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Tennessee Board of Utility Regulation approves administrative review of Minor Hill, orders studies and tightens complaint process
Summary
At a regular TBOUR meeting, members approved an administrative review of Minor Hill Utility District after an audit found missing funds and weak controls, directed staff to pursue rate and feasibility studies for several distressed utilities, and adopted new steps to triage customer complaints and track board-member training.
The Tennessee Board of Utility Regulation met and approved a series of staff recommendations aimed at addressing financial distress, customer complaints and governance weaknesses at small utilities across the state.
Chairman Greg Moody said the meeting focused on both routine consent items and several higher‑risk cases that require further oversight. "We need to make sure we're protecting ratepayers and not delaying remedies while litigation or disputes drag on," Moody said.
Board staff presented and the board approved release orders for multiple utilities that brought audits, water‑loss metrics or training into compliance. The board also agreed to streamline its handling of customer complaints: staff will now present a short factual summary and recommendation at the next meeting and the board will decide whether a full informal hearing is warranted. Ross Colona of board staff described the change as a way to preserve meeting time while ensuring statutory requirements are met.
In a key action, the board voted to place Minor Hill Utility District under an administrative review after a comptroller investigation identified alleged misappropriation by a former bookkeeper and apparent lapses in internal controls. Ben Johnson, presenting the report, said the former bookkeeper had been charged with theft, forgery and related offenses and that numerous checks bore forged signatures. The motion to open an administrative review, which authorized staff to investigate managerial, financial and technical capacity, was made by Anthony Pelham and seconded by Steve Stone; the motion carried.
The board also ordered formal rate or feasibility studies for several financially distressed systems, including Cherokee Hills and Tusculum, setting target dates for contract awards and study completion. For communities with acute legal or operational issues — notably the City of Friendship, which is involved in a pending multi‑million‑dollar lawsuit — the board approved a feasibility study to evaluate consolidation and other options.
The board directed staff to investigate multiple customer complaints in more depth where warranted. For the town of Mason, staff will calculate an average usage estimate and work with the utility to determine an appropriate refund for a customer whose meter reads appeared anomalous; for Rocky Top the board directed staff to research the status of any criminal restitution and detailed invoices after a landlord reported being billed for work and replacements on meters.
Board members voted to revise the annual information report (AIR) to improve training tracking by collecting each board member's appointment date, date initial training completed and hours completed in the most recent training period. Staff will present a mockup of the web form before final rollout.
On the question of asset lifespans, the Mallory Valley petition to extend water‑main useful lives (from the standard 50 years to as much as 75) prompted the board to direct staff to consult TDEC and technical experts and to survey utilities before considering any rule change.
The board adjourned after approving its quarterly meeting schedule; staff was publicly thanked by members and noted to have received recent commendation from the legislative commerce committee.
What happens next: Staff will return with findings and follow‑up reports on Minor Hill, Rocky Top, Mason and the suite of ordered studies and pilot forms for the AIR.
