Tennessee American Water Applies $13.07 PFAS Settlement Credit, Lifting Refunds Past $84

Tennessee American Water applied a $13.07 credit to customer accounts on November 10, 2026, from settlements with PFAS manufacturers, bringing total PFAS-related refunds to more than $84 per customer. The utility announced the credit on November 11, according to PR Newswire.

How the PFAS Settlement Credit Reached Customers

Tennessee American Water is a subsidiary of American Water and the largest regulated water utility in Tennessee, serving approximately 425,000 people in Tennessee and north Georgia with about 100 employees. The company said the credit was made possible through Tennessee Public Utility Commission approval of a plan that lets it pass PFAS settlement funds directly to customers through bill credits as the funds are received.

The company said it is committed to complying with all drinking water standards and is taking appropriate actions to meet new PFAS regulations as they are implemented. Tennessee American Water plans to invest over $50 million in capital improvements across its service territories to continue providing safe, clean, reliable and affordable water service. The company pointed customers to its PFAS information page for details on its response.

American Water's Broader Investment Plans

Parent American Water Works Company announced in October 2025 a definitive all-stock, tax-free merger agreement with Essential Utilities valued at approximately $63 billion, creating a combined entity serving 4.7 million connections across 17 states with roughly $40 billion market capitalization, expected to close by the end of the first quarter of 2027, according to akta.pro company records. The same records show American Water committed to invest $46 billion to $48 billion over 10 years across its service territories, including Tennessee, in infrastructure renewal, resiliency, water quality, operational efficiency, technology and innovation, system expansion, and regulated acquisitions.

Earlier PFAS Credits and Service Work

Tennessee American Water issued an $11.92 bill credit to all active accounts as of August 28, 2026, from PFAS settlement proceeds; including that credit, customers had received over $71 per account from PFAS-related settlements to date, PR Newswire reported. The utility said in September 2026 that it would begin service line material verification in its Citico Service District starting the week of September 28, PR Newswire reported. In August 2026, Tennessee American Water, working with contractor Landmark Structures, completed installation of a new 750,000-gallon water storage tank in Lookout Valley, effectively doubling local storage capacity, PR Newswire reported.

What Comes Next for the Merger

The American Water merger with Essential Utilities is expected to close by the end of the first quarter of 2027, according to company records.