbia27s study session and said the meeting was livestreamed and intended as an informal forum for council questions and public comment ahead of a formal vote later in the week.
April Grippo, director of the Division of Water Resources at the Tennessee Department of Environment and Conservation, told council TDEC27s records show Columbia Power and Water Systems (CPWS) is "currently at 93% capacity, so they are required to plan for such an expansion." Grippo summarized the permitting history: TDEC placed the downstream-intake water withdrawal permit on public notice, held a 60-day comment period and issued the permit in 2024; after an appeal with environmental groups, TDEC added water-loss and drought-management provisions and reissued a permit in 2025.
The technical and funding case for CPWS27 proposed downstream intake and treatment expansion was presented by CPWS executives. CFO Ashley Maddox said CPWS does not carry $100 million in long-term debt as some public posts claimed; "So in total, we currently have $21,000,000 of long term or long term and short term debt outstanding as opposed to the $100,000,000." Maddox said funding for the intake plan would rely primarily on federal WIFIA loans (she cited roughly $270,000,000) and a Tennessee State Revolving Fund letter of intent for $135,000,000, with municipal bonds covering any remainder. CPWS officials described their rate model as conservative and characterized the projected 20% annual increases for five years as a ceiling, explaining the dollar impact for typical households: "The first year, you're gonna see a $7 increase on an average bill" for a four-person household using about 5,000 gallons, with a modeled total of roughly $51.68 per month at the model27s peak.
CPWS technical staff and outside studies cited drought risk and intake vulnerability at the existing intake as reasons to build a redundant downstream intake. Matt Wheeler summarized recent planning documents and said the downstream intake has been treated as a first leg in a broader regional system study while the Duck River Watershed Planning Partnership conducts further feasibility work.
Residents and elected officials from Murray County urged council to pause. Murray County Mayor Sheila Budd said the partnership27s recent work makes it "premature to go with this program" and called the CPWS plan "a short term fix." County and community speakers repeatedly raised four objections: (1) affordability and the burden on seniors, small businesses and farmers; (2) possible cheaper or more regional alternatives (raising Normandy Dam, off-river reservoirs, a Tennessee River pipeline, or expanded interlocal cooperation); (3) incomplete easements and concerns about eminent domain; and (4) perceived conflicts of interest and a lack of transparent, independently verified cost and financing numbers.
Council members asked clarifying questions about regionalization studies, permit status and whether other projects are "shovel ready." Grippo said the partnership27s feasibility study and a Tennessee River pipeline analysis will proceed regardless of the council27s decision and that the state will offer options for regional approaches. City staff agreed to provide clearer bill breakdowns so customers can identify the water line item on multi-service bills.
What happens next: council scheduled additional public opportunities, including a public hearing before the Thursday council meeting and a formal vote at that meeting. Council members and staff said they will supply further documentation requested by councilors and the public, including amortization schedules and clearer line-item bill detail.
Sources: TDEC Director April Grippo; Columbia Power and Water CFO Ashley Maddox; CPWS CEO Jonathan Harden; multiple public commenters and Murray County officials at the City of Columbia study session.