[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6699497,"mediaKeyId","5899804-2b79bb378b48d7eeda7276bcdee17c82","parentId",5899804,"title","Tennessee board rescinds merger order for South Fork Utility District; case remains open","audioSeconds",1705,"startMs",115980,"endMs",1821705,"viewUrl","/Search/View?dp=1&key=5899804-2b79bb378b48d7eeda7276bcdee17c82&start=115&end=1821","thumbnailUrl","https://assets.pipeline.soar.com/5899804-2b79bb378b48d7eeda7276bcdee17c82/thumbnail_115980.jpg","articleUrl","/articles/6699497/Tennessee/Tennessee-board-rescinds-merger-order-for-South-Fork-Utility-District-case-remains-open","mediaUrl","https://secure.pipeline.soar.com/6699497-24f31aabf1c877f9b9104683444981e2/orig.mp4?Expires=1773573667&Signature=P-l06LX6K5QngEws2fuLIXjd9h5evEUpOAnNCcpGx0yqTYGngHWrkRhUoTckbkCrVI0WsUj4jaPvtFq7PahaIzRJUY98RPWRizyH-m2jFj5wAeitTZ~fAW~4FeUCIHoCnUD6QNhm1nOTKcGQL8Jot6rusPrHnwcvS798Vq8kw7qXCn0ykhx7kMjv2hHiENXKUbhkvFlzenOHyUrE02iyL35gQM-niP8PqKmCH2xTiyjVsmpTF7lYur98kbpFT1PY4jHT9tyqkcizyQGdvlq6OJ9kWHGZYEzwVbi-o6IkGLN3iFs9MC1009GXCUBUhNNP8zpu-m07Sc4eJkGW8hW-UQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Comptroller of the Treasury","date","2025-10-03T15:37:45Z","article","The Tennessee Board of Utility Regulation voted 7-2 in a special-called meeting to rescind its July order that would have merged South Fork Utility District with Bristol Bluff City Utility District, though board staff said the case will remain open and the board will continue to monitor South Fork’s operations.

Board staff member K. Ross told the board that staff was recommending rescission after South Fork’s general manager, Adam Hale, left the utility. \"We are requesting and recommending that the board vote to rescind the order from our July meeting,\" Ross said, adding that rescinding the order would not close the board’s review: \"South Fork Utility District will stay under the Tennessee Board of Utility Regulation until the board takes formal action to close the case.\"

The board’s July order — which the rescission reverses — had laid out the terms of a merger and included a projected 5% cost savings for customers contingent on the merger. Ross told board members South Fork \"would not be able to decrease their rates without our prior approval\" because the rate decrease was tied to the merger agreement.

Members who opposed rescinding the order cited concern that allowing a rescission after an apparent turnaround could encourage other utilities to delay compliance. \"I feel like that would let other mergers try to do the same thing,\" said Mr. Hampton. Supporters of rescission said the facts have changed since July: South Fork had shown signs of financial stabilization while under manager Adam Hale, and staff said that reality made reversal at this time reasonable despite the board’s continued view that consolidation could be in customers’ long-term interest.

Board counsel and another attorney noted a legal risk if the order were not rescinded: South Fork could file a court challenge within 60 days of the order’s issuance, requiring service on the Attorney General’s office and possible litigation over statutory interpretation. One board member summarized the legal concern as \"bad facts make bad law,\" urging rescission to avoid an adverse court ruling tied to the specific facts of this case.

After discussion, a motion to rescind the July order passed on a roll-call vote with seven ayes and two nays. The board chair announced the tally: 7 ayes, 2 nays. Board staff said they would continue to scrutinize South Fork’s operations, and members discussed putting South Fork back on the agenda for a future meeting to collect updates; counsel advised keeping any long-range orders limited to items specifically noticed for the special meeting. Ross said staff would monitor the utility and present additional information when appropriate. The board adjourned following the vote and said it expects to reconvene on its regular schedule in the coming weeks.","mediaType","Video","parentTitle","Tennessee Board of Utility Regulation - 10/2/2025","oneSentenceSummary","The Tennessee Board of Utility Regulation voted 7-2 in a special meeting to rescind a July order that would have merged South Fork Utility District into Bristol Bluff City Utility District. Board staff said the case will remain open and the board will continue scrutiny of South Fork after the district’s general manager, Adam Hale, left.","taxTitle","Comptroller of the Treasury, Agencies, Boards, Commissions, and Councils, Organizations, Executive, Tennessee","taxId",16844,"location","Tennessee","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":48,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6698416,"Tennessee utility board rescinds July order on South Fork-Bristol Bluff merger, keeps oversight open",1706,115000,1821000,"https://assets.pipeline.soar.com/5899804-2b79bb378b48d7eeda7276bcdee17c82/thumbnail_115000.jpg","/articles/6698416/Tennessee/Tennessee-utility-board-rescinds-July-order-on-South-Fork-Bristol-Bluff-merger-keeps-oversight-open","https://secure.pipeline.soar.com/6698416-f279a255c5e5fce843f1a4a5edafab12/orig.mp4?Expires=1773573667&Signature=aI65aLxR3DDClS-pvdd7ZidktqAEV7XujnF5lif6LBYSP29P3nbjRbrYaa19nE7O24qhsXRJ04ntZZpfQt7ShyjmKZRMzbFmZnQzdMrtyN2h-e1GdcJm1MTy9eoAjSgfFzycb1K~OEfyTdFihBQRymQ47SEhOV6pNnC0H4RY-Mx6qcjCWm59OFgNHDabQr6xkqtfpL7FTIEXPJWHKOMdab~UD9r1N7w~BWXY9ubPRX8Iq6WShk66-uCvCCLSDZR4YBLHd1fHkAQlrAzRi1S4mJgN99tY1ctgeuxwABbohuZmoQgjiDx-L2AGrXEahSqXe4hmA0jIDIjTj9vMbqOPZQ__&Key-Pair-Id=KUT5TJCACFTXG","The Tennessee Board of Utility Regulation voted 7-2 on a special-call meeting to rescind an order from its July meeting that would have guided a merger between the South Fork Utility District and the Bristol Bluff City Utility District. Board staff recommended rescission after South Fork’s general manager, Adam Hale, left his position and South Fork informed the board it would contest the order.

Board staff said rescinding the order does not close the administrative case and that the board will retain oversight of South Fork while monitoring the district’s operations. K. Ross, board staff, told members, “we are requesting and recommending that the board vote to rescind the order from our July meeting.”

Why it matters: The July order had described operational details of a potential merger and included a projected 5% customer cost savings contingent on the merger. Board members said the departure of the manager who led South Fork’s recent financial turnaround changed the circumstances that had informed the earlier order but did not eliminate the board’s concerns about managerial or financial problems that first prompted review.

Board staff and members described the case history: South Fork was formed from a prior merger of financially distressed utilities and became the subject of an investigation by the Comptroller of the Treasury’s Division of Investigations. That inquiry and subsequent findings led the board to open an administrative review for financial distress and to remove several commissioners previously. Board staff said those prior managerial deficiencies and financial irregularities were what initially brought the utility to the board’s attention.

Board members asked whether South Fork had formalized any reason for contesting the July order; Ross said the district had not provided a formal resolution explaining the challenge but provided meeting minutes showing an intent to contest. Ross said staff asked South Fork to adopt a formal resolution stating its reasons but that one was not provided. Board counsel noted that if the board did not rescind, South Fork could challenge the order in court within 60 days and that the Attorney General’s Office would represent the board in such litigation.

Several members pressed staff about the risk that rescinding the order could encourage other utilities to delay compliance by improving short-term appearances and thereby avoid an ordered merger. Board members also emphasized that rescinding the order does not remove board scrutiny. Ross said the board would continue to monitor South Fork’s financial and operational performance and could return to the matter if conditions warrant. Ross noted specifically that South Fork could not implement the 5% rate decrease without prior TBOR approval because the decrease had been contingent on the merger.

After discussion, Miss Vanestel moved to rescind the July order; Mr. Hampton seconded. The roll-call vote recorded seven ayes and two nays: Ayes—Chairman Moody; Vice Chair Mitchell; Mr. Stone; Mr. Smith; Miss Vanestel; Mr. Hampton; Mr. Dye. Nays—Mr. Giles; Mr. Pelham. The motion passed, rescinding the July order while leaving the case open.

Board members discussed next steps. Some members proposed requiring periodic reports from South Fork (quarterly updates through March, June, September and December 2026), but counsel and staff noted this was a special-call meeting limited to the merger topic and recommended any longer-ranging reporting requirement be considered at the next regular meeting. The board did not adopt a formal reporting schedule in this session but said South Fork will be on the agenda for future consideration and that staff will continue oversight.

The vote rescinded the merger order but did not close the administrative review; the board said it will continue to scrutinize South Fork’s management, capital plans and operations and could revisit enforcement or merger options if South Fork returns to financial distress or shows managerial failures such as frequent service interruptions or failure to address infrastructure or compliance issues.

The board adjourned after the vote and scheduled further consideration of South Fork for an upcoming meeting in December.","The Tennessee Board of Utility Regulation voted 7-2 to rescind a July order that had outlined a merger between South Fork Utility District and Bristol Bluff City Utility District, while leaving the administrative case open and directing continued monitoring of South Fork after the departure of its manager.","actionData","errors"]

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Tennessee board rescinds merger order for South Fork Utility District; case remains open

Tennessee utility board rescinds July order on South Fork-Bristol Bluff merger, keeps oversight open