Crossville City Council members agreed Tuesday night to postpone further discussion of a recent 25% increase in wholesale water rates until their regular meeting next week, following pointed criticism from representatives of utilities that buy water from the city.

The issue arose during the August 4, 2026, work session. Under long-standing contracts, an earlier decision to raise rates for inside-city customers automatically triggered the same percentage increase for wholesale buyers, including South Cumberland (associated with CPWA) and Grandview. City officials confirmed the higher rates are already in effect and appearing on bills.

Jeff Dyer, general manager at Cumberland Plateau Water Authority, told the council the increase came with little advance notice. He said the utilities learned of the change only after receiving bills or informal messages, leaving them no time to plan or adjust their own customer rates. He argued the city was already covering its production costs—and more—at the previous wholesale rate of about $4.75 per thousand gallons. Raising it further, he said, pushes Crossville’s wholesale price well above typical industry levels and other regional contracts.

Jeff cited comparisons including a separate arrangement with Crab Orchard Utility estimated at $3.70 to $3.80 per thousand gallons and other Tennessee wholesale rates closer to $3.50. He warned that a planned additional 25% increase next year could push the rate above $7 per thousand gallons—an amount he said has no comparable wholesale precedent. For one utility district alone, the current hike was projected to add roughly $320,000 in annual costs.

A resident of Highway 68 in County Commission District 3 also addressed the issue during public comment, calling the wholesale rates unfair and requesting an independent audit to ensure pricing is equitable for all ratepayers rather than arbitrary.

Council members acknowledged that earlier budget discussions had focused primarily on equalizing rates for city and outside-city retail customers. The wholesale adjustment, they noted, occurred automatically under the contract language once the inside-city increase was approved. Several expressed interest in reviewing the specific contract terms and the overall financial impact before taking further action.

City Manager Valerie Hale and council members agreed to place the matter under other business at the upcoming regular meeting on Tuesday next week so it can be discussed more fully and, if desired, acted upon by motion. In the meantime, staff was asked to gather additional information on the contracts and the effects on wholesale customers.