As used in these rules, the following terms and acronyms have the following meanings:

1. (1) “Administrative review” is the review of a utility system at the direction of the Board, as described in 1715-02(09).
2. (2) “Adverse action” is an action taken by a utility system’s governing board in response to a grievance presented to the utility system’s governing board which does not fully grant the relief requested by the aggrieved party. Adverse action also includes the refusal to hear or consider a grievance, and the failure to acknowledge or respond to a grievance.

3. (3) “Ailing utility system,” “ailing system,” or “ailing utility” is a utility system that is:

   1. (a) Financially distressed, as described in T.C.A. § 7-82-703(b);
   2. (b) Financially unable to expand the amount or type of service as set forth and described in its founding documents or petition for creation as described under T.C.A. §§ 7-82- 201, 68-221-604, 68-221-1304, or any other public or private act; or
   3. (c) Displays a pattern of severe managerial incompetence such that the utility system cannot provide the public it serves with safe, consistent access to its services.
4. (4) “Board” is the Tennessee Board of Utility Regulation (“TBOUR”) created in the office of the Comptroller by T.C.A. §§ 7-82-701 to -708, or its successor entity.
5. (5) “Board chair” or “chair” is the Comptroller or the Board member designated by the Comptroller to serve as the Board chair, pursuant to T.C.A. § 7-82-701(c)(1)(A). Board chair may refer to the Board vice-chair if the Board chair is unavailable, pursuant to 1715-02-.04.
6. (6) “Board counsel” is any attorney within the Comptroller’s office that is directed to provide legal advice, prepare documents, or act as counsel to the Board in any other capacity.
7. (7) “Board staff” or “staff” includes the Comptroller’s designated manager for the Board, Board counsel, and any other employee of the Comptroller assigned as staff to the Board.
8. (8) “Board vice-chair” is the Commissioner of Environment and Conservation, or the Board member designated by the Commissioner of Environment and Conservation to serve as the Board vice-chair, pursuant to T.C.A. § 7-82-701(c)(1)(B).
9. (9) “Complaint” or “customer complaint” is a grievance against a utility system submitted to the Comptroller or Board staff by a customer or potential customer of a utility system, requesting that the Board review the grievance under T.C.A. § 7-82-702(b).
10. (10) “Complainant” is the customer or group of customers which submit a complaint.
11. (11) “Completed complaint” is a complaint deemed complete by Board staff, as described in 1715- 03-.03(3).
12. (12) “Completed grant request” is a grant request that is deemed complete by Board staff, as described in 1715-06-.02(2).
13. (13) “Comptroller” is the Tennessee Comptroller of the Treasury or the staff of the Tennessee Comptroller of the Treasury.
14. (14) “Contested case” is any case commenced pursuant to the UAPA and the uniform rules for contested cases.
15. (15) “Formal review” is the review of a utility system that is referred to the Board by operation of law, as described in 1715-02-.08.
16. (16) “Good cause” is, in reference to an omission or an untimely action, a reason based on circumstances outside the party’s control and despite the party’s reasonable efforts.
17. (17) “Grant” is the schedule or series of payments from the URF authorized by the Board.
18. (18) “Grant payment” is a payment made from the URF pursuant to an approved grant request.
19. (19) “Grant request” is the request for payments from the URF submitted by a utility system.
20. (20) “Informal hearing” is the hearing of a customer complaint that is not subject to the contested case requirements of the UAPA or the uniform rules for contested cases.
21. (21) “Merger” is the merger or consolidation of two or more utility systems by operation of law or by action of the Board. A merger may be voluntary or ordered by the Board. The acquisition of the utility infrastructure of a city, county, or other local government by a utility system can be considered a merger for purposes of Chapter 1715 of the Tennessee Comprehensive Rules and Regulations.
22. (22) “Order” is the decision of the Board in any given matter, as evidenced by the Board’s vote on a motion and any amendments adopted. An order is effective as of the date it is entered unless it states otherwise.
23. (23) “Policy” has the same meaning as assigned in the UAPA.
24. (24) “Professional” or “qualified professional” is, in the context of a feasibility or rate study, an individual or entity qualified to conduct a feasibility or rate study and approved by Board staff.

25. (25) “Severe managerial incompetence” includes, but is not limited to:

    1. (a) Frequent interruptions in service to multiple customers, lasting multiple days;
    2. (b) Frequent infrastructure failures that result in interruptions in service, or cause the quality of service to fall below safe levels; or,

    3. (c) Failure to:

       1. 1. Respond to reports of damage to, or failure of, infrastructure within a reasonable timeframe;
       2. 2. Improve or attempt to improve infrastructure, including necessary maintenance, upgrades, or construction of redundant infrastructure where necessary; or
       3. 3. Correct a deficiency in oversight, operational management, or finance management, which leads to repeated harm to the utility system, a violation of state or federal law, or fraud, waste, or abuse of the utility system’s resources.
26. (26) “Special meeting” or “special-called meeting” has the same meaning that it does in T.C.A. § 8-44-101-112.
27. (27) “UAPA” is the Uniform Administrative Procedures Act, codified at T.C.A. §§ 4-5-301, et seq.
28. (28) “Uniform rules for contested cases” are the Uniform Rules of Procedure for Hearing Contested Cases Before State Administrative Agencies as set out in Tenn. Comp. R. & Regs. chapter 1360-04-01.
29. (29) “Utility Revitalization Fund” or “URF” is the fund created by T.C.A. §§ 7-82-708(a)(1).

30. (30) “Utility system” or “utility” is:

    1. (a) The water, wastewater, or natural gas systems of a county, metropolitan government, or incorporated town or city;

    2. (b) A treatment authority created pursuant to:

       1. 1. The Water and Wastewater Treatment Authority Act, compiled in T.C.A. Title 68, Chapter 221, Part 6;
       2. 2. The Regional Water and Wastewater Treatment Authority Act, compiled in T.C.A. Title 68, Chapter 221, Part 13; or
       3. 3. Another public or private act of the general assembly that operates a water, wastewater, or natural gas facility;
    3. (c) The water, wastewater, and natural gas systems of an energy or utility authority created pursuant to the Municipal Energy Authority Act, compiled in T.C.A. Title 7, Chapter 36, or a private act of the general assembly; and
    4. (d) Any utility district created under T.C.A. Title 7, Chapter 68, or any other public or private act of the general assembly.
31. (31) “Valid dispute” is a dispute which, if resolved in favor of the complainant, would justify the Board ordering remedial action. A purely speculative or hypothetical grievance or injury does not constitute a valid dispute.

Authority: T.C.A. §§ 4-5-201, et seq., and 7-82-702. Administrative History: Original rule filed June 13, 1989; effective July 28, 1989. Amendment filed August 2, 1994; effective December 29, 1994. Chapter 1200-22-07 moved to 1715-01 by the Secretary of State under the authority of Public Chapter 86 of Acts of 2007. Repeal and new rule filed June 29, 2010; effective September 27, 2010. Repeal and new rule filed May 20, 2016; effective August 18, 2016. Amendments filed May 5, 2025; effective August 3, 2025.