Audit: EPB rich with cash after rate hike - WRCBtv.com | Chattanooga News, Weather & Sports

Audit: EPB rich with cash after rate hike

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CHATTANOOGA (Times Free Press) - Chattanooga's electric utility maintained surplus funds more than twice as much as is required, according to a new audit that found that EPB had excess cash in the fiscal year following its most recent rate increase.

In the first major audit of EPB, TVA Inspector General Richard Moore said EPB ended fiscal 2008 with $121 million in cash, suggesting that the city-owned utility might have been able to pay for its ongoing upgrade without its 2007 rate increase of just over 4 percent.

"We found Chattanooga had more than enough cash on hand to cover planned capital projects and provide a cash reserve (twice the minimum requirement)," the TVA auditors said in a 10-page report released this week.

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