Cleveland Utilities Authority Adopts FY2027 Annual Budget
July 1, 2026
Cleveland Utilities Authority (CUA) has adopted its FY2027 Budget. Highlights of the approved rate adjustments for the 2027 fiscal year, effective July 1, 2026, are below. These adjustments reflect the increasing costs of providing safe, reliable utility services while supporting continued investment in essential infrastructure.
Electric Rates
CU customers will see no increase in electric rates. CUA continues to carefully manage operating costs and system investments while maintaining reliable electric service for our community.
Water Rates
Water rates will include a 5.00% internal adjustment to support the operation, maintenance and improvement of CUA’s water system.
Cleveland Utilities Authority purchases a significant portion of its water supply from the Hiwassee Utilities Commission (HUC). HUC approved an 8.7% wholesale rate increase, which will be passed through to CUA customers.
For an average residential customer using six units of water, these adjustments will result in an estimated monthly increase of $6.08 (actual impacts will vary based on individual water usage).
Wastewater Rates
Wastewater rates will increase by 7.00%. This adjustment will help support the continued operation and maintenance of the wastewater system, necessary infrastructure improvements and regulatory requirements.
For an average residential customer using six units, the estimated monthly wastewater increase would be approximately $5.39 (actual impacts will vary based on individual usage).
Fiber Rates
There will be no rate increases for CU Fiber internet service. In fact, the price of CU Fiber’s popular residential 1 Gig package will decrease from $69.99 to $67.99 per month.
Current 1 Gig customers will automatically receive the lower rate beginning July 1—no action or phone call is required.
CU Fiber continues to provide 100% fiber-to-the-premises internet with symmetrical upload and download speeds, local customer service, no contracts and no hidden fees.
Continuing to Serve Our Community
Cleveland Utilities Authority understands that rate adjustments affect every household and business we serve. As a public utility, the revenue collected by CUA is reinvested into operating, maintaining and improving the utility systems that serve our customers.
CU implements rate increases only when necessary to continue providing safe, reliable services and making essential infrastructure improvements. Our team remains committed to carefully managing costs while maintaining the dependable utility services our community relies on every day.
These adjustments will take effect July 1, 2026. Customers with questions may contact Cleveland Utilities at 423-472-4521.
Cleveland Utilities Conducting Residential Backflow Testing in its Water Service Territory
Cleveland Utilities Authority (CUA) has announced an update to its wastewater fee structure aimed at improving fairness and aligning customer contributions with system usage. Beginning July 1, 2026, CUA will transition from its current access fee structure based on water meter size to a wastewater capacity fee structure based on Equivalent Residential Units (ERUs). The change is designed to ensure that all customers contribute equitably based on the wastewater capacity demand they place on the system. Under the new model, one Equivalent Residential Unit (ERU) is defined as up to 150 gallons per day, which represents the average daily residential wastewater contribution to the system. A single-family residential connection serves as the current benchmark for 1 ERU. Single-family residential connections will continue to pay the current connection fee of $2,200, which is equivalent to the existing 5/8-inch access fee. As a result, there will be no change in cost for new single-family residential connections when the new fee structure takes effect on July 1, 2026. The new ERU rate will be $2,200 per unit effective July 1, 2026. The updated fee model will primarily impact commercial and industrial developments, where wastewater capacity fees will be calculated based on projected flow contributions to the system rather than water meter size alone. For example, a commercial customer projected to discharge 6,000 gallons per day would equate to approximately 40 ERUs (6,000 gallons divided by 150 gallons per ERU). At the rate of $2,200 per ERU, the resulting wastewater capacity fee would be approximately $88,000. This updated approach provides a more accurate and equitable method of allocating system costs, ensuring that customers who place greater demand on the wastewater infrastructure contribute proportionally. The new capacity fee model is based on current development projections. However, CUA acknowledges that future development activity and associated revenues cannot be predicted with certainty and these fees will continue to be evaluated. For additional information about the wastewater capacity fee model, customers may contact Cleveland Utilities Authority at 423-472-4521.
What Is True Fiber-to-the-Home?
Cleveland Utilities would like to inform customers of an update regarding cash payments due to the ongoing national penny shortage. Any cash payments made at Cleveland Utilities will be rounded to the nearest nickel. This adjustment only applies to customers paying with cash and is intended to help streamline transactions while pennies remain in limited supply nationwide. How the Rounding Process Works To make this transition simple and customer-friendly: If a cash payment rounds up and results in a small overage, customers may choose to apply the credit toward their next month’s bill. If the amount rounds down, any remaining balance under $1.00 can be carried forward to the next month without penalty. Electronic payments, checks, debit cards, credit cards, online payments, bank drafts, and other non-cash payment methods will not be affected and will continue to process for the exact billed amount. This adjustment is designed to minimize inconvenience while adapting to the reduced circulation of pennies across the country. We appreciate our customers’ understanding and continued support.
Cleveland Utilities (CU) is proud to announce the completion of its fiber network construction, marking a major milestone in delivering high-speed, reliable internet service to the Cleveland community. With this achievement, 100% of Cleveland Utilities electric customers now have access to CU Fiber Internet. This expansion represents a significant investment in the community, providing residents and businesses with the area’s only 100% fiber-to-the-premise network, backed by local customer service. CU Fiber Internet also offers straightforward, transparent, customer-friendly service with no contracts, no data caps, symmetrical upload and download speeds, and no late fees or penalties. The only exception to current service availability is for certain multi-tenant dwellings, such as apartment complexes and similar properties. In these cases, Cleveland Utilities must first obtain permission from property owners. Additionally, specialized engineering work is required for CU internet service delivery within these type properties. CU is actively working with property owners to get fiber service to multi-tenant dwellings as quickly as possible. “We are incredibly grateful for the overwhelming support and positive feedback from our customers throughout this project,” said Tim O. Henderson, Cleveland Utilities President/CEO. “This milestone would not have been possible without the trust and support of our local leaders and entire community.” Customers are encouraged to make the switch to CU fiber today and experience fast, reliable, locally supported fiber internet service. To learn more or sign up for service, visit fiber.clevelandutilities.com or call 423-472-4521.
NOTICE IS HEREBY GIVEN to all interested members of the public that Cleveland Utilities Authority will hold an open, Public Informational Session on Friday, February 27, 2026, at 2:00 p.m. in the Tom Wheeler Training Center, 2455 Guthrie Avenue NW, Cleveland, TN, 37311 The purpose of this meeting is to provide information regarding Cleveland Utilities Authority’s budget, capital projects, and fees. An individual that wishes to speak must sign up at least twenty-four (24) hours prior to the meeting start time by calling (423) 478-9330. Also visit www.clevelandutilities.com for more information.
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TVA and Cleveland Utilities Celebrate Major Energy Efficiency Milestone at Horizon Square Apartments
Cleveland, Tenn.- December 22, 2025 — The Tennessee Valley Authority (TVA) and Cleveland Utilities are proud to announce a significant energy efficiency milestone at the Horizon Square Preservation Apartment Complex. This is a multi-family complex located on Georgetown Road NW. In recognition of the property’s commitment to reducing energy use and improving resident comfort, TVA and Cleveland Utilities are awarding a $31,500 rebate following the replacement of 63 HVAC systems at the complex. Horizon Square Apartments is now recognized as the largest residential multi-family energy efficiency project completed in the TVA service territory to date. DynaMech Heating, Cooling, Electrical & Plumbing completed the project. The HVAC upgrade is expected to deliver substantial energy savings, with an estimated 46,256 kilowatt-hours (kWh) of gross energy savings in the first year alone. This rebate underscores TVA and Cleveland Utilities’ shared commitment to advancing energy efficiency across the region—helping property owners lower operating costs while providing residents with a more comfortable and sustainable living environment. “We are proud to support projects like Horizon Square Preservation that not only enhance the quality of life for residents but also contribute to a more sustainable future,” said Dan Pratt, TVA Senior Vice President of Customer & Stakeholder Relations. “This collaboration showcases our commitment to energy efficiency and highlights the substantial savings we can achieve together.” We are proud to partner with TVA to award this rebate to our customer and recognize their commitment to energy efficiency,” said Tim O. Henderson, President/CEO of Cleveland Utilities. “Projects like this deliver meaningful energy and cost savings that will benefit both the property and its residents for years to come.” DynaMech, the contractor responsible for the HVAC installations, played a critical role in the success of the project. Their technical expertise and dedication to quality ensured that the upgrades were completed efficiently and to a high standard. “We are excited to see the positive impact of our work at Horizon Square,” said Austin Blanchard, Owner. “This project reflects our dedication to delivering energy-efficient solutions that benefit both property owners and residents.” Horizon Square Apartments’ investment in energy efficiency demonstrates a strong commitment to sustainability in the Cleveland community. The successful partnership between TVA, Cleveland Utilities, contractors and property owners highlight what can be accomplished when organizations work together to support energy-saving initiatives that promote long-term environmental and economic benefits. About Tennessee Valley Authority (TVA) The Tennessee Valley Authority is the nation’s largest public power supplier, delivering energy to more than 10 million people across seven southeastern states. TVA has one of the most diverse energy systems – including nuclear, hydro, coal, gas, solar and advanced technologies. TVA is making significant investments in its power system toward new generation and transmission. TVA is a corporate agency of the United States, receiving no taxpayer funding, deriving virtually all of its revenues from sales of electricity. TVA maintains some of the lowest energy costs and highest reliability in the nation. TVA’s residential rates are lower than those paid by 80% of customers of the top 100 U.S. utilities, and its industrial rates are lower than those paid by over 90% of customers of the top 100 U.S. utilities. In addition, TVA provides flood control, navigation, and land management for the Tennessee River system, and assists local power companies and state and local governments with economic development and job creation. Learn more at tva.com. About Cleveland Utilities Cleveland Utilities is a multi-service utility company in Cleveland, Tennessee providing electric, water, wastewater and fiber services. It strives to be an organization of the highest quality and meet the evolving utility needs of the community. Since 1939, Cleveland Utilities has consistently contributed to the local community and is committed to excellence and professionalism while serving their customers. About DynaMech HVAC, Electrical, and Plumbing service company based in Cleveland, TN and serving the surrounding area. Visit https://calldynamech.com to learn more.