Board Responsibilities

The Utility Management Review Board was originally created pursuant to Public Chapter 422 of 1987, later codified in Tennessee Code Annotated Sections 7-82-701 et seq., “for the purpose of advising utility district boards of commissioners in the area of utility management.” The legislation further stated “the Board shall be deemed to be acting for the public welfare and in furtherance of the general assembly's intent that utility districts be operated as self-sufficient enterprises.” While most of the Board’s responsibilities relate to providing assistance to utility districts located throughout the State of Tennessee, the Board also provides certain assistance to municipal water systems. Among the Board’s statutory responsibilities are the following:

1. To assist in developing a plan to solve a financially distressed condition.
2. To review and comment on petitions for creation and amendment of utility districts.
3. To serve as an appeals board for complaints from utility district customers that a district is not following its own policies.
4. To recommend for Utility Relocation Loans pursuant to Tennessee Code Annotated Section 67-3-901(j) certain utility providers required to relocate utility lines due to road construction by the Tennessee Department of Transportation.
5. To assist in establishing training requirements for utility district commissioners.
6. To assist in establishing ethical standards for utility districts.
7. To establish guidelines for unaccounted for water (in process)

Board Characteristics

Nine members: seven appointed by the Governor for four-year terms and two ex officio. The terms of no more than two board members are to expire in the same year. Three shall be experienced utility district managers and three shall be experienced utility district commissioners. One shall be a resident consumer that may have residential development experience, but not engaged with utility district management or operation. The Commissioner of Environment and Conservation and the Comptroller of the Treasury or their designees serve as ex officio members.

Unacceptable Water Loss

In accordance with TCA 7-82-702 and 68-221-1009(a), the Utility Management Review Board and the Water and Wastewater Financing Board have set an excessive water loss percentage at 35%.  That means that any water system reporting a water loss of 35% or higher (using the current method) in its annual financial statements will be referred to the appropriate board for further action.  This determination was made at the joint meeting of the Boards held on October 7, 2010. 

The Boards also voted at the joint meeting on October 7, 2010 to adopt the American Water Works Association (AWWA) water loss methodology for any audited financial reports received by the Comptroller of the Treasury after January 1, 2013. Between now and January 1, 2013, audited financial statements may include both methods, but the current percentage method MUST be included for an statements received by the Comptroller before January 1, 2013.

All correspondence relating to the Utility Management Review Board should be directed to: