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HB 2164

Utilities, Utility Districts - As introduced, allows the Tellico Village Property Owners Association's water and wastewater utility services to be placed under the jurisdiction of the Tennessee board of utility regulation. - Amends TCA Title 7, Chapter 82, Part 7 and Title 65, Chapter 4, Part 1.

114th Regular Session (2025-2026) Introduced by Lowell Russell

HB 2164 transfers Tellico Village's water/wastewater utility from local to state regulatory jurisdiction under Tennessee's utility board.

Taken off notice for cal in s/c Business and Utilities Subcommittee of Commerce Committee
#utilities #utilitydistricts
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Bill Summary · HB 2164

Legislative bill overview

HB 2164 would transfer regulatory oversight of the Tellico Village Property Owners Association's water and wastewater services from local control to the Tennessee Board of Utility Regulation (TBUR). This places what is currently a private/local utility system under state regulatory authority, subjecting it to state rate-setting and operational standards.

Why is this important

Utility regulation shifts can significantly affect rates, service standards, and operational flexibility for both the utility provider and residents. The change determines whether a community's water system is governed locally or by state regulators, affecting billing practices, infrastructure investment decisions, and consumer dispute resolution processes. It also reflects broader questions about appropriate governance levels for essential services in residential communities.

Potential points of contention

  • Rate regulation concerns – State regulation typically allows utilities to petition for rate increases based on cost recovery formulas; some property owners may fear higher rates, while others may see state oversight as consumer protection
  • Local autonomy vs. state oversight – Tellico Village residents accustomed to local governance may resist state regulatory authority, or vice versa if they prefer standardized state protections
  • Implementation costs – Transitioning to state regulation requires compliance infrastructure, reporting systems, and potential staffing changes that could burden the utility and raise operational costs

Compiled from official sources — confirm details with the bill’s official record.

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