Rules & Regulations of the State of Tennessee
Title 1715 - Utility Management Review Board
Chapter 1715-01 - Utility Management Review Board
Section 1715-01-.03 - REGULATORY PROCEDURES

(a) When an entity is referred by operation of statute to the Board for any reason, including, but not limited to financial distress, Comptroller investigation, or excessive water loss, the entity will undergo a formal review by Staff and the Board.

(b) In preparation for the Board's formal review, Staff may request and review documents of the entity and speak with officials and staff of the entity. Staff shall gather as much verifiable information as possible about the circumstances leading to the referral and summarize that information, as well as remedial steps taken by the entity for the Board; Staff must be able to provide backup documentation for all statements made in any case summary.

(c) The Board shall review Staff's case summary at a public meeting, request any backup documentation, and decide what the entity must do to correct any issues if the Board decides satisfactory remedial actions have not been taken by the entity. Counsel shall document the Board's direction(s) in the form of a Board order, letter, or memorandum. The order or similar document shall require the entity to update the Board in writing by a date certain prior to formal release from Board oversight. The Board's direction(s) must be met before it releases the entity from Board oversight.

(d) Upon satisfactory compliance with the direction(s) of the Board, the Board shall instruct Staff to close the review and inform the entity of its changed status.

(a) In certain circumstances, including, but not limited to, when an entity has been referred by operation of statute to the Board for two or more years consecutively, the Board may request Staff to perform an investigation of an entity's financial, technical, and managerial capacity.

(b) Staff may request and review documents, speak with officials and staff of the entity, and attend entity meetings.

(c) At the conclusion of the investigation, Staff shall summarize its findings and recommendations in a draft report to the Board.

(d) The Board shall review and amend as necessary the draft report at a public meeting and decide what the entity must do to remedy any issues. The Board shall then direct Counsel to enter it into an order. The order shall require the entity to update the Board in writing by a date certain as a condition for formal release from Board oversight and the investigation.

(e) At the appropriate time, the Board shall direct Staff to close the investigation formally and inform the entity of its changed status.

(a) Counsel shall review every customer request for an informal hearing in order to assess whether the matter falls within the legal jurisdiction of the Board.

(b) Upon confirmation of jurisdiction, Counsel shall prepare the matter for informal hearing by requesting evidence from both parties, including, but not limited to, minutes, transcripts, policies, rules, cost of service, and other related documentation.

(c) Both parties shall have an opportunity to be heard at the informal hearing.

(d) After reviewing the evidence, the Board shall direct Counsel to enter an order memorializing the Board's reasoning and conclusion(s).

(a) In the event of customers petitioning the Board to initiate a contested case hearing, Staff shall verify the signatures on the petition and prepare a Staff recommendation to the Board.

(b) At a public meeting, the Board shall review the Staff recommendation and, if appropriate, the Board shall take formal action to initiate a contested case hearing. The Board shall direct Staff and Counsel accordingly to ensure that the case is handled in an efficient manner.

(c) All contested cases before the Board shall be conducted pursuant to the Rules of Procedure for Contested Cases as compiled at Chapter 1360-04-01.

(a) Within the parameters of state law, as confirmed by Counsel, the Board may initiate legal proceedings against noncompliant entities.

(b) The Board shall exhaust all statutorily authorized administrative procedures before initiating any formal legal proceedings.

(c) In all matters involving formal litigation, the Board shall engage the Attorney General and Reporter.