Board accepts staff recommendations on Friendship water case; orders compliance steps and further oversight

The Tennessee Board of Utility Regulation on Oct. 21 accepted staff recommendations addressing long‑running issues at the City of Friendship’s water system, which has been the subject of litigation and regulatory scrutiny.

Board staff summarized follow‑up steps after an earlier subpoenaed appearance. The city has been in litigation with Friendship Water Company over water purchases and alleged contamination (tetrachloroethylene). A court awarded a judgment that the city intends to appeal; the judge’s findings included a conclusion about the nature of water supply and contractual obligations. Board staff also said the city has delivered partial responses to the Attorney General’s requests but had missed several deadlines and that materials requested by staff were late; staff and the city reported recent personnel turnover and improvements in office staffing.

Board staff recommended continued oversight, approval of capital projects only after staff review and compliance with reporting requirements. The board adopted the staff recommendations and required that the city provide the requested reports and documentation and comply with the board’s earlier orders. The board’s decision directs Friendship to update staff on financial plans, capital projects (including meter replacement work) and litigation status and to meet forthcoming deadlines.

Mayor Burnett, speaking for the city, said recent staffing problems had contributed to missed deadlines and described steps taken to catch up, including new hires and planned rate increases to improve financial standing. Board members expressed sympathy for local challenges but said compliance with board orders and timely filings are essential.

Board action: staff recommendations accepted; city required to provide outstanding documentation and to follow the capital‑project approval process outlined by staff.