March 7, 2007
Re: Utility customer complaints and Utility Management Review Board
Dear Mayor and Alderman,
I met you both at the Elected Officials Academy classes last month. You asked me during
a break whether or not there was any recourse against a water and sewer utility district that serves
your respective towns. It is my understanding that very small lines are used by the utility, and
there are problems with water pressure, availability of service, and water quality. I have researched
the applicable statutes and have determined that there is a process in place for handling customer
complaints regarding utility service.
Our state law requires that utility district boards:
have and maintain a set of rules and regulations regarding the adjustment of all complaints
that may be made in the district concerning the availability of utility services to persons in
need of utility services, the quality of service performed, the adjustment of bills, and all
other complaints of any nature, with provision as to the manner of resolution of individual
complaints, provision as to the types of complaints that may be resolved by salaried
employees of the district, and those that may be resolved only by the board of
commissioners. Such rules shall provide for office employees or other employees of the
district to schedule for consideration by the board of commissioners any complaint of such
nature as may be decided by the board under its rules and regulations, and also to
schedule for the consideration of the board of commissioners the review of any complaint
that has not been settled to the satisfaction of the customer or citizen by a salaried
employee to whom the settlement of such complaint shall have been delegated.
T.C.A.' 7-82-402(b).
Although this section of the law is primarily used for complaints about rate increases, the
Tennessee Attorney General has opined that the statute clearly requires that other types of
complaints be addressed by utility districts under rules and regulations each district must establish.
Tenn. Atty. Gen. Op. No. 93-26. Certain exemptions apply under the law, including the
requirement that the district serve at least 1000 customers before the above section of the law
applies to the district, but it is my understanding that such exemptions do not apply to this district.
T.C.A.' 7-82-103.
After following the district=s rules and regulations for filing and hearing customer complaints,
an aggrieved customer may appeal the utility district decision on their complaint to the Utility
Management Review Board. The Utility Management Review Board is a division of the Tennessee
Department of Environment and Conservation, and is created under the utility district law. This
board has the power and duty to:
Review any decision of any utility district under ' 7-82-402(b), regardless of exemptions or
exclusions as may be enumerated in ' 7-82-103, upon simple written request of any utility
district customer or any member of the public within thirty (30) days after such decision,
with any judicial review of any decision of the board thereon, to be held by common law
certiorari within the county of the utility district=s principal office.
T.C.A. ' 7-82-702(7).
If the utility district fails to adopt rules and regulations for customer complaints, as required
under T.C.A. ' 7-82-402(b), the Utility Management Review Board has the authority and duty to
Aestablish an alternate mechanism for consideration and resolution of such complaints.@ T.C.A. '
7-82-702(8). The board may review evidence concerning a customer complaint in the form of
affidavits submitted with the complaint, as well as minutes or transcripts of the utility district
meetings. The board also has the power to schedule hearings and subpoena witnesses, if it
deems such actions appropriate to the situation. T.C.A. ' 7-82-702.
In light of these statutes and the customer rights created therein, following is a list of the
steps which should be taken to bring a complaint before the utility district, and on to the Utility
Management Review Board:
1. Obtain a copy of the rules and regulations of the utility district for the handling of customer
complaints.
2. Prepare complaints in written form to be submitted to the utility, following the rules and
regulations. It is important at this point to determine who should file such complaints. The statute
does not require that the district take complaints from local governments. The complaining party
should rather be an individual, or a group of individuals, who either receive service from the district,
or have been denied service by the district. In my opinion, the greater the number of complaints
filed, the more notice the district will take of the complaints made.
3. Pursuant to the rules and regulations established by the utility district, follow up to be sure the
complaints are placed on the agenda for a meeting by the board of commissioners. This assumes
the complaints will not be addressed by the district=s employees. If the rules provide that
employees have the power to address the complaints, follow through with that process first, then go
through the required process for getting the complaint before the board.
4. All complainants should attend the meeting of the utility district board of commissioners at which
the complaints will be heard, and participate in the process to the extent the rules and regulations
permit such participation. All meetings by the board must be open to the public under the Public
Meetings Law. It may also be advisable at this point to hire a court reporter to make a transcript of
the proceedings, so there is a clear record of the discussions and processes followed by the board
when making a decision on each complaint filed. The complaining parties should not rely on the
board minutes to fully reflect the events which occur in the meeting.
5. After decision by the utility district board of commissioners, the complainants will have 30 days
to file written complaints with the Utility Management Review Board. These complaints should be
supported by affidavits of the complaining parties, as well as copies of the minutes of the meeting
and any transcript created of the proceedings.
Contact information for the Utility Management Review Board:
Dale Hager, CPA
State Revolving Fund Loan Program
L & C Tower, 8th Floor
401 Church Street
Nashville, TN 37243
Phone: 615-532-0457
Fax: 615-532-0199
E-mail: dale.hager@state.tn.us
The Utility Management Review Board meets approximately quarterly in Nashville, although
meetings are cancelled if no complaints or matters are pressing. Complainants should travel to
Nashville and participate in the Board meeting, to the extent such participation is possible.
I have enclosed in this mailing copies of the laws cited above. I hope this information is
helpful.
Sincerely,
Melissa A. Ashburn
Legal Consultant