NASHVILLE — State Attorney General Robert Cooper’s office said Monday that instead of hiking water rates by $7.6 million, Tennessee-American Water Co. should slash its charges to Chattanooga customers by $1.6 million.

In a filing with the Tennessee Regulatory Authority, the state’s Advocate and Protection Division said the water company “has overstated its need for more income in regulated revenue by more than $9.2 million, which means that the water rates charged to TAWC (company) customers should actually be reduced by $1.6 million.”

The filing represents the consumer advocate division’s first specific objections to Tennessee-American’s proposed 20.58 percent rate increase.

“The filing will have to speak for itself,” said Sharon Curtis-Flair, a spokeswoman for the attorney general’s office.

Tennessee-American spokeswoman Kim Dalton on Thursday evening downplayed the consumer advocate’s call for a rate reduction, noting that the office did so last year. TRA directors last year ignored the consumer advocate’s call for a rate reduction and approved a 12.3 percent increase.

“We believe the evidence submitted in this case will fully support the request we’ve made to the TRA, and this is really nothing unusual,” Ms. Dalton said in a voice mail message.

In asking for the increase, company officials have cited higher costs of water treatment and gasoline as well as critical infrastructure improvement needs. The increase would raise the average ratepayer’s bill by $3.65 a month, officials have said.

The consumer advocate’s objections to the rate increase are on pages 6 and 7 of a 17-page response objecting to some of Tennessee-American’s discovery requests in the rate case. The state, joined by Chattanooga and the Chattanooga Manufacturers Association, officially has intervened in the rate case.

In the filing, Assistant Attorney General Ryan McGehee outlines six reasons why state officials believe the requested increase is too much and that current rates should be cut.

For example, the state says one of its witnesses, economist Dr. Stephen N. Brown, will testify that the return on investment the water company wants for shareholders “is too high” and has the “effect of unreasonably inflating” the rate increase by $3.7 million.

The company is seeking an 11.75 percent return on equity.

Tennessee-American, the state argues, is asking for $9.2 million “more in customer rates than the company actually needs to meet its expenses and provide a fair return to its shareholders while providing quality water service to its customers.”

Accompanying testimony from state witnesses was placed at least temporarily under seal due to a special protective order issued by Richard Collier, the regulatory agency’s general counsel, acting on demands by Tennessee-American attorneys.

Directors from the regulatory authority are expected to hear the rate case later this summer.

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