Board recommends merger for Leoma Utility District and Lawrenceburg

In a recent meeting of the Tennessee Board of Utility Regulation, significant discussions centered around the Leoma Utility District and its ongoing challenges. The meeting, held on March 13, 2025, highlighted the completion of two feasibility studies in West Tennessee, conducted by Water Finance Exchange, marking their first appearance before the board.

The Leoma Utility District has faced scrutiny due to several findings from an investigative report by the Comptroller's office. Key issues included the board's failure to report suspicions of unlawful conduct, inadequate documentation of labor agreements, and insufficient internal controls. These findings raised concerns about the board's ability to effectively manage the utility district.

In response to these challenges, board staff recommended pursuing merger proceedings between the Leoma Utility District and the nearby city of Lawrenceburg. The feasibility study indicated that both systems are viable candidates for consolidation, which could address critical infrastructure issues, such as the lack of a backup well and insufficient water storage capacity. The merger would not only enhance operational efficiency but also improve service reliability for residents.

Lawrenceburg, which operates electric and broadband services, has not yet engaged in direct discussions regarding the potential merger. However, preliminary indications suggest that the city is open to consolidating with nearby utilities. The board's motion to accept the staff's recommendation for the merger was unanimously approved, signaling a proactive step towards resolving the operational difficulties faced by the Leoma Utility District.

As the board moves forward, the focus will be on initiating conversations with Lawrenceburg to explore the merger further. This development is crucial for ensuring that residents receive reliable utility services and that the Leoma Utility District can overcome its current challenges. The outcome of these discussions will be closely monitored, as they hold significant implications for the future of utility management in the region.