Tennessee Office Works to Combine Local Utility Districts
South Fork Utility and Bristol-Bluff City Utility District could join under new plans
The Tennessee Comptroller’s Office is laying the groundwork to combine the South Fork Utility District with the Bristol-Bluff City Utility District following a history of financial complications.
A spokesperson for the office confirmed to local news outlets that the Tennessee Board of Utility Regulation (TBOUR) is considering a state-ordered amalgamation of two local utilities. This step comes after several years of strife caused by allegations of mismanaged money within South Fork Utility.
Public Hearing Held Regarding The Potential Merge
On June 12, members of the Comptroller’s office attended a public hearing held in Sullivan County to discuss the possible merger. According to office representatives, they heard views suggesting that the City of Bristol’s utilities might be a better match for South Fork Utility. The South Fork Board of Commissioners has also written to the City of Bristol requesting to merge with its utility service.
The City of Bristol’s Manager, Kelly Bourgeois, responded stating the merge proposal was suggested by the state. She added the City Council is now investigating whether merging with South Fork Utility District is feasible.
Merger of South Fork With Bristol-Bluff City Utilities Favored
However, the Tennessee Comptroller’s Office expressed several advantages in favor of merging South Fork Utility with Bristol-Bluff City Utilities. It pointed out that Bristol Bluff City Utility District currently supplies all the water used by South Fork Utility. No additional infrastructure upgrades would be required following the merger, making it a cost-effective option.
The TBOUR is scheduled to meet on July 18 in Nashville, where details from the June 12 public hearing will be presented, along with a recommendation for the merger to be ordered.
Consequences of Failure to Adhere to An Ordered Merger
Upon agreeing to the merger, an agreement would have to be negotiated by the two parties before it is executed. If it appears that either or both utility districts don’t act in good faith following the merger order, the matter would be pursued through the chancery court. Any potential legal expenses would be borne by the non-compliant party’s customers.
The potential merger’s overarching goal is to efficiently address the utility districts’ financial issues and better serve the customers’ interest by providing reliable and cost-effective utility services.
