Oliver Springs considers utility sale to Limestone amid audit delays

The Tennessee Board of Utility Regulation convened on March 13, 2025, to address pressing issues concerning utility governance in the state. The meeting highlighted significant challenges faced by local utilities, particularly focusing on the situation in Oliver Springs.

One of the primary discussions centered on the difficulties Oliver Springs has encountered due to high turnover in its management. A new town manager was appointed within the last two years, during which the utility fell behind on essential audits. This delay has hindered the completion of a necessary rate study, raising concerns about the utility's financial practices and compliance with regulatory standards.

A board member expressed support for the current administration's efforts to comply with regulations, acknowledging that the staff is working diligently despite the challenges. However, the board member emphasized that the utility's inability to provide reliable financial records has complicated matters, leading to a lack of trust in their bookkeeping.

The board also discussed the potential for Oliver Springs to merge with another utility. It was noted that there is interest from a strong local utility, Limestone, in acquiring Oliver Springs' operations. This move is seen as a way to improve service and address ongoing compliance issues. The board member indicated that the motivation behind the potential sale may also be to bolster the general fund of Oliver Springs.

In conclusion, the meeting underscored the ongoing struggles of Oliver Springs in managing its utility services and the possible solutions being explored, including a merger with a more stable utility provider. The board's discussions reflect a commitment to ensuring that utilities operate effectively and transparently for the benefit of the communities they serve.