Tenn. Comp. R. & Regs. 1715-02-.02 - CRITERIA FOR QUALIFICATION FOR A GRANT FROM THE UDRF

(1) The Board may approve a grant request made by a Utility that merges with an FDU, an FDU ordered to merge with another Utility, or a Utility created from two or more Utilities, at least one of which was financially distressed, pursuant to an Order entered by the Board.

(2) A grant from the UDRF is only available where the merger with the FDU was ordered by the Board.

(3) Mitigation payments may be approved to accomplish the merger and offset, in whole or in part, the following expenditures:

(a) Amounts to offset increased administrative costs relating to the merger, to the extent those costs cannot reasonably be recovered from customer revenues or other assets of the FDU;

(b) Amounts that may be necessary to cure a default on indebtedness of the FDU to the extent the defaults can, in the opinion of the Board, reasonably be cured;

(c) Amounts that may be necessary to renovate and repair the facilities of the FDU to the level necessary to enable the merged Utility to provide continued service to the public being served by the FDU; and,

(d) Other payments as may be necessary in the opinion of the Board to accomplish the merger and mitigate the financial impact of the merger.

(4) The Board will not favor any grand division, county, municipality, or service population over any other when determining whether a grant should be approved.

(5) A grant will only be approved pursuant to a completed grant request for such payments in a form approved by the Board and timely submitted to Board staff.

(6) The Board has sole discretion to adopt, approve, or enter a grant.

(7) All mitigation payments are subject to the availability of funds in the UDRF.

(8) A request for a grant may be approved prior to a merger of the Utilities, but grant payments will only be made to the consolidated or surviving Utility, and only after entry of the Order.

Notes

Tenn. Comp. R. & Regs. 1715-02-.02

New rules filed January 23, 2023; effective 4/23/2023.

Authority: T.C.A. §§ 4-5-202, 7-82-702(a)(1), 7-82-704(b), and 7-82-707(a)(2).