Cleveland Utilities Announces Changes to Wastewater Residential Sewer Cap Billing Effective July 1, 2026 & Reduction in Pricing for Irrigation Meters Beginning September 1, 2025

Cleveland Utilities Conducting Residential Backflow Testing in its Water Service Territory

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 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.

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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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