§ 7-82-702 — Power and authority

(a) In order to further the legislative objective of self-supporting and well-managed utility systems, the board has the power and authority to: (1) Adopt, modify, repeal, promulgate, and enforce rules for: (A) The conduct of the affairs of the board; (B) Enforcement of the board's orders; (C) Administration of the utility revitalization fund; and (D) Training of the commissioners, aldermen, or other members of the governing body of a utility system; (2) Issue subpoenas requiring the attendance of witnesses and production of such evidence as requested, administer oaths, and take such testimony as the board deems necessary in fulfilling its purpose. If a person or entity refuses to obey a subpoena issued by the board under this part, then the chancery court of Davidson County has jurisdiction upon application of the board to issue an order requiring the person to appear and testify or produce evidence as the case may require, and a failure to obey the order of the court may be punished by the court as contempt; (3) Conduct a contested case hearing and issue an order on the question of whether a member of a utility district board should be removed from office and a new board or member appointed or elected as provided in § 7-82-307(b) ; (4) Conduct a contested case hearing and issue an order in the manner prescribed under § 7-82-307(c) on the question of whether a utility district that fills vacancies on its board using a method other than appointment by a county mayor should be required to fill a vacancy under the uniform method for the filling of vacancies set forth by § 7-82-307(a)(4) and (5) ; (5) Establish parameters that define excessive water loss, and order reasonable measures to cure excessive water loss; (6) (A) Review and approve the model of ethical standards prepared by the Tennessee Association of Utility Districts (TAUD) for water, wastewater, and gas authorities created by a private act or under the general law; (B) Review and approve the ethical standards prepared for utility districts pursuant to § 8-17-105 ; and (C) Review and find, by order, that the ethical standards adopted by a water, wastewater, or gas authority created by a private act or under the general law, or a utility district that differ from the TAUD model are more stringent than the TAUD model; (7) Review and approve the incorporation of a utility district in accordance with part 2 of this chapter; (8) Review and approve the purchase, development, acquisition, or construction of a new water or wastewater system by a city or county in accordance with § 68-221-1017 ; (9) Require a utility system to merge or consolidate with a financially distressed utility system in accordance with the process provided under § 7-82-704 ; (10) Administer and make grants from the utility revitalization fund established under § 7-82-708 ; (11) Make and enter into contracts; (12) Accept gifts, grants, or other moneys, and receive appropriations made by law; (13) Offer advisory technical assistance to any utility system, to the extent it may be competently offered; and (14) Exercise all the powers and take all the actions necessary, proper or convenient, for the accomplishment of the purposes enumerated in this part. (b) (1) In addition to the powers described under subsection (a), the board also has the authority to review and conduct informal hearings of the following: (A) The justness and reasonableness of a utility system's rates, fees, or charges; (B) The justness and reasonableness of a utility system's requirement that a customer or developer build infrastructure or fixtures to be dedicated to the utility system; (C) The failure of a utility system to adopt and enforce policies or rules necessary for the efficient and financially responsible operation of the utility system, including policies regarding ethics or financial controls, or for water loss, water leak adjustment, purchasing, or other industry standard policies; (D) The inadequacy of a utility system's policies regarding ethics or financial controls, or for water loss, water leak adjustment, purchasing, or other industry standard policies; (E) (i) The failure of a utility system to offer or extend utility service to a customer: (a) Located within the utility system's covered area; (b) Located within an area in which the utility system offers similar services; (c) Located within an area in which the utility has the infrastructure to offer similar services; or (d) Pursuant to a request made in accordance with § 7-82-112 . (ii) For any complaint submitted pursuant to subdivision (b)(1)(E)(i), the utility system has the affirmative burden to show that: (a) It does not have the capacity to serve the customer; (b) Service to the customer is not economically feasible; or (c) Service is not in the best interest of the utility and its existing customers; and (F) Cost-sharing amounts pursuant to § 7-82-709 . (2) A complainant to the Tennessee board of utility regulation shall first appeal or make a complaint to the utility system's governing board, or utilize any other available remedy offered by the utility system, prior to seeking an informal hearing before the board. (3) The board shall consider the reasonableness of the utility system's rules, policies, and cost of service as well as evidence presented during the hearing, if applicable, in making the board's decision. (4) The request for an informal hearing under this subsection (b) must be received within thirty (30) days of the adverse decision of the utility system's governing board. (5) Appellate review of the board's decisions is governed by the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The Davidson County chancery court has jurisdiction over judicial review of the board's decisions. (6) In the conduct of an informal hearing upon request or complaint, the board may receive affidavit evidence, in addition to minutes, transcripts, and other evidence of actions by the utility system, and may render its decision on the basis of that evidence or, if the board deems an open hearing appropriate, may order the interested parties be notified of the date, time, and place that such hearing will be held. (7) The board may order such remedial actions as necessary to address a customer's complaint, including the exercise of any authority conferred upon the board by this part. (8) Board staff may consolidate complaints that raise substantially similar issues against the same utility system to be heard together before the board. (9) (A) The board may only conduct an informal hearing under this subsection (b) pursuant to a referral from the comptroller of the treasury or board staff. (B) Board staff shall recommend that the board conduct an informal hearing pursuant to a customer complaint so long as the complaint presents a dispute that, if resolved in favor of the complainant, would justify the board ordering remedial action.

Legislative History

Amended by 2024 Tenn. Acts, ch. 820,s 3, eff. 4/29/2024. Amended by 2023 Tenn. Acts, ch. 463, s 23, eff. 7/1/2023. Amended by 2022 Tenn. Acts, ch. 757, s 1, eff. 3/31/2022. Amended by 2022 Tenn. Acts, ch. 657, s 6, eff. 3/15/2022. Amended by 2017 Tenn. Acts, ch. 129, s 2, eff. 4/17/2017. Amended by 2016 Tenn. Acts, ch. 590, s 2, eff. 3/10/2016. Amended by 2015 Tenn. Acts, ch. 140, Secs.s 7, s 8 eff. 4/17/2015. Amended by 2013 Tenn. Acts, ch. 141, s 4, eff. 4/12/2013. Acts 1987, ch. 422, § 10; 1990, ch. 732, § 1; 1992, ch. 788, §§ 2, 3; 1994, ch. 918, § 2; 2000, ch. 721, § 1; 2004, ch. 618, § 4; 2007 , ch. 243, § 2; 2007 , ch. 405, § 4; 2008 , ch. 852, § 2; 2009 , ch. 423, § 1.