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TBOUR Rules

The rules for the Tennessee Board of Utility Regulation are included below; you may also download a copy by selecting the button below.

1715-01-.01                      Definitions

Definitions

As used in these rules, the following terms and acronyms have the following meanings:

        (1)       “Administrative review” is the review of a utility system at the direction of the Board, as described i                      1715-02(9).

        (2)       “Adverse action” is an action taken by a utility system’s governing board in response to a                      grievance presented to the utility system’s governing board that does not fully grant the relief requested                     by the aggrieved party. aggrieved party. Adverse action also includes the refusal to hear or consider a                     grievance, and the failure to acknowledge or respond to a grievance.

        (3)       “Ailing utility system”, “ailing system”, or “ailing utility” is a utility system that is:

                      (a)       Financially distressed, as described in T.C.A. § 7-82-703(b);

                      (b)       Financially unable to expand the amount or type of service as set forth and described in its                                       founding documents or petition for creation as described under T.C.A. §§ 7-82-201, 68-221-604,                                   68-221-1304, or any other public or private act; or

                      (c)       Displays a pattern of severe managerial incompetence such that the utility system cannot                                   provide the public it serves with safe, consistent access to its services.

        (4)       “Board” is the Tennessee Board of Utility Regulation (“TBOUR”) created in the office of the Comptroller                     by T.C.A. §§ 7-82-701 to -708, or its successor entity.

        (5)       “Board chair” or “Chair” is the Comptroller or the Board member designated by the Comptroller to serve                     as the Board chair, pursuant to T.C.A. § 7-82-701(c)(1)(A). Board chair may refer to the Board vice-chair if                       the Board chair is unavailable, pursuant to 1715-02-.04.

        (6)       “Board counsel” is any attorney within the Comptroller's office that is directed to provide legal advice,                     prepare documents, or act as counsel to the Board in any other capacity.

        (7)       “Board staff” or “Staff” includes the Comptroller’s designated manager for the Board, Board counsel, and                     any other employee of the Comptroller assigned as staff to the Board.

        (8)       “Board vice-chair” is the Commissioner of Environment and Conservation, or the Board member                        designated by the Commissioner of Environment and Conservation to serve as the Board vice-chair,                        pursuant to T.C.A. § 7-82-701(c)(1)(B).

        (9)       “Complaint” or “customer complaint” is a grievance against a utility system submitted to the Comptroller                     or Board staff by a customer or potential customer of a utility system, requesting that the Board review                     the grievance under T.C.A. § 7-82-702(b).

        (10)     “Complainant” is the customer or group of customers which submit a complaint.

        (11)     “Completed complaint” is a complaint deemed complete by Board staff, as described in 1715-03-.03(3).

        (12)     “Completed grant request” is a grant request that is deemed complete by Board staff, as described in                     1715-06-.02(2).

        (13)     “Comptroller” is the Tennessee Comptroller of the Treasury or the staff of the Tennessee Comptroller of                     the Treasury.

        (14)     “Contested case” is any case commenced pursuant to the UAPA and the uniform rules for contested                     cases.

        (15)     “Formal review” is the review of a utility system that is referred to the Board by operation of law, as                     described in 1715-02-.08.

        (16)     “Good cause” is, in reference to an omission or an untimely action, a reason based on circumstances                     outside the party’s control and despite the party’s reasonable efforts.

        (17)     “Grant” is the schedule or series of payments from the URF authorized by the Board.

        (18)     “Grant payment” is a payment made from the URF pursuant to an approved grant request.

        (19)     “Grant request” is the request for payments from the URF submitted by a utility system.

        (20)     “Informal hearing” is the hearing of a customer complaint that is not subject to the contested case                     requirements of the UAPA or the uniform rules for contested cases.

        (21)     “Merger” is the merger or consolidation of two or more utility systems by operation of law or by action of                     the Board. A merger may be voluntary or ordered by the Board. The acquisition of the utility                     infrastructure of a city, county, or other local government by a utility system can be considered a merger                     for purposes of Chapter 1715 of the Tennessee Comprehensive Rules and Regulations.

        (22)     “Order” is the decision of the Board in any given matter, as evidenced by the Board’s vote on a motion                     and any amendments adopted. An Order is effective as of the date it is entered unless it states                     otherwise.

        (23)     “Policy” has the same meaning as assigned in the UAPA.

        (24)     “Professional” or “qualified professional” is, in the context of a feasibility or rate study, an individual or                     entity qualified to conduct a feasibility or rate study and approved by Board staff.

        (25)     “Severe managerial incompetence” includes, but is not limited to:

                        (a)    Frequent interruptions in service to multiple customers, lasting multiple days;

                        (b)    Frequent infrastructure failures that result in interruptions in service, or cause the quality of                                  service to fall below safe levels; or,

                        (c)     Failure to:

                                    1.   Respond to reports of damage to, or failure of, infrastructure within a reasonable timeframe;

                                    2.   Improve or attempt to improve infrastructure, including necessary maintenance, upgrades,                                             or construction of redundant infrastructure where necessary; or

                                    3.  Correct a deficiency in oversight, operational management, or finance management, which                                          leads to repeated harm to the utility system, a violation of state or federal law, or fraud,                                            waste, or abuse of the utility system's resources.

        (26)     “Special meeting” or “special-called meeting” has the same meaning that it does in T.C.A. § 8-44-101-112.

        (27)     “UAPA” is the Uniform Administrative Procedures Act, codified at T.C.A. §§ 4-5-301, et seq.

        (28)     “Uniform rules for contested cases” are the Uniform Rules of Procedure for Hearing Contested Cases                     Before State Administrative Agencies as set out in Tenn. Comp. R. & Regs. chapter 1360-04-01.

        (29)     “Utility Revitalization Fund” or “URF” is the fund created by T.C.A. §§ 7-82-708(a)(1).

        (30)     “Utility system” or “utility” is:

                    (a)    The water, wastewater, or natural gas systems of a county, metropolitan government, or                              incorporated town or city;

                    (b)    A treatment authority created pursuant to:

                                    1.    The Water and Wastewater Treatment Authority Act, compiled in T.C.A. title 68, chapter 221,                                            part 6;

                                    2.    The Regional Water and Wastewater Treatment Authority Act, compiled in T.C.A. title 68,                                            chapter 221, part 13; or

                                    3.    Another public or private act of the general assembly that operates a water, wastewater, or                                            natural gas facility;

                    (c)   The water, wastewater, and natural gas systems of an energy or utility authority created pursuant to                            the Municipal Energy Authority Act, compiled in T.C.A. title 7, chapter 36, or a private act of the                            general assembly; and

                    (d)    Any utility district created under T.C.A. title 7, chapter 68, or any other public or private act of the                             general assembly.

        (31)     “Valid dispute” is a dispute which, if resolved in favor of the complainant, would justify the Board                     ordering remedial action. A purely speculative or hypothetical grievance or injury does not constitute a                     valid dispute.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

1715-02-.01              Board Member Compensation
1715-02-.02              Meetings
1715-02-.03              Quorum
1715-02-.04              Incapacity of Board Chair
1715-02-.05              Conflicts of Interest
1715-02-.06              Records
1715-02-.07              Guidelines
1715-02-.08              Formal Review
1715-02-.09              Administrative Review
1715-02-.10              Litigation
1715-02-.11              Orders

Board members shall serve without compensation, but shall be eligible for reimbursement for travel expenses in accordance with the provisions of the comprehensive travel regulations as promulgated by the Department of Finance and Administration and approved by the Tennessee Attorney General and Reporter.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-701, and 7-82-702.

    (1)     The Board shall exercise its powers only at public meetings.

    (2)     The Board shall hold at least two regular meetings each calendar year.

    (3)     The Board may hold special meetings.

    (4)     Special meetings shall be called by the Chair or by any two Board members.

    (5)     For any calendar year, the Board may set a regular meeting schedule by resolution.

    (6)     The Board may conduct meetings electronically, in whole or in part, as allowed by Tennessee law.
              Tennessee law shall dictate the extent to which Board members may participate electronically,                whether a Board member participating electronically is considered present for purposes quorum,                and whether the Board member may vote.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

A majority of the Board constitutes a quorum. A majority of the Board members present and voting shall be required for formal action of the Board.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702
.

If the Board chair is incapacitated or unavailable, the Board vice-chair may serve as Board chair at meetings, sign subpoenas, orders, or other documents in place of the Board chair, or exercise any other authority ordinarily delegated to the Board chair. The Board chair may only be found to be incapacitated or unavailable by a Board vote at a meeting; or, outside of a Board meeting, by:

    (1)     Agreement of Board staff and the Board Vice-chair; or

    (2)     The Board chair’s written notification of unavailability.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

    (1)     Board members shall file annual written disclosures of financial interests and other direct and                         indirect conflicts of interest with Staff.

    (2)     Board members are not authorized to participate in the discussion of or to vote on matters                                involving entities in which the Board member has a financial interest, with which the Board                            member has a conflict of interest, with which the Board member has a contract of employment, or               if there is any appearance of impropriety. Board members must notify Board staff and/or the                Board chair if they have a conflict of interest.

    (3)     At each Board meeting, Board staff shall state the following on the record:

The Board was created to act for the public welfare and in furtherance of the legislature’s intent that utility systems be operated as self-sufficient enterprises. Board members are not authorized to participate in the discussion of or to vote on matters involving entities in which the Board member has a financial interest, with which the Board member has a conflict of interest, with which the Board member has a contract of employment, or if there is any appearance of impropriety.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-701, and 7-82-702.

    (1)     Staff shall keep complete and accurate records of Board meetings.

    (2)     Board records will be located in the office of the Comptroller and will be open to the public                in accordance with Comptroller policy and state law.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-701, and 7-82-702.

    (1)     The Board may delegate certain duties to Staff related to researching, drafting, and updating Board
              policies, guidelines, manuals, and other educational materials. Board manuals and guidelines shall
              be reviewed by Board counsel and approved by the Board.

    (2)     Policies and Procedures

    (a)     Board staff may adopt new policies or forms for the administration of the Board’s authority after
              such policies and procedures have been reviewed for legal sufficiency by Board counsel. New
              policies and procedures are effective when adopted by Board staff and will remain in effect until the
              Board’s first regular meeting after their adoption.

    (b)     New policies or forms must be brought to the Board at the Board’s next regular meeting after
              adoption by Board staff. The Board may adopt, reject, modify, or delay implementation of any new
              policy or procedure. Board counsel will advise the Board as to whether the policy or procedure
              should be written into rule.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-701, and 7-82-702.

    (1)     The Board may request Staff to perform an administrative review of a utility system’s financial,
              technical, and managerial capacity.

    (2)     The utility’s staff and governing body must promptly provide requested records and cooperate with
              Staff’s review. The Board may adopt negative conclusions as to what missing records may show if
              the utility's staff or governing body repeatedly refuses to provide records or cooperate with Board
              staff.

    (3)     At the conclusion of the investigation, Staff shall report its findings and recommendations to the
              Board.

    (4)     At a public meeting, the Board shall review or hear the Staff report and recommendations based
              upon the Staff’s administrative review. The Board may order the utility system to take any
              necessary and appropriate actions to remedy any issues, require staff to investigate further and
              gather more information, or take any other necessary and appropriate action.

    (5)     Upon satisfactory compliance with the directive(s) of the Board, the Board shall instruct Staff to
              close the administrative review and inform the utility system that it has been released from the
              Board’s oversight.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-307, 7-82-702, 7-82-703, and 7-82-706.

    (1)     Within the parameters of state law, the Board may initiate legal proceedings against noncompliant                entities.

    (2)     The Board shall exhaust all statutorily authorized administrative procedures before initiating any                formal legal proceedings.

    (3)     In all matters involving formal litigation other than in front of the Board or an administrative                hearing officer or administrative law judge, the Board shall engage the Tennessee Attorney General               and Reporter.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

    (1)     The Board shall produce a written order memorializing any directive entered by the Board which                obligates a party other than Board staff to take an action. The written order may be drafted by a                Board member or Board staff and shall be reviewed and signed by the Board chair.

    (2)     The written order shall be posted to the Board’s website and sent to any parties named in or                obligated by the order. Orders will remain available via the Board’s website until such time as the                order may be destroyed pursuant to the relevant records disposition authorization.

    (3)     Board staff will resolve ambiguity in an order in favor of effectuating the Board’s intent.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

1715-03-.01               Jurisdiction
1715-03-.02              Not Contested Cases
1715-03-.03             Referral by Board Staff
1715-03-.04             Interpretation

The Board may review customer complaints and conduct informal hearings of the following:

    (1)     The justness and reasonableness of a utility system's rates, fees, or charges;

    (2)     The justness and reasonableness of a utility system's requirement that a customer or developer                build infrastructure or fixtures to be dedicated to the utility system;

    (3)     The failure of a utility system to adopt and enforce policies or rules necessary for the efficient and                financially responsible operation of the utility system, including policies regarding ethics or financial                controls, or for water loss, water leak adjustment, purchasing, or other industry standard policies;

    (4)     The inadequacy of a utility system's policies regarding ethics or financial controls, or for water loss,                water leak adjustment, purchasing, or other industry standard policies; and

    (5)     The failure of a utility system to offer or extend utility service to a customer:

            (a)    Located within the utility system's covered area;

            (b)    Located within an area in which the utility system offers similar services;

            (c)    Located within an area in which the utility has the infrastructure to offer similar services; or,

            (d)    Pursuant to a request made in accordance with T.C.A. § 7-82-112.

    (6)     For any complaint submitted pursuant to subsection (5), the utility system has the affirmative                burden to show that:

            (a)    It does not have the capacity to serve the customer;

            (b)    Service to the customer is not economically feasible; or

            (c)    Service is not in the best interests of the utility and its existing customers.

    (7)     Cost-sharing amounts pursuant to T.C.A. § 7-82-709.

    (8)     Any other subject or grievance allowed by law

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-112, 7-82-702, and 7-82-709.

Customer complaints and informal hearings are not contested cases and are not subject to the UAPA or the uniform rules for contested cases.

Authority:
T.C.A. §§ 4-5-201, et seq. and 7-82-702.

    (1)     The Board may only review and conduct an informal hearing of a matter that is referred by the                Comptroller or Board staff.

    (2)     Board staff will refer a completed complaint to the Board if:

            (a)    The Board has the statutory authority to hear the complaint, as determined by Board counsel;

            (b)    The complaint presents a dispute that, if resolved in favor of the complainant, would justify the                       board ordering remedial action.;

            (c)    Board staff received the completed complaint within 30 days of the adverse decision
                    of the utility system’s governing board; and,

            (d)    The complainant has utilized all other remedies offered by the utility system.

    (3)     A complaint is deemed completed when Board staff have received the following information:

            (a)    The complainant’s name, and the name of the complainant’s representative, if any.

            (b)    Either the complainant’s or the complainant’s representative’s phone number, email address,                       and mailing address, or other alternative contact information;

            (c)    The utility system which is the subject of the complaint;

            (d)    Proof of the adverse action taken by the utility system’s governing body or an explanation of                       why such proof is unavailable;

            (e)    The date of the adverse action taken by the utility system’s governing body;

            (f)    A summary of the complaint. The summary must include sufficient information for Board staff                      to determine whether the complaint raises a valid dispute; and

            (g)    Any other information Board staff needs to determine if the complaint should be referred to                       the Board. Board staff will promptly request any needed additional information.

    (4)     On receipt of a completed complaint, Board staff shall advise the complainant:

            (a)    That their complaint will be added to the agenda of the next meeting or the meeting following,                       as set out in (6); or

            (b)    That their complaint will not be referred to the Board, along with a brief explanation why.

    (5)     Board staff may establish a standardized form or online portal to receive complaints. Until and                unless a standard process is adopted, Board staff shall receive complaints by email, mail, or any                other way in which staff may receive records or information. All complaints must be submitted in                writing: no oral complaints will be accepted. If Board staff establishes a standardized form or online                portal to receive complaints, staff shall present such to the Board at its next regular meeting for                approval.

    (6)     If Board staff determine the complaint should be referred to the Board more than thirty days in                advance of the Board’s next regular meeting, the complaint will be added to that meeting’s agenda.                If the determination is made within 30 days of the date of the Board’s next regular meeting, the                complaint will be added to the agenda for the meeting following the next scheduled regular                meeting.

    (7)     If Board staff refer a complaint to the Board, staff will promptly notify both the complainant and the                utility system that is the subject of the complaint, as well as any other necessary parties.

    (8)     Review and informal hearing before the Board

            (a)    The Board will review all complaints referred by Board staff.

                    1.    By majority vote, the Board may decline to hear a complaint. The Board must state its
                            reasons for so declining.

                    2.    The Board may choose to defer an informal hearing on the complaint to a later meeting. The
                            Board must state its reason for delaying the information hearing, and direct Board staff as
                            to any actions necessary for it to hear the complaint at its next meeting.

            (b)     The Board chair will preside over the informal hearing. The Board chair will determine how                        many witnesses may testify, what testimony and written evidence may be presented, and the                        order of proceedings. The chair may exercise discretion, but will ensure that the complainant,                        the utility system that is the subject of the complaint, and any other necessary parties have an                        equal opportunity to present evidence and testimony before the Board.

            (c)    The Board may make a decision on a complaint based on the written record if no other
                    testimony or evidence is presented at the time of the hearing.    

            (d)    At the conclusion of the hearing the Board may:

                    1.    Order any remedial action allowed by law;

                    2.    Dismiss the complaint; or,

                    3.    Reconvene the informal hearing at a subsequent meeting with instructions as to what
                           additional information or actions are necessary for the Board to reach a decision on the
                           merits.

    (9)     Board staff may close any incomplete complaint if information is requested from the complainant,                and the complainant does not provide the requested information within 15 business days of the                request for such information. The complainant may submit a new complaint of the same issue,                subject to all requirements in law or rule.

    (10)   Board staff is not required to respond to or process complaints which have previously been found                to be outside the Board’s jurisdiction unless new information is submitted.


Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

Nothing in this chapter limits the Board’s statutory authority. These rules shall be interpreted broadly in favor of effectuating the Board’s authority to hear and resolve customer complaints. This chapter applies only to direct customer complaints to Board staff pursuant to the Board’s authority to conduct informal hearings on the subjects set forth in T.C.A. § 7-82-702(b). This chapter does not apply to a formal review or administrative review by the Board under 1715-02.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

1715-04-.01             Jurisdiction
1715-04-.02             Conduct of Contested Cases
1715-04-.03             Customer Initiation
1715-04-.04             Board Authorization Required

The Board may commence a contested case for the following reasons:

    (1)     Removal of a utility district commissioner for:

            (a)    Failure to complete all continuing education or training requirements;

            (b)    Knowingly or willfully committing misconduct in office, neglecting to fulfill any duty imposed
                     upon the member by law, or failing to fulfill the commissioner’s fiduciary responsibility in the
                     operation or oversight of the district; or,

            (c)    Upon the petition of at least twenty percent (20%) of the customers of a utility district;

    (2)     To change the manner of filling vacancies as per T.C.A. §§ 7-82-307 or 7-82-702;

    (3)     To conduct a rate review of a utility district’s rates as per T.C.A. § 7-82-102; and,

    (4)     Any other reason necessary to discharge its statutory duties.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-102, 7-82-307, and 7-82-702.

All contested cases before the Board shall be conducted pursuant to the UAPA and the uniform rules for contested cases.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

Customers petitioning the Board to initiate a contested case hearing under T.C.A. §§ 7-82-102 or 7-82-307 must submit the petition to Board staff in a form and in sufficient detail that Board staff can reasonably verify the validity of signatures.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-102, 7-82-307, and 7-82-702.

The Board must authorize Board staff to commence a contested case.

Authority: T.C.A. §§ 4-5-201, et seq. and 7-82-702.

1715-05-.01             Public Comment Period

1715-05-.02             Conduct of Public Comment Period

The Board will include a period for public comment at all meetings where required by law.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-702, and 8-44-112.

Periods for public comment are subject to the following parameters:

    (1)     Written notification to request to speak at a meeting must be sent to and received by Board staff at                utilities@cot.tn.gov at least two business days in advance of the meeting. The email should include                the proposed speaker’s name, the agenda item(s) upon which the speaker wishes to comment,                and whether the speaker’s comments will be in favor of or opposed to the agenda item(s).                  Speakers will be selected on a first-come first-served basis.

    (2)     The public comment period will be held at the beginning of the meeting once the meeting is called                to order and a quorum has been established.

    (3)     Speakers will be limited to three minutes per person per agenda item, with a maximum of two                speakers in favor of and two speakers opposed to each agenda item.

    (4)     Speakers must identify themselves at the beginning of their allotted time and stay on the topic of               the agenda item(s) that they have indicated their desire to speak on when addressing the Board.

    (5)     Speakers should conduct themselves in a respectful manner and will be asked to remove                themselves if they engage in threatening or disruptive behavior.

    (6)     The Board, in its discretion, may ask relevant questions of any speakers providing public comment.                Such question period will not be included in the speaker’s allotted time frame.

    (7)     The Chair may extend the allotted time frame or the number of speakers for a particular agenda                item if the Chair determines that the circumstances reasonably require it. If the Chair extends the                allotted time frame or the number of speakers, the Chair shall ensure that an equal extension is                granted to both those in favor of and opposed to any agenda item subject to an extension.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-702, and 8-44-112.

1715-06-.01             General Provisions
1715-06-.02             Request for a Grant from the URF
1715-06-.03             Miscellaneous Provisions

    (1)     The Board may approve a grant request made by one or more utility systems when:

            (a)    the utility systems have merged in accordance with T.C.A. § 7-82-704; or

            (b)    the utility systems are pursuing a voluntary merger.

    (2)     When Payments May Be Made:

            (a)    Grant payments may be made to any entity involved in a merger, or to the merged entity.

            (b)    In the case of a merger ordered by the Board pursuant to T.C.A. § 7-82-704, payments may only                       be made after the merger is final.

            (c)    Payments may be made to an entity involved in a voluntary merger when the parties are legally
                    obligated to merge or have merged. Payments may only be made to entities involved in
                    voluntary merger if the merger is in the best interest of at least one (1) utility system's service
                    population, does not harm another service population, and the grant is necessary to achieve the
                    merger.

            (d)    Grant payments are subject to the claw back provision in 1715-06-.03(4).

    (3)     Grant payments may be used to offset, in whole or in part, the following costs and obligations:

            (a)    Amounts to offset increased administrative costs relating to the merger, to the extent those                             costs cannot reasonably be recovered from customer revenues or other assets of the utility                     system;

            (b)    Amounts that may be necessary to cure a default on indebtedness of the utility system to the                       extent the defaults can, in the opinion of the Board, reasonably be cured;

            (c)    Amounts that may be necessary to renovate and repair the facilities of the utility system to the                      level necessary to enable the merged utility to provide continued service to the public being                     served by an ailing utility system;

            (d)    Amounts necessary to standardize equipment, infrastructure, or software between the merging                       utilities; and,

            (e)    Other payments that may be necessary in the opinion of the Board to accomplish the merger                          and mitigate the financial impact of the merger.

    (4)     The Board will not favor any grand division, county, municipality, or service population over any                other when determining whether a grant should be approved.

    (5)     A grant will only be approved pursuant to a completed grant request for such payments, which                request must be made in a manner approved by the Board and timely submitted to Board staff.

    (6)     The Board has sole discretion to approve a grant.

    (7)     The Board has sole discretion to determine the amount of a grant. The Board shall consider the                following:

            (a)    Available funds in the URF;

            (b)    The findings of a study performed pursuant to T.C.A. § 7-82-704;

            (c)    Evidence provided by a qualified professional as part of a feasibility or rate study; or,

            (d)    Any other source or authority determined by the Board to be reliable

    (8)     A request for a grant may be approved prior to a merger of the utility systems but grant payments                will only be made as described in the Order approving the grant.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-702, 7-82-704, and 7-82-708.

    (1)     A grant request must be made in a manner approved by the Board. Board staff will make the                process to request a grant available online.

    (2)     Before the Board will consider a grant request, the grant request must be complete. A grant                request is deemed complete when it includes the following:

            (a)    The names of all utility systems involved in the plan to merge. If only a portion of a utility system                        is involved in the plan to merge, a description of the area to be merged must be included. The                        grant request must designate an individual from the requesting utility that Board staff may                        work with regarding the grant application and grant payments, and provide contact                        information for the designated individual.

            (b)    A summary of the plan to merge and the need for a grant. This includes:

                    1.    A summary of what grant payments will be used for and why existing funds or customer                            revenue is insufficient to cover these expenses; and,

                    2.    A summary of the plan to merge, including which utility will survive the merger or what the
                           name of the merged utility will be, an anticipated timeline for infrastructure changes or
                           upgrades that are necessary.

            (c)    The most recent audit of all utilities involved in the merger, or written explanation why such                      audit cannot be provided; and,

            (d)    When the merger occurs pursuant to T.C.A. § 7-82-704, a feasibility study performed by a                       qualified professional examining the feasibility of a merger between any utilities involved in the                       merger. This feasibility study must examine the impact of the merger on the customers of all                       utilities involved, such that the Board can determine whether the merger is in the best interest
                     of at least one utility and is not detrimental to other involved utilities.    

    (3)     The Board may deny a grant if any of the requirements are not met or are insufficient, in the Board’s               discretion.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-702, 7-82-704, and 7-82-708.

    (1)      A grant request may be submitted prior to the merger, and up to 180 days after the merger. A                grant request is received when it is completed; that is, when Board staff receive the grant request in                a manner approved by the Board including all required supplemental information set forth in
              715-06(2)(b).

    (2)     The Board will review completed grant requests at the first meeting following Board staff’s receipt                of the request. At this meeting the Board will approve, deny, or modify the grant, or request further                information prior to issuing a final order.

    (3)     A party to a merger may request an amendment to the grant or make an amendment to a grant                request freely. The Board will review the amendment at its next regular meeting. Board staff may                request additional information following receipt of an amendment, if necessary.

    (4)     If grant payments were made to a utility system and that utility system does not merge as                described in its grant request, the utility system must repay the URF in full within 180 days of the                date on which the plans to merge are discontinued or dissolved. If no such date can be                determined, the URF must be repaid in full within 180 days of the day Board staff learn that the                merger will not proceed.

    (5)     Any grant amount that is not used for approved purposes must be reimbursed to the URF within               180 days of the inappropriate use. If the date of the inappropriate use is not known, the amount                must be reimbursed within 180 days of the date Board staff learn of the inappropriate payment.

    (6)     Any grant or grant request is subject to the availability of funds in the URF, and any pending grant                payments may be reduced or terminated if funds become unavailable.

Authority: T.C.A. §§ 4-5-201, et seq., 7-82-702, 7-82-704, and 7-82-708.

These rules are current as of May 8, 2025.