Tenn. Comp. R. & Regs. 1220 — Tennessee Public Utility Commission

Chapter 1220-01-01 Practice and Procedure Before the Commission

Tenn. Comp. R. & Regs. 1220-01-01-.01 DEFINITIONS

(1) Any term used in these rules defined by statute shall have the meaning given to the term in that particular statute.

(2) Any term defined in a chapter of these rules shall have the meaning as therein provided for that chapter.

(3) In addition, for these rules generally, the following terms shall have the following meanings, unless the context requires otherwise:

(a) “Commission,” when used to refer to an agency of the State of Tennessee, means the Tennessee Public Utility Commission.

(b) “Hearing Officer” includes “Hearing Examiner,” as defined in T.C.A. § 65-2-111;

“Administrative Judge,” as defined in T.C.A. § 4-5-102(1); and “Hearing Officer,” as defined in T.C.A. § 4-5-102(4).

(d) “Confidential Information” means documents and information in any form that, under a protective order in a contested case, have been specifically designated by the producing party as confidential information, asserting that it should be protected from public disclosure and inspection.

(e) “Customer” means any person receiving services or goods from any company subject to the regulatory jurisdiction of the Commission.

(f) “Commission Conference” means a “meeting” as that term is defined in T.C.A. § 8-44- 102(b)(2).

(g) “Person” means an individual or any form of organization recognized by law as an entity.

(h) “Proprietary Information” means documents and information in any form that, according to a protective order in a contested case, have been specifically designated by the producing party as proprietary company information and that the producing party in good faith considers to contain or constitute trade secrets, confidential research or development, or commercially sensitive information.

(i) “These Rules” means Chapters 1 through 4 of Rules 1220-01, including any subsequent amendments.

(j) “Written” and “Writing” include printing, typewriting, or any other intentional reduction to readable form.

(k) “Electronic Document” means any document created in a machine-readable format or converted to a word-searchable digital format. All electronic documents must comply with the Americans with Disability Act (ADA) requirements for web content accessibility guidelines (WCAG) 2.1 Level AA and any updates or modifications made to this standard.

(l) “Docket Manager” means the Docket and Records Manager within the Commission’s Legal Division.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.02 APPLICABILITY

(1) Except as may be otherwise expressly provided by these rules or governing statutes, these rules shall apply to contested cases and Commission Conferences. These rules apply to arbitration proceedings held according to 47 U.S.C. § 252 (The Federal Telecommunications Act) unless otherwise specified. These rules do not apply to matters about the internal organization and functioning of the Commission.

History

Authority: T.C.A. §§ 4-5-102, 65-2-102, 65-2-108, 65-4-101, and 65-4-104.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.03 GENERAL FILING PROCEDURES

(1) All documents filed with the Commission shall be filed to the attention of the Commission Docket Manager via email to TPUC.DocketRoom@tn.gov or by mail. Four (4) paper copies of the filing shall be mailed to the Docket Manager, whether or not the filing is made by email or mail. Originals shall be retained in the Commission’s official file.

(2) All documents filed in a docketed proceeding shall contain a caption stating the style of the proceeding, the docket number, unless no docket number has been assigned at the time of filing, and title of the document being filed. All documents filed shall be signed by the party filing the same or by that party’s counsel. Where service is required, all documents filed shall contain a certificate, signed and dated by the person responsible for service, confirming that service has been made on the persons shown and how service was effectuated.

(3) Upon receipt of the filing by the Docket Manager, all documents shall be marked to show the date and time of filing. Documents filed via email shall be marked using the time of receipt.

Persons submitting documents for filing may request that the Docket Manager acknowledge receipt of the filing via email.

(4) (a) All documents filed with the Docket Manager must be on 8 1/2” x 11” paper whenever possible. Other than those submitted on 8 1/2” x 11” paper, any physical exhibits must be accompanied by a copy or a description and explanation of the exhibit on 8 1/2” x 11” paper.

(b) All electronic documents shall be formatted to be printed on 8 1/2” x 11” paper.

(c) To the fullest extent possible, all spreadsheets or databases filed with the Commission shall have formulas visible and editable and include all dependencies to files provided to the Commission. Spreadsheets and databases do not need to be formatted to print on 8 1/2” x 11” paper.

(5) Parties in a contested case in which a protective order has been entered who seek to file documents or information that they assert are confidential, shall file with the Commission requisite copies of said documentation in a sealed envelope or by separate email marked “confidential information,” in accordance with the terms of the protective order, subject to the following:

(a) For each document or part of a document asserted to be confidential or proprietary, a statement explaining with reasonable specificity the basis, including citation to the law or rule relied upon for designating the document, as entitled to protection from public disclosure.

(b) Each page of any document designated as confidential or proprietary shall bear a mark indicating that it is filed as such.

(c) The provisions of this rule shall not abridge the right of any party, or the Commission on its initiative, to contest the designation of such information. Upon such challenge, the designation of information as proprietary or confidential may, by agreement, be removed and made public, or if there is no agreement, then removal may be made as determined by the Commission or Hearing Officer.

(6) The Docket Manager may refuse to accept any document or filing that does not comply with these rules or for which the required fees or charges have not been tendered.

History

Authority: T.C.A. §§ 65-1-104, 65-2-102, and 65-2-103.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.04 DOCKETING AND FILING FEES

(1) Upon filing a document initiating any category of proceeding under these rules and the tendering of the requisite fees, the proceeding will be assigned a docket number that shall be used to identify all documents and exhibits filed in that proceeding.

(2) The Docket Manager shall charge and collect all filing fees required by law.

(3) For the filing fee for “petitions” authorized by T.C.A. § 65-2-103, “petitions” shall include any initial filing by any party, however captioned, which seeks action by the Commission and is not otherwise covered by an express statutory provision or a provision of these rules or other rules of the Commission.

History

Authority: T.C.A. §§ 65-1-104 and 65-2-103.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.05 WAIVER OF RULES

(1) For good cause, including expediting the disposition of any matter, the Commission may waive the requirements or provisions of any of these rules in a particular proceeding on its initiative or the motion of a party, except when a rule embodies a statutory requirement. The Commission shall state the basis of any such waiver and may impose conditions or limitations consistent with the basis for the construction of these rules.

(2) A party may waive the benefits or rights of that party expressed in any rule, but may not waive the fulfillment of any duty.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.06 HEARINGS AND COMMISSION CONFERENCES

(1) All contested case hearings, public hearings under rulemaking, and any other hearings according to these rules shall be held at such locations, dates, and times as may be established in the official notice of hearing or by order of the Commission.

(2) The Commission shall convene monthly Commission Conferences, which may be waived or rescheduled at the Commission’s discretion, along with any special meetings at locations, dates, and times designated by the Commission. Meeting information for the Commission Conference will be included in the Conference agenda or other public notice.

(3) On its initiative or the motion of any party, the Commission may fix the place, date, and time of any hearing as it deems appropriate.

History

Authority: T.C.A. §§ 65-1-103, 65-2-102, and 65-2-108.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.07 REPEALED

History

Authority: T.C.A. §§ 65-1-112 and 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed March 4, 2019; effective June 2, 2019.

Tenn. Comp. R. & Regs. 1220-01-01-.08 PETITION FOR ACTION NOT OTHERWISE COVERED

(1) Any person seeking permission to take some action not otherwise covered by these rules may file a petition stating the nature of the relief sought, the jurisdiction of the Commission to grant such relief, and the grounds upon which such relief may be granted. Where any such petition seeks relief against or otherwise involves the rights or duties of any other person, the petitioner shall serve a copy of the petition on such other person. Within a reasonable time after receiving any such petition, the Commission shall decide whether it has jurisdiction to entertain the petition, whether the petition should be disposed of under some procedure covered explicitly by these rules, and, if not, what procedure should be followed. An appropriate order shall be entered accordingly.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.09 REQUIRED NOTICES TO THE COMMISSION

(1) Each company regulated by the Commission shall furnish the Docket Manager with the name and address of each individual or office to receive notices from the Commission. Each company shall be responsible for ensuring that such information is kept current by promptly notifying the Docket Manager in writing regarding the effective date of any changes.

History

Authority: T.C.A. §§ 65-2-102 and 65-2-103.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.10 SERVICE

(1) Unless stated otherwise in these rules or directed by the Commission or a Hearing Officer, all documents filed in any proceeding, including notices and orders, must be served on each party involved in that proceeding.

(2) Whenever service is required or permitted to be rendered upon a party represented by counsel under these rules, service shall be made upon such counsel, unless the Commission orders service upon the party. Service upon counsel or a party shall be made by delivering to the office of such person a copy of the document to be served, mailing it by first-class mail, or sending it by electronic mail to such person’s address as shown on a mailing or service list furnished by the Docket Manager. Service upon all parties of record shall be made in the same manner. Service by first-class mail is complete upon mailing.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-01-.11 TIME

(1) In computing any period of time, the date of the act or the event after which the designated period begins to run is not to be included. The last day of the period, as computed, is to be included unless it is a Saturday, Sunday, legal holiday, or a day when the Commission is closed. In this event, the period runs until the end of the next day, not a Saturday, Sunday, legal holiday, or day when the Commission is closed. When the time prescribed or allowed is one week or less, intermediate Saturdays, Sundays, and legal holidays shall be excluded from the computation. However, when the time is fixed by statute, the time shall be computed as provided in T.C.A. § 1-3-102.

(2) Any filing required by the Commission by a date-certain shall be filed with the Docket Manager by 2:00 p.m. on that date.

(3) When these rules, a notice, or any order entered in a proceeding requires or allows an act to be done in the proceeding or within a specified time, the Commission or Hearing Officer may, for cause shown, at any time:

(a) Extend the specified time without motion or notice;

(b) Order the period enlarged, if a motion is filed before the expiration of the period originally prescribed or as extended by a previous order; or (c) Upon motion after the expiration of the specified period, permit the act to be done where failure to act resulted from excusable neglect; but the time for taking any action may not be extended when that time is fixed by statute.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Chapter 1220-01-02 Contested Cases

Tenn. Comp. R. & Regs. 1220-01-02-.01 DEFINITIONS

(1) Terms used in this chapter will have the meanings given to them in the Uniform Administrative Procedures Act, in the provisions governing the Commission as codified in Title 65 Tennessee Code Annotated, and in Rule 1220-01-01-.01 of these rules.

(2) In addition, for this chapter, the following terms will have the following meanings:

(a) “Appearance” means any act during a contested case by which a person, either in person or by counsel, recognizes and submits to the jurisdiction of the Commission for all purposes except where it is expressly stated to be limited to a particular purpose, such as challenging the jurisdiction of the Commission.

(b) “Party” means any person having a right, under the provisions of the laws applicable to the Commission, to appear and be heard in a contested case and includes:

Persons who initiate a contested case by the filing of an initial petition;
Persons against whom relief is sought or against whom action by the Commission is directed; and 3. Persons who are given leave by the Commission to intervene in a contested case under applicable law and these rules.

(c) “Initial Petition” means any filing with the Commission through which a person seeks to initiate action by the Commission and that requires a contested case hearing, however captioned, including applications and complaints.

(d) “Petitioner” means a person filing or joining with others in filing an initial petition.

(e) “Respondent” means a person against whom relief is sought or against whom action by the Commission is directed.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.02 COMMENCEMENT OF CONTESTED CASES

(1) The Commission may commence a contested case at any time concerning any matter within its jurisdiction.

(2) The Commission may commence a contested case upon the initial petition of any person, unless:

(a) The Commission lacks jurisdiction over the subject matter;

(b) As a matter of law, no hearing is required for the disposition of the matter;

(d) The initial petition was not submitted in a form substantially complying with any applicable provisions of law; or (e) The appropriate fees did not accompany the initial petition.

(3) If an initial petition does not expressly request the commencement of a contested case, it shall be deemed to include such a request to the Commission to conduct an appropriate contested case, provided the proceeding is warranted by law and meets the statutory criteria.

(4) Upon the filing of a contested case, the petitioner and each respondent are under a duty to hold and preserve all documents, records, books, tangible things, and materials, including electronically stored, in its possession on any matter relevant to the subject matter involved, whether it relates to a claim or a defense of any party.

(5) A tariff filing does not constitute a contested case; however, any interested person may object to the tariff filing by filing a complaint before the proposed effective date of the tariff. Any complaint shall state the nature of the interest, the grounds for any such objection, and the relief sought. A copy of the complaint shall be served on the company filing the tariff. The company filing the tariff shall have the right to respond to such complaint. It shall be within the discretion of the Commission to convene a contested case.

(6) If the Commission determines on its own initiative not to convene a contested case in response to a complaint or initial petition, the Commission shall enter an order dismissing the complaint or petition and state the basis of the Commission’s action.

(7) Upon filing an initial petition that gives rise to a contested case proceeding, as defined in T.C.A. §§ 65-2-101(2) or 4-5-102(3), including a motion or petition for a show cause order under T.C.A. § 65-2-106, the petition will be referred to the General Counsel or their designee as Hearing Officer on the merits, as appropriate, or to prepare the matter for a hearing before the assigned panel of Commissioners. When preparing the matter, the Hearing Officer is authorized to address preliminary matters, including, but not limited to, a determination of jurisdiction, issuance of a show cause order, dispositive motions, consideration of requests for protective orders, intervention, discovery matters, and to establish a procedural schedule.

History

Authority: T.C.A. §§ 4-5-102, 4-5-301, and 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.03 DEFENSES – ANSWERS – MOTIONS TO DISMISS

(1) A respondent shall serve on the petitioner and file with the Commission a responsive pleading within 30 days after the service of a complaint or initial petition, except where otherwise provided by statute, these rules, or an order of the Commission.

(2) Every defense, in law or fact, to an order or notice commencing a contested case or to an initial petition, shall be asserted in an answer, except that the following defenses may, at the option of the respondent, be made by motion in writing:

(a) Lack of jurisdiction over the subject matter;

(b) Lack of jurisdiction over the person;

(d) Insufficiency of service of the order, notice or petition;

(e) Failure to state a claim upon which relief can be granted; or (f) Failure to join an indispensable party.

(3) A motion raising any defenses in (2) may be made before filing an answer, or combined with the answer. Such motions shall be disposed of before a hearing on the merits.

(4) If the initial petition is so vague or ambiguous that the respondent cannot reasonably be required to frame a response, the respondent may move for a more definite statement before filing an answer. Such a motion shall identify the defects complained of and the details desired. If the motion is granted, a more definite statement shall be furnished by a datecertain fixed in the order granting the motion.

(5) Upon motion made by any party within ten days after the service of a petition or answer upon that party, or on its own initiative, the Commission or Hearing Officer may order stricken from any petition, answer, or motion to dismiss, any insufficient defense or irrelevant, immaterial, impertinent or scandalous matter.

(6) A respondent waives all defenses listed in (2) not presented either by motion, answer, or any amendment, except that lack of jurisdiction over the subject matter may be raised at any time. The defenses enumerated in subparagraphs (2)(b), (c), and (d) shall not be raised by amendment.

History

Authority: T.C.A. §§ 65-2-102, 65-4-101, and 65-4-104.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.04 REPRESENTATION BY COUNSEL

(1) Any party to a contested case may be represented, at the party’s own expense, by an attorney or attorneys licensed in Tennessee or granted to appear pro hac vice upon satisfaction of the requirements in (2) of this rule below.

(2) Out-of-state counsel shall comply with T.C.A. § 23-3-103(a) and Tennessee Supreme Court

Rule 19, except that the affidavit referred to in the latter rule shall be filed with the Commission Docket Manager.

(3) Any party to a contested case may represent itself. Under Tennessee law, however, a business entity must be represented by an attorney licensed in Tennessee or approved to appear pro hac vice.

(4) Entry of an appearance by counsel shall be made by:

(a) The signing of any filing;

(b) The filing of a notice of appearance; or (c) Appearance as counsel during a Commission Conference, pre-hearing conference, or a hearing.

(5) After appearance of counsel has been made, all orders, notices, and filings shall be served only upon such counsel, unless otherwise requested.

(6) Counsel wishing to withdraw shall give written notice to the Commission. Permission to withdraw shall not be unreasonably withheld.

History

Authority: T.C.A. §§ 4-5-305, 23-3-103(a), and 65-2-102 and Tenn. Sup. Ct. Rule 19.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.05 DECLARATORY ORDERS

(1) As provided in T.C.A. §§ 4-5-223 and 65-2-104, any affected person may petition the Commission for a declaratory order regarding the validity or applicability of a statute, rule, or order within the primary jurisdiction of the Commission.

(2) The Commission does not have jurisdiction to determine the constitutionality of a statute on its face, and any petition seeking such a declaration shall be denied. The Commission may grant petitions to resolve questions about the constitutional application of a statute to specific circumstances, the constitutionality of a rule promulgated, or an order issued by the Commission.

(3) Petitions for declaratory orders shall be filed in the same form and manner as other petitions, as specified in these rules. Any such petition shall state the factual circumstances warranting a declaration by the Commission; the specific statute, rule or order as to which a declaration is sought; how the application of that statute, rule or order, affects or threatens to affect the petitioner; and a statement of the declaration requested.

(4) The Commission may allow persons other than the petitioner to file statements as to whether the Commission should commence a contested case, or refuse to issue a declaratory order, as provided in T.C.A. § 4-5-223. Any such statements shall be served on all parties.

(5) Notices of hearing required under T.C.A § 4-5-224 shall be submitted electronically to the Secretary of State’s administrative register website, with a copy to the Division of Publications, and in other forms or forums of publication, as may be required by statute.

History

Authority: T.C.A. §§ 4-5-223, 65-2-102, and 65-2-104.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.06 PRELIMINARY MOTIONS

(1) Any request for an action or ruling before a hearing on the merits in a contested case shall be made in writing, in the same form as other filings. The request shall state the factual and legal basis for the request, set forth the relief or order sought, and may be accompanied by a brief as to any issues of law, by affidavits, requests for official notice, or other appropriate proof as to any issue of fact.

(2) Any party opposing a motion shall file and serve a response within seven days after service of the motion. The Commission or Hearing Officer may shorten or extend the time for responding to any motion.

(3) No reply to a response shall be filed except upon order of the Commission or Hearing Officer.

(4) Any party may, in a motion or response, request oral argument or the presentation of oral testimony, or the Commission or Hearing Officer may order oral argument or the presentation of oral testimony. If such a request is granted or an order is entered, the Commission or Hearing Officer shall set the date and time for the argument or presentation and may order that the argument be heard electronically.

(5) Preliminary motions, responses, documents submitted in support, and any orders thereto, shall be filed with the Docket Manager and served on all parties.

(6) Any party who wishes to seek interlocutory review by the Commission of a Hearing Officer’s decision on a preliminary motion shall make an application by motion to the Hearing Officer within seven days after service of the order memorializing the Hearing Officer’s decision.

Permission for interlocutory review shall not be unreasonably withheld.

(7) Any order dismissing a case or otherwise substantially disposing of the merits of the case is not an interlocutory order, and any such order issued by a Hearing Officer shall be considered as an initial order subject to review by the Commission as specified in T.C.A. § 4- 5-315.

(8) Nothing in this rule shall affect the right to seek interlocutory judicial review under T.C.A. § 4- 5-322.

History

Authority: T.C.A. §§ 4-5-308 and 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.07 CONTINUANCES AND OTHER RESCHEDULING

(1) Any party desiring a continuance or other resetting of any hearing or pre-hearing conference shall file with the Docket Manager and serve on all parties a motion setting forth the grounds for the relief sought. Before filing such a motion, the party shall attempt to contact all parties to the proceeding and shall state each party’s position in the motion.

(2) Any party opposing the continuance or rescheduling may file a response setting forth the

basis for such opposition, but the motion may be decided without waiting for responses.

(3) In determining whether to grant such a motion, the Hearing Officer or the Commission may consider the relative convenience of the parties, the Commission’s calendar for hearings, and the necessity for the expeditious disposition of the case.

History

Authority: T.C.A. §§ 4-5-308 and 65-2-10.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.08 INTERVENTION

(1) Petitions for intervention shall be granted in accordance with T.C.A. § 4-5-310 and T.C.A. § 65-2-107.

(2) A petition for intervention shall set forth with particularity those facts that demonstrate that the petitioner’s legal rights, duties, privileges, immunities or other legal interests may be determined in the proceeding or that the petitioner qualifies as an intervenor under any provision of law. Intervention may be denied or delayed for failure to provide such specific facts.

(3) A petition for intervention shall be filed at least seven days before the date of the contested case hearing.

History

Authority: T.C.A. §§ 4-5-310, 65-2-102, and 65-2-107.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.09 COMPLAINTS

(1) To be considered a contested case, a complaint against a public utility must be filed with the Docket Manager and shall:

(a) Be in writing and signed by the petitioner or an authorized attorney for the petitioner;

(b) Contain the name and address of the petitioner and the name and address of the respondent;

(d) Enumerate each statute allegedly violated by the respondent and state each fact demonstrating a violation of the statute so that the respondent can be duly apprised of each statutory violation charged; and (e) Enumerate any Commission rule or regulation relied upon for a claim and set forth the manner of each alleged violation of that Commission rule or regulation.

(2) For good cause shown, the Commission may waive the provisions of this section to prevent manifest injustice or hardship to the complaining party.

History

Authority: T.C.A. §§ 65-2-102 and 65-2-103.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.10 NOTICE TO ATTORNEY GENERAL

When the validity of a statute, administrative rule, or regulation of this State is challenged in any case, the Commission shall give notice to the Office of the Attorney General of Tennessee, specifying the pertinent statute, rule, or regulation.

History

Authority: T.C.A §§ 65-2-102 and 29-14-107(b); T.R.C.P. Rule 24.04; and T.R.A.P, Rule 32.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.11 .

History

Authority: T.C.A. §§ 4-5-311, 65-2-102, and 65-3-112.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.12 PRE-HEARING CONFERENCES

(1) In any contested case, the Commission or the Hearing Officer may, on their initiative or the motion of any party, enter an order under T.C.A. § 4-5-306 directing counsel for the parties and any unrepresented parties to appear for a conference or conferences before the hearing on the merits to consider:

(a) The simplification of issues for the hearing on the merits;

(b) The necessity or desirability of any amendments to the filings;

(d) The limitation of the number of expert witnesses;

(e) The disposition of any pending motions;

(f) The adoption or amendment of a discovery schedule in accordance with these rules, including the adoption of a statement of the issues for discovery;

(g) The steps that may be taken to expedite the disposition of the case or to facilitate settlement of the case, or any aspect thereof;

(h) The adoption of a schedule for the filing of briefs and any pre-filed testimony; and (i) Other matters that may facilitate the just, efficient, and economical disposition of the case, including alternative dispute resolution.

(2) At least one of the counsel or other representatives for each party participating in a prehearing conference shall have authority to enter into stipulations, make admissions, or enter into agreements concerning any matters the parties may reasonably anticipate will be considered.

(3) The Hearing Officer shall enter an order that recites the actions taken during the pre-hearing conference and embodies all decisions made. Such order shall control the subsequent course of the case unless modified by order of the Hearing Officer or the Commission.

(4) Upon reasonable notice to all parties, the Hearing Officer may convene a hearing or convert a pre-hearing conference to a hearing, to be conducted by the Hearing Officer, to consider arguments and any relevant evidence on any question of law. The Hearing Officer may enter an initial order on any such question of law, as provided in the Uniform Administrative Procedures Act.

(5) In the discretion of the Hearing Officer, all or part of the pre-hearing conference may be conducted by electronic means, provided each participant in the conference has an opportunity to participate in, hear, and, if technically and economically feasible, see the entire proceeding while it is taking place.

(6) If a pre-hearing conference is not held, the Hearing Officer may issue a pre-hearing order based on the filings to regulate the conduct of the proceedings.

History

Authority: T.C.A. §§ 4-5-306, 65-2-102, and 65-2-111.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.13 SUBPOENAS AND SUBPOENAS DUCES TECUM

At the request of any party, the General Counsel or the Hearing Officer shall issue signed subpoenas, including subpoenas duces tecum, following the Tennessee Rules of Civil Procedure. However, in addition to the means of service provided in the Tennessee Rules of Civil Procedure, service in contested cases may be by certified return receipt mail. With approval of the issuing authority, the parties may complete and serve their subpoenas. This section may not be used to circumvent the provisions of Rule

Tenn. Comp. R. & Regs. 1220-01-02-.14 NOTICE OF HEARING

(1) Except as otherwise provided by statute or these rules, the Commission or Hearing Officer shall give all parties reasonable notice of any pre-hearing conference or hearing held to address any preliminary motion.

(2) The Commission or Hearing Officer shall notify all parties at least ten days before any hearing on the merits.

History

Authority: T.C.A. §§ 4-5-307, 65-2-102, and 65-2-108.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.15 STIPULATIONS AND SETTLEMENTS

(1) The Commission encourages the resolution of matters brought before it through stipulations and settlements. Settlements must be supported by substantial evidence.

(2) Proponents of a proposed settlement carry the burden of showing that the settlement is reasonable, in the public interest, or otherwise in compliance with law or regulatory policy.

Proponents of the settlement should be prepared to call witnesses, file pre-filed testimony, and provide copies of any documents, financial analysis, exhibits, and an explanation of the underlying rationale to support the settlement. The Commission may require further development of an appropriate record supporting a proposed settlement as a condition of accepting or rejecting the settlement.

History

Authority: T.C.A. §§ 4-5-105 and 65-2-102.
Administrative History: New rule filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.16 EVIDENCE – TESTIMONY AND BURDEN OF PROOF

(1) The admissibility of evidence is governed by T.C.A. §§ 65-2-109 and 4-5-313.

(2) The burden of proof shall be on the party asserting the affirmative of an issue, provided that when the Commission has issued a show cause order under T.C.A. § 65-2-106, the burden of proof shall be on the party thus directed to show cause.

(3) In place of the oral examination of a witness, the direct or redirect examination of such witness shall be presented in written, question-and-answer form (pre-filed testimony). Prefiled testimony shall be filed no later than ten days before the hearing unless directed by the Commission or the Hearing Officer. The Commission may require the presentation of prefiled testimony under this rule if it deems that doing so would be in the public interest and would be conducive to a fair and expeditious disposition of the proceeding. Any party may object to the pre-filed testimony of a witness, and the objecting party shall have the right to be heard by the Commission or the Hearing Officer at a hearing on the objection.

(4) All pre-filed testimony shall be filed in electronic or written form consistent with these rules.

The lines on each page shall be double-spaced and numbered consecutively down the left side of the page, and the left-hand margin of each page shall not be less than 1 1/4 inches wide. During the hearing, after any such pre-filed testimony has been appropriately identified and authenticated under oath or affirmation by the witness presenting the same, it may upon motion be incorporated into the record in the same way as if the questions had been asked of the witness and the answers had been presented verbally by the witness. Such pre-filed testimony shall be treated as if given verbally, and the witness presenting such pre-filed testimony shall be subject to cross-examination during the hearing on the merits.

(5) Any party shall have the right to cross-examine witnesses who testify and shall have the right to submit rebuttal testimony, subject to the standards of admissibility and such limitations as the Hearing Officer or Commissioner, whomever is presiding during the hearing, may reasonably require.

(6) At the discretion of the Commission or the Hearing Officer, or on the motion of any party, witnesses may be excluded from the hearing room before their testimony.

History

Authority: T.C.A. §§ 4-5-313, 65-2-102, and 65-2-109.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.17 DEFAULTS – UNOPPOSED CASES

(1) Failure of a party to attend or participate in a pre-hearing conference, hearing, or other stage of a contested case proceeding, after due notice thereof, shall be cause for finding such party in default, under T.C.A. § 4-5-309. Failure to comply with an order of the Commission or a Hearing Officer may be deemed a failure to participate in a contested case and, therefore, be cause for finding a party in default.

(2) (a) Upon entry into the record of the petitioner’s default at a contested case proceeding, the petition shall be dismissed.

(b) Upon entry into the record of a respondent’s default at a contested case proceeding, the matter shall be considered unopposed relative to such respondent.

(3) Where the case is unopposed, the petitioner has the burden of making a prima facie case, which may be done based on written filings. The Commission or Hearing Officer may require additional proof to ensure compliance with statutory requirements.

History

Authority: T.C.A. §§ 4-5-309, 4-5-317, 65-2-102, and 65-2-108.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.18 INITIAL AND FINAL ORDERS

(1) The Uniform Administrative Procedures Act governs the review and effectiveness of initial and final orders.

(2) The Commission may review all initial orders.

(3) Any final order shall be signed by the Commissioners who make the decision and attested to by the Executive Director. If any Commissioner was absent during the proceeding when the decision was made, abstained from voting, or dissented from the decision, that fact shall be reflected in the final order.

(4) Any Commissioner may file a statement explaining their position. The statement may be attached to the final order or filed separately in the record.

(5) When requested by the Commission parties of record may submit proposed final orders for approval by the Commission. Any such final order shall conform to the statutory requirements for final orders.

History

Authority: T.C.A. §§ 4-5-314, 4-5-318, 65-2-102, and 65-2-112.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” “Chair of the Commission” references were changed to “Executive Director,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.19 STAYS

(1) Any petition for stay filed under T.C.A. § 4-5-316 shall state the grounds upon which a stay is requested with reasonable specificity and be served on all parties of record. The petition may be supported by a brief, affidavit, or other supporting evidentiary materials.

(2) Any party opposing a stay may file a brief in opposition within ten days after the service of the petition for stay.

(3) In deciding whether to grant a stay, the Commission shall consider and give appropriate weight to:

(a) The likelihood of the success of the petitioner on appeal;

(b) The hardship or injury that may be imposed on the petitioner if a stay is not granted;

History

Authority: T.C.A. §§ 4-5-316 and 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.20 PETITIONS FOR RECONSIDERATION

(1) Any petition for reconsideration shall be filed within 15 days after the date of the entry of an order. The petition shall be served on all parties and include a statement of the grounds upon which relief is requested with reasonable specificity.

(2) If the petitioners seek to present new evidence, the petition must include a statement explaining the reason for failing to introduce the proposed new evidence in the original proceeding, along with a detailed description of the proposed new evidence. This statement shall include copies of documents intended for introduction, identities of proposed witnesses, and summaries of the testimony planned to be presented. Any documents unavailable to the party seeking reconsideration at the time of filing the petition may be described in as much detail as possible and may be submitted later if reconsideration is granted, but no later than three working days before the hearing on reconsideration.

(3) The Commission or Hearing Officer may grant or deny petitions for reconsideration of final orders under T.C.A. § 4-5-317, to the following extent:

(a) Any such petition shall be granted within the twenty days fixed by T.C.A. § 4-5-317(c), or it shall be deemed denied;

(b) If the petition is granted, the matter shall be heard as soon as practicable;

(c) The party seeking reconsideration may be allowed to present new evidence only if the party shows that good cause existed for failing to introduce the new evidence during the original hearing. The opposing party shall be allowed to present rebuttal proof if the party seeking reconsideration is permitted to present new evidence; and (d) Any new evidence allowed to be introduced by the party seeking reconsideration shall be limited to that described in the petition for reconsideration.

(4) The filing of a petition for reconsideration shall not toll the period for review of a final order unless the petition for reconsideration is granted.

History

Authority: T.C.A. §§ 4-5-317 and 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.21 STAFF PARTICIPATION AS A PARTY

(1) In any show cause proceeding, designated staff members, represented by the General Counsel or other counsel employed by the Commission, shall participate as a party.

(2) In any contested case commenced by the Commission, designated staff members, represented by the General Counsel or other counsel employed by the Commission, may participate as a party.

(3) In any other contested case proceeding, designated staff members, represented by the General Counsel or other counsel employed by the Commission, may participate as a party.

(4) Staff members who participate as a party shall be bound to comply with the requirements as any other party.

(5) As soon as practicable after any proceeding in which the staff will participate as a party, the General Counsel shall identify those staff members to all interested parties and staff to prevent ex parte communications.

History

Authority: T.C.A. §§ 4-5-303, 4-5-304, 65-2-102, 65-2-106, and 65-2-107.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing “Executive Secretary” with “Chair of the Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.22 GENERAL PROCEDURAL POWERS

In any contested case, the Commission or the Hearing Officer:

(1) May determine that there is no genuine issue as to any material fact. In reaching such determination, the Commission or Hearing Officer may, in its discretion, hear and determine all or any part of a case, without hearing oral testimony;

(2) May, on its own initiative or the motion of any party, allow amendments, consolidate cases, join parties, sever aspects of the case for separate hearings, permit additional claims or contentions to be asserted, bifurcate, or otherwise order the course of proceedings to further the just, efficient, and economical disposition of cases consistent with the statutory policies governing the Commission; and (3) Before exercising these general procedural powers, all parties shall be given reasonable notice and an opportunity to be heard.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-01-02-.23 PETITION FOR RATES

(1) The rules in this section shall apply to petitions to revise rates filed under T.C.A. § 65-5- 103(a).

(2) The petitioner is required to file a notice of its intention to file a petition for revision of rates with the Docket Manager not less than 30 calendar days before filing its petition. At that time, a copy of the notice must also be emailed to the Commission’s General Counsel, the Director of the Utilities Division, the Consumer Advocate Division of the Tennessee Attorney General’s Office, and all parties of record from the utility’s most recent rate case. This notice will initiate a proceeding that requires the applicable filing fee under T.C.A. § 65-2-103 and Commission Rule 1220-01-01-.04, but does not begin the calculation of time under T.C.A. § 65-4-103(a) and (b).

(3) A petition for revision of rates shall include the following information to be considered complete:

(a) A summary of the proposed changes that includes an estimated residential and commercial monthly and annual increase if the requested change is granted;

(b) Pre-filed testimony supporting the proposed rate change; and, (c) A tariff implementing the proposed change.

(4) Customer notice of the petition shall be required:

(a) Within the next billing cycle or 45 days of the filing date of the rate petition, whichever is sooner, the Company applying for a revision of rates shall send directly to its customers, in the same manner they receive billing statements, either electronically or by first-class mail, a notice of its filing that includes the summary set forth in (3)(a) above.

(b) Once the date and location of the hearing on the petition have been determined, the Company must, within five days, provide an accurate update to the notice previously posted on its website and send the update directly to its customers in the same manner they receive their billing statements, either electronically or by first-class mail. This update shall include the date, location, and time scheduled for the hearing, an accurate summary of the proposed rate or rate changes currently presented to the Commission in the Company’s testimony, and a summary of the position, including rates or rate changes, proposed by any intervening parties.

(c) The petitioner, by a duly authorized officer, or by its attorney, shall file a statement in writing on or before the date of hearing that the information required above has been distributed to its customers in the same manner they receive billing statements.

(5) Discovery in rate proceedings shall be governed by Rule 1220-01-02-.11.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: New rule filed August 11, 2025; effective November 9, 2025.

Chapter 1220-01-03 Alternative Dispute Resolution

Tenn. Comp. R. & Regs. 1220-01-03-.01 DEFINITIONS

For the purposes of this chapter, the following terms shall have the following meanings:

(1) “Mediation” is an informal process in which a neutral person, referred to as a mediator, conducts discussions among the parties designed to enable them to reach a mutually acceptable agreement on all or any part of the issues in dispute.

(2) “Administrative settlement conference” is a mediation conducted by a Hearing Officer who will not otherwise be involved in the proceeding.

(3) “Non-binding arbitration” is a process, other than arbitrations held pursuant to § 252 of the Federal Telecommunications Act, in which a neutral person or a panel, called an arbitrator or an arbitration panel, considers the facts and arguments presented by the parties and makes a decision which is non-binding.

(4) “Summary proceeding” is a proceeding wherein the parties present their evidence, if any, solely by affidavits and their arguments solely by written briefs, unless the Commission, either on motion of a party or on its own motion, determines that oral argument would assist in the expeditious disposition of the matters at issue.

(5) “Administrative dispute resolution procedure” is a mediation, administrative settlement conference, non-binding arbitration or summary proceeding as provided in these rules.

History

Authority: T.C.A. §§ 4-5-105, 65-2-102, and 65-2-108.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-01-03-.02 APPLICATION

(1) The Commission may use an administrative dispute resolution procedure for the resolution of all or part of the issues in any contested case provided all parties agree to such procedure.

(2) The limitations on the uses of administrative dispute resolution procedures do not apply to settlements of issues pursuant to a pre-hearing conference or during the course of the hearing of a contested case. The procedures utilized in this chapter supplement, rather than limit, other available dispute resolution methods.

(3) Even though the parties agree to the use of administrative dispute resolution procedures, the Commission may refuse to follow such procedures and proceed under contested case procedures if the Commission determines that such use would be contrary to the public interest or the statutory policies governing the Commission. In making that determination, the Commission shall consider whether:

(a) A definitive or authoritative resolution of the matter is required for precedential value, and such a proceeding is not likely to be accepted generally as an authoritative precedent;

(b) The matter involves, or may bear upon, significant issues of policy that require additional procedures before a final resolution may be made, and such a proceeding would not likely serve to develop a recommended policy for the Commission;

(c) The maintenance of established policies is of special importance, so that variations among individual decisions are not increased, and such a proceeding would not likely reach consistent results among individual decisions;

(d) The matter significantly affects persons or organizations who are not parties to the proceeding;

(e) A full public record of the proceeding is important, and an administrative dispute resolution procedure cannot provide such a record; and (f) The Commission shall maintain continuing jurisdiction over the matter with authority to alter the disposition of the matter in the light of changed circumstances, and an administrative dispute resolution procedure would interfere with the Commission’s fulfillment of such requirement.

History

Authority: T.C.A. §§ 4-5-105, 65-2-102, and 65-2-108.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-01-03-.03 INITIATION

(1) Upon motion of any party, or on its own motion, the Commission may serve all parties to the contested case with a notice of proposed administrative dispute resolution procedure. Such notice shall state the type of proceeding proposed and give the parties a stated time within which to indicate their agreement or disagreement with the use of the proposed administrative dispute resolution procedure.

(2) All parties to a contested case may submit a proposed agreed order for the use of an administrative dispute resolution procedure; in such event, no notice of proposed administrative dispute resolution procedure shall be served. Any such proposed agreed order shall state the procedure to be followed.

(3) If all parties agree to the use of the proposed administrative dispute resolution procedure and the Commission determines that such use would not be contrary to the public interest or to the statutory policies governing the Commission, the Commission shall issue an order initiating the administrative dispute resolution procedure and specifying the procedure and the schedule to be followed.

History

Authority: T.C.A. §§ 4-5-105, 65-2-102, and 65-2-108.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-01-03-.04 INADMISSIBILITY OF EVIDENCE

(1) Evidence of conduct or statements made in the course of administrative dispute resolution proceedings under these rules shall be inadmissible in proceedings before the Commission to the same extent that conduct or statements are inadmissible in court under Rule 408 of the Tennessee Rules of Evidence.

History

Authority: T.C.A. §§ 4-5-105, 65-2-102, and 65-2-108.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-01-03-.05 CONFIDENTIALITY

(1) A mediator, a Hearing Officer conducting a settlement conference, an arbitrator or a member of an arbitration panel shall preserve and maintain the confidentiality of all administrative dispute resolution proceedings in which that person participates, except when required by law to disclose the information.

History

Authority: T.C.A. §§ 4-5-105, 65-2-102, and 65-2-108.
Administrative History: Original rule filed June 30, 2000; effective September 13, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-01-04 Access to Public Records Held by the Commission

Tenn. Comp. R. & Regs. 1220-01-04-.01 PURPOSE AND SCOPE

(1) Pursuant to Tenn. Code Ann. § 10-7-503(g), the purpose of the following public records rules are to provide timely and efficient access to public records of the Commission while at the same time preserving the confidentiality and protection of records or information as provided under state and federal law.

(2) The Tennessee Public Records Act provides that all state public records shall, at all times during regular business hours, be open for personal inspection by any citizen of this state, and those in charge of the records shall not refuse such right of inspection to any citizen, unless otherwise provided by state law.

(3) Through the Public Records Request Coordinator identified in this Rule below, the Tennessee Public Utility Commission shall timely and efficiently provide access and assistance to persons requesting to view or receive copies of public records. No provisions of this Rule shall be used to hinder access to open public records. However, the integrity and organization of public records, as well as the efficient and safe operation of the Commission, shall be protected as provided by current law. Questions about these Rules should be addressed to the Commission’s Public Records Request Coordinator or to the Tennessee Office of Open Records Counsel (“OORC”).

History

Authority: T.C.A. §§ 10-7-503 and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019.

Tenn. Comp. R. & Regs. 1220-01-04-.02 DEFINITIONS

(1) “Commission” or “TPUC” means the Tennessee Public Utility Commission.

(2) “Public Record” means all documents, papers, letters, maps, books, photographs, microfilms, electronic data processing files and output, films, sound recordings, or other material, regardless of physical form or characteristics, made or received pursuant to law or ordinance or in connection with the transaction of official business by any governmental agency.

(3) “Public Records Request Coordinator” or “PRRC” means the individual(s) whose responsibility it is to ensure public record requests are routed to the appropriate records custodian and fulfilled in accordance with the Tennessee Public Records Act. The PRRC is the Commission’s Docket and Records Manager within the Legal Division.

(4) “Records Custodian” means the office, official, or employee lawfully responsible for the direct custody and care of a public record. The records custodian is not necessarily the original preparer or receiver of the record.

June, 2019 2 (5) “Requestor” means a citizen of the State of Tennessee seeking access to a public record, whether for inspection or duplication.

(6) “Tennessee Public Records Act” or “TPRA” means the State law codified in T.C.A. §§ 10-7- 503, et seq.

History

Authority: T.C.A. §§ 10-7-503 and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019.

Tenn. Comp. R. & Regs. 1220-01-04-.03 REQUESTS FOR ACCESS TO PUBLIC RECORDS

(1) Public record requests, whether written or oral, shall be made to the PRRC or designee so as to ensure that such requests are routed to the appropriate records custodian and fulfilled in a timely manner.

(2) Public record requests shall include the following information clearly and concisely expressed:

(a) Name and Tennessee contact information, including telephone and email address (in order to provide any communication required under the TPRA);

(b) Detailed description of the records being requested, including type, time frame, subject matter or key words, and any other information identifying the records;

(c) Statement whether the request is for inspection or receipt of copies, or both; and (d) Delivery preference if requesting copies.

(3) Proof of Tennessee citizenship by the presentation of a valid, unexpired state governmentissued photo identification is required in order to inspect or receive copies of public records. If a person does not possess photo identification or validity of the identification is in question, the PRRC may require other forms of identification. Upon a satisfactory showing, such proof of state citizenship will not be kept or retained by the PRRC. If copies of documentation are provided by mail or electronically to the PRRC, after verification, the information will be disposed of in such a way as to maintain the confidentiality of the information.

(4) Requests for access to inspect public records maintained or received by the Commission may be made to the PRRC in-person, by mail, telephone, fax, or email.

(5) Requests for copies, or requests for inspection and copies of public records, shall be made in writing. A requestor may use the TPUC Public Records Request form available on the TPUC website. If the TPUC Public Records Request form is not used, the written request must still contain all information required under (2) of this section.

(6) Requests not made in an appropriate manner or requests that are not directed to the PRRC as provided herein, will not be accepted. Requests made via any method other than those prescribed herein will not be accepted.

(7) The contact information for the PRRC is as follows:

Tennessee Public Utility Commission ATTN: Docket & Records Manager/Public Records Request Coordinator Andrew Jackson State Office Building, 502 Deaderick Street, 4 th Floor Nashville, Tennessee 37243 June, 2019 3 Phone: 615-770-6850 Fax: 615-741-9934 Email: TPUCRecRequest@tn.gov (8) Any changes to the contact information for the PRRC shall be posted on the TPUC’s website.

History

Authority: T.C.A. §§ 10-7-503 and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019.

Tenn. Comp. R. & Regs. 1220-01-04-.04 RESPONSES TO REQUESTS FOR PUBLIC RECORDS

(1) Public Records Request Coordinator.

(a) The PRRC shall review public records requests and make a determination of the following:

Whether the requester has provided evidence of Tennessee citizenship pursuant to Rule 1220-01-04-.03(3);
Whether the records requested are described with sufficient specificity to identify them;
Whether the TPUC is the custodian of the records; and 4. Whether the records requested, or any of their contents, are protected and, thus, not subject to disclosure based on applicable federal or state law or rules.

(b) The PRRC shall acknowledge receipt of the request and take any of the following appropriate actions:

Inform the requester of this rule chapter and the determinations made regarding:

(i) Evidence of Tennessee citizenship;

(ii) Fees (and labor threshold and waivers, if applicable);

(iii) Aggregation of multiple or frequent requests; or (iv) Need for clarification of the request(s).

As appropriate, deny the request in writing and provide the appropriate ground(s) for denial, which may include:

(i) The requester is not a Tennessee citizen or has not presented evidence of Tennessee citizenship;

(ii) The request lacks specificity. The Commission may work with a requestor to clarify the request;

(iii) An exemption makes the requested record protected from disclosure;

(iv) TPUC is not the custodian of the requested records;

(v) The records requested do not exist; or, (vi) Any other legal grounds for denial.

June, 2019 4 3. As appropriate, contact the requestor to see if the request can be narrowed or otherwise clarified.

Forward the records request to the appropriate records custodian within TPUC.
If requested records are in the custody of a different governmental entity, and the PRRC knows the correct governmental entity, advise the requestor of the correct governmental entity and PRRC for that entity, if known.

(2) Records Custodian.

(a) Upon receiving a public records request, a TPUC records custodian in collaboration with the PRRC shall gather the requested public records in accordance with Tenn.

Code Ann. § 10-7-503. Before making the records available, General Counsel or his/her designee shall conduct a review to ensure the preservation of confidential or protected information as provided in state and federal law.

(b) If it is not practicable to promptly provide the requested records, the records custodian in collaboration with the PRRC shall, within seven (7) business days from the records custodian’s receipt of the request, direct the PRRC to send the requestor a written response indicating the reason for the delay and an estimate of the additional time necessary to produce the records or information. Reasons for delay may include:

To determine whether the requested records exist;
To search for, retrieve, or otherwise gain access to records;
To determine whether all or part of the records are open or confidential;
To redact records; or 5. For other similar reasons.

(c) If a records custodian in collaboration with the PRRC denies a public records request, the PRRC shall deny the request in writing.

(d) If a records custodian in collaboration with the PRRC reasonably determines that production of records should be segmented because the records request is for a large volume of records, or additional time is necessary to prepare the records for access, the PRRC’s response shall notify the requester that production of the records will be in segments and that a records production schedule will be provided as expeditiously as practicable. As appropriate, the records custodian or PRRC should contact the requester to see whether the request can be narrowed.

(e) If a records custodian discovers that records responsive to a request were omitted, the records custodian shall promptly contact the PRRC concerning the omission and produce the records as quickly as practicable. The PRRC will contact the requestor and supplement the records response.

History

Authority: T.C.A. §§ 10-7-503, 10-7-504, and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019. June, 2019 5

Tenn. Comp. R. & Regs. 1220-01-04-.05 REDACTION OF RECORDS

(1) If a record contains confidential information, or information that is not open for public inspection, the PRRC or the records custodian shall prepare a redacted copy of the record and consult with General Counsel or his/her designee before providing access to the records.

(2) Whenever a redacted record is provided, the PRRC will provide the requestor with the general basis for redaction without revealing confidential or protected information.

History

Authority: T.C.A. §§ 10-7-503, 10-7-504, 10-7-515, and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019.

Tenn. Comp. R. & Regs. 1220-01-04-.07 FEES, PAYMENT, AND WAIVERS

(1) The Commission shall assess charges for copying and labor required to produce copies of the requested public records based on the most current version of the Schedule of Reasonable Charges issued by the OORC. The Schedule of Reasonable Charges is available on the Tennessee Comptroller of the Treasury’s website on the OORC page.

(2) The PRRC will provide requestors with an itemized written estimate of the charges prior to producing copies of records. Requestors must pay the estimate before the records will be released.

(3) When fees for copies and labor do not exceed ten dollars ($10.00), the fees may be waived by the PRRC.

(4) Fees associated with aggregated record requests will not be waived.

(5) Payment of charges shall be payable to the Commission by cashier’s check, money order, or other reliable means determined by the TPUC, and delivered as specified by the PRRC.

History

Authority: T.C.A. §§ 10-7-503 and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019.

Tenn. Comp. R. & Regs. 1220-01-04-.08 AGGREGATION OF FREQUENT AND MULTIPLE REQUESTS

(1) TPUC will aggregate record requests for records of TPUC when four (4) or more requests are received within a calendar month either from a single individual or a group of individuals deemed working in concert by the PRRC.

(2) The PRRC is responsible for making the determination that a group of individuals are working in concert, and upon such determination, shall inform the individuals that they have been deemed to be working in concert and that requests will be aggregated.

(3) Routinely released and readily accessible records shall be excluded from aggregation. Such records include, but are not limited to, any public docket filings, notices, orders, agendas, meeting minutes, and other materials that are accessible on the Tennessee Public Utility Commission’s website.

History

Authority: T.C.A. §§ 10-7-503 and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019.

Tenn. Comp. R. & Regs. 1220-01-04-.09 FAILURE TO INSPECT OR FAILURE TO PAY FOR COPIES

(1) If a requestor makes two (2) or more requests to view a public record within a six-month period and, for each request, the requestor fails to view the public record within fifteen (15) business days of receiving notification that the record is available to view, or misses two (2) or more scheduled appointments to view, TPUC will not comply with any public records request from the requestor for a period of six (6) months from the date of the second request to view the public record unless the TPUC determines failure to view the public record was for good cause.

(2) If, after agreeing to pay an estimated cost prior to the production of copies, a requestor fails to pay the cost to produce the requested copies, TPUC will not comply with any public record requests from the requestor until payment is received.

History

Authority: T.C.A. §§ 10-7-503 and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019.

Tenn. Comp. R. & Regs. 1220-01-06-.06 INSPECTION AND COPIES

(1) For inspection of public records:

(a) There shall be no charge for the inspection of public records.

(b) The location for inspection of public records will be in the office location of the PRRC in Nashville and such inspection will occur during the Commission’s normal business hours.

(c) Under reasonable circumstances, the PRRC may require an appointment for inspection or may require inspection of records at an alternate location.

(2) If after viewing the records, a requestor wishes to obtain copies, the Commission will make copies and assess charges in accordance with Rule 1220-01-04-.07, or copies may be made as follows:

(a) A requestor may use a personal camera or cell phone to take a photograph of a public record so long as the organization and integrity of the record is maintained. If a record contains confidential or protected information, the record may not be photographed until all appropriate redactions are completed.

(b) The requestor will not be allowed to connect any personal equipment to a TPUC computer or electronic device, including but not limited to utilizing a flash drive, in order to make copies of public records.

(3) Upon receipt of a request for copies of open public records, the Commission shall calculate the cost based on copy and labor charges for the entire request, or pro-rate the charges on a per page basis and promptly make the copies available to the requestor in the following manner:

(a) For pickup at a location specified by the PRRC;

(b) By regular mail delivery through the United States Postal Service to the requestor’s home or other acceptable address within Tennessee; or (c) Electronic records that can be sent in a single transmission will be sent by email, except when such records include personally identifiable information.

History

Authority: T.C.A. §§ 10-7-503 and 65-2-102.
Administrative History: Original rules filed March 4, 2019; effective June 2, 2019. June, 2019 6

Chapter 1220-02 Transferred to 1340-06-01

Tenn. Comp. R. & Regs. 1220-02 Transferred to 1340-06-01

RULES

OF TENNESSEE REGULATORY AUTHORITY

DIVISION OF MOTOR CARRIERS

OF MOTOR VEHICLES AND MOTOR BUSES

TABLE OF CONTENTS

Administrative History: Chapter 1220-2-1 was transferred to Chapter 1340-6-1 by the Secretary of State with editorial changes pursuant to Public Chapter 305 of 1995 and Public Chapter 826 of 2002; effective March 28, 2003. -- 1 of 1 --

Chapter 1220-03 Repealed

Tenn. Comp. R. & Regs. 1220-03-01-.01 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Rule has been assigned a new control number, removed, and renumbered to 1680-12-2-.01 filed and effective January 16, 2002. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.02 REPEALED

History

Authority: T.C.A. §65-2-102.
Administrative History: Original rule certified May 9, 1974. Repeal by Public Chapter 440; effective July 1, 1985. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.03 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed August 26, 1988; effective November 29, 1988. Rule has been assigned a new control number, removed, and renumbered to 1680- 12-2-.02 filed and effective January 16, 2002. Repeal filed February 11, 2015; effective May 12, 2015. -- 1 of 7 -- REPEALED CHAPTER-1220-03-01

Tenn. Comp. R. & Regs. 1220-03-01-.04 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed November 30, 1977; effective December 30, 1977. Repeal filed February 11, 2015; effective May 12, 2015. 1220-03-01-05 REPEALED, Authority: T.C.A. § 65-2-102.

Tenn. Comp. R. & Regs. 1220-03-01-.07 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.08 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.09 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repeal by Public Chapter 440; effective July 1, 1985. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.10 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Rule has been assigned a new control number, removed, and renumbered to 1680-12-2-.04 filed and effective January 16, 2002. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.11 RESERVED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Rule has been assigned a new control number, removed, and renumbered to 1680-12-2-.05 filed and effective January 16, 2002. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.12 RESERVED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Rule has been assigned a new control number, removed, and renumbered to 1680-12-2-.06 filed and effective January 16, 2002. Repeal filed February 11, 2015; effective May 12, 2015. -- 2 of 7 -- REPEALED CHAPTER-1220-03-01

Tenn. Comp. R. & Regs. 1220-03-01-.13 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed August 22, 1978; effective October 6, 1978. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.14 THROUGH 1220-03-01-.19 REPEALED

History

Authority: § 65-2-102.
Administrative History: Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.20 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.21 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.22 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.23 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.24 REPEALED

History

Authority: T.C.A. §63-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.25 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.26 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.27 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015. -- 3 of 7 -- REPEALED CHAPTER-1220-03-01

Tenn. Comp. R. & Regs. 1220-03-01-.28 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Amendment filed March 29, 1985; effective June 14, 1985. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.29 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.30 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.31 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.32 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.33 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.34 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.35 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Amendment filed March 29, 1985; effective June 14, 1985. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.36 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.37 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015. -- 4 of 7 -- REPEALED CHAPTER-1220-03-01

Tenn. Comp. R. & Regs. 1220-03-01-.38 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.39 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.40 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.41 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.42 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Amendment filed March 29, 1985; effective June 14, 1985. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.43 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.44 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.45 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.46 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.47 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.48 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015. -- 5 of 7 -- REPEALED CHAPTER-1220-03-01

Tenn. Comp. R. & Regs. 1220-03-01-.49 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.50 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.51 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Amendment filed March 29, 1985; effective June 14, 1985. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.52 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.53 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.54 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.55 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983.

Tenn. Comp. R. & Regs. 1220-03-01-.56 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.57 REPEALED

History

Authority: T.C.A. § 65-2-102..
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.58 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015. -- 6 of 7 -- REPEALED CHAPTER-1220-03-01

Tenn. Comp. R. & Regs. 1220-03-01-.59 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-03-01-.60 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed July 18, 1983; effective October 14, 1983. Repeal filed February 11, 2015; effective May 12, 2015. -- 7 of 7 --

Chapter 1220-04-01 General Public Utility Rules

Tenn. Comp. R. & Regs. 1220-04-01-.01 CAPITAL ADDITIONS BUDGETS OF UTILITIES

(1) All public utilities operating in the State of Tennessee shall submit one (1) copy of the following information on an annual basis, to be filed no later than ninety (90) days after the beginning of the current fiscal year with the Director, Utilities Division or as otherwise agreed upon.

(a) Projected expenditures on capital construction projects both routine and specific for the current year.

(b) For the current year a brief description of the nature, location and necessity of individual specific projects. Individual specific projects are those projects which for public utilities having more than 300,000 customers in their Tennessee jurisdiction any addition to plant where the cost of the project exceeds $200,000. For public utilities having between 30,000 and 300,000 customers in their Tennessee jurisdiction, any addition to plant where the cost of the project exceeds $100,000. For public utilities having less than 30,000 customers in their Tennessee jurisdiction, any addition to plant where the cost of the project exceeds $50,000.00.

(c) New projects over the above thresholds that arise during the reporting year as well as reported projects that are later deferred or canceled should be reported at the time of such decisions if they significantly impact customer service. A summary of all changes, together with reasons for change will be included as a supplement to the following year’s annual report.

(2) Those utilities that, pursuant to Rule 1220-04-02-.55, prepare Tennessee specific capital addition budgets for the first and second following years shall also file similar information for these years with the filing in (a) above.

(3) An annual conference, where appropriate, will be scheduled for each utility as required by the Commission’s Staff for clarification of the submitted capital additions budgets. The review of such information at an annual conference will not necessarily constitute approval of a utility proposed capital addition.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed December 3, 1986; effective March 31, 1987. Repeal filed August 7, 1992; effective November 29, 1992. New rule filed June 4, 1993; effective September 28, 1993. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Amendment filed February 11, 2015; effective May 12, 2015. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.02 TARIFF SPECIFICATIONS

(1) Form and Style of Tariffs.

(a) All tariffs must be in book, sheet or pamphlet form with loose leaves so that changes can be made by reprinting and inserting a single leaf.

(b) The initial tariff filed by each public utility shall be designated as TRA No. 1 and thereafter as other tariffs are filed they shall be designated with the next number in consecutive numerical order. Revisions and additions shall be inserted in the most appropriate location and denoted by the previous sheet numbers plus a letter, i.e., 3A, 3B, etc., or 3.1, 3.2, etc. Revisions to tariff sheets shall be denoted by 1st Revised Sheet No. 3, 2nd Revised Sheet, etc.

(c) The title page should be uniform. Rates, rules and regulations shall be written only on one side of a sheet. If a single sheet is insufficient, two or more pages should be used.

(d) Separate tariffs shall be filed for electric, telephone, telegraph, gas, water, heat or for any other services rendered.

(2) Size of Tariffs and Copies Required.

(a) Tariffs and supplements thereto must be typewritten on paper 8½ x 11 inches in size.

(b) Three copies of each tariff, rate schedule, or revision or supplement shall be filed with the Commission. All three shall bear the name and title of the issuing officer.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.03 TARIFF CONTENTS

(1) Tariffs must explicitly state the rates and charges for each class of service rendered, designating the area or district to which they apply.

(2) Rules and regulations of the utility that in any manner affects the rates charged or to be charged or that define the extent or character of the service to be given shall be included with each tariff.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.04 TARIFF CHANGES REQUIRE THIRTY (30) DAYS NOTICE TO THE COMMISSION

(1) Except as hereinafter provided all tariffs, rate schedules or supplements thereto containing any change in rates, tolls, charges or rules and regulations must be filed with the Commission at least thirty (30) days before the effective date of such changes, unless upon application and for good cause shown the Commission may waive the thirty (30) day time limit or any portion thereof.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.05 REPEALED

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule certified May 9, 1974. Amendment filed November 9, 1984; effective December 9, 1984. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-04-01-.06 CHANGES IN TARIFF

(1) All public utilities, agents, representatives, or bureaus issuing tariffs or schedules of rates and charges affecting Tennessee intrastate business, shall file with the Tennessee Public Utility Commission of the State of Tennessee written notice, in triplicate, containing a brief explanation of the character of and reason for proposed changes in said tariff schedules.

(2) Such explanation shall be filed not later than the date said tariff or schedule is filed.

(3) A receipt copy of said explanation shall be evidence of filing such explanation and related tariffs or schedules.

(4) All tariffs and supplements affecting Tennessee intrastate business shall be filed with the Tennessee Public Utility Commission at least thirty (30) days before the date upon which they are to become effective, unless upon application and for good cause shown the Commission may waive the thirty (30) days time limit or any portion thereof.

(5) The Commission may, on its own motion or on the filing of a sufficient protest by any person or persons affected, order such tariff modified or suspended.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.07 SPECIAL CONTRACTS

(1) Special contracts between public utilities and certain customers prescribing and providing rates, services and practices not covered by or permitted in the general tariffs, schedules or rules filed by such utilities are subject to supervision, regulation and control by the Commission. A copy of such special agreements shall be filed, subject to review and approval.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.13 EXTENSIONS OF SERVICE TO CONTIGUOUS TERRITORY

(1) For purposes of this Rule, “contiguous” means immediately adjacent, and sharing at least one significant common boundary line. A geographic feature such as a roadway or stream along the common boundary line will not negate contiguity. However, any intervening land or significant body of water will disqualify a territory from being contiguous. An extension that traverses unoccupied territory that will not be served by the extension is not contiguous.

(2) Neither a Certificate of Public Convenience and Necessity (“CCN”) nor an amendment to an existing CCN shall be required for the extension of public utility service into territory that is contiguous to the territory occupied by such public utility’s plant, route, line, or system, when:

(a) The contiguous territory is not receiving similar service from another utility service provider; and, (b) The contiguous territory is not located within the designated service territory of another utility providing similar service.

(3) A public utility shall provide written notice to the Commission of its intention to construct, acquire, or commence operation of a utility system or service in territory that is contiguous to the service territory already designated to the public utility for the provision of service of a like character. Concerning such written notice, the public utility shall:

(a) File notice with the docket clerk for the Commission at least thirty (30) days before constructing, acquiring, or commencing operation of such utility system or service; and, (b) Provide notice in a form approved by the Commission; which shall include identification of the area to be served by the extension and other information required by the Commission in the performance of its statutory general supervisory and regulatory duties.

(4) In addition to the written notice to the Commission required by paragraph three (3) herein, the public utility shall provide to the Commission:

(a) Proof of notice that may be required to any regulatory agency of the extension of service of contiguous territory;

(b) A complete description of the geographic contiguous territory to be served by the expansion including the name and location of the development (subdivision), number of acres, and the existing territory served by the utility proposing to expand its service area. A legible map of the area with the proposed contiguous service territory and the currently served territory shall also be provided.

(c) Documentation of permits, permit modifications and/or amendments, or other approval documents certifying the existence of appropriate capacity and/or ability to provide service issued by any regulatory agency; and, (d) Documentation concerning any complaint(s), notices of violation, or administrative action filed with or issued by a regulatory agency concerning the operations of the utility plant, route, line, or system, to be extended. Such documentation shall also be provided for any complaint(s), notices of violation, or administrative action filed with or issued by a regulatory agency within sixty (60) days after the filing of the written notice required by paragraph three (3) herein.

(5) In addition to the requirements of paragraphs three (3) and four (4), a public wastewater utility shall provide to the Commission:

(a) Proof that the operating permit for the existing system has been modified and reissued by the Tennessee Department of Environment and Conservation (“TDEC”) to reflect the additional wasteload; or, demonstrate that the existing system design has capacity to support the design flow of the original system and the design flow expected from the contiguous area, and a public notice confirming that the public utility appropriately announced its intention to serve the contiguous property at issue; and, (b) Certification from a design engineer that the existing wastewater system, before any alteration needed to extend service, was constructed in accordance with TDECapproved construction plans and specifications. The certification shall be filed in the docket prior to providing service.

(6) Upon the filing of a written notice, the Commission shall open a docket for the review of the notice. A commission order, including appropriate findings of fact and conclusions of law, shall be entered not more than sixty (60) days from the filing of the written notice and all required documentation, and shall be limited to whether the intended expansion qualifies as an expansion into contiguous territory.

History

Authority: T.C.A. §§ 4-5-201, et seq.; 65-2-102; and 65-4-201.
Administrative History: New rule filed February 4, 2021; effective May 5, 2021.

Tenn. Comp. R. & Regs. 1220-04-01-.08 NAME CHANGES FOR PUBLIC UTILITIES

(1) (a) Any public utility (i) changing its registered business name, (ii) adopting an assumed business name, or (iii) discontinuing the use of an assumed business name shall notify the Commission at least thirty (30) days before offering services to Tennessee customers under a new name.

(b) A public utility certificated in the state of Tennessee pursuant to T.C.A. § 65-4-201 but not presently offering services to Tennessee customers shall notify the Commission of any change referenced above within thirty (30) days of the change.

(2) A notification of any change referenced in subsection (1)(a) above shall include all of the following:

(a) For public utilities operating as either a corporation, limited liability company, or limited liability partnership, verification that the public utility has registered the changed or assumed business name with the Office of the Tennessee Secretary of State in compliance with the requirements of T.C.A. §§ 48-14-103, 48-54-103, 48-207-103, or 61-2-103;

(b) For public utilities providing telecommunications services in the state of Tennessee, verification that the changed or assumed business name has been recorded in the public utility’s surety bond or letter of credit obtained pursuant to T.C.A. § 65-4-125;

(c) If the public utility is currently serving end user customers in the state of Tennessee, a copy of the proposed notice to be sent to the utility’s Tennessee customers for the

purpose of informing these customers of the anticipated change in business name, adoption of an assumed business name, or removal of an assumed business name; and (d) If the public utility intends to use more than one business name to provide services in the state of Tennessee, a notice specifying which services will be provided to customers under each name.

(3) At its own discretion, the Commission may waive any of the requirements of subsection (2) of this rule for good cause.

History

Authority: T.C.A. §§ 48-14-103, 48-54-103, 48-207-103, 61-2-103, 63-2-102, 65-2-101, 65-4-104, and 65-4-201.
Administrative History: Original rule certified May 9, 1974. Amendment by Public Chapter 440; effective July 1, 1985. Amendment filed July 14, 2005; effective September 27, 2005. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.09 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Amendment of the Pipeline Safety Rule effective on November 1, 1970, to be the Minimum Federal Safety Standards for the transportation of natural and other gas by pipeline (Title 49, Chapter 1, Part 192) as published in the Federal Register, Volume 35, Number 161. Amendment to delete paragraph (b) of Section 192-455 (Title 49, Chapter 1, Part 192) as published in the Federal Register, Volume 36, Number 126, from its standard for the transmission of natural and other gas by pipeline; effective August 1, 1972. Rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed August 11, 2025; effective November 9, 2025.

Tenn. Comp. R. & Regs. 1220-04-01-.10 REPORTS-UNIFORM FINANCIAL REPORT FORMS

(1) Reports All electric, telephone, gas, water, and other public utility companies as set forth in T.C.A. § 65-4-101, and with operating revenues in excess of $250,000 annually, shall submit financial statements to the Commission monthly, and public utilities with operating revenues of less than $250,000 annually shall submit quarterly financial statements to the Commission, except as otherwise provided in this rule.

(2) Type of Public Utilities (a) Telephone Utility Companies 1. All companies subject to the jurisdiction of the Commission as set forth in T.C.A. § 65-4-101, which are either a subsidiary of a holding company or have in excess of 6,000 access lines shall submit monthly to this Commission Monthly Report Form TRA-3.01 within sixty (60) days after the end of the month covered by the report. The Monthly Report Form shall be completed by each company to the extent data is available.

All companies subject to the jurisdiction of the Commission as set forth in T.C.A. § 65-4-101, which are not a subsidiary of a holding company and have less than 6,000 access lines shall submit quarterly to this Commission Quarterly Report Form TRA-3.02 within sixty (60) days after the end of the quarter covered by the report. The Quarterly Report Form shall be completed by each company to the extent data is available.
All companies operating pursuant to price regulation under T.C.A. § 65-5-109 shall submit to the Commission the above report annually, for the twelve months ending December, or for the company’s fiscal year, if different, within sixty (60) days after the end of the twelve (12) month period covered by the report.

(b) Gas Utility Companies 1. All companies subject to the jurisdiction of this Commission, as set forth in T.C.A. § 65-4-101, which had operating revenues for the preceding year in excess of $1,500,000 shall submit monthly to this Commission, Monthly Report Form TRA- 3.03 sixty (60) days after the end of the month covered by the report.

All companies subject to the jurisdiction of this Commission, as set forth in T.C.A. § 65-4-101, which had operating revenues for the preceding year of $1,500,000 or less shall submit quarterly to this Commission, Quarterly Report Form TRA- 3.04 sixty (60) days after the end of the quarter covered by the report.

(c) Electric Utility Companies 1. All companies subject to the jurisdiction of this Commission, as set forth in T.C.A. § 65-4-101, which had operating revenues from operations within Tennessee for the preceding year in excess of $1,500,000 shall submit monthly to this Commission, Monthly Report Form TRA-3.05 sixty (60) days after the end of the month covered by the report.

(d) Water Utility Companies 1. All companies subject to the jurisdiction of this Commission, as set forth in T.C.A. § 65-4-101, which had operating revenues for the preceding year in excess of $1,500,000 shall submit monthly to this Commission, Monthly Report Form TRA- 3.06 sixty (60) days after the end of the month covered by the report.

All companies subject to the jurisdiction of this Commission, as set forth in T.C.A. § 65-4-101, which had operating revenues for the preceding year in excess of $100,000 but less than $1,500,000 shall submit to this Commission, Quarterly Report Form TRA-3.07 sixty (60) days after the end of the month covered by the report.

(e) Sewer Utility Companies 1. All companies subject to the jurisdiction of this Commission, as set forth in T.C.A. § 65-4-101, which had operating revenues for the preceding year in excess of $1,500,000, shall submit monthly to this Commission Monthly Report Form TRA- 3.18 sixty (60) days after the end of the month covered by the report.

All companies subject to the jurisdiction of this Commission, as set forth in T.C.A. § 65-4-101, which had operating revenues for the preceding year in excess of $100,000 but less than $1,500,000, shall submit quarterly to this Commission, Quarterly Report Form TRA-3.19, sixty (60) days after the end of the quarter covered by the report.

(3) Uniform Financial Report Forms The following report forms which are attached to this order as Appendix A shall be used by the utility companies, as designated in paragraph (2) of this rule:

(a) Telephone Utility Companies Form TRA-3.01 Form TRA-3.02 (b) Gas Utility Companies Form TRA-3.03 Form TRA-3.04 (c) Electric Utility Companies Form TRA-3.05 (d) Water Utility Companies Form TRA-3.06 Form TRA-3.07 (e) Sewer Utility Companies Form TRA-3.18 Form TRA-3.19

History

Authority: T.C.A. §§ 65-2-102, 65-4-101, 65-4-104, 65-4-401, 65-4-111, and 65-5-109.
Administrative History: Original rule certified May 9, 1974. Amendment filed February 29, 1988; effective May 29, 1988. Amendment filed August 26, 1988; effective November 29, 1988. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Amendment filed September 25, 2003; effective December 9, 2003. Amendment filed February 11, 2015; effective May 12, 2015. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.11 UNIFORM SYSTEM OF ACCOUNTING

(1) The following uniform system of accounting will be followed by utilities and other companies making periodic reports to the Commission:

(a) For Classes A and B telephone companies - Uniform System of Accounts as adopted and amended by the Federal Communications Commission.

(b) For Classes C and D telephone companies - Uniform System of Accounts as adopted and amended by the Federal Communications Commission.

(c) For Classes A and B gas companies - Uniform System of Accounts as adopted by the National Association of Railroad and Utilities Commissioners as revised June 30, 1972, and any amendments or revisions pertaining thereto.

(d) For Classes C and D gas companies - Uniform System of Accounts as adopted by the National Association of Railroad and Utilities Commissioners as revised June 30, 1972, and any amendments or revisions pertaining thereto.

(e) For Classes A and B electric companies - Uniform System of Accounts as adopted by the National Association of Railroad and Utilities Commissioners as revised June 30, 1972, or any amendments or revisions pertaining thereto.

(f) For Classes C and D electric companies - Uniform System of Accounts as adopted by the National Association of Railroad and Utilities Commissioners as revised June 30, 1972, or any amendments or revisions pertaining thereto.

(g) For Classes A, B, and C water companies - Uniform System of Accounts as adopted and amended by the National Association of Railroad and Utilities Commissioners.

(h) For Classes A, B, and C sewer companies - Uniform System of Accounts as adopted and amended by the National Association of Railroad and Utilities Commissioners.

(2) That this rule shall not apply to utilities deriving less than one percent (1%) of their total gross operating revenues from business in Tennessee and they shall be permitted to keep their accounting records in accordance with the system of accounts prescribed by the State

Authority of the State in which a majority of their gross revenues are derived.

(3) That each utility subject to the jurisdiction of this Commission shall notify this Commission within thirty (30) days from the date of this order of its election to adopt either the “service life flow-through” method of accounting or the “initial year flow-through” method of accounting for the treatment of the investment tax credit as provided by Section 38 of the 1954 Internal Revenue Code, as amended, and specifically the 1962 and 1964 Revenue Acts.

(4) That utilities deriving less than one percent (1%) of their total gross operating revenues from business in Tennessee shall be permitted to keep their accounting records in accordance with the system of accounts prescribed by the State Authority of the State in which a majority of their gross revenues are derived.

(5) That the election once made by a utility shall not be subject to change without prior formal approval of this Commission.

History

Authority: T.C.A. §§ 65-2-102, 65-4-101, 65-4-104, and 65-4-111.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 13, 1978; effective November 27, 1978. Amendment filed August 26, 1988; effective November 29, 1988. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Amendment filed February 11, 2015; effective May 12, 2015. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.12 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed March 12, 1981; effective April 27, 1981. Repeal filed October 29, 1993; effective March 1, 1994. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-04-02 Regulations for Telephone Companies

Tenn. Comp. R. & Regs. 1220-04-02-.01 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repealed by Public Chapter 440; effective July 1, 1985. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.02 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repealed by Public Chapter 440; effective July 1, 1985. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.03 DEFINITIONS

(1) In the interpretations of these rules, the following definitions shall be used:

(a) Commission - The Tennessee Public Utility Commission.

(b) Average Busy Season-Busy Hour Traffic - The average traffic volume for the hour having the highest traffic volume throughout the busy season.

(c) Basis Rate Area - The developed portion of portions within each exchange service area as set forth in the telephone utility’s tariffs, maps or descriptions. Main Station service within this area is furnished at uniform rates without extra exchange miles charges.

(d) Busy Hour - The two (2) consecutive half-hours during which the greatest volume of traffic is handled in the office.

(e) Busy Season - That period of the year during which the greatest volume of traffic is handled in the office.

(f) Calls - Customer’s telephone message attempted.

(g) Class of Service - The various categories of service generally available to customers, such as business or residence.

(h) Central Office - A switching unit, in a telephone system which provides service to the general public, having the necessary equipment and operating arrangements for terminating and inter-connecting subscriber lines and trunks or trunks only. There may be more than one central office in a building.

(i) Customer or Subscriber - Any person, firm partnership, corporation, municipality, cooperative organization, governmental agency, etc., provided with telephone service by any telephone utility.

(j) Customer Trouble Report - Any oral or written report from a subscriber or user of telephone service relating to a physical defect or to difficulty or dissatisfaction with the operation of telephone facilities. One report shall be counted for each oral or written report received even though it may duplicate a previous report or merely involve an inquiry concerning progress on a previous report. Also, a separate report shall be counted for each telephone or PBX switchboard position reported in trouble when several items are reported by one customer at the same time, unless the group of troubles so reported is clearly related to a common cause.

(k) Exchange - A unit established by a telephone utility for the administration of telephone service in a specified area which usually embraces a city, town, or village and its environs. It consists of one or more central offices together with associated plant used in furnishing communication service in that area.

(l) Reserved (m) Grade of Service - The number of parties served on a telephone line such as oneparty, two-party, four-party, etc.

(n) Message - A completed customer telephone call.

(o) Outside Plant - The telephone equipment and facilities installed on, along, over, or under streets, alleys, highways, or on private right-of ways between the central office and customer’s locations or between central offices.

(p) Service Line - Those facilities owned and maintained by a customer or group of customers, which lines are connected at an agreed upon point with the facilities of a telephone utility for communication service.

(q) Subscriber Line - The wires or channels used to connect the telephone equipment at the subscriber’s premises with the Central office.

(r) Switching Service - Switching performed for service lines.

(s) Tariff - The entire body of rates, tolls, charges, classifications and rules, adopted and filed with the Commission by a telephone utility.

(t) Telephone Utility - Any person, firm, partnership, corporate organization, or corporation engaged in the furnishing of telephone service and other Communications Services to the public under the jurisdiction of the Commission.

(u) Toll Connecting Trunks - A general classification of trunks carrying toll traffic and ordinarily extending between a local office and a toll office except trunks classified as tributary circuits.

(v) Toll Station - A telephone connected to a toll line or directly to a toll board.

(w) Reporting Entity - Shall be defined as exchange for:

Installation of service (1220-04-02-.35).
Customer trouble reports (1220-04-02-.39).
The other reporting areas shall be reported under this section by districts. The reason for the two (2) exemptions is that the current districts have several reporting areas which cannot be pinpointed. The company has no way to monitor these exemptions by exchanges.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed August 18, 1982; effective September 17, 1982. Amendment by Public Chapter 440; effective July 1, 1985. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.04 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.39 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed February 2, 1976; effective March 3, 1976. Amendment filed August 18, 1982; effective September 17, 1982. Amendment filed March 31, 1987; effective June 29, 1987. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.40 OBLIGATIONS OF RESELLERS AND UNDERLYING CARRIERS OF LOCAL

SERVICE UPON THE TERMINATION OF SERVICE.

(1) The purpose of this rule is to protect those customers who are obtaining their local service from resellers from termination of their service without adequate notice. Because of the public safety implications, local service providers shall have additional obligations as listed below.

(2) This rule applies to any local telecommunications reseller that ceases the provision of any telecommunications service in all or any portion of the State of Tennessee. This rule does not apply to:

(a) Cessation of a service when a reseller replaces the terminated service with comparable service without interruption as long as such change is in compliance with Rule 1220- 04-02-.56; and (b) Discontinuance of a service that has no subscribers.

(3) No underlying carrier shall terminate local service to a reseller until the following requirements are met:

(a) The underlying carrier shall provide no less than thirty (30) days written notice to the reseller that service will be terminated on a date certain along with the reason(s) for such action. A copy of such written notice shall be timely provided to the Commission.

Notwithstanding the above, where the underlying carrier alleges fraud, abuse, or unreasonable interference with the underlying carrier’s network, the underlying carrier is allowed to disconnect the reseller after a two (2) business day notice to the Commission, unless the Commission chairman specifically orders otherwise prior to disconnection. If this emergency provision is invoked, the underlying carrier may be required to comply with the underlying carrier’s service continuity plan per section (5).

(b) Within ten (10) days of receipt of the underlying carrier’s written disconnection notice to the reseller, the reseller shall notify its customers advising that their service will be terminated on a day certain. Such notice shall be no less than fourteen (14) days prior to the date of disconnection. The notice shall advise end-users of the following:

Advise its customers of the need to choose another local telecommunications service provider to continue service after a date certain; and 2. Provide customers any and all relevant information, if available, that may assist the customers in selecting another local telecommunications service provider.

(c) If the reseller fails to fulfill its obligations under section (3)(b), the Commission will notify the reseller’s customers seven (7) days prior to termination of the reseller’s local service and recover costs associated with such a notice from the reseller.

(4) Additional Local Service Obligations for Resellers:

(a) The reseller must provide the Commission and the underlying carrier any and all relevant information, including but not limited to its customers’ names and telephone numbers to ensure that end-user customers will not experience service outage. The reseller must use its best efforts to provide timely and accurate information to the Commission and the underlying carrier.

(b) The reseller must file with the Commission a copy of its notice or the text of the voice message to its customers no less than fourteen (14) days prior to the date of disconnection.

(c) The reseller shall refund to its customers any credits due as a result of the termination of service within thirty (30) days of the termination of the service. The reseller shall provide information to its customers on how such credits will be determined and distributed.

(5) Additional Local Service Obligations for Underlying Carriers:

(a) Within 60 days of the effective date of this rule, each telecommunications service provider having an agreement with a reseller of basic local exchange telecommunications service shall file a tariff which outlines a service continuity plan consistent with this Chapter and, at a minimum, contains the following provisions.

The underlying carrier shall provide basic local exchange service, as defined in Tenn. Code Annotated § 65-5-108, to the customers of the reseller for at least seven (7) days following disconnection of the reseller’s service, or until the customer selects another provider of local service, whichever is less. If a customer selects a new service provider, the underlying carrier may pass through to the new provider the charge for such service provided at the tariffed rate of the underlying carrier. The new provider may pass through this charge to the end-user customer.
After the seven day period described in paragraph (1) above, the underlying carrier may terminate service to the customer unless the customer has either transitioned to a new service provider or has placed an order to transition to the underlying carrier.

(b) Should the reseller fail or refuse to provide notice to its customers as required in (3) above, the underlying carrier shall provide reasonable assistance to the Commission in notifying the customers of the reseller.

(6) Violation of this rule, including failure to provide customer notice in (3), shall be subject to the provisions and penalties of Tenn. Code Ann. § 65-4-120.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, 65-4-123 and 65-4-125.
Administrative History: Original rule certified May 9, 1974. Repealed by Public Chapter 440; effective July 1, 1985. Original rule filed December 5, 2006; effective February 18, 2007. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.41 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.42 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule filed October 20, 1983; effective January 16, 1984. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.43 AUTHORIZATION TO OPERATE A PUBLIC PAY TELEPHONE SERVICE

(1) Every owner or prospective owner, who is not a public telephone company certified by this Commission in accordance with T.C.A. § 65-4-291, of a public pay telephone instrument located in the state of Tennessee connected with or to be connected with the public network shall submit a petition for authorization to provide public pay telephone service to the Commission accompanied by the fee provided for in T.C.A. § 65-2-103. Each company or individual operating a public pay telephone service prior to July 1, 1990 and required to be authorized by this rule shall submit one petition for authorization to include all existing public pay telephone locations owned or operated by said company or individual. All petitions submitted after July 1, 1990 shall be to authorize each public pay telephone service instrument.

(2) All owners, other than certified public telephone companies, of public pay telephone instruments connected to the public network by the effective date of this rule shall have until July 1 of the year in which this rule goes into effect to submit the petition required by section (1) of this rule. Public pay telephone service to commence or to be reconnected to the network after this date shall not be authorized for service until all the requirements of rules governing public pay telephone service are met.

(3) Public pay telephone service shall mean the resale of local service and/or intrastate toll telephone service through customer or telephone company provided equipment which are coin-operated or coinless and whose calls are sent paid or non-sent paid.

History

Authority: T.C.A. §§ 65-2-102, 65-4-101, and 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.44 DATA REQUIRED FOR AUTHORIZATION

(1) In addition to the receipt of a valid filed petition for authorization, the Commission shall require the submission of relevant data and owner certifications on forms supplied by the Commission concerning the operation of a public pay telephone service.

(2) The following data relating to the entity owning or operating the public pay telephone service shall be submitted prior to authorization:

(a) The name, address and telephone number of the individual owner or the responsible individual with the entity which owns the instrument.

(b) Information about the structure of the business organization owning the instrument and where applicable, a copy of any Articles of Incorporation, Partnership Agreement or By Laws of any corporation owning the instrument and a copy of a license to do business in Tennessee.

(c) An up-to-date financial statement for the individual or entity operating the pay telephone service which includes a statement indicating revenues and expenses.

(d) The name, address, and telephone number of a Tennessee contact person responsible for and knowledgeable about the instrument or instruments.

(e) Repair and maintenance information including the name, local address, telephone number, and qualifications of the individual or company responsible for servicing the instrument(s) and supplying refunds.

(f) A copy of the display card to be posted on the pay instrument which contains operating instructions and other required disclosures.

(3) The following data relative to the particular pay telephone instrument shall be submitted prior to authorization:

(a) A description of the instrument including the name and telephone number of the manufacturer, the model and FCC registration number, and the precise location by address and telephone number of the instrument.

(b) Identification of the local exchange telephone company (LEC), the interexchange carrier, and reseller or alternate operator service serving the instrument.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.45 CERTIFICATIONS REQUIRED FOR AUTHORIZATON

(1) To insure uniformity throughout the state with regard to the provision of pay telephone service to the public, the owner or operator of a public pay telephone service seeking authorization to operate a pay telephone service shall agree to abide by the following terms and conditions:

(a) The following calls shall be provided without depositing money and free of charge to the customer: calls to the local exchange operator; 911 or emergency numbers; local and intrastate directory assistance numbers; toll-free and 800 service numbers; pay phone repair and refund numbers; and interexchange access numbers.

(b) Local call charges shall not exceed the amount authorized by the Commission for a local call from pay telephones operated by the LEC serving the area in which the pay telephone is located.

(c) The public pay telephone shall provide the following: two-way calling capability (unless waived by the Commission); no time limits on calls; the acceptance of nickels, dimes and quarters; and coin return for incomplete calls (coinless phones shall not be required to accept coins).

(d) All public pay telephone instruments installed after July 1, 1990 shall be installed in accordance with the requirements of the American National Standards Institute for Buildings and Facilities - Providing Accessibility and Usability for Physically Handicapped People, ANSI, A.117.1 (1986), Section 4.29, Telephones. Provided, however, that in a given location where an owner has installed more than one instrument, only one pay telephone instrument shall be required to meet those requirements.

(e) All public pay telephone instruments shall comply with Commission approved telecommunications industry standards and the current National Electric Code.

(f) Local telephone directories shall be provided at each pay telephone service location upon commencement of service.

(g) The owner shall read and comply with all Commission rules and regulations governing public pay telephone service.

(h) The owner shall charge for intrastate toll calls no more than the rates approved by the Commission for the local exchange carrier serving the instrument and the dominant interexchange carrier in the state.

(i) The owner shall provide an instrument capable of completing local and long distance calls. Provided however, that a coinless pay telephone is exempt from this requirement as long as it is located in close proximity or next to a pay phone with local and long distance calling capabilities.

(j) The owner agrees to provide customer access to all interexchange carriers certificated to do business in Tennessee in the IXC’s preferred manner as officially designated by said carrier to the Commission.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.46 COMMISSION APPROVAL OF AUTHORIZATION TO OPERATE A PUBLIC PAY

TELEPHONE SERVICE.

(1) Upon receipt of the petition, the required data and any fees required for full compliance with Commission rules and statutes, the Commission shall authorize this service by issuing an authorization number for each public pay telephone service company. The Commission shall notify the owner of said instrument of this number so service may be commenced.

(2) The owner of the authorized public pay telephone service may commence service after doing the following:

(a) Displaying the charge for a local call and any operating instructions on the face of the instrument.

(b) Affixing the Commission authorization number in a permanent manner to the face of the instrument.

(c) Displaying on the face of the instrument a telephone number to be used without charge to report malfunctions and obtain refunds.

(d) Displaying the name of the owner of the instrument and the name of the long distance carrier serving the instrument on the face of the instrument.

(3) Owners or operators of public pay telephone service who have previously been authorized by the Commission for operations in this state may commence service at new locations prior to submission of the required data under terms and conditions to be established by the Commission or its designee, the Director of the Utilities Division.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.47 DENIAL OF AUTHORIZATION

(1) Authorization may be denied to those petitioners failing to fully comply with the applicable filing requirements or to pay the required fees as provided by Commission rule or statute.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.48 AUTHORIZATION RENEWAL

(1) Authorization to operate a public pay telephone service shall expire on July 1 of the year following the year in which initial authorization was obtained from the Commission and authorization renewals shall expire annually on each July 1 thereafter.

(2) In order to renew this authorization, an application must be filed with the Commission before July 1 of each year on forms prescribed by the Commission. This authorization renewal application shall be accompanied by any annual inspection fee required by statute.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.49 PUBLIC PAY TELEPHONE SERVICE VIOLATIONS

(1) The following shall constitute violations of the Commission’s rules and requirements for authorized public pay telephone service:

(a) Charging an amount for local calls and intrastate toll calls which exceeds the amount authorized by the Commission.

(b) Imposing a time limit for local calls or failing to provide two-way calling service unless one-way service is authorized by the Commission.

(c) Charging for or failing to provide access without depositing money for calls to the operator, 911 or emergency numbers where 911 is not available, toll-free services, or intrastate or local directory assistance (d) Attaching the instrument to any subscribed access line service other than a single public telephone access line directly connected to the LEC network and billed at the tariff rate.

(e) Attaching the instrument to an extension instrument without a private cut-off to automatically disconnect when the receiver is lifted for service, and operating semipublic additional sets connected to an authorized instrument in violation of the applicable tariff of the local exchange company, with the exception that such extension may have a dial or tone pad.

(f) Failure to display prominently on the face of the pay telephone instrument any of the following:

A statement identifying the charge and operating instructions for its use.
A statement indicating the name of the owner of the instrument and identifying the long distance carrier serving the instrument.
A telephone number, which can be reached without charge or without having to deposit money where users can report malfunctions and obtain refunds.
The Tennessee Public Utility Commission authorization number.

(g) Failure to meet any of the following:

Requirements governing telephone service access by impaired or handicapped persons as required by Commission rule.
All applicable telecommunications industry and electrical safety standards as required by Commission rule.

(h) Failure to provide instruments capable of accepting nickels, dimes, and quarters (waived for coinless pay phones).

(i) Failure to return coins to the customer for incomplete calls (waived for coinless pay phones).

(j) Failure to repair the instrument within seventy-two (72) hours of notification by the Commission, unless such repairs are the responsibility of the LEC providing access and failure to provide refunds in a timely manner.

(k) Failure to provide access without charge to all interexchange carriers certificated to do business in Tennessee in the preferred manner designated with the Commission by each IXC, unless said instrument is owned by an interexchange carrier.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.50 INSPECTION OF PUBLIC PAY TELEPHONE SERVICE

(1) All authorized public pay telephone instruments shall be subject to periodic and random inspections by Commission personnel.

(2) If upon inspection, a violation is discovered, the Commission inspector shall place an out-ofservice sticker on the pay telephone instrument and shall notify the owner as soon as possible of the violation and the penalties therefore. The sticker shall contain the date and time of the inspection and name of the inspector.

(3) If the violation is determined by the inspector to be unintentional, the owner shall have seventy-two (72) hours to correct the violation. If the violation is uncollected after this time, the provisions of Rule 1220-04-02-.51 shall apply.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.51 PENALTIES FOR VIOLATIONS

(1) Upon determination that a violation exists and after a reasonable attempt to notify the owner, the Commission shall through its designated representative, the Director of the Utilities Division, direct the local telephone company to disconnect the instrument in violation.

(2) The local telephone company providing access to the instrument shall send the instrument owner a written notice, with a copy to the Commission, within twenty-four (24) hours of the directive indicating the location of the disconnection. The notice shall also include the charges for reconnection upon correction of the violation as specified in the tariff of the local exchange company.

(3) The Commission shall automatically revoke the authorization for any instrument found to be in intentional violation of Commission rules. If the owner disputes the violation, a hearing may be requested within a reasonable time before the Director of the Utilities Division. If no violation is found to exist or if the violation is shown to be unintentional, then the connection charges shall be refunded to the owner by the local exchange company and authorization shall be reinstated.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.52 REAUTHORIZATION AFTER VIOLATION

(1) After disconnection of a public pay telephone instrument for violation of Commission rules, the following procedures shall apply for reauthorization and reconnection of the instrument to provide this service:

(a) Temporary reconnection to the network may be ordered by the Director of the Utilities Division or his/her designee at the request of the instrument owner for purposes of repair or verification of correction of the violation. Such reconnection may be temporarily maintained pending the filing of a new petition for authorization with the permission of the Director.

(b) Authorization may be reissued upon receipt of a new petition for authorization which includes a notarized statement verifying correction and accompanied by the fee prescribed by T.C.A. § 65-2-103. Up-to-date data already on file with the Commission shall not have to be resubmitted. This petition shall be filed with the Commission within ten (10) days of notification of the violation to the instrument owner.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.53 REVOCATION OF AUTHORIZATION TO PROVIDE INTRASTATE PUBLIC PAY

TELEPHONE SERVICE.

(1) The Commission may refuse to reauthorize or may permanently revoke the authorization for any public pay telephone instrument or instruments which have been disconnected for Commission rule violations on numerous occasions; or may refuse to re-authorize or permanently revoke the authorization of any public pay telephone service owner or operator who has demonstrated a willful disregard for and an inability to comply with Commission

regulation of public pay telephone service. Revocation of authorization may also be ordered for any just cause.

(2) Permanent revocation of authorization shall only be ordered by the Commission after opportunity for a hearing is provided in accordance with the provisions of T.C.A. § 65-2-106 and all applicable provisions of the state Administrative Procedures Act.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.54 UNAUTHORIZED PUBLIC PAY TELEPHONE SERVICE

(1) Any public pay telephone service which is not authorized for service by this Commission after July 1 of the year in which this rule takes effect shall be disconnected from the network by the local exchange company until the requisite authorization is obtained from the Commission.

History

Authority: T.C.A. § 65-4-116.
Administrative History: Original rule filed May 17, 1990; effective July 1, 1990. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-02-.55 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, 65-4-111, 65-4-201, 65-5-102, and 65-5-103.
Administrative History: Original rule filed November 25, 1992; effective January 10, 1993. Amendment filed March 28, 1995; effective June 13, 1995. Amendment to rule 1220-04-02-.55 filed July 13, 2001; to be effective September 26, 2001; however, on September 25, 2001, the Joint Government Operations Committee of the General Assembly stayed 1220-04-02-.55, paragraph (2), until November 2, 2001. On October 31, 2001, the committee again stayed this section until January 2, 2002. Rule 1220-04-02-.55, paragraph (2) became effective January 2, 2002. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.56 REPEALED

History

Authority: T.C.A. §§ 4-5-201, et seq., 65-2-102, 65-2-106, 65-4-101, 65-4-104, 65-4-123, and 65-4-125 and 47 U.S.C. § 258.
Administrative History: Original rule filed December 15, 1993; effective April 30, 1994. Amendment filed September 14, 1999; effective November 26, 1999. Amendment filed October 31, 2001; effective January 14, 2002. Amendment filed January 27, 2005; effective April 12, 2005. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.57 RULES AND REGULATIONS FOR RESELLERS OF TELECOMMUNICATION

SERVICES.

(1) DEFINITIONS:

(a) “Access code” means a sequence of numbers that, when dialed, connect the caller to the provider of operator services associated with that sequence.

(b) “Aggregator” means any person that, in the ordinary course of its operations, makes telephones available to the public or to transient users of its premises, for intrastate telephone calls using a provider of operator services.

(c) “Call splashing” means the transfer of a telephone call from one provider of operator services to another such provider in such a manner that the subsequent provider is unable or unwilling to determine the location of the origination of the call.

(d) “Consumer” means a person initiating any intrastate telephone call using operator service.

(e) “Equal access” has the meaning given that term in Appendix B of the Modification of Final Judgment entered by the United States District Court in United States v. Western Electric, 569 F. Supp. 990 (D.C.D.C.; 1983).

(f) “Reseller” is a common carrier of telephone services other than a facilities-based carrier. The term reseller includes, but is not limited to, operator service providers.

(2) Resellers shall not provide intrastate telecommunications services in Tennessee without a certificate of convenience and necessity awarded by the Commission pursuant to state law and these rules. In determining whether or not to award a certificate, the Commission shall consider whether granting the certificate will service the present or future public convenience and necessity. The Commission may also consider the applicant’s financial ability, character, and proposed rates, as well as such other matters as the Commission finds relevant.

(3) Local exchange carriers (LECs) shall provide intrastate access or intrastate billing and collection only to resellers that have been granted a certificate by the Commission.

(4) All resellers providing intrastate service at the time the rule becomes effective shall have ninety (90) days to submit an application for a certificate of convenience and necessity.

Resellers providing intrastate service on the date this rule becomes effective shall not be required to discontinue service pending the outcome of their applications.

(5) APPLICATIONS FOR AUTHORITY. An application for a certificate of convenience and necessity, submitted by a reseller shall include the following information which must be certified as true and correct:

(a) The name of the reseller, the address of the reseller’s corporate headquarters, and the names and addresses of the reseller’s principal corporate officers;

(b) If different than above, the name and address of all officers and corporate officers located in Tennessee and the name(s) and address(es) of employee(s) responsible for Tennessee operations;

(c) A certified statement from a principal corporate officer that the reseller is operating in compliance with all applicable federal and state laws and all FCC and Commission rules. If the reseller is an operator service provider, the statement must specifically reference T.C.A. § 65-5-106;

(d) Information about the structure of the business organization and, where applicable, a copy of any articles of incorporation, partnership agreement or by laws of the resellers and any entity owning or controlling interest in the reseller, and a copy of a license to do business in Tennessee;

(e) An up-to-date balance sheet and income statement;

(f) The name, address, and telephone number of a Tennessee contact person responsible for and knowledgeable about the reseller’s operations;

(g) Repair and maintenance information including the name, local address, and telephone number of the individual responsible for servicing customers and supplying refunds;

(h) For operator service providers, a proposed tariff containing all operator service rates, tolls, charges, classifications and rules in compliance with Rules 1220-04-01-.01 and

Tenn. Comp. R. & Regs. 1220-04-02-.58 REPEALED

History

Authority: T.C.A. §§ 4-5-201, et seq., 65-2-102, 65-2-106, 65-4-101, 65-4-104, 65-4-123, and 65-4-125 and 47 U.S.C. § 258.
Administrative History: Original rule filed September 14, 1999; effective November 26, 1999. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.05 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.06 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.07 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025. 1220-04-02.-08 REPEALED. Authority: T.C.A. § 65-2-102.

Tenn. Comp. R. & Regs. 1220-04-02-.09 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.10 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed August 18, 1982; effective September 17, 1982. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.11 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.12 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.13 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed August 18, 1982; effective September 17, 1982. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.14 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed August 18, 1982; effective September 17, 1982. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.15 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed August 18, 1982; effective September 17, 1982. Amendment filed November 9, 1984; effective December 9, 1984. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.16 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.17 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.18 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.19 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.20 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.21 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.22 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.23 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.24 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.25 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.26 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.27 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.28 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.29 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed August 18, 1982; effective September 17, 1982. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.30 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.31 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed August 18, 1982; effective September 17, 1982. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.32 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1982. Amendment filed August 18, 1982; effective September 17, 1982. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.33 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.34 REPEALED

History

Authority: T.C.A. §§ 65-202, 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1982. Amendment filed August 18, 1982; Effective September 17, 1982. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.35 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed August 18, 1982; effective September 17, 1982. Amendment filed March 31, 1987; effective June 29, 1987. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.36 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed February 2, 1976; effective March 3, 1976. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.37 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed February 2, 1976; effective March 3, 1976. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.38 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule filed February 2, 1976; effective March 3, 1976. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-01-.02 ;

(i) A list of other states where the reseller is authorized to operate and a list of those states which have denied the requested authority;

(j) A description of company procedures used to verify customer-ordered changes in preferred interexchange carriers;

(k) A fifty dollar ($50) registration fee; and (l) Such other information as the Commission may require.

(6) The Commission may grant or deny certificates based on the certified application subject to the right of any party to request a hearing. Falsification of, or failure to disclose, any information required in the application shall be grounds for denial or revocation of a reseller’s certificate.

(7) RATES AND TARIFFS:

(a) Any operator service provider whose rates are equal to or less than the maximum rates of the predominant LEC or IXC for an equivalent call, as defined in T.C.A. § 65-5- 106(1) and (2), shall be deemed just and reasonable. Any operator service provider that desires to charge a higher rate or utilize a different pricing method than the predominant LEC or IXC shall file appropriate cost justification for the proposed charge.

(b) Within ten (10) days of a request from the Commission or its Staff, a reseller shall provide a tariff containing requested rates, tolls, charges, classifications, and rules.

(8) All resellers shall recognize and give effect to customer-ordered requests made to the customers local exchange carrier that certain types of calls, such as collect, third party, and/or “900” calls, be blocked.

(9) CONSUMER INFORMATION:

(a) Each provider of operator services shall:

Identify itself, audibly and distinctly, to the consumer at the beginning of each telephone call and before the consumer incurs any charge for the call;
Permit the consumer to terminate the telephone call at no charge before the call is connected; and 3. Disclose immediately to the consumer, upon request and at no charge to the consumer:

(i) A quotation of its rates or charges for the call;

(ii) The methods by which such rates or charges will be collected; and (iii) The methods by which complaints concerning such rates, charges or collection practices will be resolved.

(b) Each aggregator shall post on or near the telephone instrument, in plain view of the consumers:

The name, address, and toll-free telephone number of the provider of operator services.
A written disclosure that the rates for all operator-assisted calls are available on request, and that consumers have a right to obtain access to the intrastate common carrier of their choice and may contact their preferred intrastate common carrier for information on accessing that carrier’s service using that telephone, and 3. The name and address of the Tennessee Public Utility Commission, Andrew Jackson Office Building, 502 Deaderick Street, 4th Floor, Nashville, Tennessee 37243 to which the consumer may direct complaints regarding operator services.

(10) CALL BLOCKING PROHIBITED:

(a) Each aggregator shall ensure that each of its telephones prescribed to a provider of operator services allows the consumer to use “800” and “950” access code numbers to obtain access to the provider of operator services desired by the consumer.

(b) Each provider of operator services shall:

Ensure, by contract or tariff, that each aggregator for which such provider is the prescribed provider of operator services, is in compliance with the requirements of subparagraphs (a) and (c) of this paragraph; and 2. Withhold payment (on a location-by-location basis) of any compensation, including commissions, to aggregators if such provider reasonably believes that the aggregator is blocking access to intrastate common carriers in violation of subparagraph (a) and (c) of this paragraph.

(c) Each aggregator shall ensure that any of its equipment prescribed to a provider of operator services allows the consumer to use equal access codes to obtain access to the consumer’s desired provider of operator services consistent with the unlocking schedule set forth in 47 C.F.R. Section 64.704.

(11) In instances in which the Commission has ordered facilities-based carriers to provide toll-free service, all resellers shall also provide toll-free service.

(12) All resellers shall provide a toll-free number for customers to call regarding questions and complaints.

(13) All resellers shall pay an inspection, control and supervision fee as required by T.C.A. § 65-4- 301.

(14) All resellers shall comply with Rule 1220-04-02-.13 regarding customer complaints.

(15) All resellers shall file ad valorem tax reports pursuant to T.C.A. §§ 67-5-1301 et seq.

(16) Violation of state law or the Commission’s rules may constitute grounds for fines or revocation of a reseller’s certificate as described below:

(a) If the Director of the Consumer Services Division has cause to believe that a reseller is in violation of a Commission rule or state law, he/she shall notify the reseller of the alleged violation. The notice shall include copies of any documentation indicating that the reseller is in violation of the rule or statute.

(b) The reseller shall have thirty (30) days to provide a written response to the notice.

Failure to respond to the notice shall be considered grounds for summary revocation of the reseller certificate.

(c) After reviewing the response the Director may recommend to the Commission the issuance of a show cause order pursuant to T.C.A. § 65-2-106.

(d) Upon a determination that a reseller is in violation of a statute or Commission rule, the Commission may impose fines, revoke the reseller’s certificate or order such other remedies as provided by law.

History

Authority: T.C.A. §§ 65-2-102, 65-4-115, 64-4-117, 65-4-120, 65-4-201, 65-5-102, and 65-5-206.
Administrative History: Original rule filed March 28, 1995; effective June 13, 1995. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-04-03 Water Regulations

Tenn. Comp. R. & Regs. 1220-04-03-.01 AND 1220-04-03-.02 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repealed by Public Chapter 440; effective July 1, 1985. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.03 DEFINITIONS

(1) Commission - The word “Commission” shall mean the regulatory body prescribing these rules.

(2) Utility - The word “utility or public utility” shall mean any person, partnership, corporation, company, association, or two (2) or more persons having a joint or common interest who owns, operates, or manages any facility used for or in connection with the diverting, developing, pumping, impounding, treating, distributing or furnishing of water to or for the public for compensation within the state.

(3) Customer - The word “customer” shall mean any person, firm, corporation, association, or governmental unit furnished water service by a water utility.

(4) Meter - The word “meter” shall mean any device for measuring the quantity of water used as a basis for determining charges for water service to a customer.

(5) Premises - The word “premises” as used herein shall be restricted to the following:

(a) A building under one roof owned or leased by one customer and occupied as one (1) residence or one (1) place of business; or (b) A combination of buildings owned or leased by one (1) customer, on one (1) common enclosure occupied by one (1) family as a residence or one (1) corporation or firm as a place of business;

(c) Each unit of a multiple house or building separated by a solid vertical partition wall occupied by one (1) family as a residence or one (1) firm as a place of business; or (d) A building owned or leased by one (1) customer and having a number of apartments, offices, or lofts which are rented to tenants using in common one (1) hall and one (1) or more means of entrances; or (e) A building two (2) or more stories high under one (1) roof owned or leased by one (1) customer and having an individual entrance for the ground floor occupants and one for the occupants of the upper floors; or (f) A combination of buildings, such as a garden-type apartment, owned by one (1) customer, on one (1) common enclosure, none of the individual buildings of which is adapted to separate ownership; or (g) A public building, or (h) A single plot, used as a park or recreational area.

(6) Property - The word “property” shall mean all facilities owned and operated by a water utility.

(7) Main - The word “Main” shall mean a water pipe, owned, operated and maintained by a utility, which is used for the purpose of transmission or distribution of water but is not a water service pipe.

(8) Service Pipe - The words “service pipe” shall mean the pipe that runs between the main and the customer’s place of metering.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.04 RETENTION OF RECORDS

(1) Unless otherwise specified by the Commission, all records required by these rules shall be preserved for the period of time specified in the current edition of the National Association of Railroad and Utilities Commissioners’ publication “Regulations to Govern the Preservation of Records of Electric, Gas and Water Utilities.”

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.05 DATA TO BE FILED WITH THE COMMISSION

(1) The utility shall file with the Commission the following documents and information, and shall maintain such documents and information in a current status.

(a) A copy of the utility’s tariff, which shall include, but not be limited to:

A copy of each schedule of rates for service, together with the applicable riders.
A copy of the utility’s rules, or terms and conditions, describing the utility’s policies and practices in rendering service. These rules shall include:

(i) The lists of the items which the utility furnishes, owns, and maintains on the customer’s premises, such as water services, meters, and shut-off valves.

(ii) General statement of the utility’s policy in making adjustments for wastage of water when such wastage occurs without the knowledge of the customer.

(iii) A statement indicating the minimum number of days allowed for payment of a customer’s bill before service will be discontinued for non-payment.

(iv) The utility’s extension plan as required in Rule 603.7.

(b) A copy of each special contract for service.

(d) The name, title, address, and telephone number of the person who should be contacted in connection with:

General management duties;
Customer relations (complaints);
Engineering operations;
Meter tests and repairs; and 5. Emergencies during non-office hours.

(e) Conform with all applicable rules and regulations contained in Section 1 (General Public Utilities Rules Applicable to all Utilities).

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.06 DISPOSITION OF WATER

(1) All water sold by a utility shall be on a basis of meter measurement or as otherwise provided in its rate schedule.

(2) Wherever practicable, consumption of water within the utility itself, or by administrative units associated with it, shall be metered.

(3) Separate premises shall be separately metered and billed.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendment filed April 11, 2018; effective July 10, 2018.

Tenn. Comp. R. & Regs. 1220-04-03-.07 METER READING SHEETS OR CARDS

(1) The meter reading sheets or cards shall show:

(a) Customer’s name, address and service classification;

(b) Identifying number and/or description of the meter(s);

(d) Identification of an estimated bill.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.08 METER READING INTERVAL

(1) Meters shall be scheduled to be read at not greater than quarterly intervals. Utilities shall avoid sending a customer two successive estimated bills.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.09 METER TEST RECORDS

(1) Each utility shall maintain records of at least the last two (2) tests made of any meter. The record of the meter test made at the time of the meter’s retirement shall be maintained for a minimum of six (6) months. Test records shall include the following:

(a) The date and reason for the test;

(b) The reading of the meter before making any test;

(d) The accuracy “as left” at each rate of flow;

(e) In the event test of the meter is made by using a standard meter, the utility shall retain all data taken at the time of the test in. sufficiently complete form to permit the convenient checking of the test methods and the calculations.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.10 RECORDS OF METERS AND ASSOCIATED METERING DEVICES

(1) Each utility shall maintain records of the following data, where applicable, for each meter and/or associated metering device until retirement:

(a) The complete identification - manufacturer, number, and type.

(b) The dates of installation and removal from service, together with the location.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.11 TEMPORARY SERVICE

(1) When the utility renders temporary service to a customer, it may require that the customer bear all the cost of installing and removing the service in excess of any salvage realized.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.12 EXTENSION PLAN

(1) Each utility shall file a plan, acceptable to the Authority, for extension of mains for which the customer shall be required to pay all or part of the cost. This plan must be related to the investment that prudently can be made for the probable revenue.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.13 SERVICE CONNECTIONS

(1) Ownership of Service Pipe.

(a) The utility shall furnish and install at its own expense, for the purpose of connecting its distribution system to the customer’s premises, the service pipe from its main to and including the curb stop at or adjacent to the customer’s property line. All service lines shall include a curb stop, curb box, and meter, or an approved equal installation, or unless otherwise provided.

(b) The customer shall be responsible for furnishing and laying the necessary service pipe from the property line and shall keep the service line in good repair and in accordance with reasonable requirements of the utility as may be incorporated in its rules.

(c) The utility shall make a thorough inspection of customer’s plumbing before making a service connection and shall not make a connection when plumbing is unsanitary or unsafe. Where adequate inspection is required by a city ordinance and made by an agency other than the utility, the utility may be relieved of making an inspection.

(2) Location of Service Pipe.

Prior approval of the utility shall be secured as to the proper location for the service pipe.

(3) Location of Meters.

(a) Outside - Meters installed out of doors shall be readily accessible for maintenance and reading and so far as practicable the location should be mutually acceptable to the customer and the utility. The meter shall be installed so as to be unaffected by climatic conditions and reasonably secure from injury.

(b) Inside - Meters installed inside the customer’s building shall be located as near as possible to the point where the service pipe enters the building and at a point reasonably secure from injury and readily accessible for reading and testing. In cases of multiple buildings such as two-family flats or apartment buildings the meter shall be located within the premises served or in a common location accessible to the customers and the utility.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.14 CUSTOMER RELATIONS

(1) Each utility shall:

(a) Post a notice in a conspicuous place in each office of the utility where applications for service are received, informing the public that copies of the rate schedules and rules relating to the services of the utility, as filed with the Commission, are available for inspection.

(b) Upon request inform its customers as to the method of reading meters, computing the charges billed and assist in choosing the appropriate rate.

(d) Furnish such additional information as the customer may reasonably request.

(e) Maintain up-to-date maps, plans, or records of its entire transmission and distribution systems, with such other information as may be necessary to enable the utility to advise prospective customers, and others entitled to the information, as to the facilities available for serving any locality.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.15 CUSTOMER DEPOSITS

(1) Each utility may require from any customer or prospective customer a cash deposit to guarantee payment of bills. Such required deposits shall not exceed an amount equivalent to the estimated maximum bill for one billing period plus thirty (30) days.

(2) Each utility having on hand deposits from customers, or hereafter receiving deposits from customers, shall keep records to show:

(a) The name of the customer making the deposits;

(b) The account number or other identification of the premises occupied by the customer when the deposit was made;

(3) Each utility shall issue to every customer from whom a deposit is received a nonassignable receipt. Each utility shall provide reasonable ways and means whereby the depositor who makes application for the return of his deposits or any balance to which he is entitled but is unable to produce the original receipt may receive his deposit or balance.

(4) Any interest on deposits will be approved by the Commission.

(5) A record of each unclaimed deposit must be maintained for at least three (3) years, during which time the utility shall make a reasonable effort to return the deposit.

(6) Unclaimed deposits, together with accrued interest, if any, shall be credited to an appropriate account.

(7) Deposits may be retained by the utility as long as required to insure payment of bills.

(8) Upon final discontinuance of service the utility may apply such deposits including accrued interest to any amount due from the customer for service. Any balance due to the customer shall be promptly refunded.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.16 CUSTOMER BILL FORMS

(1) The bill form used shall show:

(a) The name of the utility furnishing the service;

(b) The reading of the meter at the beginning and at the end of the period for which the bill is rendered;

(d) The number and kind of units metered;

(e) The gross and/or net amount of the bill;

(f) The date by which the customer must pay the bill in order to benefit from any discount or to avoid any penalty;

(g) A distinct marking to identify an estimated bill;

(h) Any conversions from meter reading units to billing units. In lieu of such information on the bill, a statement must be on the bill advising that such information can be obtained by contacting the utility’s principal office;

(i) The main office address.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.17 CUSTOMER RECORDS

(1) The utility shall retain customer billing records for the length of time necessary to permit the utility to comply with Rule 1220-04-03-.18 but not less than 3 years.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.18 ADJUSTMENT OF BILLS

(1) Bills which are incorrect due to meter or billing errors are to be adjusted as follows:

(a) Whenever a meter in set service is tested and found to have overregistered more than two percent (2%), the utility shall adjust the customer’s bill for the excess amount paid.

If the time at which the error first developed or occurred can be definitely determined, the estimated amount of over-charge is to be based thereon.

(b) Whenever a meter in service is found not to register, the utility may render an estimated bill. The utility shall estimate the charge for the water used by averaging the amount registered over a similar period preceding or subsequent to the period of nonregistration or for the corresponding period in previous years, adjusting for any changes in the customer’s usage. When it is found that the error in a meter is due to some cause, the date of which can be fixed the over-charge or the under-charge shall be computed back to but not beyond such date.

(c) When a customer has been over-charged as a result of incorrect reading of the meter, incorrect application of the rate schedule, incorrect connection of the meter, or other similar reasons, the amount of the over-charge shall be adjusted, refunded, or credited to the customer.

(d) When a customer has been under-charged as a result of incorrect reading of the meter, incorrect application of the rate schedule, incorrect connection of the meter, or other similar reasons, the amount of the under-charge may be billed to the customer.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.19 REASONS FOR DENYING SERVICE

(1) Service may be refused or discontinued only for the reasons listed below. Unless otherwise stated, the customer shall be permitted at least seven (7) days following mailing in which to comply with the rule before service is discontinued.

(a) Without notice in the event of a condition determined by the utility to be hazardous.

(b) Without notice in the event of customer use of equipment in such a manner as to adversely affect the utility’s equipment or the utility’s service to others.

(c) Without notice when the utility has discovered clear and convincing evidence that by fraudulent means a customer has obtained unauthorized water service or has diverted the water service for unauthorized use or has obtained water service without same being properly registered upon the utility’s meters.

(d) In the event of tampering, with the equipment furnished and owned by the utility.

(e) For violation of and/or non-compliance with the rules which the utility has filed with the Commission.

(f) For failure of the customer to fulfill his/her contractual obligations for service and/or facilities subject to regulations by the Commission.

(g) For failure of the customer to permit the utility reasonable access to its equipment.

(h) For non-payment of bill provided that the utility has made a reasonable attempt to effect collection and has given the customer written notice to make settlement on his/her account or have his/her service denied.

(i) For failure of the customer to furnish such service equipment, permits, certificates, and/or rights-of-way, as shall have been specified by the utility as a condition to obtaining service, or in the event such equipment or permissions are withdrawn or terminated.

(j) No service shall be disconnected on the day prior to a week-end or holiday except as provided in subparagraph (a), (b) and (c) of this paragraph, unless the utility has provided arrangement for reconnection on a week-end or a holiday.

(k) When a prospective customer is refused service under the provisions of this section, the utility shall notify him/her promptly of the reason for the refusal to serve and of his/her right to appeal the utility decision to the Commission.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.20 RECONNECTION

(1) In all cases of discontinuance of service as herein defined, where the cause for discontinuance has been corrected, and all rules of the utility on file with the Commission have been complied with the utility shall promptly restore service to the customer.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.21 RECONNECTION CHARGE

(1) Where service has been discontinued in accordance with this section, the utility may make a reasonable charge for reconnection of service. This charge, however, shall be applied uniformly and shall be incorporated in the rules of the utility.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.22 INSUFFICIENT REASONS FOR DENYING SERVICE

(1) The following shall not constitute sufficient cause for refusal of service to a present or prospective customer:

(a) Non-payment for service by a previous occupant of the premises to be served.

(b) Failure to pay for merchandise or special services purchased from the utility.

(d) Failure to pay for a different type or class of public utility service.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.23 CUSTOMER COMPLAINTS

(1) For the purpose of this section, the word “complaint” shall mean objection to the charge, facilities, or quality of service of a utility concerning which an investigation is necessary.

(2) When such complaints are made to the utility by a customer, the utility shall make a prompt and complete investigation and advise the complainant thereof.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.24 ACCESS TO PROPERTY

(1) The utility shall have access at all reasonable hours to meters, service connections, and other property owned by it which may be located on customer’s premises for purposes of installation, maintenance, operation, or removal of its property at the time service is to be terminated. Any employee of the utility whose duties require him to enter the customer’s premises shall wear a distinguishing uniform or other insignia, identifying him as an employee of the utility, or carry on his person a badge or other identification which will identify him/her as an employee of the utility, the same to be shown by him/her upon request.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.25 REQUIREMENT OF GOOD ENGINEERING PRACTICE

(1) The design and construction of the utility’s water plan shall conform to good standard engineering practice. It shall be designed and operated so as to provide reasonably adequate and safe service to its customers and shall conform to the requirements of the State Department of Health with reference to sanitation and potability of water.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.26 STANDARDS OF CONSTRUCTION

(1) Mains (a) Depths of Mains - Water mains shall be placed at such a depth below ground level, or otherwise protected, as will prevent freezing during the coldest weather experienced in the community in which laid, and to prevent damage by traffic.

(b) Dead Ends - Insofar as practicable, the utility shall design its distribution system so as to avoid dead ends in its mains. Where dead ends are necessary, the utility shall provide hydrants or valves for the purpose of flushing the mains. Mains with dead ends shall be flushed as often as necessary to maintain the quality of the water.

(c) Segmentation of System - Valves or stopcocks shall be provided at reasonable intervals in the mains so that repairs may be effected by the utility with interruptions to the service of a minimum number of customers.

(d) Disinfection of Water Mains - All new mains shall be thoroughly disinfected before being connected to the system. The method of disinfecting shall be in compliance with State Department of Health practices.

(e) Grid Systems - Wherever feasible the distribution system shall be laid out in a grid so that in case of breaks or repairs the interruptions of service to the customers shall be at a minimum.

(2) Service Pipes (a) Size of Service Pipe - The size, design, and material and installation of the service pipe shall conform to such reasonable requirements of the utility as may be incorporated in its rules and regulations, provided, however, that the minimum size of the pipe shall not be less than nominal size except under unusual circumstances which shall be clearly defined.

(b) Depth of Service Pipes - All service pipes shall be laid at such a depth as will prevent freezing, except when services are not intended for use during freezing weather, and are actually drained during such periods.

(c) Inspection of Service Pipe - In the installation of a service pipe the customer shall leave the trench open and pipe uncovered until it is inspected by the utility or other duly authorized agency and shown to be at proper depth, free from any tee, branch connection, connection, irregularity, or defect.

(3) Construction and Maintenance (a) Whenever normal excavation discloses unsatisfactory foundation one or more of the following corrective measures shall be adopted:

Excavate to good bearing soil and backfill to pipe grade with suitable material well tamped to provide adequate support.
Support with a concrete slab.
Support with piling.

(b) Pipe on a highway bridge shall be located so as to reduce hazard to a minimum and be protected from freezing.

All water mains shall be laid clear of all other underground structures and should not be laid in the same trench with other underground utilities in order to minimize the possibility of water leakage by reason of any movement of such structures or of the mains.
Water services may be laid in the same trench with other underground utilities with the exception of sewer pipes, provided such service pipes are laid at least twelve (12) inches in a horizontal plane from other subsurface facilities.
At crossings of mains and services with other underground structures clearances shall be not less than twelve (12) inches.
To secure compliance with the requirements of these rules by others doing underground construction work, the utility should arrange with the other agencies having highway subsurface rights for adequate notification and inspection procedure.

(d) Pipe laid shall be tested and made tight before being placed in service.

(e) The ditch underneath, around and over the pipe shall be backfilled with good material thoroughly tamped to secure a firm support. To disclose any settlement of the backfill which may need correcting, newly filled ditches shall be reinspected at intervals for sufficient period of time subsequent to completion of backfilling operations.

(f) Service connections may be tapped into cast iron mains if the diameter of the hole does not exceed one-quarter of the diameter of the main. Otherwise, and in mains other than cast iron, a saddle, sleeve or welded connection may be used or a tee cut into the line.

(g) The service connection at the main or the run of service pipe shall allow for a reasonable amount of flexibility to prevent fractures or leaks at the connection with the main.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.27 TEST MEASUREMENT STANDARDS

(1) Measuring devices for test of meter may consist of a calibrated tank for volumetric measurement or tank mounted upon scales for weight measurement. If a volumetric standard is used, it shall be accompanied by a certificate of accuracy from any standard laboratory as may be approved by the Commission. If a weight standard is used, the scales shall be tested and calibrated periodically by such approved laboratory and a record maintained of the results of the test.

(2) When basic standards are used for meter tests, they shall be of a capacity sufficient to insure accurate determination of accuracy and shall be subject to the approval of the Commission.

(3) By special permission of the Commission, a standard meter may be provided and used by a utility for the purpose of testing meters in place. This standard meter shall be tested and calibrated periodically to insure its accuracy within the limits required by these rules and regulations. In any event, such test shall be made at least once every sixty (60) days while the standard meter is in use and a record of such tests shall be kept by the utility.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.28 ACCURACY REQUIREMENTS

(1) All meters used for measuring quantity of water delivered to a customer shall be in good mechanical condition and shall be adequate in size and design for the type of service which they measure and shall be accurate to the following standards.

(2) For determination of minimum test flow and normal test flow limits, the Commission will use as a guide the appropriate standard specifications of the American Water Works Association for the various types of meters.

(3) Displacement meters shall be tested at each of the rates of flow stated above for the various size meters. A meter shall not be placed in service if it registers less than ninety-five percent (95%) of water passed through it at the minimum flow or over-registers or under-registers more than two percent (2%) at the intermediate or maximum limit, except that a repairs meter shall not over-register or under-register more than two percent (2%) of the intermediate and maximum flow and shall register not less than the following appropriate percentage of the water passed through it at the minimum test flow:

If manufactured on or after January 1, 1947 – ninety percent (90%).

If manufactured prior to January 1, 1947 – eighty-five percent (85%).

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.29 AS FOUND TESTS

(1) All meters tested in accordance with these rules for periodic or complaint tests shall be tested in the condition as found in the customer’s service prior to any alteration or adjustment in order to determine the average meter error. Tests shall be made at the intermediate and maximum rates of flow and the meter error shall be the algebraic average of the errors of the two (2) tests.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.30 SEALING OF METER

(1) Upon completion of adjustment and test of any water meter under the provisions of these rules, the utility shall affix thereto a suitable seal in such a manner that adjustment or registration of the meter cannot be changed without breaking the seal.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.31 RECORD OF TEST

(1) A complete record of all meter tests and adjustments and data sufficient to allow checking of test calculations shall be recorded. Such record shall include the identifying number of the meter, the type and capacity of the meter, the constant of the meter, the date and kind of tests made, the reading of the meter before making any test, the error as found at each test and, if readjusted, the percentage of registration as left after each test. The complete record of tests of each meter shall be maintained for at least continuous periodic tests and in no case for less than two (2) years.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.32 INITIAL TEST AND STORAGE OF METERS

(1) Every water meter shall be tested as required by these rules prior to its installation either by the manufacturer, the utility, or any approved organization equipped for meter testing. Meters with oil-enclosed gear trains should be stored in an inverted position, and, unless so stored, shall be tested immediately before installation.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.33 REPAIRED OR TESTED METERS

(1) All water meters removed from service for repair or testing in accordance with these rules shall be restored to the prescribed limits of accuracy as required by these rules before again being placed in service.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.34 PERIODIC AND ROUTINE TESTS

(1) Each utility shall adopt schedules for periodic and routine tests and repairs of its meters.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.35 REQUEST TEST

(1) Each utility shall make a test of any water meter upon written request of any (customer provided such request is not made more frequently than once each eighteen (18) months).

The customer shall be given the opportunity of being present at such request tests.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.36 REFEREE TEST

(1) Any customer, by written application to the Commission accompanied by payment of such fee for the test as may be prescribed by statute or by the Commission from time to time, may have a test conducted by the utility in the presence of a representative of the Commission.

Upon receipt of such request, the Commission will notify the utility to leave the customer’s meter in place until arrangements are made for the test. If such test shows that the meter is in error greater than two percent (2%) fast, the total cost of such test including the cost of transportation of the Commission’s representative shall be borne by the utility, and the amount of the fee paid by the customer shall be refunded.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.37 INSTALLATION OF METERS

(1) Each water utility shall adopt a standard method of meter installation. Such methods shall be set out with a written description and/or drawing to the extent necessary to a clear understanding of the requirements. Copies of approved standard methods shall be made available upon request to prospective customers, contractors or others engaged in the business of placing pipe for water utilization. All meters shall be set in place by the utility.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.38 REGISTRATION OF METERS

(1) All meters used for metered sales shall have registration devices indicating the volume of water in either cubic feet or United States gallons. Where a constant or multiplier is necessary to convert the meter reading to cubic feet or gallons, the constant shall be indicated upon the face of the meter, and on the meter reading sheet or card.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.39 CHARGE FOR METER INSTALLATION

(1) No utility shall charge for the installation or use of any devices for metering service to a customer, except for temporary service where the utility may charge the actual cost of installation and removal of metering devices.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.40 QUALITY OF WATER

(1) Any utility furnishing water service for human consumption or for domestic uses shall provide water that is wholesome, potable, free from objectionable odors and taste, and in no way harmful or dangerous to health.

(2) Any utility furnishing water service for human consumption or domestic use shall conform to all legal requirements of the State Department of Health for construction and operation of its water system as pertains to sanitation and potability of the water.

(3) In absence of comparable requirements of the State Department of Health, the following rules shall apply:

(a) Source-Water supplied by any utility shall be:

Obtained from a source free from pollution and adequately protected from pollution; or 2. Adequately protected by artificial treatment;
Reasonably free from objectionable color, turbidity, taste, and odor;
From a source reasonably adequate to provide a continuous supply of water;
Of such quality at all times as to meet the standards of purity for drinking water as set out in Public Health Service Drinking Water Standards, Revised 1962, PHS Publication No. 956.

(b) Operation of Supply System.

The water supply system, including wells, reservoirs, pumping equipment, treatment works, mains, and service pipes shall be free from sanitary defects.
No physical connection between the distribution system of a public potable water supply and that of any other water supply shall be permitted, unless such other water supply maintains a safe sanitary quality in accordance with these rules and regulations and the interconnection of both supplies is approved by the State Department of Health.
The growth of algae in the water at the source of supply, in reservoirs or other basins, and in the water mains, shall be controlled by proper treatment.
Utilities obtaining water supplies from driven or drilled wells shall maintain the tightness of well casings and provide protection at the surface of the ground to prevent the infiltration of water other than from the strata tapped by such wells.

(4) Testing (a) Each utility shall have representative samples of the water supplied by it examined by the State or local Department of Health or by a competent chemist and bacteriologist, skilled in the sanitary examination of water at intervals sufficient to insure a safe water supply.

(b) In the event that the above-prescribed tests show that the water furnished by the utility is contaminated or otherwise unsafe for human consumption, the utility shall forward a report of such test to the Commission or other state agency having correctional jurisdiction without delay, and shall take immediate steps to correct the condition.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.41 PRESSURES

(1) Under normal conditions of use of water, the pressure at a customer’s service connection shall be not less than twenty-five (25) psig.

(2) Pressure outside the limits specified will not be considered a violation when the variations:

(a) Arise from the action of the elements;

(b) Are infrequent fluctuations not exceeding five (5) minutes’ duration;

(d) Are from causes beyond the control of the utility.

(3) Each utility shall, subject to the approval of the Commission, adopt and maintain a standard pressure in its distribution system at locations to be designated as the point or points of standard pressure.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.42 INTERRUPTION OF SUPPLY

(1) Prompt notice by telephone or telegraph shall be given to the Commission by each utility of all interruptions (except those occurring in the course of routine operations) to, or major impairment of, service for periods of a duration of one (1) hour or more occurring on production works, storage works or transmission mains, or on distribution mains or of accident or damage to portions of the plant which might lead to such interruptions of service.

(2) Each utility shall make all reasonable efforts to prevent interruptions of service and when such interruptions occur shall endeavor to re-establish service with the shortest possible delay consistent with the safety to its customers and the general public. Where an emergency interruption affects fire protection service, the utility shall immediately notify the Fire Chief or other responsible local official.

(3) Whenever any utility finds it necessary to schedule an interruption to its service, it shall make all reasonable efforts to notify all customers to be affected by the interruption, stating the time and anticipated duration of the interruption. Whenever possible, scheduled interruptions shall be at such hours as will provide least inconvenience to the customer.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-03-.43 SHORTAGE OF SUPPLY

(1) The utility shall exercise reasonable diligence to furnish a continuous and adequate supply of water to its customers and to avoid any shortage or interruption of delivery thereof.

(2) If a utility finds that it is necessary to restrict the use of water, it shall notify its customers, and give the Commission written notice. Such notifications shall specify:

(a) The reason for the restriction;

(b) The nature and extent of the restriction, i.e., on outdoor use of water, use by certain classes of customers, etc.;

(d) The probable date of termination of such restriction.

(3) During times of threatened or actual water shortage the utility shall apportion its available water supply among its customers with due regard to health and safety.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-04-04 Regulations for Electric Companies

Tenn. Comp. R. & Regs. 1220-04-04-.01 RESERVED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repealed by Public Chapter 440; effective July 1, 1985. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.02 RESERVED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repealed by Public Chapter 440; effective July 1, 1985. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.03 DEFINITIONS

(1) The following words and terms, when used in these rules, shall have the meaning indicated below:

(a) Commission - The Tennessee Public Utility Commission.

(b) Utility - Any electric company operating under the jurisdiction of the Commission.

(c) Customer - Any person, firm, association, or corporation, or any agency of the Federal, State, or local government, being supplied with electric service by an electric utility.

(d) Premises - A piece of land or real estate, including buildings and other appurtenances thereon.

(e) Electric Plant - Includes all real estate, fixtures and property owned, controlled, operated or managed in connection with or to facilitate the production, generation, transmission, delivery or furnishing of electricity for light, heat or power.

(f) Meter - Unless otherwise qualified, a device that measures and registers the integral of an electrical quantity with respect to time.

(g) Meter Shop - A shop where meters are inspected, repaired and tested, and may be at a fixed location or may be mobile.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.04 LOCATION OF RECORDS

(1) All records required by these rules or necessary for the administration thereof shall be available for examination by the Commission or its representatives at all reasonable hours.

When such records are kept outside the state, the utility may at its option furnish the Commission with such records as it may wish to examine or pay the reasonable travel expenses of Commission employees assigned to examine such records.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.05 RETENTION OF RECORDS

(1) Unless otherwise specified herein, all records required by these rules shall be preserved for the period of time specified by the current requirements of the Federal Energy Regulatory Commission (FERC).

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.06 DATA TO BE FILED WITH THE COMMISSION

(1) The utility shall file with the Commission the following documents and information, and shall maintain such documents and information in a current status.

(a) A copy of the utility’s tariff, which shall include:

A copy of each schedule of rates for service, together with any applicable riders.
A copy of the utility’s rules, or terms and conditions describing the utility’s policies and practices in rendering service.

(b) A copy of each special contract for service not covered by regular tariffs.

(d) A map or maps showing the utility’s operating area. These shall include the names of all incorporated towns or cities, and the counties or portions of counties served by the utility.

(e) The name, title, address and telephone number of the person who should be contacted in connection with:

General management duties.
Customer relations (complaints).
Engineering operations.
Meter tests and repairs.
Emergencies during non-office hours.

(f) Plans for expenditures are to be filed with the Commission in accordance with Rule

Tenn. Comp. R. & Regs. 1220-04-04-.07 DISPOSITION OF ELECTRICITY

(1) All electricity sold by a utility shall be on the basis provided in its filed rates. All sales be on the basis of meter measurement except when other basis is provided in the filed rates or when the nature of the usage is such that the consumption may be readily computed.

(2) Master Metering.

(a) Each dwelling and commercial unit in a multi-dwelling unit residential building, mobile home park or commercial building, the construction of which has commenced after the effective date of this rule, shall have installed a separate electric meter, except that individual unit metering will not be required:

Where commercial unit space requirements are subject to alteration with a change in tenants as evidenced by temporary versus permanent type wall construction separating the commercial unit spaces;
For electricity used in central heating, ventilating and air-conditioning systems;
For electric back-up service to storage heating and cooling systems.

(b) For purposes of this rule, “dwelling unit” means a structure or that part of a structure which is used or is intended to be used as a residence or a sleeping place such as a house, a mobile home or an apartment, but does not include multi-dwelling facilities used principally for temporary occupancy such as hotels, campgrounds, hospitals and dormitories.

(c) For purposes of this rule, “constructed’’ means totally newly built or renovated to the extent that general rewiring is necessary.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-105.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 20, 1983; effective January 16, 1984. Amendment filed June 7, 1985; effective September 13, 1985. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.08 CONDITION OF METER

(1) No meter shall be installed which is known to be mechanically or electrically defective, or to have incorrect constants or which has not been tested, and adjusted if necessary, in accordance with Rule 1220-04-04-.38. The capacity of the meter and the index mechanism should be consistent with the electric requirements of the customer.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.09 METER READING SHEETS OR CARDS

(1) The meter reading sheets or cards shall show:

(a) Customer’s name, address, and rate schedule;

(b) Identifying number and/or description of the meter(s);

(d) If the reading has been estimated;

(e) Any applicable multiplier or constant.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.10 METER CHARTS

(1) All charts taken from recording meters shall be marked with the date of the record, the meter number, customer’s name and location and the chart multiplier.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.11 METER MULTIPLIER

(1) If it is necessary to apply a multiplier to the meter readings, the multiplier shall be marked on the face of the meter register.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.12 METER READING INTERVAL

(1) Meters shall be read monthly or at other intervals specifically authorized by the Commission.

As nearly as practicable, utilities shall avoid sending a customer more than three (3) successive estimated bills.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.13 DEMAND METER REGISTRATION

(1) When a demand meter is used for billing, the installation must be designed so that the highest annual demand reading used for billing should appear in the upper half of the meter’s range.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.14 CUSTOMER INFORMATION

(1) Each utility shall:

(a) Maintain up-to-date maps, plans, or records of its entire transmission and distribution systems, with such other information as may be necessary to enable the utility to advise prospective customers, and others entitled to the information, as to facilities available for serving prospective customers in its service area.

(b) Assist the customer or prospective customer in selecting the most economical rate schedule.

A clear and concise explanation of the existing rate schedule and any rate schedule applied for or proposed, which is applicable to the customer and rules relating to the service of the utility, as filed with the Commission.
Such statement shall be transmitted to each such customer:

(i) not later than sixty (60) days after the date of commencement of service to the customer or ninety (90) days after the standard is adopted, whichever last occurs; and (ii) not later than forty (40) days (sixty (60) days in the case of a bi-monthly billing system) after application for or proposal of any change in a rate schedule applicable to such customer.

(d) At least once a year each electric customer is to be furnished with:

A clear and concise summary of the existing rate schedules applicable to each of the major classes of electric consumers for which there is a separate rate. Each electric customer need only be supplied with a summary of the rate schedule applicable to his/her service.
An identification of any classes whose rates are not summarized.

Such summary may be transmitted together with each customer’s billing or in any other reasonable manner designed to convey this message to each customer.

On request, an electric customer shall be given a clear and concise statement of the actual metered consumption of electric energy by customer for each billing period during the prior year (unless such consumption data is not reasonably ascertainable).

(e) Upon request, inform its customers as to the method of reading meters.

(f) Furnish such additional information as the customer may reasonably request.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.15 .

Unless otherwise stated, the utility shall comply with the notice requirements set forth in paragraph (2) below before service is discontinued. However, no service shall be discontinued on the day or a date preceding a day or days on which the services of the utility are not available to the general public for the purpose of reconnecting the discontinued service, except as provided in rule 1220-04-04-.19(1)(a), (b), (c) and (d) above.

(2) Notice of Termination of Service. Electric service to any electric customer may not be terminated without reasonable opportunity to dispute the reasons for such termination.

(a) Content of the notice, which may be included in the customer’s bill, shall be clearly legible and contain the following information:

The name and address of the customer and the address of the service, if different.
A clear and concise statement of the reason for the proposed termination of service.
The date on which service will be terminated unless the customer takes appropriate action. The date of the proposed termination by the utility shall be at least seven (7) days after the utility sends the notice by first class mail. The mailing of the notice of termination as set forth above, shall constitute reasonable prior notice within the meaning of this rule.
Information concerning the reconnection fee.
The telephone number and address of the utility where the customer may make inquiry, enter into a service continuation agreement, or file a complaint.
The notice shall also contain the name and address of the Commission and a statement to the effect that the Commission is the regulatory authority for this service.
In cases where the termination is based on the failure to pay, the notice shall state if the bill is the actual or estimated, amount owed, and the time period over which the amount was incurred.

(b) Notwithstanding any other provisions of these rules, a utility shall postpone the physical termination of utility service to a residential customer for a period of thirty (30) days in the event a physician, public health officer, or social service official certifies in writing that discontinuation of the service will aggravate an existing medical emergency of the customer or other permanent resident of the premises where service is rendered.

During the thirty (30) day extension the customer or other permanent resident of the premises where service is rendered shall be referred to social service agencies for investigation, confirmation of need and guarantee of payment. The local utility shall supply customers with names of agencies providing assistance.

(c) All customers shall be provided with the option of a Third Party Notification service and shall be notified annually by the utility of its availability. The Third Party Notification will provide any customer with the opportunity to designate a third party who will receive a duplicate of any termination notice by first class mail.

(3) Statement of Termination Policy. The utility shall provide a general policy statement detailing its termination policies to all existing customers annually and to all new customers when they initiate service. This policy statement shall be filed by the utility for approval by the Commission within sixty (60) days of the effective date of this rule. The general policy statement shall include the following information in clear and understandable language:

(a) Grounds for termination.

(b) The time allowed to pay outstanding bills.

(d) Steps necessary to have service reinstated.

(e) Instructions for residential customers to designate the following:

A third party (agency or individual) to receive a copy, by first class mall, of all termination notices;
Presence of appliances at the service address which are critical for maintenance of health of one or more of the residents.

(f) A notice of rights and remedies which should contain the following:

The time allowed to initiate a complaint;
Appropriate administrative or other action to take in order to avoid termination;
Procedures to dispute and appeal the termination notice, including the office address and telephone number of the utility representatives available to handle inquiries or complaints;
A statement that households which have appliances critical for health are responsible for notifying the utility of such fact;
Provide information and steps necessary to qualify for alternative payment arrangements available to residential customers who maintain that they are temporarily unable to pay their bills;
The name of a social service agency the customer can call to inquire about a source or sources of financial assistance in paying residential utility bills;
Procedures to dispute and appeal an unfavorable decision of the utility, including the address and toll-free telephone number of the Tennessee Public Utility Commission and its representatives, who are available to handle complaints and inquiries; and 8. A statement that a customer does not have to pay that portion of a bill which is in dispute while the dispute process is underway.

History

Authority: T.C.A. § 65-102, 65-4-104, and 65-4-105.
Administrative History: Original rule certified May 9, 1974. Amendment filed May 17, 1987; effective June 26, 1987. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.16 CUSTOMER BILL FORMS

(1) The utility shall bill each customer as promptly as possible following the reading of his/her meter. The bill shall show:

(a) The reading of the meter at the end of the period for which the bill is rendered;

(b) The date on which the meter was read at the end of the period for which the bill is rendered;

(d) The gross and/or net amount of the bill;

(e) The date by which the customer must pay the bill in order to benefit from any discount or to avoid any penalty;

(f) A distinct marking to identify an estimated bill;

(g) Any conversions from meter reading units to billing units, or any calculations to determine billing units from recording or other devices, or any other factors, such as fuel adjustments, used in determining the bill. In lieu of such information on the bill, a statement must be on the bill advising that such information can be obtained by contacting the utility’s principal office, except that any multiplier used to determine billing units will be shown whenever used;

(h) The applicable rate schedule under which the customer is served.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.17 CUSTOMER RECORDS

(1) The utility shall retain records as may be necessary to effectuate compliance with Rules

Tenn. Comp. R. & Regs. 1220-04-04-.18 ADJUSTMENT OF BILLS

(1) Meter Fast - Whenever a meter from service is found upon periodic, request or complaint test to be more than two percent (2%) fast, tests shall be made, as stipulated in Rule 1220-04-04- .38, to determine the average error of the meter.

(a) Whenever a meter is found upon periodic, request or complaint test to have an average error of registration of more than two percent (2%) fast the utility shall recalculate the monthly bills for a period equal to one half of the time elapsed since the last test, but in no case shall this period exceed six (6) months. (See exception noted in paragraph (4).) The method of recalculating the monthly bills shall be as shown in the following example: A meter, upon test, was found to have an average accuracy of one hundred five percent (105%) or an error of five percent (5%) fast. The consumption registered for a billing period previous to test was one hundred five (105) kWh. The correct amount is determined by multiplying one hundred five (105) kWh by one hundred (100) and dividing this product by one hundred five (105) (the average percent accuracy), which result is one hundred (100) kWh and is the proper amount to be billed. After making such recalculations the utility shall refund to the customer the difference between the amount previously billed and the amount calculated as being the proper charge.

(2) Meter Slow - When a meter upon periodic, request or complaint test is found to have an average error of more than two percent (2%) slow, the utility may recalculate the monthly bills for a period equal to one half of the time elapsed since the last test, but in no case to exceed six (6) months. The method for recalculating the monthly bills shall be as shown in the following example:

A meter, upon test, was found to have an average accuracy of ninety-fiv e percent (95%) or an error of five percent (5%) slow. The consumption, registered for a billing period previous to test, was one hundred five (105) kWh. The correct amount is determined by multiplying one hundred five (105) kWh by one hundred (100) and dividing this product by ninety-five (95), (the average percent accuracy) which result is 110.526 or 111 kWh and is the proper amount to be billed.

After making such recalculations the utility may collect from the customer an amount equal to the difference between the amount previously billed, and the amount calculated as being the proper charge.

(3) Percent Error - It shall be understood that when a meter is found to have an error in excess of two percent (2%) fast or slow, the figure for calculating the amount of refund or the amount to be collected by the utility shall be that percentage of error as determined by the test, i.e., it is held that it is the duty of the utility to maintain the accuracy of its measuring devices as nearly one hundred percent (100%) as it is commercially practicable.

(4) Refunds - The burden of maintaining measuring equipment, so that it will register accurately, is upon the utility; therefore, if meters, other than single phase meters tested under a sampling procedure approved by the Commission, are found upon test to register fast, and also if time for periodic test has overrun to the extent that one half of the time elapsed since the last previous test exceeds six (6) months the refund shall be for the six (6) months as specified in paragraph (2). In addition thereto a like refund upon those months exceeding the periodic test period, provided, however, that the Commission may relieve the utility from this requirement in any particular case in which it is shown that the failure to make the periodic test was due to causes beyond the utility’s control.

(5) Notification - When a meter is tested and it is found necessary to make a refund or back-bill a customer, the customer shall be notified in substantially the following form:

On _______, 20, the meter bearing identifying No. _____________, installed in your building, located at , was tested at and found to (on premises or elsewhere) register __________________________________________________ The meter was tested (% fast or slow) on_____________________________________________________________________test. *(periodic-request -complaint)

Based upon this test, we herewith _______________________________________________ *(charge or credit) you with the sum of $ ________________, which amount has been noted on your regular bill. *To be filled in by utility.

(6) Partial or Non-Registering - If a meter is found not to register or to register only partially for any period, the utility may estimate the consumption and demand, based on a like period of similar use, and any other pertinent facts.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.19 REASONS FOR DENYING SERVICE

(1) Reasons for Termination of Service or Denial of Service. Service may be refused or discontinued for any of the reasons listed below:

(a) Without notice in the event of a condition determined by the utility to be hazardous.

(b) Without notice in the event of customer use of equipment in such a manner as to adversely affect the utility’s equipment or the utility’s service to others.

(d) Without notice if there is evidence of unauthorized use.

(e) For violation of and/or non-compliance with the utility’s rules on file with and approved by the Commission.

(f) For failure of the customer to fulfill his contractual obligations for service and/or facilities subject to regulations by the Commission.

(g) For failure of the customer to permit the utility reasonable access to its equipment.

(h) For non-payment of delinquent account.

(i) For failure of the customer to provide the utility with a deposit as authorized by rule

Tenn. Comp. R. & Regs. 1220-04-04-.20 INSUFFICIENT REASONS FOR DENYING SERVICE

(1) The following shall not constitute sufficient cause for refusal of service to a present or prospective customer:

(a) Delinquency in payment for service by a previous occupant of the premises to be served.

(b) Failure to pay for merchandise purchased from the utility.

(d) Failure to pay the bill of another customer as guarantor thereof.

(e) Failure to pay a back bill rendered in accordance with Rule 1220-04-04-.18(2).

(f) Failure to pay a bill to correct previous under-billing due to a misapplication of rates.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.21 ESTIMATED DEMAND

(1) Upon request of the customer and provided the customer’s demand is estimated for billing purposes, the utility shall measure the demand during the customer’s normal operation and use the measure demand for billing.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.22 SERVICING UTILIZATION CONTROL EQUIPMENT

(1) Each utility shall service and maintain any equipment it uses on a customer’s premises and shall correctly set and keep in proper adjustment any thermostats, clocks, relays, time switches or other devices which control the customer’s service in accordance with the provisions in the utility’s rate schedules.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.23 CUSTOMER COMPLAINTS

(1) Complaints concerning the charges, practices, facilities or service of the utility shall be investigated promptly and thoroughly. The utility shall keep such records of customer complaints as will enable it to review and analyze its procedures and actions.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.24 TEMPORARY SERVICE

(1) When the utility renders temporary service to a customer it may require that the customer bear all the cost of installing and removing the service facilities in excess of any salvage realized.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.25 EXTENSION PLAN

(1) Each utility shall develop a plan, acceptable to the Commission, for the extensions of facilities, where they are in excess of those included in the regular rates for service and for which the customer shall be required to pay all or part of the cost. This plan must be related to the investment that prudently can be made for the probable revenue.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.26 CUSTOMER’S DISCONTINUANCE OF SERVICE

(1) Any customer desiring that service be discontinued shall give at least three (3) days notice to the utility, unless a longer or shorter period shall be incorporated in any standard or special contract mutually agreed upon. Until the utility shall have such notice, the customer may be held responsible for all service rendered.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.27 ACCESS TO PROPERTY

(1) The utility shall at all reasonable times have access to meters, service connections and other property owned by it on customer’s premises for the purposes of operation and maintenance.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.28 REQUIREMENT FOR GOOD ENGINEERING PRACTICE

(1) The electric plant of the utility shall be constructed, installed, maintained and operated in accordance with accepted good engineering practice in the electric industry to assure, as far as reasonably possible, continuity of service, uniformity in the quality of service furnished, and the safety of persons and property.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.29 ACCEPTABLE STANDARDS

(1) The utility shall use the applicable provisions in the publications listed below as standards of accepted good practice:

(a) National Electrical Safety Code, latest edition.

(b) National Electrical Code, latest edition.

(d) American Standard Requirements, Terminology and Test Code for Instrument Transformers, ASA C57.13 latest edition.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.30 REQUEST TESTS

(1) Upon request by a customer, and at no charge, the utility shall make a test of the meter serving the customer, provided that such tests need not be made more frequently than once in twelve (12) months.

(a) The customer, or his/her representative, may be present when his/her meter is tested.

(b) A report of the results of the test together with a copy of Rule 1220-04-04-.31 shall be made to the customer within ten (10) workdays after the completion of the test, and a record of the report, together with a complete record of each test, shall be kept on file at the office of the utility.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.31 REFEREE TESTS

(1) Upon written application to the Commission by a customer or a utility, a test will be made of the customer’s meter as soon as practicable under the supervision of a representative of the Commission.

(2) The first application in a twelve (12)-month period is free. Thereafter, the application shall be accompanied by twenty-five dollars $25 payable to the Commission.

(3) On receipt of such a request from a customer the Commission will notify the utility and the utility shall not knowingly remove or adjust the meter until instructed by the Commission. The utility shall furnish to the Commission’s representative such reasonable assistance as may be required to make the test.

(4) If upon test the meter is found to over-register to an extent requiring a refund under the provisions of Rule 1220-04-04-.18(1), the amount paid to the Commission for the test shall be returned to the customer by the utility.

(5) The customer, or his/her representative, may be present when his/her meter is tested.

(6) The Commission will make a written report of the results of the test to the customer and to the utility.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.32 PRE-INSTALLATION INSPECTIONS AND TESTS

(1) Every meter and/or associated device shall be inspected and tested, either by the utility or the manufacturer, in accordance with the standards contained in American National Standards for Electric Meters - ANSI C.12.1, latest edition, before being placed in service, and the accuracy of each meter shall be certified to be within the tolerances permitted by

Rule 1220-04-04-.38. A meter removed from a customer’s premises may be returned to service without testing if the type of meter is included in an In-Service performance test program conducted under Rule 1220-04-04-.35, in accordance with American National Standard for Electric Meters - ANSI C.12.1, latest edition and the performance of that type meter in such program is acceptable.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.33 POST-INSTALLATION INSPECTIONS

(1) Post-installation inspections are to be made to determine proper operation and wiring connections and must be made within sixty (60) days after installation by a qualified person who, whenever possible, should be someone other than the original installer. The following equipment is subject to post-installation inspections:

(a) Meters with associated instrument transformers and phase shifting transformers.

(b) Kilovar-hour meters.

(d) Direct current watt-hour meters.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.34 AS FOUND TESTS

(1) All meters and/or associated devices removed from service maybe retired without testing unless removed from service due to a customer complaint.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.35 IN-SERVICE PERFORMANCE TESTS

(1) General In-Service performance tests must be made in accordance with Rules 1220-04-04- .35(2), 1220-04-04-.35(3), or 1220-04-04-.35(4). These tests may be made on the customer’s premises or in the utility’s meter shop. However, it is recommended that meters associated with instrument transformers, or phase shifting transformers, or those having mechanical contact devices, be tested on the customer’s premises. Tests made for other purposes, such as request tests or referee tests, must not be counted as in-service performance tests. All meters on a utility’s system must be tested in accordance with a single program, which must be one of the following:

(a) At a fixed periodic interval in accordance with 1220-04-04-.35(2).

(b) At a variable interval in accordance with 1220-04-04-.35(3).

(2) Periodic Test Schedule If this option is used, the basic periodic test interval for meters shall not be longer than provided for in American National Standard for Electric Meters – ANSI C 12.1, latest edition, and as follows for secondary standards:

(a) Portable electronic watt-hour standards ..............................................................yearly (b) Indicating voltmeters ......................................................................................... yearly (c) Instrument transformer standards ...............................................................as required (3) Variable Interval Plan (a) If this option is used, the variable interval plan shall conform to American National Standard for Electric Meters - ANSI C 12.1, latest edition, for all meters that do not have an additional mechanical attachment such as a thermal or mechanical register.

(b) The variable interval plan shall be accompanied by an adequate policy for testing meters on request and a procedure whereby unusually high or low bills for service would be detected and investigated.

(4) Statistical Sampling (a) If this option is used, the statistical sampling plan shall conform to American National Standard for Electric Meters - ANSI C 12.1, latest edition, and shall use American Standard for Quality Control, ANSI, ASQCZ1.9, latest edition, to select sample quantities and to analyze test results, for all meters that do not have an additional mechanical attachment such as a thermal or mechanical register.

(b) A statistical sampling program shall included an adequate policy for testing meters on request and a procedure whereby unusually high or low bills for service would be detected and investigated.

(c) An acceptable sampling plan is one in which a sample will, ninety-five (95) times out of one hundred (100), correctly identify a homogenous group of meters, which has at least ninety-seven and one half percent (97.5%) of the group within the limits ninetyeight percent to one hundred two percent (98% - 102%) registration on in-service performance test. If a group of meters does not meet acceptable performance criteria, then corrective action must be taken.

(d) The corrective action may consist of an accelerated test program to raise the accuracy performance of the group from service. An accelerated test program should provide for testing at rates that vary in accordance with the calculated percentage of defective meters in rejected groups. In its application to an individual group the rate of testing should be such that the required corrective action is completed in four (4) years, but not more than twenty-five percent (25%) of the meters in the group need to be tested in any one (1) year. Accelerated testing may be discontinued when the test results indicate that the rejected group is within acceptable limits.

(e) Records shall be maintained and tabulated to indicate the number of meters in each homogeneous group in service at the beginning of each year, the number of meters making up the sample for each homogeneous group, the test results for each group, and any necessary corrective action taken.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.36 INSTRUMENT TRANSFORMER TESTS

(1) Instrument transformers shall be tested:

(a) Prior to initial installation.

(b) Upon complaint.

(c) Whenever an approved check, such as the variable burden method in the case of current transformers, made whenever the meter is tested, indicates that a quantitative test is required if the transformer will remain in service.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.37 GENERATING STATION METER TESTS

(1) Generator output wattmeters and watt-hour meters in the utility’s generating station must be tested according to a suitable schedule by comparison with the utility’s working standards.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.38 TEST PROCEDURES AND ACCURACIES

(1) Meter and/or associated devices shall be tested and adjusted in accordance with American National Standard for Electric Meters – ANSI C12.1, latest edition.

(a) Meters for Measurement of Purchased Electricity.

Utilities purchasing electricity from non-utilities or from utilities outside the state must see that the instruments and meters that are necessary to furnish complete and accurate information as to the energy purchased are installed and tested in accordance with the requirements of the Commission.

(b) General 1. All meters and/or associated devices, when tested, shall be adjusted as closely as practicable to the condition of zero (0) error.

All tolerances are to be interpreted as maximum permissible variations from the condition of zero (0) error. In making adjustments, no advantage of the prescribed tolerance limits shall be taken.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.39 FACILITIES AND EQUIPMENT FOR METER TESTING

(1) Each utility shall maintain a meter shop for the purpose of inspecting, testing and repairing meters. The shop shall be open for inspection by authorized representatives of the Commission at all reasonable times, and the facilities and equipment, as well as the methods of measurements and testing employed, shall be subject to the approval of the Commission.

A utility may, however, have all or part of the required tests, repairs and adjustments made or its portable testing equipment checked by another agency approved by the Commission and having adequate and sufficient testing equipment to comply with these rules.

(a) Each location at which the utility conducts tests of meters shall have three (3) phase voltage supply, one (1) phase of which shall be variable from zero (0) to two hundred seventy (270) volts.

(2) Secondary Standards (a) Each utility shall have at least one (1) electronic watt-hour standard meter with a correction of not more than two-tenths percent (0.2%) at commonly used loads. If the correction percentage varies between successive tests by more than one quarter percent (0.25%) a complete check must be made to determine the cause of such variation. If the cause of variation cannot be removed, the use of the instrument should be discontinued.

(3) Working Standards (a) Each utility shall have at least one (1) portable electronic watt-hour standard meter with a correction of not more than three-tenths percent (0.3%) at commonly used loads. If the correction percentage varies between successive tests by more than one quarter percent (0.25%), a complete check must be made to determine the cause of such variation. If the cause of variation cannot be removed, the use of the instrument should be discontinued.

(4) Secondary standards must be checked periodically (see Rule 1220-04-04-.35(2)) at the National Institute of Standards and Technology (NIST) or any successor thereto or at a utility’s option, at a laboratory traceable to NIST.

(5) Working standards must be checked periodically (see Rule 1220-04-04-.35(2)) by comparison with a secondary standard in the utility’s meter shop.

(6) Extreme care must be exercised in the handling of standards to assure that their accuracy is not disturbed.

(7) Each standard shall be accompanied at all times by a certificate or calibration card, duly signed and dated, on which are recorded the corrections required to compensate for errors found at the customary test points at the time of the last previous test.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.40 RECORDS OF METERS AND ASSOCIATED METERING DEVICES

(1) Each utility shall maintain records of the following data, where applicable, for each meter and/or associated device until retirement:

(a) The complete identification - number, type, voltage, amperes, number of wires, number of stators, disk constant (Kh), demand interval and ratio.

(b) The dates of last previous installation and removal from service, together with the location.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.41 METER TEST RECORDS

(1) Each utility shall maintain records of the last two (2) tests made of any meter. The record of the meter test made at the time of the meter’s retirement shall be maintained for a minimum of six (6) months. Test records shall include the following:

(a) The date and reason for the test.

(b) The reading of the meter before making any test.

(d) The accuracy “as left” at light and heavy loads.

(e) Statement of repairs made, if any.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.42 STANDARD FREQUENCY

(1) The standard frequency for alternating current distribution systems shall be sixty (60) cycles per second. The frequency shall be maintained within limits which will permit the satisfactory operation of customer’s clocks connected to the system.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.43 VOLTAGE LIMITS

(1) Each utility shall adopt and file with the Commission standard nominal service voltages for each of the several areas into which its distribution system or systems may be divided.

(a) Secondary Voltages - Delivery Point The variations of voltage shall be no more than 7½ or below the standard voltage at any time. Where three (3) phase service is provided, the utility shall exercise reasonable care to assure that the phase voltages are in balance.

(b) Primary Voltages - Delivery Point The variations of voltage shall be no more than five percent (5%) above or below the standard voltage at that time.

(c) Limitations Limitations in subparagraphs (c) and (d) above do not apply to special contracts in which the customer specifically agrees to accept service with unregulated voltage.

(d) Exceptions to Voltage Requirements:

Voltage outside the limits specified will not be considered a violation when the variations 1. Arise from the action of the elements.

Are infrequent fluctuations not exceeding five (5) minutes duration.
Arise from service interruptions.
Arise from temporary separation of parts of the system from the main system.
Are from causes beyond the control of the utility.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.44 VOLTAGE SURVEYS AND RECORDS

(1) Voltage measurements shall be made at the utility’s service terminals. For single-phase service, the measurement shall be made between the grounded conductor and the ungrounded conductors. For three (3) phase service, the measurement shall be made between the phase wires.

(2) Each utility shall make a sufficient number of voltage measurements, using recording voltmeters, in order to determine if voltages are in compliance with the requirements as stated in Rule 1220-04-04-.43.

(3) All voltmeter records obtained under this Rule 1220-04-04-.44(2) shall be retained by the utility for at least one (1) year and shall be available for inspection by the Commission’s representatives. Notations on each chart shall indicate the following:

(a) The location where the voltage was taken.

(b) The time and date of the test.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.45 EQUIPMENT FOR VOLTAGE MEASUREMENTS

(1) Standards Each utility shall have at least one (1) indicating voltmeter with a stated accuracy within one quarter percent (0.25%) of full scale. This instrument must be maintained within its stated accuracy.

(2) Working Instruments (a) Each utility shall have at least two (2) indicating voltmeters with a stated accuracy within one percent (1.0%) of full scale.

(b) Each utility must have at least two (2) portable recording voltmeters with a stated accuracy within one and one half percent (1.5%) of full scale.

(3) Standards must be checked periodically (see Rule 1220-04-04-.39(2)) at the National Institute of Standards and Technology (NIST), or at a laboratory acceptable to the Commission.

(4) Working instruments be checked periodically (see Rule 1220-04-04-.39(2)) by comparison with a standard in the utility’s meter shop.

(5) Extreme care must be exercised in the handling of standards and instruments to assure that their accuracy is not disturbed.

(6) Each standard shall be accompanied at all times by a certificate or calibration card, duly signed and dated, on which are recorded the corrections required to compensate for errors found at the customary test points at the time of the last previous test.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.46 INTERRUPTIONS OF SERVICE

(1) Each utility shall make reasonable efforts to avoid interruptions of service but when interruptions occur, service shall be re-established within the shortest time practicable, consistent with safety.

(a) Each utility shall keep records of interruptions of service on its primary distribution system and shall make an analysis of the records for the purpose of determining steps to be taken to prevent recurrence of such interruptions. Such records should include the following information concerning the interruptions:

Cause.
Date and time.
Duration.

(b) The log for each unattended substation must show interruptions that require attention to restore service, with the estimated time of interruption.

(c) Planned interruptions shall be made at a time that will not cause unreasonable inconvenience to customers and shall be preceded, if feasible, by adequate notice to those who will be affected.

(d) Each utility shall notify the Commission by telephone or telegraph of any service interruption to twenty-five percent (25%) or more of its distribution customers or loads of twenty five thousand (25,000) kW or more when such interruptions last for more than two (2) hours.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.47 PROTECTIVE MEASURES

(1) Each utility shall exercise reasonable care to reduce the hazards to which its employees, its customers, and the general public may be subjected.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.48 SAFETY PROGRAM

(1) Each utility shall adopt and execute a safety program, fitted to the size and type of its operation. As a minimum, the safety program should:

(a) Require employees to use suitable tools and equipment in order that they may perform their work in a safe manner.

(b) Instruct employees in safe methods of performing their work.

(c) Instruct employees, who, in the course of their work, are subject to the hazard of electrical shock, or drowning, in accepted methods of artificial respiration.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.49 GROUNDING OF SECONDARY DISTRIBUTION SYSTEM

(1) Unless otherwise specified by the Commission, each utility shall comply with, and shall require its customers to comply with, the applicable provisions in the National Electrical Safety Code and the National Electrical Code for the grounding of secondary circuits and equipment.

(a) Ground connections should be tested for resistance at the time of installation unless multi-grounding is used.

(b) The utility shall keep a record of all ground resistance measurements.

(c) The utility shall establish a program of inspection so that all artificial grounds installed by it shall be inspected within reasonable periods of time.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.50 ADVERTISING

(1) A utility may not recover from any person other than its shareholders (or other owners) any direct or indirect expenditure for promotional or political advertising.

(a) The term “advertising” means the commercial use of any media, including newspaper, printed matter, radio, and television, in order to transmit a message to a substantial number of members of the public or to electric customers.

(b) The term “political advertising” means any advertising for the purpose of influencing public opinion with respect to legislative, administrative, or electoral matters, or with respect to any controversial issue of public importance.

(c) The term “promotional advertising” means any advertising for the purpose of encouraging any person to select or use electric service or additional electric service or the selection or installation of any appliance or equipment designed to use electric service.

(d) The terms “political advertising” and “promotional advertising” do not include:

Advertising which informs electric customers how they can conserve energy or can reduce peak demand for electric energy;
Advertising required by law or regulation, including advertising required under

Part I of Title II of the National Energy Conservation Policy Act;

Advertising regarding service interruptions, safety measures or emergency conditions;
Advertising concerning employment opportunities;
Advertising which promotes the use of energy-efficient appliances, equipment, or service; or 6 Any explanation or justification of existing or proposed rate schedules or notifications of hearings thereon.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-105.
Administrative History: Original rule certified October 20, 1983; effective January 16, 1984. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.51 COMPENSATION OF CONSUMER INTERVENORS

(1) In PURPA related proceedings the Commission may determine appropriate compensation for reasonable costs of participation by intervenors in any proceeding arising under those provisions of the Public Utility Regulatory Policies Act of 1978, 16 U.S.C. § 2601 et seq.

(PURPA), which so provide. Compensation may be determined if the intervenor’s participation has substantially contributed to the approval, in whole or in part, of a position advocated by such intervenor in such proceeding when they have met the other requirements set forth in this rule.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-105.
Administrative History: Original rule certified October 20, 1983; effective January 16, 1984. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.52 PRELIMINARY DETERMINATION OF INTERVENOR ELIGIBILITY

(l) An intervenor who wishes to be eligible for a determination of costs of participation in a PURPA-related proceeding must make application to the Commission for such purpose.

Such application shall be brief in nature and shall:

(a) State the consumer interest represented by the intervention, the relevance of the hearings to that interest and why participation, is needed for a full and fair determination of the issues;

(b) Outline the general nature of the consumer’s expected participation and the anticipated budget;

(c) Include an affidavit stating that, but for an award of fees and costs, participation will be a significant financial hardship to the consumer; and (d) Be served on all affected utility companies and other known parties and intervenors to the proceeding.

Significant financial hardship, as understood in this section, may be established by demonstrating that the intervenor does not have sufficient resources available to participate effectively in the proceeding without such an award.

For the purpose of making a determination of eligibility under this subsection, the Commission may require intervenors with common interests to consolidate their participation in the proceedings.

(2) Affected utilities, parties and other interverors shall have the right to object to any application for eligibility.

(3) The Commission shall make a determination of the eligibility of an intervenor to receive an award under this rule prior to the beginning of the proceeding but no later than twenty (20) days after receipt of an application to intervene. A negative determination of eligibility precludes an award of fees and costs at the conclusion of the proceeding. An affirmative determination of eligibility does not assure the intervenor of an award; the intervenor must, in addition, meet the other requirements of this rule.

(4) The Commission may, in its determination of eligibility, set a ceiling on the costs that may be determined as appropriate.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-105.
Administrative History: Original rule certified October 20, 1983; effective January 16, 1984. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.53 DETERMINATION OF COSTS FOR INTERVENORS

(1) At the time of issuance of a final order in any PURPA-related proceeding, the Commission shall make a finding of whether an intervenor has fulfilled the requirements of this rule and is entitled to a determination of costs.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-105.
Administrative History: Original rule certified October 20, 1983; effective January 16, 1984. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-04-.54 PROCEDURES FOR INTERVENOR REIMBURSEMENT

(1) Within ten (10) days of a Commission order determining costs incurred by a consumer intervenor, said party shall file a memorandum of costs with the Chair of the Commission detailing attorneys’ fees, expert witness fees and other reasonable costs for which compensation is claimed. Copies of the memorandum of costs must be served on all affected utilities.

Any affected utility may file an objection to the reasonableness of any fee or cost within ten (10) days of the filing of the memorandum of costs.

(2) Within thirty (30) days of its original order, the Commission shall, after considering the memorandum of costs and any objections thereto, issue an order setting out the amount of the determination, and if necessary, allocating that amount among the various affected utility companies.

(3) Fees and costs paid to consumer intervenors by the affected utility(s) will be treated as operating expenses recoverable in the utility’s next general rate case.

Attorneys’ fees and expert witness fees shall be based upon prevailing market rates in Tennessee for the kind and quality of services rendered. All other expenses reasonably incurred in proceedings pursuant to this rule—including, but not limited to, staff time, printing costs, postage, and travel, —shall be based on the actual costs incurred by the intervenor(s).

In no case shall said costs exceed the market rate.

(4) Payment of costs under this rule maybe made by the affected utility company or companies within forty-five (45) days of the date on which a Commission Order issues pursuant to 1220- 04-04.54 (2) of this rule or in accordance with a payment schedule set by the Commission. If costs are not paid within the applicable time limit, the entitled consumer intervenor may initiate appropriate court proceedings pursuant to 16 U.S.C. § 2632(a)(2).

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-105.
Administrative History: Original rule certified October 20, 1983; effective January 16, 1984. Amendment filed October 30, 2000; effective January 13, 2001. Editorial changes made by the Secretary of State pursuant to Public Chapter 826 of 2002 by replacing Executive Secretary with Chair of the Authority; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-01-.04 .

(g) Upon request by the Commission the utility shall furnish available information regarding electric service operations or any of the standards set out in Rule 1220-04-04-.29.

(h) Financial and statistical report shall be filed annually on forms furnished or approved by the Commission on or before April 30 of the succeeding year for which the report covers.

(General Public Utilities Rules Applicable to all Utilities).

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Amendment filed October 30, 2000; effective January 13, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-04-05 Regulations for Gas Companies

Tenn. Comp. R. & Regs. 1220-04-05-.01 AUTHORIZATION OF RULES

(1) The Tennessee Public Utility Commission Law provides that the Commission shall have the power to make such reasonable rules as it deems necessary to carry out the provisions of this law and any other law relating to the Commission.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.02 REPEALED

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Repeal by Public Chapter 440; effective July 1, 1985. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.03 DEFINITIONS

(1) The following words and terms, when used in these rules, shall have the meaning indicated below:

(a) Commission - Means the Tennessee Public Utility Commission of Tennessee.

(b) Utility - Means any gas company operating under the jurisdiction of the Commission.

(c) Customer - Means any person, firm, association, or corporation, or any agency of the Federal State, or local government, being supplied with gas service by a gas utility.

(d) Premises - Means a piece of land or real estate, including buildings and other appurtenances thereon.

(e) Gas Plant - Means all facilities owned by a gas utility for the production, storage, transmission, and distribution of gas.

(f) Main - Means a gas pipe, owned, operated, or maintained by a utility which is used for the purpose of transmission or distribution of gas, but does not include “service pipe.”

(g) Service Pipe - The pipe that runs between a main or a pipeline and a customer’s meter.

(h) Meter - Without other qualifications, shall mean any device or instrument which is used by a utility in measuring a quantity of gas.

(i) Check Flow - Means a flow between twenty percent (20%) and fifty percent (50%) of the rated capacity of a meter according to the manufacturer’s specifications.

(j) Full Rated Flow - Means a flow of one hundred percent (100%) of the rated capacity of a meter according to the manufacturer’s specifications.

(k) Cubic Foot - Cubic foot of gas as used in these rules shall have the following meanings.

Where gas is supplied and metered to customers at the pressure (as defined in

Rule 1220-04-05-.32) normally used for domestic customer’s appliances, a cubic foot of gas shall be that quantity of gas which, at the temperature and pressure existing in the meter, occupies one (1) cubic foot.

When gas is supplied to customers at other than the pressure in (1.) above, the utility shall specify in its rules the base for measurement of a cubic foot of gas (see Rule 1220-04-06-.06(a)(2)(vi)). Unless otherwise stated, such cubic foot of gas shall be that quantity of gas, which at a temperature of sixty-eight degrees Fahrenheit (68°F) and a pressure of fourteen and seventy-three one hundredths (14.73) pounds per square inch absolute, occupies one (1) cubic foot.
The standard cubic foot of gas for testing the gas itself for bearing value shall be that quantity of gas, saturated with water vapor, which at a temperature of sixty degrees Fahrenheit (60°F) and a pressure of thirty (30) inches of mercury occupies one (1) cubic foot. (Temperature of mercury two degrees Fahrenheit (2°F) acceleration due to gravity – thirty-two and seventeen one-hundredths (32.17) ft. per second; density – thirteen and five hundred ninety-five onethousandths (13.595) grams per cubic centimeter).

(l) Interruption of Service - Means any unplanned disturbance of the gas supply whereby the pilot flame on the appliances of at least fifty (50) customers shall have been extinguished.

(m) The abbreviations used, and their meaning, shall be as follows:

BTU - British Thermal Unit LP-Gas - Liquefied Petroleum Gas psig - Pounds Per Square Inch, Gauge W.C. - Water Column

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.04 LOCATION OF RECORDS

(1) All records required by these rules or necessary for the administration thereof, shall be kept within this State, unless otherwise authorized by the Commission. These records shall be available for examination by the Commission or its authorized representatives at all reasonable hours.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.05 RETENTION OF RECORDS

(1) Unless otherwise specified by the Commission, all records required by these rules shall be preserved for the period of time specified in the current edition of the National Association of Railroad and Utilities Commissioners’ publication “Regulations to Govern the Presentation of Records of Electric, Gas and Water Utilities.”

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.06 DATA TO BE FILED WITH THE COMMISSION

(1) The utility shall file with the Commission the following documents and information, and shall maintain such documents and information in a current status.

(a) A copy of the utility’s tariff, which shall include:

A copy of each schedule of rates for service, together with the applicable riders.
A copy of the utility’s rules or terms and conditions, describing the utility’s policies and practices in rendering service. These rules shall include:

(i) The standard total heating value of the gas in BTUs per cubic foot. If necessary, this may be listed by district, division, or community.

(ii) The list of the items which the utility furnishes, owns, and maintains on the customer’s premises, such as service pipe, meters, regulators, vents, and shut-off valves.

(iii) General statement indicating the extent to which the utility will provide free service in the adjustment of customers’ appliances.

(iv) General statement of the utility’s policy in making adjustments for wastage of gas when such wastage occurs without the knowledge of the customer.

(v) A statement indicating the minimum number of days allowed for payment of the gross amount of the customer’s bill before service will be discontinued for nonpayment (vi) A statement indicating the volumetric measurement base to which all sales of gas at other than standard delivery pressure are corrected (see Rule 1220-04-05-.03(1)(k)).

(vii) The utility’s extension plan as required in Rule 1220-04-05-.12.

(b) A copy of each special contract for service.

(d) A map showing the utility’s operating area. This map shall be revised annually unless such revision is unnecessary, in which event the utility shall notify the Commission that the map on file is current. The map should show:

Gas production plant.
Principal storage holders.
Principal mains by size.
System metering (supply) points.
State boundary crossings.
Franchise area.
Names of all communities (post offices) served.

(e) The name, title, address, and telephone number of the person who should be contacted in connection with:

General management duties.
Customer relations (complaints).
Engineering operations.
Meter tests and repairs.
Emergencies during non-office hours.

(f) A report of each accident in connection with the operation of the utility’s gas plant resulting in death or property damage. Prompt notice of fatal accident shall be given to the Commission by telephone or telegraph.

(g) A report of major construction programs as follows:

A notification of all proposed important additions to plant, the construction of which was started by the utility, during the preceding month. For the purpose of this rule an important addition to plant shall mean a single project involving the expenditure of at least $100,000, or an amount equivalent to at least ten percent (10%) of the total gas plant in service, whichever is less.
A notification of all important additions to plant previously reported under (a) above, the construction of which was completed to the extent that the facility was placed in operation during the preceding month.
Such notifications shall be submitted on forms supplied by the Commission.

(h) Gas service. The following shall be available on request:

The daily and/or the monthly average heating value of the gas in accordance with

Rule 1220-04-05-.35.

The monthly acquisition and disposition of gas.
Interruptions of service occurring during the month. If there were no interruptions, then it should be so stated.

(i) Conform with all applicable rules and regulations contained in Section IV (General Public Utilities Rules Applicable to all Utilities).

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.07 DISPOSITION OF GAS

(1) All gas sold by a utility shall be on the basis of meter measurement unless otherwise authorized by the Commission.

(2) Wherever practicable, consumption of gas within the utility itself, or by administrative units associated with it, shall be metered.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.08 METER READING SHEETS OR CARDS

(1) The meter reading sheets or cards shall show:

(a) Customer’s name, address, and rate schedule;

(b) Identifying number and/or description of the meter(s);

(d) If the reading has been estimated;

(e) Any applicable multiplier or constant.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.09 METER READING INTERVAL

(1) Meters shall be read monthly, except that authority may be obtained from the Commission for reading the meters at other than monthly intervals. As nearly as practicable, utilities shall avoid sending a customer two (2) successive estimated bills.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original Rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.10 CONDITION OF METER

(1) No meter shall be installed which is mechanically defective, has an incorrect correction factor or has not been tested and adjusted, if necessary, in accordance with Rule 1220-04-05-.27.

The capacity of the meter and the index mechanism should be consistent with the gas requirements of the customer.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.11 TEMPORARY SERVICE

(1) When the utility renders temporary service to a customer it may require that the customer bear all the cost of installing and removing the service in excess of any salvage realized.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.12 EXTENSION PLAN

(1) Each utility shall develop a plan, acceptable to the Commission, for the installation of extensions of main and service lines where such facilities are in excess of those included in the regular rates for service and for which the customer shall be required to pay all or part of the cost. This plan must be related to the investment that prudently can be made for the probable revenue.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.13 CUSTOMER INFORMATION

(1) Each utility shall:

(b) Assist the customer or prospective customer in selecting the most economical rate schedule.

(c) Notify customers affected by a change in rates or schedule classification. In the case of a general rate change affecting all classes of customers in a community, then notice in the press shall satisfy this requirement.

(d) Post a notice in a conspicuous place in each office of the utility where applications for service are received, informing the public that copies of the rate schedules and rules relating to the service of the utility, as filed with the Commission, are available for inspection.

(e) Upon request, inform its customers as to the method of reading meters.

(f) Furnish such additional information as the customer may request.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.14 .

(2) Notice of Termination of Service. Gas service to any gas customer may not be terminated without reasonable prior notice and the customer being given reasonable opportunity to dispute the reasons for such termination.

(a) Content of the notice which may be included in the customer’s bill, shall be clearly legible and contain the following information:

The name and address of the customer and the address of the service, if different.
A clear and concise statement of the reason for the proposed termination of service.
The date on which service will be terminated unless the customer takes appropriate action. The date of the proposed termination by the utility shall be at least seven (7) days after the utility sends the notice by first class mail. The mailing of the notice of termination as set forth above, shall constitute reasonable prior notice within the meaning of this rule.
Information concerning the reconnection fee.
The telephone number and address of the utility where the customer may make inquiry, enter into a service continuation agreement or file a complaint.
This notice shall also contain the name and address of the Tennessee Public Utility Commission and a statement to the effect that the Tennessee Public Utility Commission is the regulatory authority for this service.
In cases where the termination is based on the failure to pay, the notice shall state if the bill is the actual or estimated, the amount owed, and the time period over which the amount was incurred.

(b) Notwithstanding any other provisions of these rules, a utility shall postpone the physical termination of utility service to a residential customer for a period of thirty (30) days in the event a physician, public health officer or social service official certifies in writing that discontinuation of the service will aggravate an existing medical emergency of the customer or other permanent resident of the premises where service is rendered.

(a) Grounds for termination.

(b) The time allowed to pay outstanding bills.

(d) Steps necessary to have service reinstated.

(e) Instructions for residential customers to designate the following:

A third party (agency or individual) to receive a copy, by first class mail, of all termination notices;
Presence of appliances at the service address which are critical for maintenance of health of one or more of the residents.

(f) A notice of rights and remedies which should contain the following:

The time allowed to initiate a complaint;
Appropriate administrative or other action to take in order to avoid termination;
Procedures to dispute and appeal the termination notice, including the office address and telephone number of the utility representatives available to handle inquiries or complaints;
A statement that households which have appliances critical for health are responsible for notifying the utility of such fact;
Provide information and steps necessary to qualify for alternative payment arrangements available to residential customers who maintain that they are temporarily unable to pay their bills;
The name of a social service agency the customer can call to inquire about a source or sources of financial assistance in paying residential utility bills;
Procedures to dispute and appeal an unfavorable decision of the utility, including the address and toll-free telephone number of the Tennessee Public Utility Commission and its representatives, who are available to handle complaints and inquiries; and 8. A statement that a customer does not have to pay that portion of a bill which is in dispute while the dispute process is underway.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule certified May 9, 1974. Amendment filed November 14, 1983; effective March 2, 1984. Repeal and new rule filed February 7, 1985; effective May 14, 1985. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.15 CUSTOMER BILL FORMS

(1) The utility shall bill each customer as promptly as possible following the reading of his/her meter. The bill shall show:

(a) The reading of the meter at the end of the period for which the bill is rendered;

(b) The date on which the meter was read at the end of the billing period;

(d) The applicable rate schedule, or identification of the applicable rate schedule. If the actual rates are not shown, the bill shall contain a statement to the effect that the applicable rate schedule will be furnished on request;

(e) The gross and/or net amount of the bill;

(f) The date by which the customer must pay the bill in order to benefit from any discount or to avoid any penalty;

(g) A distinct marking to identify an estimated bill;

(h) Any conversions from meter reading units to billing units, or any calculations to determine billing units from recording or other devices, or any other factors, such as purchased gas or fuel adjustments, used in determining the bill. In lieu of such information on the bill, a statement must be on the bill advising that such information can be obtained by contacting the utility’s principal office.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.16 CUSTOMER RECORDS

(1) The utility shall retain customer billing records for the length of time necessary to permit the utility to comply with Rule 1220-04-05-.17 but not less than three (3) years.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.17 ADJUSTMENT OF BILLS

(1) Bills which are incorrect due to meter or billing errors are to be adjusted as follows:

(a) Fast Meter. Whenever a meter in service is tested upon request of customer and found to have over-registered more than two percent (2%), the utility shall recalculate the bills for service, for the period as determined below:

The bills for service shall be recalculated from the time at which the error first developed or occurred if that time can be definitely determined.
If the time at which the error first developed or occurred cannot be definitely determined, it shall be assumed that the over-registration existed for a period equal to one-half of the time since the meter was last tested but not to exceed six (6) months and the bills for service shall be recalculated for that period.
If the recalculated bills indicate that more than one dollar ($1) is due an existing customer or two dollars ($2) is due a person no longer a customer of the utility, the full amount of the calculated difference between the amount paid and the recalculated amount shall be refunded to the customer. The refund to an existing customer may be in cash or as credit on a bill. If a refund is due a person no longer a customer of the utility, a notice shall be mailed to the last known address, and the utility shall upon request made within three (3) months thereafter refund the amount due.

(b) Non-registering Meters. Whenever a meter in service is found not to register, the utility may render an estimated bill.

(c) Slow Meters. Whenever a meter is found to be more than two percent (2%) slow, the utility may bill the customer for the amount the test indicates he/she has been undercharged for the period of inaccuracy, which period shall not exceed the last six (6) months the meter was in service unless otherwise ordered by the Commission. No back billing will be sanctioned if the customer has called to the company’s attention his/her doubts as to the meter’s accuracy and the company has failed within a reasonable time to check it.

(d) Billing adjustments due to fast or slow meters shall be calculated on the basis that the meter should be one hundred percent (100%) accurate. For the purpose of billing adjustments the meter error shall be one-half of the algebraic sum of the error at fullrated flow plus the error at check flow.

(e) When a customer has been overcharged as a result of incorrect reading of the meter, incorrect application of the rate schedule, incorrect connection of the meter, or other similar reasons, the amount of the overcharge shall be adjusted, refunded, or credited to the customer.

(f) When a customer has been undercharged as a result of incorrect reading of the meter, incorrect application of the rate schedule, incorrect connection of the meter or other similar reasons, the amount of the undercharge may be billed to the customer.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.18 REASONS FOR TERMINATION OF SERVICE OR DENIAL OF SERVICE

(1) Service may be refused or discontinued for any of the reasons listed below. Unless otherwise stated, the utility shall comply with the notice requirements before service is discontinued.

However, no service shall be discontinued on the day or a date preceding a day or days on which the services of the utility are not available to the general public for the purpose of reconnecting the discontinued service, except as provided in Rule 1220-04-05-.18(1)(a), (b), (c) and (d).

(a) Without notice in the event of a condition determined by the utility to be hazardous.

(b) Without notice in the event of customer use of equipment in such a manner as to adversely affect the utility’s equipment or the utility’s service to others.

(d) Without notice if there is evidence of unauthorized use.

(e) For violation of and/or non-compliance with the utility’s rules on file with and approved by the Commission.

(f) For failure of the customer to fulfill his/her contractual obligations for service and/or facilities subject to regulation by the Commission.

(g) For failure of the customer to permit the utility reasonable access to its equipment.

(h) For non-payment of a delinquent account.

(i) For failure of the customer to provide the utility with a deposit as authorized by Rule

Tenn. Comp. R. & Regs. 1220-04-05-.19 INSUFFICIENT REASONS FOR DENYING SERVICE

(1) The following shall not constitute sufficient cause for refusal of service to a present or prospective customer.

(a) Delinquency in payment for service by a previous occupant of the premises to be served.

(b) Failure to pay for merchandise purchased from the utility.

(d) Failure to pay the bill of another customer as guarantor thereof.

(e) Failure to pay a back bill rendered in accordance with Rule 1220-04-05-.17(1)(a).

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.20 CUSTOMER COMPLAINTS

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.21 REQUIREMENT FOR GOOD ENGINEERING PRACTICE

(1) The gas plant of the utility shall be constructed, installed, maintained and operated in accordance with accepted good engineering practice in the gas industry to assure, as far as reasonably possible, continuity of service, uniformity in the quality of service furnished, and the safety of persons and property.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.22 ACCEPTABLE STANDARDS

(1) Unless otherwise specified by the Commission, the utility shall use the applicable provisions in the publications listed below as standards of accepted good practice.

(a) The current edition of the USA Standard Code for Gas Transmission and Distribution Piping Systems, USAS B31.8, 1968.

(b) The latest edition of the American Standard Installation of Gas Appliances and Gas Piping, USAS Z21.30, 1964.

(c) The current edition of the National Fire Protection Association, No. 58, “The Storage and Handling of Liquefied Petroleum Gases.”

(d) Standard methods for testing pipeline displacement gas meters as indicated in the American Meter Co. Handbook.

(e) “Testing Large Capacity Rotary Gas Meters,” Research Paper No.1741, National Bureau of Standards Journal of Research, September, 1946.

(f) “Standard Method of Test for Calorific Value of Gaseous Fuels by the Water-Flow Calorimeter,” American Society for Testing Materials, Standard D 900-55.

History

Authority: T.C.A. § 65-2-l02.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.23 ACCEPTABLE REFERENCES

(1) The following publications have not been designated as standards but they may be used as guides to acceptable practice.

(a) “Accuracy of the Recording, Gas Calorimeter When Used With Gases of High BTU Content,” by John H. Eiseman, National Bureau of Standards, and Elwin A. Potter, Gas Inspection No. CEP-55-13.

(b) “Orifice Metering of Natural Gas,” Report No. 3 of the AGA Gas Measurement Committee.

(c) Reports prepared by the Practical Methods Committee of the Appalachian Gas Measurement Short Course, West Virginia University, as follows:

Report No.1, “Methods of Testing Large Capacity Displacement Meters.”
Report No.2, “Testing Orifice Meters.”
Report No.3, “Designing and Installing Measuring and Regulating Stations.”
Report No.4, “Useful Tables for Gas Men.”
Report No.5, “Power Room Practices.”

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.24 ADEQUACY OF SUPPLY

(1) The production and/or storage capacity of the utility’s plant, supplemented by the gas supply regularly available from other sources, must be sufficiently large to meet all reasonably expectable demands for service.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.25 INSPECTION OF GAS PLANT

(1) Each utility shall operate and maintain its gas plant in conformance with Chapter 5 of the current edition of the USA Code for Gas Transmission and Distribution Piping Systems, USAS B-31.8.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.26 UTILITY INSPECTIONS AND TESTS

(1) Each utility shall make inspections and tests of meters and associated metering devices as follows:

(a) Pre-installation Inspections and Tests Every meter and/or associated metering devices shall be inspected, tested, and sealed before being placed in service, and the accuracy of each meter shall be within the tolerances permitted by Rule 1220-04-05-.27.

(b) As Found Tests All meters and/or associated metering devices shall be tested after they are removed from service. Such tests shall be made before the meters and/or associated metering devices are adjusted, repaired, or retired.

(c) Leak Tests Repaired meters, and meters that have been removed from service, shall be leak tested prior to installation. New meters shall be leak tested in accordance with a sampling method acceptable to the Commission. Each meter tested shall be subjected to an internal pressure of at least twenty (20) inches W.C. and checked for the presence of leaks by one of the following tests:

Immersion test.
Soap test.
Pressure drop test of a type acceptable to the Commission.

(d) Request Tests Upon request by a customer and accompanied by a payment of five dollars ($5), the utility shall make a test of the meter serving him, provided that such tests need not be made more frequently than once in eighteen (18) months.

The customer, or his/her representative, may be present when his/her meter is tested.
A report of the results of the test shall be made to the customer within a reasonable time after the completion of the test, and a record of the report, together with a complete record of each test, shall be kept on file at the office of the utility.

(e) Periodic Tests Unless otherwise authorized by the Commission each utility shall make periodic tests of meters, associated devices and instruments, to assure their accuracy. Such tests shall be scheduled within the calendar year, or earlier, when the interval shall not be longer than provided for in the following schedule where applicable. (Note: Maintenance programs suggested by manufacturers of the following meters and devices should be carefully followed.)

Positive displacement meters (i) Up to 250 c.f. / hr...............................................................10 years (ii) 250 c.f. / hr. .......................................................................7 years 2. Orifice meters ...........................................................................6 months (i) Plates and Tubes ................................................................2 years 3. Base pressure correcting devices .................................................. 2 years 4. Base volume correcting devices .......................................................2 years 5. Secondary standards (i) Test bottles, one cubic foot ...................................................10 years (ii) Dead weight testers ............................................6 months–minimum 6. Working standards (i) Bell provers..........................................................................3 years (ii) Rotary displacement test meters ............................................5 years (iii) Flow provers .......................................................................5 years (iv) Laboratory quality indicating pressure gauges ........................6 months (v) Temperature recorders .......................................................6 months (vi) Gravitometers ...................................................................6 months

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.27 TEST PROCEDURES AND ACCURACIES

(1) Meters and/or associated metering devices shall be tested at the points and adjusted to the tolerances prescribed below. The test of any unit of metering equipment shall consist of a comparison of its accuracy with the accuracy of a standard. The Commission will use the applicable provisions of the standards listed in Rule 1220-04-05- .22 as criteria of accepted good practice in testing meters.

(a) Positive Displacement Meters 1. Accuracy at test points Flow Adjusted to within Check flow......................................................................................1.5% Not less than full rated flow ................................................................1.5% 2. Overall accuracy The accuracy at check flow and the accuracy at not less than full rated flow shall agree with one (1%) percent.

(b) Orifice Meters Testing for all orifice meters shall be in accordance with procedures as set forth in the American Gas Association Committee Report No. 3. Accuracy at test points must be within two percent (2%), plus or minus.

(c) Timing Devices All recording type meters or associated instruments which have a timing element that serves to record the time at which the measurement occurs must be adjusted so that the timing element is not in error by more than plus or minus four (4) minutes in twentyfour (24) hours.

(d) General 1. All meters and/or associated metering devices, when tested, shall be adjusted as closely as practicable to the condition of zero (0) error.

All tolerances are to be interpreted as maximum permissible variations from the condition of zero (0) error. In making adjustments no advantage of the prescribed tolerance limits shall be taken

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.28 FACILITIES AND EQUIPMENT FOR METER TESTING

(1) Each utility shall maintain or have access to a meter shop for the purposes of inspecting, testing, and repairing meters. The shop shall be open for inspection by authorized representatives of the Commission at all reasonable times, and the facilities and equipment, as well as the methods of measurements and testing employed, shall be subject to the approval of the Commission.

(a) The area within the meter shop used for the testing of meters shall be designed so that the meters and meter testing equipment are protected from drafts and excessive changes of temperature. The meters to be tested shall be stored in such manner that the temperature of the meters is substantially the same as the temperature of the prover.

(b) Working Standards Each utility shall own and maintain, or have access to, at least one (1) approved bell type prover of five (5) cubic foot capacity, and all other equipment necessary to test meters, which shall be installed in the meter room.

Means shall be provided to maintain the temperature of the liquid in the meter prover at substantially the same level as the ambient temperature in the prover room.
The meter prover shall be maintained in good condition and correct adjustment so that it shall be capable of determining the accuracy of any service meter to within one-half of one percent (.5%).

Each utility having meters which are too large for testing on a five (5) cubic foot bell prover may use a properly designed flow prover for testing the large meters.

Bell provers must be checked with a one (1) cubic foot bottle which has been calibrated by the National Bureau of Standards.
Rotary displacement test meters must be checked with a bell prover of adequate capacity which has been calibrated by representatives of the National Bureau of Standards.

(d) Extreme care must be exercised in the use and handling of standards to assure that their accuracy is not disturbed.

(e) Each standard must be accompanied at all times by a certificate or calibration card, duly signed and dated, on which are recorded the corrections required to compensate for errors found at the customary test points at the time of the last previous test.

(f) Each utility must have properly calibrated orifices, as may be necessary, to achieve the rates of flow required to test the meters on its system.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.29 RECORDS OF METERS AND ASSOCIATED METERING DEVICES

(1) Each utility shall maintain records of the following data, where applicable, for each meter and/or associated metering device until retirement:

(a) The complete identification - manufacturer, number, type, capacity, multiplier, constants, and pressure rating.

(b) The dates of installation and removal from service, together with the location.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.30 METER TEST RECORDS

(1) Each utility shall maintain records of at least the last two (2) tests made of any meter. The record of the meter test made at the time of the meter’s retirement shall be maintained for a minimum of three (3) years. Test records shall include the following:

(a) The date and reason for the test;

(b) The reading of the meter before making any test;

(d) The accuracy “as left” at check and full rated flow;

(e) In the event test of the meter is made by using a standard meter or a flow prover, the utility shall retain all data taken at the time of the test in sufficiently complete form to permit the convenient checking of the test methods and the calculations.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.31 PURITY REQUIREMENTS

(1) All gas supplied to customers shall be substantially free of impurities which may cause corrosion of mains or piping or from corrosive or harmful fumes when burned in a properly designed and adjusted burner.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.32 PRESSURE LIMITS

(1) The maximum allowable operating pressure for a standard pressure distribution system shall not exceed a pressure which could cause the unsafe operation of any connected and properly adjusted low pressure gas burning equipment.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.33 PRESSURE SURVEYS AND RECORDS

(1) Each utility shall make a sufficient number of pressure measurements on its mains so that it will have a substantially accurate knowledge of the pressures in the standard intermediate and/or high pressure systems in each district, division, or community served by its distribution mains. Every utility which operates its system at a single pressure shall have and operate a recording pressure gauge at all times.

(2) All pressure records obtained under Rule 1220-04-05-.33 shall be retained by the utility for at least two (2) years and shall be available for inspection by the Commission’s representatives.

Notations on each record shall indicate the following:

(a) The location where the pressure check was made.

(b) The time and date of the check.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.34 STANDARDS FOR PRESSURE MEASUREMENTS

(1) Secondary Standards.

(a) Each utility shall own or have access to a dead weight tester.

(2) Working Standards.

(a) Each utility must have equipment for the proper testing of the indicating and recording pressure gauges used in determining the pressure on the utility’s system. Working standards must be checked periodically (see Rule 1220-04-05-.26(e)(6)) by comparison with a secondary standard.

(3) Extreme care must be exercised in the handling of standards to assure that their accuracy is not disturbed.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.35 HEATING VALUE

(1) Each utility billing its customers on a term basis, or distributing other than straight undiluted natural gas, or distributing from liquefied natural gas (LNG) shall have available a daily record of the BTU value of the gas being sold. Such values may be obtained either from a utility’s own recording calorimeters or from the recording calorimeter of the transmission company which is the supplier.

(2) All peak-sharing plants shall have installed recording equipment capable of measuring and recording the BTU of the mixed gas. This may be accomplished by either measuring the specific gravity or the BTU content directly of the mixed gas. These records shall be made available upon request.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.36 INTERRUPTIONS OF SERVICE

(1) Each utility shall make reasonable efforts to avoid interruptions of service but when interruptions occur, service shall be reestablished within the shortest time practicable, consistent with safety.

(a) Each utility shall keep records of interruptions of service on its distribution system and shall make an analysis of the records for the purpose of determining steps to be taken to prevent recurrence of such interruptions. Such records should include the following information concerning the interruptions:

Cause.
Date and time.
Duration.

(b) Planned interruptions shall be made at a time that will not cause unreasonable inconvenience to customers and shall be preceded by adequate notice to those who will be affected.

(c) Each utility shall immediately notify the Commission by telephone or telegraph of any interruption to the service of a major portion of its distribution system.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.37 ACCEPTABLE STANDARDS

(1) As criteria of accepted good safety practice the Commission will use the applicable provisions of the standard listed in Rule 1220-04-05-.22.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.38 PROTECTIVE MEASURES

(1) Each utility shall exercise reasonable care to reduce the hazards to which its employees, its customers, and the general public may be subjected.

(2) The utility shall give reasonable assistance to the Commission in the investigation of the cause of accidents and in the determination of suitable means of preventing accidents.

(3) Each utility shall maintain a summary of all reportable accidents arising from its operations.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.39 SAFETY PROGRAM

(1) Each utility shall adopt and execute a safety program, fitted to the size and type of its operations. At a minimum, the safety program should:

(a) Require employees to use suitable tools and equipment in order that they may perform their work in a safe manner;

(b) Instruct employees in safe methods of performing their work;

(c) Instruct employees, who in the course of their work are subject to the hazard of electrical shock, asphyxiation or drowning, in accepted methods of artificial respiration.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.40 CUSTOMER PIPING

(1) Each customer’s piping system shall be tested for leaks before service is turned on.

(a) Pressure Test.

If local authorities do not require a pressure test of a customer’s piping, as set forth in American Standard Installation of Gas Appliances and Gas Piping, ASA Z21.30, 1964, the utility shall advise the customer that his/her plumber shall conduct the aforementioned test.

(b) Leakage Test.

Before permitting the use of gas at any location, the piping system shall be tested for leakage by a method at least equal to that described in Section “Leakage Check After Gas Turn On,” in the latest edition of the American Standard Installation of Gas Appliances and Gas Piping, ASA Z21.30.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.41 GAS LEAKS

(1) A report of a gas leak inside a building shall be considered as an emergency requiring immediate attention.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.42 ODORIZATION

(1) Any gas distributed to customers through gas mains or gas services or used for domestic purposes in compressor plants, which does not naturally possess a distinctive odor to the extent that its presence in the atmosphere is readily detectable at all gas concentrations of one-fifth of the lower explosive limit and above, shall have an odorant added to it to make it so detectable. Odorization is not necessary when it is adequately odorized by the supplier.

Suitable tests must be made to determine whether the odor meets the aforementioned standards.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.43 LICENSING OF WELDERS

(1) In the event that a welder fails to qualify in accordance with Paragraph 192.227 of the Federal Minimum Safety Standards for the Transportation of Natural and Other Gas by Pipeline, one additional examination will be allowed thirty (30) days after the failure.

(2) If a welder fails the second examination, he/she must show evidence of successful additional training before being allowed another examination.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.44 GAS LEAK CLASSIFICATION

(1) Introduction (a) In the use of the grade classifications for leakage that follow, consideration must be given to the fact that the analysis of a leak is not an exact science, but rather a judgment decision. Some of the individual grade classifications do not have precise limits because of the variable nature of the factors involved.

(b) Grade classifications shall only be made by individuals who possess training, experience and knowledge gained through association with leakage work. The judgment of these individuals based upon information gained at the scene of the leak will form the basis for the classification.

(c) Percentages of gas-in-air are based on natural gas. Where liquefied petroleum, manufactured or other gases are involved, appropriate adjustment shall be made as may be required consistent with the lower explosive limit (L.E.L.) of such gas or mixture of gases.

(2) Definitions (a) Blowing Gas - A leak which can be heard, seen or felt.

(b) Building - Any structure which is normally or occasionally occupied by humans for business, residential or other purposes.

(c) Follow-up Inspection - An inspection performed after a repair procedure has been completed in order to determine the effectiveness of the repair.

(d) Manhole or Vault - A subsurface structure that a man can enter.

(e) Reading - Shall be construed to be the stabilized reading taken on a combustible gas indicator unit.

(f) Tunnel - A subsurface passageway of a size large enough for a man to enter.

(3) Leak Repair Records. A leak repair ticket shall be used for the entire history of a leak through the “follow-up” inspection. The document shall contain information as to corrective action taken and follow-up results when such follow-up is deemed necessary by the operator. Leaks may only be reclassified by responsible and suitably experienced individuals whose identification shall appear on the ticket.

(4) General Statement. Any leak or odor call from the general public, police, fire or other authorities, or notification of damage to facilities by contractors or other outside sources shall constitute the need for prompt action.

(5) Grade Classification.

(a) Grade 1 Leak is a gas leak which due to its location and/or relative magnitude constitutes a potentially hazardous condition to the public or buildings. Grade 1 leaks include, but are not limited to:

Any indication of gas entering buildings or tunnels.
Any reading from a combustible gas indicator within five (5) feet of a foundation wall of a building which in the judgment of the operator is potentially dangerous.
Any reading of at least four percent (4%) or greater gas-in-air on a sidewalk in a wall-to-wall paved area where the volume of the leak presents a potential hazard to persons or property.
Blowing gas.
A leak from a transmission line within Class 3 and 4 locations as specified in Part 192.5 of the OPS regulations.
Four percent (4%) or greater gas-in-air reading in manholes, vaults, or catchbasins.
Any leak which, in the judgment of the supervisor at the scene, is regarded as potentially hazardous.

(b) Action Required:

It shall require corrective action which shall consist of immediate effort to protect life and property and continuous action until the condition is no longer hazardous and scheduled for immediate daily repair activity.

(c) Grade 2 Leak shall be a leak that does not constitute an immediate hazardous condition to the public or buildings, but shall be of a nature requiring scheduled repair.

Grade 2 leaks include, but are not limited to:

Transmission line leaks not classified as Grade 1 leaks.
A leak on a valve or appurtenance which has migrated beyond the valve box which in the judgment of the operator requires scheduled repair.
Reading between two percent (2%) and four percent (4%) gas-in-air on a sidewalk in a wall-to-wall paved area where the volume of the leak presents a potential hazard to persons or property.
Any reading between two percent (2%) and four percent (4%) gas-in-air in a manhole, vault or catchbasin.
Any Grade 3 leak which under frost conditions could migrate substantially.
A high density of Grade 3 leaks in the street of a business or residential area.

(d) Action Required:

Grade 2 leaks shall be scheduled for repair within twelve (12) months or shall be rechecked during the next annual survey. Rechecked Grade 2 leaks that have not deteriorated may be rescheduled for repair if they are not in a hazardous location and the repair would be difficult or expensive.

(e) Grade 3 Leak is any other leak not classified as either a Grade 1 or Grade 2 leak.

(f) Action Required:

Grade 3 leaks shall be re-evaluated at the next scheduled survey.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Original rule certified May 9, 1974. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.45 ADVERTISING

(1) A utility may not recover from any person other than their shareholders (or other owners) any direct or indirect expenditure for promotional or political advertising.

(c) The term “promotional advertising” means any advertising for the purpose of encouraging any person to select or use gas service or additional gas service or the selection or installation of any appliance or equipment designed to use gas service.

(d) The terms “political advertising” and “promotional advertising” do not include:

Advertising which informs gas customers how they can conserve energy or can reduce peak demand for gas;
Advertising required by law or regulation, including advertising required under

Part 1 of Title II of the National Energy Conservation Policy Act;

Advertising regarding service interruptions, safety measures or emergency conditions;
Advertising concerning employment opportunities;
Advertising which promotes the use of energy efficient appliances, equipment, services, or which informs customers that natural gas is cheaper and/or more efficient than other fuels; or 6. Any explanation or justification of existing or proposed rate schedules or notification of hearings thereon.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-4-106.
Administrative History: Original rule filed November 14, 1983; effective March 2, 1984. Amendment filed February 7, 1985; effective May 14, 1985. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.47 ENFORCEMENT PROCEDURES GOVERNING GAS PIPELINE SAFETY

(1) Definitions – Terms used in these rules have the following meaning:

(a) Act means the Natural Gas Pipeline Safety Act of 1968, as amended (49 U.S.C. 1671 et seq.).

(b) Commission means the Tennessee Public Utility Commission.

(d) LNG means liquefied natural gas.

(e) Operator means a person who engages in the transportation of natural gas by pipeline.

(f) Person means any individual, firm, joint venture, partnership, corporation, association, Commission, utility district, municipality, cooperative association or joint-stock association, and included trustee, receiver, assignee or personal representative who furnishes service to the public thereof.

(g) Pipeline means all parts of those physical facilities through which gas or LNG moves in transportation including but not limited to pipe, valves and other appurtenances attached to pipe, compressor units, pumping units, metering stations, delivery stations, regulator stations, holders and fabricated assemblies.

(h) Pipeline Facility means, without limitation, new and existing pipe, pipe right-of-way and any equipment, facility or building used in the transportation of gas or the treatment of gas during the course of transportation.

(i) Pipeline Safety Director means the Director of the Gas Pipeline Safety Division designated by the Commission.

(j) Transportation of Gas means the gathering, transmission or distribution of gas by pipeline or its storage.

(2) Intervals of Inspection.

(a) Upon presentation of appropriate credentials, the Commission or its designated employee is authorized to enter upon, inspect and examine, at reasonable times and in a reasonable manner, the records and properties of persons to the extent such records and properties are relevant to determining the compliance of such persons with the rules and regulations or Commission orders issued thereunder.

(b) Inspections shall ordinarily be conducted pursuant to one of the following:

Routine scheduling;
A complaint received from a member of the public;
Information obtained from a previous inspection;
Pipeline accident or incident; or 5. Whenever deemed appropriate by the Commission or the Director of Gas Pipeline Safety.

(3) Inspection of the Operators.

(a) An attempt will be made to periodically inspect every operator, with priority given to inspecting those systems with greater risk potential. In determining the potential risk of a pipeline system, the following factors may be considered:

The ratio of total steel pipe to coated steel pipe;
The ratio of total steel pipe to cathodically protected steel pipe;
Leaks per mile of pipe;
Leaks per number of services;
Unaccounted-for gas volumes and percentages;
The number of accidents or facility failures;
Footage of cast iron pipe in the system; and 8. Past history of the operator.

(b) The inspection will include a thorough review of the operator’s records concerning inspection, operation, maintenance and emergency procedures. Field inspection will include operational checks of corrosion control provisions, over pressure and regulating equipment, odorization, repaired leaks, emergency valves and any other components of the facility.

(4) Verbal Notice to Operator of Violation.

(a) When an inspection of an operator’s records or facilities, or both, indicates that the operator is in apparent violation of a pipeline safety regulation, the investigator will give verbal notice of the alleged violation to the operator before concluding the inspection.

(b) Any documentation of physical evidence necessary to support the alleged violation may be obtained during the inspection or requested by letter immediately after the conclusion of the visit.

However, enforcement of such alleged violations will proceed.

(5) Written Formal Notice of Violation. After evidence of an alleged violation is collected and the violation report is written, notice and opportunity to respond will be afforded the operator by a letter from the Pipeline Safety Director. The letter will notify the operator of the results of the on-site inspection and will specifically cite the regulation(s) the operator is allegedly violating.

Further, the letter may contain a proposed civil penalty or a compliance order. A written response from the operator shall be submitted to the Pipeline Safety Director within thirty (30) days of the time the operator receives the violation notice.

(6) Response Options Open to the Operator.

(a) Alternatives open to the operator to respond to the violation notice are:

Submit a written statement to the Pipeline Safety Director indicating corrective measures have achieved compliance;
Submit a written plan of action to the Pipeline Safety Director outlining the corrective measures that will be taken to achieve compliance and when compliance is anticipated; or 3. Request an informal conference with the Pipeline Safety Director and/or his staff to discuss the violation(s).

(b) The alleged violation(s) may be resolved at this stage if the information submitted is in accordance with (a)1. or (a)2. and is accepted by the Pipeline Safety Director and/or his/her staff. Such acceptance shall be verified by written statement issued by the Pipeline Safety Director following a reinspection of the operator’s facilities. However, if the operator selects (a)3., an informal conference will be scheduled as explained below:

(7) Informal Conference.

(a) After receiving a request for an informal conference, a date and time will be arranged for this conference and the basis of the alleged violations will be reviewed. The operator may explain the company’s position and may present alternatives for solution of the problem. The Gas Pipeline Safety Staff will be represented by the investigator involved and by such other members of the Commission Staff as designated by the Pipeline Safety Director.

(b) The violation may be resolved at this stage. If agreement cannot be reached, enforcement procedures shall continue.

(8) Commission Action.

(a) If the proposed solution as outlined is not satisfactory to the Gas Pipeline Director and/or his/her staff, the violation shall be referred to the Tennessee Public Utility Commission for formal resolution in either of the following manners:

The Commission may seek an injunction or mandamus in superior court in cases where immediate action is necessary; or 2. The Commission may issue a show cause order and/or schedule a hearing requiring the operator to demonstrate why the operator should not be subject to the penalties set forth by T.C.A.§ 65-28-108.

(b) Any civil penalty imposed by the Commission shall be based on:

The appropriateness in relation to the size of the business of the person charged;
The gravity of the violation;
The good faith of the person charged in attempting to achieve compliance;
History of prior violations; and 5. Other matters as justice may require.

Failure to obey such an order can result in:

Action by the Commission against the operator in state court;
Action by the Commission against the operator in any federal district court having jurisdiction.

(9) Hazardous Facility Order.

(a) Whenever the Commission or the Director of Gas Pipeline Safety shall find a particular facility to present an imminent hazard to life or property, it shall be empowered to require the owner or operator of the facility to take immediate steps necessary to correct such hazards. Corrective action may include suspended or restricted use of the facility, physical inspection, testing, repair, replacement, or other action, as appropriate.

(b) An opportunity shall be given for a hearing as soon as practicable after the issuance of any order hereunder, in accordance with the Administrative Procedures Act and, in no event later than ten (10) days after suspension of the use of a major facility.

(c) The Director of Pipeline Safety shall rescind or suspend a “hazardous facility order” whenever he determines that the facility is no longer hazardous to life or property.

When appropriate, however, such a rescission or suspension may be accompanied by a notice of violation issued under the written formal Notice of Violation Procedures.

History

Authority: T.C.A. § 65-28-106.
Administrative History: Original rule filed September 24, 1991; effective December 29, 1991. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-05-.48 GAS PIPELINE SAFETY STANDARDS

(1) The provisions of this rule shall apply to all gas public utilities as defined in T.C.A. § 65-28- 104.

(2) The Tennessee Public Utility Commission hereby adopts the federal safety standards and regulations including all subsequent amendments thereto, for the transportation of natural and other gas by pipeline established pursuant to the Natural Gas Pipeline Safety Act of 1968, as amended (49 U.S.C. 1671, et seq.), and the Hazardous Liquid Pipeline Safety Act of 1979 as amended (49 U.S.C. 2001, et seq.), by the United States Department of Transportation and contained in Title 49 of the Code of Federal Regulations, Chapter 1, Subchapter D, Parts 191, 192, 193, 195 and 199. Provided, however, that subsection (b) of

Section 192.455 of Title 49 C.F.R. Chapter 1, Subchapter D, shall not be adopted and incorporated by reference herein.

(3) The present American National Standards Institute, Gas Transmission and Distribution Piping System (ANSI-B 31.8), shall be in addition to the standards and regulations required by the federal safety standards, insofar as this standard does not conflict with any of the provisions of 49 C.F.R. Part 192.

History

Authority: T.C.A. §§ 65-28-104, 65-28-105, and 65-28-106.
Administrative History: Original rule filed May 31, 1991; effective August 21, 1991. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-04-06 Repealed

Tenn. Comp. R. & Regs. 1220-04-06-.01 REPEALED

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed August 3, 1992; effective September 17, 1992. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-04-06-.02 REPEALED

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed August 3, 1992; effective September 17, 1992. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-04-06-.03 REPEALED

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed August 3, 1992; effective September 17, 1992. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-04-06-.04 REPEALED

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed August 3, 1992; effective September 17, 1992. Repeal filed February 11, 2015; effective May 12, 2015.

Tenn. Comp. R. & Regs. 1220-04-06-.05 REPEALED

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed August 3, 1992; effective September 17, 1992. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Repeal filed February 11, 2015; effective May 12, 2015.

Chapter 1220-04-07 Purchased Gas Adjustment Rules

Tenn. Comp. R. & Regs. 1220-04-07-.01 DEFINITIONS

(1) “Gas Costs” shall mean the total delivered cost of gas paid or to be paid to Suppliers, including, but not limited to, all commodity/gas charges, demand charges, peaking charges, surcharges, emergency gas purchases, over-run charges, capacity charges, standby charges, gas inventory charges, minimum bill charges, minimum take charges, take-or-pay charges and take-and-pay charges, storage charges, service fees and transportation charges and any other similar charges which are paid by the Company to its gas suppliers in connection with the purchase, storage or transportation of gas for the Company’s system supply. Gas costs shall also include uncollected gas costs that have been both billed and determined to be uncollectible and are in excess of the amount of uncollectible gas costs that were approved in the last rate case for each Company.

(2) “Company” or “LDC” shall mean local gas distribution company regulated by the Tennessee Public Utility Commission.

(3) “Fixed Gas Costs” shall mean all Gas Costs based on the Company’s right to demand gas or transportation on a daily or seasonal peak; but unless otherwise ordered by the Commission, shall not include other charges paid for gas reserve dedication (e.g., reservation fees and gas inventory charges), minimum bill charges, minimum take charges, over-run charges.

Emergency gas charges, take-or-pay and take-and-pay charges (all of which shall be considered commodity costs).

(4) “Gas Charge Adjustment” shall mean the per unit amount billed by the Company to its customers solely for Gas Costs. The Gas Charge Adjustment shall be separately stated for firm customers and for non-firm customers.

(5) “Suppliers” shall mean any person or entity, including affiliates of the Company, who locates, purchases, sells, stores and/or transports natural gas or its equivalent for or on behalf of the Company. Suppliers may include, but not be limited to interstate pipeline transmission companies, producers, brokers, marketers, associations, intrastate pipeline transmission companies, joint ventures, providers of liquefied natural gas (LNG), liquefied petroleum gas (LPG), substitute, supplemental or synthetic natural gas (SNG), and other hydrocarbons used as feed-stock, other distribution companies and end-users.

(6) “Computation Period” shall mean the twelve (12) month period utilized to compute Gas Costs. Such period shall be the twelve (12) month period ending on the last day of a month which is no more than sixty-two (62) days prior to the filing date of a Purchased Gas Adjustment (PGA).

(7) “Demand Billing Determinants” shall mean the annualized volumes for which the Company has contracted with Suppliers as of the first day of the Filing Month.

(8) “Commodity Billing Determinants” shall mean the total metered throughput, regardless of source, during the Computation Period, adjusted for known and measurable changes. Should the Company expect to purchase commodity gas from several suppliers, the company shall allocate to each supplier a percentage of the total metered throughput, regardless of source, during the Computation Period, adjusted for known and measurable changes. The percentage used to allocate among suppliers shall be based on historical takes during the Computation Period, if appropriate; otherwise it shall be based upon the best estimate of the Company.

(9) “Commission” shall mean Tennessee Public Utility Commission.

(10) “Written-off” shall mean determined or deemed to be uncollectible by the Company.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, and 65-5-101.
Administrative History: Original rule filed October 29, 1993; effective March 1, 1994. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Amendments filed June 18, 2012; effective September 16, 2012. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-07-.02 GENERAL PROVISIONS

(1) These Purchased Gas Adjustment (PGA) Rules are intended to permit the company to recover, in timely fashion, the total cost of gas purchased for delivery to its customers and to assure that the Company does not over-collect or under-collect Gas Costs from its customers.

(2) These Rules are intended to apply to all Gas Costs incurred in connection with the purchase, transportation and/or storage of gas purchased for general system supply, including, but not limited to, natural gas purchased from interstate pipeline transmission companies, producers, brokers, marketers, associations, intrastate pipeline transmission companies, joint ventures, providers of liquefied natural gas (LNG), liquefied petroleum gas (LPG), substitute, supplemental or synthetic natural gas (SNG), and other hydrocarbons used as feed-stock, other distribution companies and end-users, whether or not the Gas Costs are regulated by the Federal Energy Regulatory Commission and whether or not the provider of the gas, transportation or storage is affiliated with the Company.

(3) To the extent, practicable, any revision in the PGA shall be filed with the Commission no less than thirty (30) days in advance of the proposed effective date and shall be accompanied by the computations and information required by these Rules. It is recognized, however, that in many instances the Company receives less than thirty (30) days notice from its suppliers and that other conditions may exist which prevent the Company from providing thirty (30) days advance notice. Therefore, should circumstances occur where information necessary for the determination of an adjustment under these Rules is not available to the Company so that the thirty (30) days requirement can be met, the Commission may permit the Company to place rates into effect with shorter advance notice, upon good cause shown.

(4) The rates for gas service set forth in all of the Rate Schedules of the Company shall be adjusted pursuant to the terms of the PGA, or any specified portion of the PGA as determined by individual Rate Schedule(s).

(5) No provisions of these rules shall supersede any provision of a special contract approved by the Commission.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed October 29, 1993; effective March 1, 1994. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-07-.03 COMPUTATIONS AND APPLICATION OF THE PURCHASED GAS ADJUSTMENT

(PGA).

(1) The PGA shall consist of three major components: (a) the Gas Charge Adjustment; (b) the Refund Adjustment and (c) the Actual Cost Adjustment (ACA).

(a) Computation of Gas Charge Adjustment. The Company shall compute the jurisdictional Gas Charge Adjustment at such time that the Company determines that there is a significant change in its Gas Costs.

Formulas. The following formulas shall be used to compute the Gas Charge Adjustment:

(i) Firm GCA = D ± DACA - DB + P + T + SR ± CACA - CB SF ST (ii) Non-Firm GCA P + T + SR ± CACA - CB ST 2. Definitions of Formula Components.

(i) GCA = The Gas Charge Adjustment in dollars per Ccf/therm, rounded to no more than five decimal places.

(ii) D = The sum of all fixed Gas Costs.

(iii) DACA = The demand portion of the ACA.

(iv) P = The sum of all commodity/gas charges.

(v) T = The sum of all transportation charges.

(vi) SR = The sum of all FERC approved surcharges.

(vii) CACA = The commodity portion of the ACA.

(viii) DB = The per unit of demand costs or other fixed charges included in base rates in the most recently completed general rate case (which may be zero if the Company so elects and the Commission so approves).

(ix) CB = The per unit rate of variable Gas Costs included in base rates in the most recently completed general rate case (which may be zero if the Company so elects and the Commission so approves).

(x) SF = Firm sales.

(xi) ST = Total sales.

Determination of Factors - Gas Charge Adjustment.

(i) Demand Charges (Factor D)

All Fixed Gas Costs that do not vary with the amount of gas purchased or transported, including, but not limited to, the product resulting from the multiplication of (1) the respective Demand Billing Determinants by (2) the respective Supplier demand rates that are effective, known or reasonably anticipated at the time the PGA is filed with the Commission and (3) any fixed storage charges.

(ii) Demand Actual Cost Adjustment (Factor DACA)

See subsection (1)(c) Actual Cost Adjustment.

(iii) Purchased Commodity Charges (Factor P)

All commodity or other variable Gas Costs associated with the amount of gas purchased or transported including, but not limited to, the product resulting from the multiplication of (1) the respective Demand Billing Determinants by (2) the respective Supplier demand rates that are effective, known or reasonably anticipated at the time the PGA is filed with the Commission and (3) any fixed storage charges.

(iv ) Transportation Charges (Factor T)

The transportation charges actually invoiced to the Company during the Computation Period or expected to be invoiced in the Company during the current period.

(v) FERC Approved Surcharges (Factor SR)

The sum of all FERC approved surcharges, including gas inventory charges or its equivalent, actually invoiced or expected to be invoiced to the Company during the Computation Period or that are effective, known or reasonably anticipated at the time the PGA is filed with the Commission.

(vi) Actual Cost Adjustment (Factor ACA)

See subsection (1)(c) Actual Cost Adjustment.

(viii) Total Sales (Factor ST)

Total volumes billed to all the Company’s customers during the Computation Period, regardless of source, adjusted for known measurable changes.

Modification of Formulas.

(i) The formulas set forth above are not designed for use with two-part demand/commodity rate schedules; however, the formulas may be modified form time to time to carry out the intent of these PGA Rules. Any proposed modification to the formulas shall contain a proposed effective date. The Commission may suspend the modification within thirty (30) days of filing, in which case the proposed modification shall be subject to notice and hearing; otherwise, the modification to the formula shall be effective on the proposed effective date.

Filing with the Commission.

(i) The computation of the Gas Charge Adjustment shall be filed in accordance with the notice requirements specified in Rule 1220-04-07- .02(3) shall remain in effect until a revised Gas Charge Adjustment is computed and filed pursuant to these Rules.

(ii) The Company shall file with the Commission a transmittal letter, an exhibit showing the computation of the Gas Charge Adjustment, a PGA tariff sheet, and any applicable revised tariff sheets issued by Suppliers. The transmittal letter shall state the PGA tariff sheet number, the service area(s), the primary reasons for revision, and the effective date.

(iii) If the Company proposes to recover any Gas Costs relating to (1) any payments to an affiliate or (2) any payments to a nonaffiliate for emergency gas, over-run charges, or (3) the payment of any demand or fixed charges in connection with an increase in contract demand, the Company must file with the Commission a statement setting forth the reasons why such charges were incurred and sufficient information to permit the Commission to determine if such payments were prudently made under the conditions which existed at the time the purchase decisions were made.

(iv) Any filing of a rate change under these Rules shall be effective on the proposed effective date unless the Commission shall act to suspend the proposed change within thirty (30) days after the filing, in which case the filing shall be subject to notice and hearing.

(b) Refund Adjustment. The Refund Adjustment shall be separately stated for firm and non-firm customers, and may be either positive or negative.

Computation of Refund Adjustment. The Company shall compute a Refund Adjustment on the last day of each calendar quarter using the following formulas:

(i) Firm RA = DR1 – DR2 + CR1 – CR2 ± CR3 ± U ± i SFR STR (ii) Non-Firm RA = CR1 – CR2 ± CR3 ± U ± i STR 2. Definitions of Formula Components.

(i) RA = The Refund Adjustment in dollars per Ccf/therm, rounded to no more than five decimal p1aces.

(ii) DRI = Demand refund not included in a currently effective Refund Adjustment and received from Suppliers by check, wire transfer. or credit memo.

(iii) DR2 = A demand surcharge from a Supplier not includable in the Gas Charge Adjustment, and not included in a currently effective Refund Adjustment.

(iv) CR1 = Commodity refund not included in a currently effective Refund Adjustment, and received from Suppliers by check, wire transfer, or credit memo.

(v) CR2 = A commodity surcharge from a Supplier not includable in the Gas Charge Adjustment, and not included in a currently effective Refund Adjustment.

(vi) CR3 = The residual balance of an expired Refund Adjustment.

(vii) I = Interest on the “Refund Due Customers’ Account”, using the average monthly balance based on the beginning and ending monthly balances.

The interest rates for each calendar quarter used to compute such interest shall be a rate equal to the arithmetic mean (to the nearest one-hundredth of one percent) of the prime rate value published in the “Federal Reserve Bulletin” or in the Federal Reserve’s “Selected Interest Rates” for the 4th, 3rd and 2nd months preceding the 1st month of the calendar quarter.

(viii) SFR = Firm sales as defined in the Gas Charge Adjustment computations, less sales under a transportation or negotiated rate schedule.

(ix) STR = Total sales as defined in the Gas Charge Adjustment computation, less sales under a transportation or negotiated rate schedule.

(x) U = Eligible uncollected gas costs surcharged or refunded under this Rule.

Modification of Formula. The formulas set forth above are not designed for use with two-part demand/commodity rate schedules; however, the formulas may be modified from time to time to carry out the intent of these PGA Rules. Any proposed modification to the formulas shall contain a proposed effective date.

The Commission may suspend the modification within thirty (30) days of filing, in which case the proposed modification shall be subject to notice and hearing; otherwise, the modification to the formula shall be effective on the proposed effective date.

Filing with the Commission.

(i) The computation of the Refund Adjustment shall be filed in accordance with the notice requirements specified in Rule 1220-04-07-.02(3) and shall remain in effect for a period of twelve (12) months or for such longer or shorter period of time as required to appropriately refund the applicable refund amount.

(ii) The company shall file with the Commission a transmittal letter, exhibits showing the computation of the Refund Adjustment and interest calculations, and a PGA tariff sheet. The transmittal letter shall state the PGA tariff sheet number, the service area(s), the reason for adjustment, and the effective date. Should the Company have a Gas Charge Adjustment filing to become effective the same date as a Refund Adjustment, a separate transmittal letter and PGA tariff sheet shall not be necessary.

Commencing with the initial effective date of these Rules, the Company shall calculate the ACA monthly. The Company shall be required to include the ACA in its calculation of the Gas Charge Adjustment at least monthly. Should the Company or Commission Staff determine it appropriate to include the ACA in the Gas Charge Adjustment more frequently than once per year, then the company may be allowed/directed to do so. The Commission shall resolve disputes between the Company and the Staff regarding timing of such ACAs.
The ACA shall be the difference between (1) revenues billed customers by means of the Gas Charge Adjustment and (2) the cost of gas invoiced the Company by suppliers plus margin loss (if allowed by order of the Commission in another docket) as reflected in the Deferred Gas Cost Account. The balance of said account shall be adjusted for interest at the rate provided for the calculation of interest with respect to the Refund Adjustment. The ACA shall be segregated into demand and commodity, and shall be added to or deducted from, as appropriate, the respective demand and commodity costs included in the Gas Charge Adjustment. Supplemental sheets showing the calculations of margin losses and cost savings shall also be provided.
Adjustments to Prior Period ACAs. In the event that circumstances warrant a correction to or restatement of a prior period ACA, such correction or restatement shall be made in accordance with the ACA calculation in effect for the time period(s) to which the correction or restatement relates. The resulting adjustment shall then be added to or deducted from the appropriate ACA in the next ensuing ACA filing with the Commission.

(2) Annual Filing with the Commission. Each year, the Company shall file with the Commission an annual report reflecting the transactions in the Deferred Gas Cost Account. Unless the Commission provides written notification to the Company within one hundred eighty (180) days from the date of filing the report, the Deferred Gas Cost Adjustment Account shall be deemed in compliance with the provisions of these Rules. This one hundred eighty (180) day notification period may be extended by mutual consent of the Company and the Commission Staff or by order of the Commission.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed October 29, 1993; effective March 1, 1994. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Amendments filed June 18, 2012; effective September 16, 2012. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-07-.04 GAS COST ACCOUNTING

(1) To appropriately match revenues with cost of purchased gas as contemplated under these Rules, the Company shall originally record the cost of purchased gas in a “Deferred Gas Cost” Account. Monthly, the Company shall debit “Natural Gas Purchases” with an amount equal to any Gas Cost component included in the Company’s base tariff rates (base rate) plus the PGA rate, as calculated hereunder, multiplied by the appropriate volumes sold or billed to customers. The corresponding monthly credit entry shall be made to the “Deferred Gas Cost” Account.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed October 29, 1993; effective March 1, 1994. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-07-.05 AUDIT OF PRUDENCE OF GAS PURCHASES

(1) The audit of prudence of gas purchases shall apply to Class A gas companies only. Class A gas company shall mean a local gas distribution company having annual gas operating revenues of two million five hundred thousand dollars ($2,500,000) or more.

(a) Unless otherwise ordered by the Commission, the Staff and the LDCs shall prepare and issue a request for proposals and after reviewing the proposals, recommend to the Commission a qualified consultant to evaluate and report annually on the prudence of any Gas Costs included in the PGA. Subject to the approval of the Commission, a contract to perform the audit shall be awarded to the consultant to cover at least two (2) consecutive annual audits.

The scope of the evaluation shall be agreed to by the Staff and the LDCs and shall include guidelines to be used by the consultant in performing any such prudence review.
Before selecting a consultant, the Staff and the LDCs shall determine the maximum amount to be paid for the audits that will be included in thc contract.

Each LDC shall pay to the consultant an equal portion of the cost of the audit(s).

The amount paid to the consultant by an LDC shall be recorded in the LDC’s Deferred Gas Cost Account and shall be recovered through the procedures set forth in these PGA rules.

(b) Each LDC shall file a non-binding gas purchase plan with the Commission at least annually.

An LDC may, at its option, update the plan whenever it deems appropriate.
The gas purchase plan shall include a general statement of the Company’s gas purchasing policies (e.q., the consideration given by the Company to the cost of gas, the security of the gas supply, the ability to obtain deliverability of the gas and other factors deemed relevant by the Company) which are established under the guidelines adopted under subsection (1)(a) of this rule.
All such plans shall be confidential and may be filed under appropriate protective orders.

(c) In connection with the filing of the annual report of transactions in the Deferred Gas Cost Account required by Rule 1220-04-07-.03(2), each Class A LDC shall file a summary report detailing its gas purchasing practice during the period covered by the annual report. This requirement may be satisfied by the inclusion of such summary report information in the consultant’s report that is required under section (1) of this

rule.

Within ninety (90) days after receipt of the gas purchase practices report information and the consultant’s report, the Commission, in its discretion, may order a hearing to review the prudence of an LDC’s gas purchasing practices and subject to the hearing, order the LDC to refund any imprudent gas costs collected under the provisions of the PGA Rules during the annual period under review. Any such order shall be subject to appeal in accordance with applicable law.

(2) If the Commission does not order a hearing within the ninety (90) day period, the LDC’s gas purchasing practices shall be deemed prudent.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed October 29, 1993; effective March 1, 1994. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-07-.06 PROCEDURES FOR UNCOLLECTED GAS COST RECOVERY:

(1) Recovery of uncollected gas costs using the modified Refund Adjustment Formula is optional.

Any Company electing to recover uncollected gas costs in its annual ACA filing using the modified Refund Adjustment Formula shall comply fully with the following procedures:

(a) At the time a customer account balance is written-off, the gas cost and the margin portion of the uncollected amount for each customer account shall be specifically identified from actual amounts billed and a percentage of total gas costs to the total amount written-off established.

(b) For purposes of the calculation in (a), other charges, such as late fees, applicable state and local taxes, and collection fees shall not be included in the calculation of the percentage of gas costs to the total amount written-off.

(c) If the account balance written-off is later collected in full, the uncollected gas costs shall be credited with the full amount of the gas cost portion of the account.

(d) If the account balance written-off is not collected in full, the partial payment shall be allocated and credited to uncollected gas costs using the same percentage established for gas costs in (a).

(e) If a Company’s billing system (including both computer and manual functions) is not capable of accurately allocating a partial payment, the partial payment shall be credited 100% to uncollected gas costs first , with any remainder treated as recovered margin.

(f) For those Companies whose allowance for uncollectible accounts (recovered in base rates) contains a gas cost portion, the amount of that portion shall be netted with the eligible uncollected gas costs included for recovery in the ACA. Each such Company shall submit its calculation of the amount to be netted with actual uncollected gas cost amounts as part of the annual ACA filing.

(g) The gas cost portion of written-off account balances and the amount of gas costs recovered from subsequent payments on these accounts shall be charged or credited, as appropriate, to the ACA account at least annually for inclusion in the ACA filing.

(h) Any variance between amounts charged or credited in the annual filing of the ACA and the amounts recorded in the monthly reports required in subparagraph (2) shall be reconciled and documented by the Company for review by the TPUC Compliance Staff (Staff) during the annual audit of the ACA.

(i) Each Company shall file its policy (internal procedures followed) for determining the uncollectibility of a customer account balance, disconnection of a customer’s service for non-payment, collection attempts made by the company both before and after an account balance is written-off, and conditions a customer must fulfill to be reconnected to the gas system. This written policy shall be filed with the TPUC within thirty (30) days of the effective date of this Rule part.

(2) Each Company electing to recover uncollected gas costs in the ACA shall comply with the following reporting requirements:

(a) Customer account balances written-off shall be tracked separately in sufficient detail, so as to permit the Staff to audit write-offs and subsequent payments on written-off accounts.

(b) Each Company shall submit a monthly summary report detailing each write-off and each payment to a written-off account for that month and the total amount eligible for recovery in the ACA no later than the first business day of the third month following the reported month, using a format acceptable to the Staff. Corrections or adjustments to these monthly reports shall be timely filed. Failure to submit a required monthly report may result in disallowance of recovery in the ACA of the uncollected gas costs for that month. The Company is responsible for contacting Staff should an extraordinary event prevent the timely filing of this report.

(c) Monthly reports shall be electronically filed in Excel format and shall contain, at a minimum, the following information:

Information reported at the time an uncollected account balance is written-off:

(i) Customer account numbers, with spreadsheet data sorted by account number in ascending order;

(ii) Date that account balance is written-off;

(iii) Amount of total gas cost written-off;

(iv) Amount of total margin written-off;

(v) Total amount of gas cost and margin written-off ((iii) plus (iv));

(vi) Gas cost percentage of total amount written-off ((iii) divided by (v)); and (vii) Margin percentage of total amount written-off ((iv) divided by (v)).

Information reported at the time a full or partial payment is received on an account balance that has been written-off:

(i) Customer account numbers, with spreadsheet data sorted by account number in ascending order;

(ii) Date that payment was received;

(iii) Original write-off date of the account balance applicable to this payment;

(iv) Gas cost payment credited to written-off account balance;

(v) Margin payment credited to written-off account balance;

(vi) Total of gas cost payment (recovery) and margin payment (recovery) ((iv) plus (v));

(vii) Gas cost payment percentage of total amount recovered credited to customer account ((iv) divided by (vi)); and (viii) Margin payment percentage of total amount recovered ((v) divided by (vi)).

(3) Each Company electing to recover uncollected gas costs in its annual ACA filing shall sufficiently demonstrate to Staff that it is making reasonable efforts to collect delinquent accounts prior to the account balance being written-off. As part of the ACA filing, the Company shall submit a report showing the amount of uncollected gas costs by month, the total revenues by month, and the percentage of uncollected gas costs compared to total revenues by month and in total. The Company shall provide an explanation of any significant increase in this percentage from one month to the next.

(4) Failure of a Company to fully comply with the procedures and/or reporting requirements contained in this Rule part may result in the disallowance of all or a portion of uncollected gas costs eligible for recovery in the ACA during the annual ACA audit.

(5) Once a Company makes the election to recover uncollected gas costs in the ACA, the Company must continue to file its uncollected gas costs for recovery in the ACA in compliance with this Rule.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed June 18, 2012; effective September 16, 2012. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” “TRA” references were changed to “TPUC,” and “Chief” references were changed to “Director.”

Chapter 1220-04-08 Regulations for Local Telecommunications Providers

Tenn. Comp. R. & Regs. 1220-04-08-.01 DEFINITIONS

(1) In the interpretation of the rules in this Chapter, the following definitions shall apply:

(a) Commission - The Tennessee Public Utility Commission.

(b) Automatic Emergency Communications District (ECD) Routing - E-911 call routing to the proper Tandem Central Office where the End Office has subscribers in more than one ECD and the Incumbent Emergency 911 Service provider has different Tandem Central offices serving those ECDs.

(c) Basic Local Exchange Service - The telecommunications services comprised of an access line, dial tone, touch tone, and usage provided to the premises of residential customers or business customers for the provision of high quality, two-way switched voice, or data transmission over voice grade facilities, within a local calling area, Lifeline, Link-up Tennessee, 911 Emergency Services, and educational discounts existing on the effective date of Chapter 408 Public Acts of 1995. Said service shall be provided at the same level of quality as was provided on the effective date of Public

Chapter 408. This shall include recurring and nonrecurring charges.

(d) Bona Fide Request - A request to an Incumbent Local Exchange Telephone Company or a Competing Local Telecommunications Service Provider that demonstrates a good faith showing by the requesting provider that it intends to purchase the services within a reasonable time.

(e) Common Channel Signaling - A method of digitally transmitting call set-up and network control data over a special network fully separate from the public switched network that carries the actual call.

(f) Competing Telecommunications Service Provider - A company, entity, or an individual that offers or provides any two-way communications service, telephone service, paging service, or communications service similar to such services and telegraph services certificated for such services after June 6, 1995.

(g) Emergency Communications District (ECD) - Any Emergency Communications District created pursuant to the provisions of T.C.A. §§ 7-86-101, et seq.

(h) Enhanced 911/911 Service - An emergency service available to the general public and activated by dialing the digits 911 on the telephone.

(i) Gross Domestic Product Price Index (GDP-PI) - The final estimate of the chainweighted Gross Domestic Product Price Index as prepared by the U.S. Department of Commerce and published in the Survey of Current Business or its successor.

(j) Incumbent Enhanced 911 Emergency Service Provider - A public utility offering Enhanced 911 Service on June 6, 1995 to any ECD or other governing authority referred to in T.C.A. §§ 7-86-101, et seq.

(k) Interconnection - Refers to telecommunication services, including intrastate switched access that allows a Telecommunications Service Provider to interconnect with the networks of other Telecommunications Service Providers.

(l) Interexchange Access Service - A telecommunications service to provide access between end users and an interexchange carrier and/or private line services between end users.

(m) Interexchange Carrier - A facilities based telecommunications service provider of intrastate, interLATA telecommunications services.

(n) IntraLATA Long Distance Service - A long distance service within any LATA.

(o) Local Calling Area - The geographic area encompassing one (1) or more local exchanges in maps, tariffs, and rate schedules approved by the Commission, including the expanded service area as that term is used in such maps, tariffs, and rate schedules within which toll charges do not apply.

(p) Local Exchange - A switching center serving a 10,000 line grouping or less that can be uniquely identified by an area code and the first three (3) digits of a telephone number (NXX code).

(q) Incumbent Local Exchange Telephone Company - A public utility offering and providing basic local exchange service pursuant to tariffs approved by the Commission prior to June 6, 1995, or as designated by the Federal Communications Commission pursuant to 47 U.S.C. § 251(h)(2).

(r) Local Service - Any service provided within a local calling area.

(s) Local Telecommunications Service Providers - All providers of local telecommunications services certificated by the Commission after June 6, 1995 and all Incumbent Local Exchange Telephone Companies serving more than 100,000 access lines or which are otherwise subject to this rule chapter.

(t) Long Run Incremental Cost - The additional forward-looking cost the company would incur in offering an existing or new service, group of services or basic network function for the current or reasonably expected level of service demand, excluding shared expenses and overheads not directly attributable to the service or function.

(u) Non-Basic Services - Telecommunications services which are not defined as basic local exchange telephone services and which are not otherwise exempted from this category by the provisions of T.C.A. § 65-5-108. Rates for this service shall include recurring and nonrecurring charges.

(v) Number Portability - The technical capability to allow a customer to retain his local number, which includes:

Service provider portability - the ability to retain one’s telephone number within a local telecommunications provider’s service area when changing service providers;
Geographic portability - the ability to take one’s telephone number when moving to a different permanent location within a local calling area (business or residential);
Service portability - the ability to retain one’s telephone number when changing service types, an example would be when a customer changes from voice grade telephone service to Integrated Services Digital Network (ISDN) and retains the same telephone number; and 4. E911 service portability - the ability to provide and display subscriber numbers (old number and new number) and a designation that this is a remote call forwarding (RCF) call in the ALI database, where RCF is used to accomplish number portability.

(w) Price List - The prices, or a range of prices, charged for services provided by a local telecommunications service provider on file with the Commission.

(x) Price Regulation - A method for setting affordable prices through the use of a combination of caps, floors, and indexes or adjustment mechanisms, other than methods which use earnings, rate base and rate of return regulation.

(y) Rate - The price of a telecommunication service. Whenever the term price is used in this rule chapter it shall be synonymous with rate and vice versa.

(z) Shared Tenant Service Provider - A basic local exchange service subscriber who shares or resells basic local exchange service, generally occurring under a single owner or common development with a single name identity.

(aa) Stand-Alone Cost - Those costs that an efficient firm would incur, using least-cost technology, to produce a service or group of services by themselves without reference to the rest of the services produced by the firm.

(bb) Tariff - The schedule, or a range of prices and regulations for a particular service, which is filed with the Commission and serves as the official published list of charges, terms and conditions governing the provision of the service or facility. Tariffs function in lieu of a contract between an end user and a service provider.

(cc) Tariff or Price Filing Date - The date on which the new tariff filing or price filing is first published in the Commission’s weekly tariff sheet.

(dd) Telecommunications Resale Service - A service provided by a Telecommunications Service Provider, including Shared Tenant Services Providers, that purchases telecommunications services or functions from another certificated provider for resale to the public.

(ee) Telecommunications Services - A generic term describing two-way communications services transmitted over communications facilities. These services include voice, data, and video transmissions. These services exclude the transmission of one-way or twoway television and radio communications over traditional cable television and broadcast facilities provided exclusively between TV or radio subscribers and the TV or radio service provider.

(ff) Universal Service - The provision of affordable residential basic local exchange telephone service and carrier-of-last-resort obligations.

(gg) Usage Based Service - A service for which the rate applies to each additional increment of service usage. Usage based service does not include a message-rated service or any local exchange service for which usage rates do not apply after a maximum dollar amount or level of usage is consumed.

History

Authority: T.C.A. §§ 65-2-102, 65-3-105, 65-4-101, 65-4-104, 65-5-107, 65-5-108, and Chapter 408 of Public Acts of 1995.
Administrative History: Original rule filed April 15, 1998; effective June 15, 1998. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-08-.02 CERTIFICATION POLICY AND REQUIREMENT

(1) The purpose of this rule chapter is to provide specific rules for the Commission to use in certifying additional service providers in local telecommunications markets.

(2) It is the Commission’s policy to ensure that all consumers receive high quality telecommunications services, regardless of the service provider they select and that such providers shall be supervised by the Commission.

(3) Every provider of telecommunications service, unless otherwise exempted by state or federal law, shall obtain a certificate pursuant to application under this rule before providing local telecommunications service, and shall not provide local telecommunications service without a certificate to provide such service. Any certificate or other Commission approved authority to provide local telecommunications service existing on the effective date of this rule shall remain in effect unless otherwise revoked by the Commission.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-201.
Administrative History: Original rule filed April 15, 1998, effective June 15, 1998. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-08-.03 GENERAL APPLICATION REQUIREMENT PROCEDURES FOR ALL COMPETING

TELECOMMUNICATIONS SERVICE PROVIDERS - LOCAL SERVICE.

(1) Any individual company or entity applying for a certificate of convenience and necessity under this rule chapter to provide competing local telecommunications services shall file a petition in accordance with the provisions of T.C.A. § 65-2-103 with the Chair of the Commission.

(2) Falsification or failure to disclose any required information in the petition for certification may be grounds for denial or revocation of any certificate.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-201.
Administrative History: Original rule filed April 15, 1998, effective June 15, 1998. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-08-.04 APPLICATION AND CERTIFICATION REQUIREMENTS FOR COMPETING

TELECOMMUNICATIONS SERVICE PROVIDERS - LOCAL SERVICE.

(1) Petitions to obtain certificates to provide competing local telecommunication services shall include the following:

(a) Demonstration of the ability and willingness to adhere to all applicable Commission policies, rules and orders;

(b) Documentation of managerial, financial and technical ability to provide such services;

(c) The name of the service provider, the address of the corporate headquarters, and the names and addresses of the service provider’s principle corporate officers;

(d) If different than above, the names and addresses of all officers and corporate officers located in Tennessee and the name(s) and address(es) of employee(s) responsible for Tennessee operations;

(e) Information about the structure of the business organization and, where applicable, a copy of any articles of incorporation, partnership agreement or by-laws of the service provider, and a copy of any license to do business in Tennessee;

(f) Repair and maintenance information including the name, address and telephone number of a Tennessee contact person responsible for and knowledgeable about the provider’s operations;

(g) A list of other states where the provider is authorized to operate and a list of those states which have denied any requested authority;

(h) Such other information as the Commission may require;

(i) A description of the category and types of services to be offered, the facilities and arrangements to be made available to end users and/or carriers, where applicable, and the geographic areas in which the services shall be offered.

(2) After public notice and hearing, the Commission shall grant a certificate of convenience and necessity to a Competing Local Telecommunications Service Provider if, after examining the evidence presented, the Commission finds:

(a) The applicant possesses sufficient managerial, financial and technical abilities to provide the applied for services;

(b) The applicant has demonstrated that it will adhere to all applicable Commission policies, rules and orders.

(3) Conditions of Certification (a) Certificates awarded to Competing Local Telecommunications Service Providers shall designate those incumbent local exchange companies which serve those areas in which the competing provider intends to operate. If the competing provider wishes to expand into areas served by other incumbent providers, the competing provider must file a petition to modify the certificate. The Commission shall act upon that petition within sixty (60) days of filing.

(b) With entry into the local exchange communications markets in Tennessee comes basic obligations and responsibilities to serve the public interest. Therefore, all Competing Telecommunications Service Providers providing basic local exchange telephone service or its equivalent shall either directly or through arrangements with other carriers or companies:

Provide access to 911 and E 911 emergency service.
Provide white page directory listings and directory assistance.
Provide consumer access to and support for the Tennessee Relay Center in the same manner as incumbent local exchange telephone companies.
Provide free blocking service for 900, 976 type services in accordance with Commission policy.
Provide Lifeline and Link-up services to qualifying citizens of this state.
Provide educational discounts in existence as of June 6, 1995.

Provide support for universal service in a manner determined by the Commission. This requirement shall not be construed as prohibiting the granting of a certificate before the universal service issues are determined by the Commission.
Provide interconnection with other certificated carriers or Commission authorized carriers on a nondiscriminatory basis under reasonable terms and conditions.
Comply with Commission basic service standards as defined in any applicable rules and decisions of the Commission;.
Provide equal access to authorized inter-and intraLATA long distance providers, unless otherwise exempted by the Commission.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, 65-4-106, 65-4-201, 65-4-204, 65-5-101, 65-5-102, 65-5-103, 65-5-107, and Chapter 408 of Public Acts of 1995.
Administrative History: Original rule filed April 15, 1998, effective June 15, 1998. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-08-.05 ABANDONMENT OR TRANSFER OF A CERTIFICATE

(1) Abandonment of a certificate. Any Local Telecommunications Service Provider, except a telecommunications service provider with carrier of last resort obligations, which plans to discontinue providing all local services under its certificate in any or all local calling areas shall file formal notification with the Commission and all its affected customers by direct mail ninety (90) days in advance of the last anticipated day of service.

(2) Transfer of a certificate. The transfer of a certificate or any services by any Local Telecommunications Services Provider shall be approved by the Commission so long as the new provider meets the requirements of T.C.A. § 65-4-201(c). The Commission shall render a decision regarding the transfer of the certificate, whether in whole or in part, within sixty (60) days of the filing date of the petition to transfer. If the Commission determines, based on the information presented, that the recipient is financially and technically capable of providing the service, and will adhere to all applicable Commission rules, policies and orders, the Commission shall approve the transfer of the certificate.

History

Authority: T.C.A. §§ 65-4-113, 65-4-114, and 65-4-201.
Administrative History: Original rule filed April 15, 1998, effective June 15, 1998. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-08-.06 INSPECTION FEES FOR COMPETING TELECOMMUNICATIONS SERVICE

PROVIDERS.

(1) All Competing Telecommunications Service Providers shall be subject to the provisions of T.C.A., Title 65, Chapter 4, Part 3, and shall pay any fees required by that part.

History

Authority: T.C.A. § 65-4-301.
Administrative History: Original rule filed April 15, 1998, effective June 15, 1998. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-08-.07 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-5-101, 65-5-102, 65-5-103, and 65-5-104 and Chapter 408 of Public Acts of 1995.
Administrative History: Original rule filed April 15, 1998, effective June 15, 1998. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-08-.09 CONSUMER COMPLAINTS, ANTI-COMPETITIVE COMPLAINTS, AND VIOLATIONS

OF APPLICABLE STATE LAW AND COMMISSION RULES.

(1) All Competing Telecommunications Service Providers shall comply with Commission Rule

Tenn. Comp. R. & Regs. 1220-04-08-.13 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-3-105, 65-4-101, 65-4-104, 65-4-124, and 65-5-108.
Administrative History: Original rule filed April 15, 1998, effective June 15, 1998. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed January 15, 2025; effective April 15, 2025.

Tenn. Comp. R. & Regs. 1220-04-02-.09 , all applicable statutes, and Commission policies regarding customer complaints and provisions of this rule.

(2) Anti-competitive provisions.

(a) Upon filing of any increase in a non-basic rate or establishment of a new non-basic service by a Incumbent Local Exchange Telephone Company, any interested party may file a complaint with the Commission alleging that this rate is priced below its long run incremental cost in violation of the provisions of these rules. The Commission shall require the Incumbent Local Exchange Telephone Company to file cost support justifying the challenged rate with an opportunity for the party challenging the rate to demonstrate that it violates the price floor requirements. The Commission shall allow the rate to go into effect but shall resolve the complaint within thirty (30) days of its receipt, and may order the adjustment of the rate if found to be in violation of price floor requirements and thus anti-competitive.

(b) Upon the complaint of any interested party that any telecommunications service provider has violated any of the anti-competitive or discriminatory rate prohibitions found in applicable rules or statutes, the Commission shall investigate the complaint and may convene a contested case proceeding if such complaint is found to have merit. However, the complaining party must allege with specificity the action by the telecommunications service provider that appears to be in violation of said prohibitions or the complaint is subject to dismissal by the Commission.

(c) All Incumbent Local Exchange Telephone Companies subject to price cap regulation shall be required to do the following:

Utilize consistent cost methods so that it does not apply different unit costs to network capabilities that are used to furnish monopoly services than it applies to those used to furnish competitive services.
Impute to its competing service(s) the tariffed rates for essential elements utilized by Competing Telecommunications Service Providers plus the total long run incremental costs of all other elements composing the Incumbent Local Exchange Telephone Company’s competing service(s).
Adhere to all other anti-competitive provisions found in this rule chapter pertaining to the provision of nondiscriminatory interconnection with other providers under reasonable terms and conditions, the compliance with price floor and cost imputation restrictions on the pricing of competitive services, and compliance with applicable tariff and special contract provisions.

(d) Any party, service provider, or consumer may file a discrimination claim with the Commission regarding any service or rate. Any similarly situated customer (individual or other provider) who is denied upon request the same contractual provisions or rate or service offered to other customers may file a complaint with the Commission for appropriate resolution. Such resolution may include imposition of a fine for willful violations.

(3) Violation of state law or the Commission’s rules applicable to providers certificated pursuant to this rule chapter may result in the imposition of fines or the revocation of the provider’s certificate in accordance with the following procedure.

(a) If the Commission has cause to believe that any provider certificated pursuant to this

rule chapter is in violation of a Commission rule, applicable decision or state law, it shall notify the provider of the alleged violation and include copies of any documents supporting the alleged violation.

(b) The provider shall have thirty (30) days from receipt of the notice of violation to provide a written response to the Commission.

(c) If after receipt and review of the response it is found to be unsatisfactory, the Commission may issue a Show Cause Order pursuant to T.C.A. § 65-2-106.

(d) After hearing and upon determination that a provider is in violation of a statute, Commission rules or applicable decisions, the Commission may impose fines, revoke the provider’s certificate or take any other appropriate action as authorized by law.

History

Authority: T.C.A. §§ 65-2-106, 65-3-105, 65-4-114, 65-4-115, 65-4-117, and 65-4-120.
Administrative History: Original rule filed April 15, 1998; effective June 15, 1998. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-04-09 Repealed

Tenn. Comp. R. & Regs. 1220-04-09-.01 REPEALED

History

Authority: T.C.A. §§65-4-101, 65-4-305, 65-5-113, and Chapter 408 of the Public Acts of 1995, Sec. 17.
Administrative History: Original rule filed September 30, 1996; effective January 28, 1997. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Rule editorially repealed by the Secretary of State because of termination of the rule. Rule terminated January 28, 2002, and editorially repealed by Secretary of State on June 1, 2006.

Tenn. Comp. R. & Regs. 1220-04-09-.02 REPEALED

History

Authority: T.C.A. §65-5-113, and Chapter 408 of the Public Acts of 1995, Sec. 17.
Administrative History: Original rule filed September 30, 1996; effective January 28, 1997. Rule editorially repealed by the Secretary of State because of termination of the rule. Rule terminated January 28, 2002, and editorially repealed by Secretary of State on June 1, 2006.

Tenn. Comp. R. & Regs. 1220-04-09-.03 REPEALED

History

Authority: T.C.A. §§65-3-119, 65-4-116, 65-5-113, and Chapter 408 of the Public Acts of 1995, Sec. 17.
Administrative History: Original rule filed September 30, 1996; effective January 28, 1997. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Rule editorially repealed by the Secretary of State because of termination of the rule. Rule terminated January 28, 2002, and editorially repealed by Secretary of State on June 1, 2006.

Tenn. Comp. R. & Regs. 1220-04-09-.04 REPEALED

History

Authority: T.C.A. §§65-5-113, 65-5-107, and Chapter 408 of the Public Acts of 1995, Sec. 17.
Administrative History: Original rule filed September 30, 1996; effective January 28, 1997. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Rule editorially repealed by the Secretary of State because of termination of the rule. Rule terminated January 28, 2002, and editorially repealed by Secretary of State on June 1, 2006.

Tenn. Comp. R. & Regs. 1220-04-09-.05 REPEALED

History

Authority: T.C.A. §65-5-113, and Chapter 408 of the Public Acts of 1995, Sec. 17.
Administrative History: Original rule filed September 30, 1996; effective January 28, 1997. Rule editorially repealed by the Secretary of State because of termination of the rule. Rule terminated January 28, 2002, and editorially repealed by Secretary of State on June 1, 2006. -- 1 of 1 --

Chapter 1220-04-10 Distributing Assistive Telecommunications Equipment to Qualified Individuals with Disabilities

Tenn. Comp. R. & Regs. 1220-04-10-.01 DEFINITIONS

(1) “Act” refers to Chapter 417 of the Public Acts of 1999, now codified at Tenn. Code Ann. § 65- 21-115.

(2) “Applicant” means a person who applies to the Tennessee Public Utility Commission for a device to assist with communication through the basic telephone network.

(3) “Qualified Applicant” is a person that because of a disability cannot use the basic telephone network effectively without the use of an assistive communications device.

(4) “Assistive Communication Device” means special equipment that permits individuals who have a disability to communicate effectively over the telephone network.

(5) “Commission” means the Tennessee Public Utility Commission.

(6) “Li feline” means a telephone assistance program that reduces the monthly telephone charges for qualified persons.

(7) “Provider” means a telecommunications service provider or a competing telecommunications provider as defined by Tenn. Code Ann. § 65-4-101 whose annual intra-state gross receipts are greater than five million dollars ($5,000,000).

(8) “Recipient” means the person whose application for an assistive communications device has been granted by the Commission.

(9) “TDAP” or “Program” refers to the Telecommunications Devices Access Program administered by the Tennessee Public Utility Commission.

(10) “TDAP Coordinator” refers to the individual employed by the Commission to manage the Program.

History

Authority: T.C.A. §§ 65-2-102 and 65-21-115.
Administrative History: Original rule filed November 22, 1999; effective February 5, 2000. Amendment filed February 24, 2000; effective May 9, 2000. Repeal and new rule filed December 5, 2006; effective February 18, 2007. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed November 1, 2019; effective January 30, 2020.

Tenn. Comp. R. & Regs. 1220-04-10-.02 FUNDING FOR THE TENNESSEE RELAY SERVICES/TELECOMMUNICATIONS

DEVICES ACCESS PROGRAM.

(1) Contributions collected by the state emergency communications board from the telecommunication providers will fund the purchase of assistive communication devices for Tennesseans with disabilities, and other equipment that may be necessary to implement the Act, and in addition, cover the necessary administrative costs (including outreach activities) of the Commission to administer the Program.

(2) The Commission may create a reserve fund for the Program that will not exceed one million dollars ($1,000,000) within any given fiscal year, including the contributions for that fiscal year.

History

Authority: T.C.A. §§ 65-2-102 and 65-21-115.
Administrative History: Original rule filed November 22, 1999; effective February 5, 2000. Amendment filed February 24, 2000; effective May 9, 2000. Repeal and new rule filed December 5, 2006; effective February 18, 2007. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed November 1, 2019; effective January 30, 2020.

Tenn. Comp. R. & Regs. 1220-04-10-.03 MINIMUM ELIGIBILITY REQUIREMENTS

(1) All applicants must be residents of the State of Tennessee.

(2) A qualified applicant shall have a disability, as verified by a care giver licensed to practice in the state of Tennessee, such that the person cannot use the basic telephone network effectively without the use of an assistive communication device.

(3) Only one assistive communication device per household will be awarded through the Program unless there are persons in the same household with different adaptive needs. The TDAP Coordinator may then determine the need for more than one assistive communication device.

(4) Because the demand for assistive communication devices may exceed the supply, the Commission will award the assistive communication devices on a first come basis. Priority, however, will be given to those applicants with the greatest physical and financial and/or social need. Such factors as described below shall be used to evaluate an applicant’s physical, financial and social need for the assistive communication devices:

(a) The receiving of federal or state public assistance (i.e., Temporary Assistance to Needy Families (TANF), Medicaid, Food Stamps, Supplemental Security Income (SSI), Federal Housing/Section 8 or Low Income Heating, etc.);

(b) Applicants whose total gross family income is less than 125 percent of the Federal Poverty Guidelines;

(c) The presence of any serious physical, medical, and/or cognitive condition, as verified by a care giver licensed to practice in Tennessee, that may present a life threatening situation (i.e., heart condition, stroke, severe depression, epilepsy, etc.);

(d) A qualified applicant living alone;

(e) Applicants who are under the age of 18 years who are able to use assistive communication devices for at least emergency purposes and who are frequently left in charge of the household or alone;

(f) A living situation where there is more than one person requiring an assistive communication device;

(g) Other unique circumstances deserving of special consideration that do not meet the above factors; and (h) Applicants who meet the federal and/or state qualifications for the Lifeline Telephone Assistance Programs.

(5) The Commission may request all necessary documentation needed to confirm information provided by applicants. This documentation may include, but not be limited to, medical statements, copies of the applicant’s federal income tax returns, evidence of public assistance eligibility and any other documentation needed to ensure the applicant meets the requirements as specified in the Act and this Chapter.

(6) Applicants must confirm in their application their ability to utilize an assistive communication device effectively. For those applicants that are not qualified in the use of such equipment, the TDAP Coordinator will provide applicants with information about qualified training.

(7) The Commission shall furnish application forms to be completed by the applicant or his/her authorized representative.

History

Authority: T.C.A. §§ 65-2-102 and 65-21-115.
Administrative History: Original rule filed November 22, 1999; effective February 5, 2000. Repeal and new rule filed December 5, 2006; effective February 18, 2007. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Rule was previously numbered 1220-04-10-.04 but was renumbered 1220-04-10-.03 with the deletion of original rule 1220-04- 10-.03 filed November 1, 2019; effective January 30, 2020. Amendments filed November 1, 2019; effective January 30, 2020.

Tenn. Comp. R. & Regs. 1220-04-10-.04 PURCHASE AND DISTRIBUTION OF ASSISTIVE DEVICES

(1) The Commission will purchase assistive communication devices under a state contract.

(2) The TDAP Coordinator shall evaluate applications for assistive communication devices and shall award such equipment only to those applicants who meet the requisite requirements listed in this Chapter. Applicants who fail to qualify shall be notified by U.S. Registered Mail of the reasons for denial. Upon such notification, an applicant may request, in writing, directed to the Director of Consumer Services, an informal conference to reconsider the denial. If the proposed solution is not satisfactory to the applicant, the applicant may file a petition for review with the Commission in accordance with Chapter 1220-01-01.

(3) Assistive communication devices awarded to qualified applicants are available for their exclusive use as long as they meet the Minimum Eligibility Requirements listed in 1220-04- 10-.03.

(4) The recipient must return the assistive communication devices if any of the following conditions occur:

(a) The recipient moves from the state;

(b) The recipient loses telephone service permanently;

(d) The recipient is found to be using the device for illegal purposes;

(e) The recipient no longer requires the device.

(5) Equipment may be exchanged if a different device becomes necessary because of a change in access needs.

(6) Stolen or damaged equipment may be replaced. The applicant must provide copies of the appropriate documentation, such as fire department and/or police department reports.

History

Authority: T.C.A. §§ 65-2-102 and 65-21-115.
Administrative History: Original rule filed November 22, 1999; effective February 5, 2000. Repeal and new rule filed December 5, 2006; effective February 18, 2007. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Rule was previously numbered 1220-04-10-.05 but was renumbered 1220-04-10-.04 with the deletion of original rule 1220-04- 10-.03 filed November 1, 2019; effective January 30, 2020. Amendments filed November 1, 2019; effective January 30, 2020.

Tenn. Comp. R. & Regs. 1220-04-10-.05 MAINTENANCE AND REPAIR

(1) If the assistive communication device is in need of repair, the recipient shall notify the Commission to determine if loaner equipment is available and whether he/she qualifies for such equipment.

(a) Recipients will not qualify for loaner equipment if it is determined that the original device was damaged as the result of negligence or abuse.

(b) In order to qualify for loaner equipment, recipients must contact the TDAP Coordinator and provide some evidence that they will pay for the repair cost of their assistive communication devices.

(2) The Commission shall maintain a list of locations where assistive communication devices can be repaired. The Commission shall make the final determination as to where the assistive communication devices are repaired.

(3) It is the responsibility of the recipient to return the assistive communication devices to the repair center, as designated by the Commission, for repair. The cost of the repair, and/or coordination with the TDAP Coordinator, shall be the responsibility of the recipient. Special consideration will be given for repair cost by the Commission for recipients who have special financial needs as listed in 1220-04-10-.03(4)(a)-(h).

(4) It is the responsibility of the recipient to purchase miscellaneous items, such as paper rolls, for the operation of the assistive communication devices.

History

Authority: T.C.A. §§ 65-2-102 and 65-21-115.
Administrative History: Original rule filed November 22, 1999; effective February 5, 2000. Repeal and new rule filed December 5, 2006; effective February 18, 2007. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Rule was previously numbered 1220-04-10-.06 but was renumbered 1220-04-10-.05 with the deletion of original rule 1220-04- 10-.03 filed November 1, 2019; effective January 30, 2020. Amendments filed November 1, 2019; effective January 30, 2020.

Tenn. Comp. R. & Regs. 1220-04-10-.06 MONTHLY TELEPHONE CHARGES

(1) The recipient is responsible for all charges for local and long distance telephone service and any other service charges from the telephone company.

History

Authority: T.C.A. §§ 65-2-102 and 65-21-115.
Administrative History: Original rule filed November 22, 1999; effective February 5, 2000. Repeal and new rule filed December 5, 2006; effective February 18, 2007. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Rule was previously numbered 1220-04-10-.07 but was renumbered 1220-04-10-.06 with the deletion of original rule 1220-04- 10-.03 filed November 1, 2019; effective January 30, 2020.

Tenn. Comp. R. & Regs. 1220-04-10-.07 CONFIDENTIALITY OF INFORMATION AND NONDISCRIMINATORY STATEMENT

(1) All information obtained by the Commission from applicants shall be kept confidential and will not be released to any person or entity without the express approval of the applicant unless such information is necessary for the preparation of reports or audits required under state law.

(2) Services for the TDAP are provided on a nondiscriminatory basis in compliance with Title VI of the Civil Rights Act of 1964, as amended, Section 602 of the Individuals with Disabilities Education Act of 1997, Title II of the Americans with Disabilities Act of 1990 and Title V of the Vocational Rehabilitation Act of 1973 and its amendments.

History

Authority: T.C.A. §§ 65-2-102 and 65-21-115.
Administrative History: Original rule filed November 22, 1999; effective February 5, 2000. Repeal and new rule filed December 5, 2006; effective February 18, 2007. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Rule was previously numbered 1220-04-10-.08 but was renumbered 1220-04-10-.07 with the deletion of original rule 1220-04- 10-.03 filed November 1, 2019; effective January 30, 2020.

Chapter 1220-04-11 Tennessee Do Not Call/Text Regulations

Tenn. Comp. R. & Regs. 1220-04-11-.01 DEFINITIONS

(1) “Affiliate” of a specific person means a person that directly, or indirectly through one (1) or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.

(2) “Commission” means the Tennessee Public Utility Commission.

(3) “Business Telephone Subscriber” means a person or company who has subscribed to a business telephone service from a local exchange carrier.

(4) “Caller identification service” or “caller ID” means telephone service or functionality that provides the telephone number and other identifying information of incoming communication.

(5) “Database” means the information from which the Commission compiles the Do Not Call Register. The database shall be maintained by the Commission, or its designee, for the

purpose of fulfilling the requirements of T.C.A. § 65-4-401.

(6) “Do Not Call/Text Register” or “Register” means a list of telephone numbers of residential subscribers who have properly enrolled with the Commission or a Federal agency.

(7) “Existing customer” includes a residential subscriber with whom the person or entity making a telephone solicitation has had a business relationship within the prior twelve (12) months.

(8) “Local exchange companies,” as used in this Chapter, include telecommunications service providers as defined in T.C.A. § 65-4- 101, as well as telephone cooperatives and cellular or other wireless telecommunications providers operating in Tennessee; provided, however, that those providers that have elected market regulation under T.C.A. § 65-5-109(l) are excluded from the jurisdiction of the Commission consistent with T.C.A. § 65-5-109(m) and (n).

(9) “Parent” means a company owning more than fifty (50) percent of the voting shares, or otherwise a controlling interest, of another company.

(10) “Residential Subscriber” means a person residing in Tennessee who has residential telephone service or a state government telephone subscriber.

(11) “Subsidiary” means a corporation more than fifty percent (50%) of whose outstanding voting shares are owned by its parent and/or the parent’s other subsidiaries.

(12) “Telephone solicitor” means any natural person, firm, organization, partnership, association or corporation, or a parent, subsidiary or affiliate thereof, doing business in this state, who makes or causes to be made a telephone solicitation, including, but not limited to, calls or text messages made by use of automated dialing and announcing devices or by a live person.

(a) “Registrant” means a Telephone solicitor who has submitted an application and properly enrolled with the Commission to be provided the Do Not Call Register.

(b) “Principal Solicitor” means a Telephone solicitor that enters into agreements with Independent Solicitors as defined herein for the purposes of providing telephone solicitation.

(c) “Independent Solicitor” means a Telephone solicitor, other than an affiliate, subsidiary or employee of a Registrant, who has entered into an agreement with one and only one Principal Solicitor, as defined herein, to perform telephone solicitation under the indirect supervision of the Principal Solicitor.

(13) “Telephone solicitation” or “Solicitation” means any voice or text message communication over a telephone or technology that provides similar functionality, originating from Tennessee or elsewhere, for the purposes of encouraging the purchase or rental of, or investment in, property, goods, or services except as provided for below. “For the purposes of encouraging” includes any communication made with the intent that the communication will ultimately result in the purchase or rental of, or investment in, property, goods, or services. Such communications include, but are not limited to, communications to set appointments, interviews or consultations; to conduct a survey; or to offer a give-away. Telephone solicitation does not include:

(a) Any communication to any residential subscriber with that subscriber’s prior express permission;

An offer to sell or rent a discrete piece of real or personal property does not constitute express permission except for the sole purpose of purchasing or renting the property or unless (2) below applies.
The use of residential telephone service for the purpose of operating a business constitutes express permission for the purposes of these rules.

(b) Any communication to a residential subscriber if such communication is made on behalf of a not-for-profit organization exempt from paying taxes under the Internal Revenue Code § 501(c), provided that a bona fide member of the exempt organization makes such communication;

(c) Any communication to any residential subscriber who is an existing customer; or (d) Occasional and isolated communications to a residential subscriber provided all the following conditions are met:

A direct employee of the business makes the communication;
The communication is not made as part of a telecommunications marketing plan;
The business has a reasonable belief that the specific person who is receiving the communication is considering purchasing the service or product sold or leased by the business and the communication is specifically directed to such person;
The business does not sell or engage in telephone solicitations; and 5. The business does not make more than three (3) such communications in any one (1) calendar week.

History

Authority: T.C.A. §§ 4-5-201, et seq., 47-18-1501, 47-18-1526, 65-2-102, 65-4-405, and 65-5-109.
Administrative History: Original rule filed February 22, 2000; effective May 7, 2000. Amendment filed February 15, 2001; effective May 1, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed May 14, 2019; effective August 12, 2019. Amendments filed July 9, 2024; effective October 7, 2024.

Tenn. Comp. R. & Regs. 1220-04-11-.02 GENERAL REGULATIONS

(1) No Telephone solicitor shall place a telephone call or send a text message to a residential subscriber at any time other than between the hours of 8:00 a.m. to 9:00 p.m. (local time at the called party’s location) without the residential subscriber’s prior express permission.

(2) All Telephone solicitors must institute procedures for maintaining a list of persons who do not wish to receive solicitations made by or on behalf of Telephone solicitors in compliance with this Chapter.

(3) All Telephone solicitations to residential subscribers shall, at the beginning of such communication, state clearly the identity of the person initiating the and entity or organization such person represents, and shall further meet the following requirements:

(a) Within the first twenty-five (25) seconds of the voice call and at the conclusion of the call, made via an automated dialing device must clearly state the name and telephone number of the person or organization initiating the call. The telephone number given must be one that will be answered when telephone solicitations are being made. The person answering the telephone must be willing and able to provide information concerning the automated call.

(b) Solicitors must provide a telephone number that will be answered when telephone solicitations are being made. The person answering the telephone must be willing and able to provide information concerning the solicitation call.

(4) Telephone solicitors are prohibited from knowingly using any method to block or otherwise interfere with the caller ID of a residential subscriber.

(5) Local exchange companies are prohibited from knowingly providing service to a Telephone solicitor that is used to unlawfully block or otherwise interfere with, on a per line basis, a residential subscriber’s caller ID. If a local exchange company has knowledge that a Telephone solicitor is in violation of subsection (4) of this rule, such company or carrier shall inform the Commission of such violation.

(6) After notice and hearing, and upon finding that a Telephone solicitor is in violation of this

Chapter, the Commission may issue an order prohibiting local exchange companies from providing telecommunications service to such Telephone solicitor.

(7) Violations of this Chapter can result in civil actions prescribed by law, which include fines payable to the Commission.

(8) Telephone solicitors must adhere to state and federal statutes regarding telephone solicitation practices, including, but not limited to, the Tennessee Consumer Protection Act.

(9) After receipt of a complaint forwarded by the Commission, Telephone solicitors shall, within ten (10) business days, file a written response with the Commission.

History

Authority: T.C.A. §§ 4-5-201, et seq., 47-18-1501, 47-18-1502, 47-18-1509, 47-18-1510, 47-18-1526, 65-2-102, 65-4-120, 65-4-405, and 65-4-405(h).
Administrative History: Original rule filed February 22, 2000; effective May 7, 2000. Amendment filed February 15, 2001; effective May 1, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed July 9, 2024; effective October 7, 2024.

Tenn. Comp. R. & Regs. 1220-04-11-.03 DO NOT CALL/TEXT REGISTER

(1) The Commission shall maintain a Database of telephone numbers of all Tennessee residential subscribers who have elected not to receive telephone solicitations.

(2) The information contained in the Database is not open to public inspection or disclosure as defined under Tennessee Code Annotated Title 10, Chapter 7. The Commission will take all necessary steps to protect the confidentiality of the information in the Database.

(3) The Commission shall include in its Register the list of Tennessee subscribers included in any Do Not Call or Do Not Text database created by the Federal Communications Commission or any other Federal agency.

(4) The Commission will update the Register monthly.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-405.
Administrative History: Original rule filed February 22, 2000; effective May 7, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed May 14, 2019; effective August 12, 2019. Amendments filed July 9, 2024; effective October 7, 2024.

Tenn. Comp. R. & Regs. 1220-04-11-.04 TELEPHONE SOLICITORS

(1) It is the duty of any Telephone solicitor engaging in the solicitation of Tennessee residential subscribers to register with the Commission. Telephone solicitors shall submit an application to the Commission.

(2) A Principal Solicitor is permitted to share its copy of the Register with its Independent Solicitors under the following conditions:

(a) The Principal Solicitor submits in its application all the necessary information as required by the Commission regarding its Independent Solicitors, including, but not limited to, verification that the Independent Solicitor will comply with the regulations of this Chapter.

(b) The Principal Solicitor and Independent Solicitor will be liable for any violations of these Rules or T.C.A. §§ 65-4-401 et seq.

(c) The Principal Solicitor assumes the responsibility of providing to each of its Independent Solicitors the most recent version of the Register; and (d) The Principal Solicitor provides notice of the Register to each of its Independent Solicitors. The Principal Solicitor shall be able to produce its notice and proof of receipt of the notice by the Independent Solicitor upon request by the Commission. Such notice shall contain:

A statement that any Independent Solicitor who chooses not to register under the Principal Solicitor’s group registration must register as provided for in Rule 1220- 04-11-.04(4)(c);
The most recent text of Chapter 1220-04-11 Telephone Solicitation Regulations - Do Not Call/Text Register; and 3. The most recent text of T.C.A. title 65, chapter 4, part 4, as amended.

(3) Access to the following information will be provided to Registrants:

(a) The Register of telephone numbers of Tennessee residential subscribers who have elected not to receive telephone solicitations.

(b) The Register shall be provided, with unlimited access, via the Internet or other electronic means to Registrants. It is the duty of Registrants to ensure they have the most recent version of the Register prior to soliciting residential subscribers.

(4) Telephone solicitors doing business in the state and subject to the control and jurisdiction of this Chapter shall pay to the Commission, on or before May 1st of each year, an annual registration fee. Such registration fee shall cover the time period from the following July 1st through June 30th of the following year or any part thereof.

(a) Telephone solicitors shall pay a registration fee of $500.00.

(b) Telephone solicitors who elect to register as a Principal Solicitor shall pay a group registration fee of $1000.00 and an additional $50.00 registration fee for each Independent Solicitor.

(c) Independent Solicitors who elect not to register under a Principal Solicitor’s group registration shall pay a registration fee of $500.00.

History

Authority: T.C.A. §§ 4-5-201, et seq., 65-2-102, and 65-4-405.
Administrative History: Original rule filed February 22, 2000; effective May 7, 2000. Amendment filed February 15, 2001; effective May 1, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed July 9, 2024; effective October 7, 2024.

Tenn. Comp. R. & Regs. 1220-04-11-.05 CONSUMER REGISTRATION

(1) Guidelines for the consumer registration for the Register are described as follows:

(a) Residential subscribers may enroll on the Register as prescribed by the Commission.

Enrollment on to the Register will become effective thirty (30) days following the first day of the succeeding month of enrollment by the subscriber.

(b) A residential subscriber will remain on the Register until the Commission shall provide information on its website informing subscribers on the Register as to how to have their telephone numbers removed from the Register.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-405.
Administrative History: Original rule filed February 22, 2000; effective May 7, 2000. Amendment filed April 11, 2005; effective June 25, 2005. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed May 14, 2019; effective August 12, 2019. Amendments filed July 9, 2024; effective October 7, 2024.

Tenn. Comp. R. & Regs. 1220-04-11-.06 PUBLIC EDUCATION

Local exchange companies shall notify their residential subscribers twice a year on how to enroll on the Register. This notification shall accompany the subscriber’s monthly telephone bill.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-405.
Administrative History: Original rule filed February 22, 2000; effective May 7, 2000. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed May 14, 2019; effective August 12, 2019. Amendments filed July 9, 2024; effective October 7, 2024.

Tenn. Comp. R. & Regs. 1220-04-11-.07 VIOLATIONS

(1) It is a violation of T.C.A. §§ 65-4-401 et seq. and this Chapter for a Telephone solicitor to knowingly make or cause to be made any solicitation to any telephone number that is in the Register.

(2) A Principal Solicitor and Independent Solicitor are liable for violations of this Chapter by the Independent Solicitor. Except, a Principal Solicitor shall not be liable for an Independent Solicitor’s violations of this Chapter if:

(a) The Principal Solicitor provided the requisite notice to the Independent Solicitor pursuant to Rule 1220-04-.11-.04(2)(d); and (b) The Independent Solicitor is not registered with the Commission or is registered pursuant to Rule 1220-04-11-.04(4)(c).

(3) Violators of this Chapter are subject to a civil penalty, payable to the Commission, of an amount not to exceed Two-Thousand Dollars ($2,000) for each violation. In addition, the Commission may seek additional relief in any court of competent jurisdiction.

(4) It shall be a defense in any proceeding brought under this Chapter that the defendant has established and implemented, with due care, reasonable practices and procedures to effectively prevent telephone solicitations in violation of this Chapter.

(5) Violations shall be calculated in a liberal manner in order to protect the public interest and deter similar violations.

History

Authority: T.C.A. §§ 4-5-201, et seq., 65-2-102, 65-4-120, 65-4-405, and 65-4-405(h).
Administrative History: Original rule filed February 22, 2000; effective May 7, 2000. Amendment filed February 15, 2001; effective May 1, 2001. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed July 9, 2024; effective October 7, 2024.

Tenn. Comp. R. & Regs. 1220-04-11-.08 ENFORCEMENT

(1) The Commission may order the investigation of the practices of any Telephone solicitor conducting business in Tennessee. Such investigation shall determine if such Telephone solicitor has violated T.C.A. § 65-4-401, or this Chapter. If such investigation discloses a violation of state law or this Chapter, the Commission shall issue a show cause order with respect to such acts pursuant to T.C.A. § 65-2-106.

(2) Local exchange companies are required to fully cooperate with the Commission in any investigation of an alleged violation of this Chapter.

(3) If one or more of the term(s) or provision(s) of this Chapter or the applications thereof, to any extent, are held to be invalid or unenforceable, then the remainder of this Chapter shall not be affected thereby.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-405.
Administrative History: Original rule filed February 22, 2000; effective May 7, 2000. Amendment filed October 22, 2009 to have become effective January 20, 2010 was stayed; new effective date April 5, 2010. Rule filed October 22, 2009, and to have become effective April 5, 2010, was withdrawn by the Tennessee Public Utility Commission. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed July 9, 2024; effective October 7, 2024.

Tenn. Comp. R. & Regs. 1220-04-11-.09 RESERVED

History

Authority: T.C.A. §§ 4-5-201, et seq.; 47-18-1501, et seq.; and 65-2-102.
Administrative History: Original rule filed October 22, 2009 to have become effective January 20, 2010 was stayed; new effective date April 5, 2010. Rule filed October 22, 2009 and to have become effective April 5, 2010, was withdrawn by the Tennessee Public Utility Commission. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-11-.10 RESERVED

History

Authority: T.C.A. §§ 65-2-102 and 65-4-405.
Administrative History: Original rule filed October 22, 2009 to have become effective January 20, 2010 was stayed; new effective date April 5, 2010. Rule filed October 22, 2009 and to have become effective April 5, 2010, was withdrawn by the Tennessee Public Utility Commission. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-04-13 Wastewater Regulations

Tenn. Comp. R. & Regs. 1220-04-13-.01 APPLICATION AND PURPOSE

These rules shall apply to public wastewater utilities as defined in these rules and in Tenn. Code Ann. § 65-4-101.The purpose of these rules is to establish acceptable practices for the provision of safe, adequate, and reasonable wastewater services

History

Authority: T.C.A. § 65-2-102.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed April 10, 2026; effective July 9, 2026.

Tenn. Comp. R. & Regs. 1220-04-13-.02 DEFINITIONS

(1) Commission – Tennessee Public Utility Commission or TPUC.

(2) Certificate of Public Convenience and Necessity or CCN – Certificate required for a public utility to establish, construct or operate utility service in a specified area, pursuant to Tenn.

Code Ann. §§ 65-4-201 et seq.

(3) Customer – Any person, firm, corporation, association, or governmental unit that receives wastewater service from a public wastewater utility.

(4) Local government – Any political subdivision of the State of Tennessee, including, but not limited to a county or incorporated municipality.

(5) Public wastewater utility includes, but is not limited to, any person, partnership, corporation, company, association, receiver, or two or more persons having a joint or common interest, that owns, operates, and manages any public wastewater system for compensation within the state subject to the jurisdiction of the Commission.

(6) TDEC – Tennessee Department of Environment and Conservation.

(7) Wastewater system – Any structure, land, equipment, or process for collecting, storing, treating, or disposing of wastewater, including but not limited to, tanks, pipes, pumps, and filters.

(8) Reporting period – The twelve (12) month period from May 1 through April 30, during which actual financial security costs are netted against financial security costs that have been recovered (collected) from the customers of the public wastewater utility by means of a rate adjustment established in a tariff that is filed with the Commission each July 1.

History

Authority: T.C.A. § 65-2-102.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed September 5, 2018; effective December 4, 2018.

Tenn. Comp. R. & Regs. 1220-04-13-.03 RETENTION OF RECORDS

(1) Unless otherwise specified by the Commission, all records required by these rules shall be preserved for a minimum period of three (3) years. All records shall be kept at the main office of the public wastewater utility in Tennessee and shall be made available to the Commission or its authorized representatives upon request.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-13-.04 DOCUMENTS TO BE FILED WITH THE COMMISSION

(1) The public wastewater utility shall file with the Commission the following documents and information, and shall refile such documents to keep such information up-to-date.

(a) A copy of the public wastewater utility’s tariff as specified in Rule 1220-04-01-.02 that includes the rates, rules, terms, and conditions and that describes the policies and practices in rendering service that conform to all applicable provisions shall be filed with the Commission. Such tariff may also include cost recovery associated with financial securities as described in these rules and recovery of the costs of bonding for operation of the utility imposed by local governments.

(b) Before initiation of service, the public wastewater utility shall file with the Commission the TDEC approval of the design and permit for the wastewater system and proof that the utility owns the land and/or has easements for the proposed wastewater system.

(c) Each public wastewater utility shall file a completed annual report with the Commission on or before April 1 of each year. The report shall be in the form specified by the Commission and in compliance with these rules and all other requirements established by the Commission. The annual report shall include a report on the construction status of each service territory covered by the utility’s CCN. The report shall also include an affirmation and supporting documentation that the financial security required by Rules

Tenn. Comp. R. & Regs. 1220-04-13-.05 MAPS AND RECORDS

(1) Each public wastewater utility shall keep on file in its main office suitable maps, plans, and records showing the entire layout of its wastewater system including the location, size and capacity of each component.

(2) Each public wastewater utility shall keep a record of all interruptions of service of its wastewater system, including a statement of time, duration, and cause of such interruptions.

(3) Records of inspection conducted as part of operating and maintenance procedures shall be maintained by the public wastewater utility for a minimum of three (3) years.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed September 5, 2018; effective December 4, 2018.

Tenn. Comp. R. & Regs. 1220-04-13-.06 ADEQUACY OF FACILITIES

(1) All public wastewater utilities shall design, construct, maintain, and operate wastewater systems to comply with the rules, laws, ordinances, and codes of state, federal and local government agencies to ensure safe, adequate and reliable service and, as far as reasonably possible, continuity of service and uniformity in the quality of service so as not to cause water pollution, wastewater spills, wastewater backup, or other undesirable conditions.

(2) Each public wastewater utility shall adopt operating and maintenance procedures for its wastewater system to ensure safe, adequate and continuous service at all times by qualified staff, and shall make inspections on a regular basis and in accordance with the requirements stated in the TDEC-issued permit for the wastewater treatment facility.

History

Authority: T.C.A. §§ 65-2-102, 65-2-106, 65-4-104, 65-4-114, 65-4-115, and 65-4-203.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed September 5, 2018; effective December 4, 2018.

Tenn. Comp. R. & Regs. 1220-04-13-.07 FINANCIAL SECURITY

(1) All public wastewater utilities either holding or seeking to hold a CCN and owning wastewater systems shall furnish to the Commission an acceptable financial security. The public wastewater utility shall ensure that such financial security is maintained in continuous force in conformity with these rules.

(2) Proof of financial security shall be furnished to the Commission as follows:

(a) A public wastewater utility applying for an initial CCN must file proof of financial security in the amount of $20,000 before the application will be approved. Before initiating service, the utility shall also file proof of financial security in the amount required by 1220-04-13-.07(2)(b) based on the annual revenue forecast in the CCN application submitted to the Commission.

(b) On or before July 1 of each year, any public wastewater utility holding a CCN and providing service shall file proof with the Commission of a security in the amount of fifty percent (50%) of annual wastewater revenues in the most recent annual or $20,000, whichever is greater. The minimum financial security amount is $20,000. The maximum required security is $300,000. When calculating wastewater revenues, no monies received from customers for bonding under this rule or for meeting bonding requirements of a local government shall be included in the calculation of wastewater revenues.

(c) Initial compliance revenue is defined as the amount of revenue upon which a public wastewater utility submits proof of financial security for the first time after the effective date of this rule. Notwithstanding (2)(b), a public wastewater utility is not required to submit a new financial security until the initial compliance revenue increases by 10% as reported on its annual report. Once the public wastewater utility submits a new financial security, the revenues upon which the financial security is based shall become the new initial compliance revenue. The public wastewater utility must provide proof that its financial security is still in effect by July 1 of each year.

(3) Financial security shall be provided by one of the following methods:

(a) A bond issued by any surety company that has been authorized to issue such security by the Tennessee Department of Commerce and Insurance; or (b) An irrevocable letter of credit issued by a financial institution that is a designated state depository under Tenn. Code Ann. § 9-4-107.

(4) The public wastewater utility shall ensure that the Commission is notified within thirty (30) days prior to any termination action concerning an irrevocable letter of credit that will not be renewed or the expiration date for a bond of non-perpetual duration that is not to be renewed.

(5) The recurring cost of the financial security may be funded from customer contributions by means of a pass-through mechanism that adjusts a customer’s monthly rate by a specified amount. The amount of the rate adjustment for a public wastewater utility shall be established on a case-by-case basis by the Commission.

(a) For the initial security, each public wastewater utility shall submit for the Commission’s consideration a proposed tariff specifying the amount of the security, the amount of the monthly rate adjustment to be billed to its customers for recovery of the cost of such security, and the percentage rate increase this represents, based on currently approved rates. The tariff filing documentation shall, at a minimum, include a calculation of the rate adjustment based on the annual cost of the security and the number of existing or projected customers at the time of the tariff filing. The resulting cost per customer (total security cost divided by the number of customers) shall be recovered from customers on a monthly basis (total cost per customer divided by 12).

For public wastewater utilities holding a CCN as of the effective date of this rule, a proposed tariff to recover the cost of the required security shall be submitted to the Commission within thirty (30) days of the effective date of the financial security.
For public wastewater utilities seeking a CCN after the effective date of this rule, a proposed tariff to recover the cost of the required security shall be submitted to the Commission with the CCN application.

(b) Thereafter, on or before July 1 of each year, each public wastewater utility shall file with the Commission the following information to update its financial security and true up the recovery of its security costs:

Proof of financial security compliant with this rule.
A proposed revised tariff to become effective August 1, specifying the amount of security in place, the updated monthly rate adjustment to be billed to customers and the percentage rate increase this represents.
Documentation supporting the calculation of the updated monthly rate adjustment. The documentation shall include but not be limited to:

(i) The annual cost of the new security;

(ii) The current number of customers;

(iii) The total actual security costs paid in the previous reporting period or part thereof in the public wastewater utility’s first year of operations or the first year this rule is in effect; and (iv) The security cost recovered from customers in the previous reporting period or part thereof.

A true-up calculation of the new monthly rate adjustment, calculated as follows:

(CP – CR + SC)

C RA =

Where:

RA = New monthly rate adjustment to be effective August 1.

CP = Total security costs actually paid in the prior reporting period or

part thereof netted against any credits or refunds received by the public wastewater utility from the holder of the financial security.

CR = Total security costs actually recovered from customers in the prior reporting period.

SC = Annual security costs associated with the new security filed on July 1.

C = Number of customers at July 1.

(6) Upon the filing of an initial CCN application, a determination shall be made regarding the establishment of a reserve/escrow account. The Commission may review the financial condition of any public wastewater utility at any time to determine whether a reserve/escrow account balance is adequate or an account should be established. The requirement for a public wastewater utility to maintain a reserve/escrow account shall be determined on a caseby-case basis by the Commission.

(7) The Commission may waive or modify requirements of this rule for good cause shown, including, but not limited to, affordability of rates, minimization of rate shock or other operating characteristics of the utility.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, 65-4-111, 65-4-201, and 65-4-305.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed September 5, 2018; effective December 4, 2018. Amendments filed April 10, 2026; effective July 9, 2026.

Tenn. Comp. R. & Regs. 1220-04-13-.08 STANDARD FORMS FOR FILING FINANCIAL SECURITY

(1) Corporate surety bonds or letters of credit filed to comply with TPUC Rule 1220-04-13-.07 shall include the following terms:

(a) The name and identification number assigned to the utility by TPUC;

(b) The name and contact information for the providers of the corporate surety bond or letter of credit;

(d) A statement of the amount of the surety bond or letter of credit;

(e) A statement indicating that the financial security is required by Tenn. Code Ann. § 65- 4-201 and TPUC Rule 1220-04-13-.07;

(f) A statement indicating that after action under TPUC 1220-04-13-.09 the Commission may assess a sum sufficient of this bond, up to its maximum sum;

(g) A statement that the provider of the corporate surety bond or letter of credit will promptly pay the Tennessee Public Utility Commission via wire transfer upon notice that the TPUC has taken action pursuant to TPUC Rule 1220-04-13-.09; and (h) A statement that the provider of the corporate surety bond or letter of credit shall provide the TPUC at least a ninety (90) day notice in the event of a non-renewal or termination of the corporate surety bond or letter of credit.

(2) The Commission may require additional terms in a letter of credit to ensure access to funds in the event of action per TPUC Rule 1220-04-13-.09.

(3) Providers of the corporate surety bond or letter of credit shall be authorized to do business in the state of Tennessee.

History

Authority: T.C.A. §§ 65-2-102, 65-2-106, and 65-4-104, 65-4-114, and 65-4-203.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed September 5, 2018; effective December 4, 2018.

Tenn. Comp. R. & Regs. 1220-04-13-.09 PROCEDURE FOR SUSPENSION OR REVOCATION OF CCN, FORFEITURE OF

WASTEWATER UTILITY FUNDS, AND CLAIMS AGAINST FINANCIAL SECURITY, EXPIRED AND

TERMINATED CCNS.

(1) Where a public wastewater utility through the actions of its owner(s), operator(s), or representative(s) demonstrates an unwillingness, incapacity, inability or refusal to effectively operate and/or manage the wastewater system(s) in compliance with these rules and Tennessee statutes, or the wastewater system(s) has been abandoned, the Commission has

authority to take appropriate based on good cause that that may include suspension or revocation of all or a portion a public wastewater utility’s CCN, forfeiture of wastewater utility funds, and/or making a claim against the public wastewater utility’s financial security.

(2) Good cause includes, but is not limited to, the following:

(a) A finding by the Commission of material non-compliance by the holder of a CCN with any provisions of Title 65 of the Tennessee Code Annotated dealing with obtaining a public wastewater utility CCN or providing wastewater services to customers, or any order or rule of the Commission relating to the same; or (b) A finding by the Commission of:

Fraud, dishonesty, misrepresentation, self-dealing, managerial dereliction, gross mismanagement on the part of the public wastewater utility, or conviction of the utility or a principal of the utility of a crime related to management or operation of the utility or any crime that may interfere with the effective management or operation of the utility;
Actual, threatened or impending insolvency of the public wastewater utility;
Actual or threatened abandonment of the public wastewater utility by its owners or operators;
Persistent, serious, or substantial violations of statutes or regulations governing the public wastewater utility;
Failure or inability on the part of the public wastewater utility to comply with an order of any other state or federal regulatory body after the public wastewater utility has been notified of its non-compliance and given an opportunity to achieve compliance; or 6. Failure to provide service to any customer reasonably entitled thereto.

(3) In addition to the above, the Commission may consider one or more of the following in determining whether a public wastewater utility’s CCN should be suspended or revoked, whether its wastewater utility funds should be forfeited and/or whether a claim should be made against its financial security:

(a) Whether, to the extent practicable, service to customers will remain uninterrupted;

(b) Whether methods are available to mitigate any financial consequences to customers served by the utility subject to suspension or revocation and the adoption of a plan to implement those methods; or whether there are no practicable methods to mitigate the financial consequences to customers;

(c) Whether the utility had opportunity to correct the conditions that are alleged to constitute the grounds for action; and (d) Such other factors as the Commission deems relevant to the determination.

(4) Proceedings before the Commission for suspension or revocation of a public wastewater utility’s CCN, forfeiture of wastewater utility funds, and/or making a claim against the public wastewater utility’s financial security shall be conducted in accordance with the contested case provisions of the Tennessee Uniform Administrative Procedures Act, Tenn. Code Ann. §§ 4-5-101, et seq., which includes notice and an opportunity to be heard, which may, but is not required to include a proceeding commenced under Tenn. Code Ann. § 65-2-106. Notice of opportunity to be heard may be excused when the circumstances or the conduct of a public wastewater utility poses an imminent threat to the health, safety, or welfare of the public. In such exigent circumstances, the Commission may order the summary suspension of the utility’s CCN and follow the procedures as set forth in Tenn. Code Ann. § 4-5-320.

(5) In the event the Commission revokes or suspends all or a portion of a public wastewater utility’s CCN, orders the forfeiture of wastewater utility funds, and/or makes a claim against the public wastewater utility’s financial security, the Commission may order all necessary actions to ensure continuous utility service and operation of the wastewater plant consistent with statutory requirements and TPUC rules and orders. The Commission may take, but is not limited to, the following actions:

(a) Order the divestiture of public wastewater utility assets.

(b) Ordering the hiring of a replacement operator.

(d) Petitioning a court of competent jurisdiction for the appointment of a receiver.

(e) Other actions necessary to provide for continuous public wastewater utility operations.

(6) An order under paragraph (5) may provide cost recovery mechanisms for costs associated with improvements to the wastewater system(s) that are immediate and necessary to remedy deficiencies, including any of the following:

(a) A mechanism for expediting any adjustments to the rates of the public wastewater utility.

(b) A plan for deferring or accelerating certain improvement costs and recovering costs in phases.

(7) Upon a complaint or the Commission’s initiative, when it is alleged that a wastewater system has not been completed or is not operational and providing service to the designated service area after three (3) years from the date of the CCN Order, there shall be a rebuttal presumption that the CCN granted to the public wastewater utility is no longer valid or in effect.

History

Authority: T.C.A. §§ 4-5-320, 65-2-102, 65-2-106, 65-4-104, and 65-4-201.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed September 5, 2018; effective December 4, 2018. Amendments filed April 10, 2026; effective July 9, 2026.

Tenn. Comp. R. & Regs. 1220-04-13-.10 TITLE OF PHYSICAL ASSETS AND SALE, TRANSFER, MERGER, TERMINATION,

ACQUISITION, OR ABANDONMENT.

(1) Title to all physical assets of the wastewater system managed or operated by a public wastewater utility shall not be subject to any liens, judgments, or encumbrances, except as approved by the Commission pursuant to Tenn. Code Ann. § 65-4-109.

(2) Any person owning, operating, managing, or controlling a public wastewater utility that intends to sell, transfer or merge with another public wastewater utility, or intends to terminate, acquire another public wastewater utility or its assets, or abandon the wastewater system shall file ninety (90) days prior to the closing date of such transaction both a Petition with the Commission to obtain Commission approval of the transaction and a proposed written notice to the customers.

(3) Any petition filed with the Commission under this part shall include a description of the proposed transaction and the following:

(a) The names, addresses, and telephone numbers of the public wastewater utility and other parties to the transaction;

(b) The identity and contact information of the person(s) to contact regarding the petition;

(d) A list of outstanding citations issued by TDEC and a discussion concerning how the acquiring party will correct any outstanding citations or violations;

(e) A statement detailing the effect of the transaction upon customers; and (f) A copy of the customer notification letter, to be approved by the Commission, which will be mailed by the current provider of wastewater services to its customers no fewer than thirty (30) days prior to the customer transfer. Once approved by the Commission, the notification letter shall be mailed by U.S. First Class Postage, with the logo or name of the current provider displayed on both the letterhead and the exterior envelope. For good cause shown, any portion of this Rule 1220-04-13-.10(3)(f) may be waived or notice may be given using alternate means.

History

Authority: T.C.A. §§ 65-2-102, 65-4-104, 65-4-112, and 65-4-113.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed September 5, 2018; effective December 4, 2018.

Tenn. Comp. R. & Regs. 1220-04-13-.11 REPEALED

History

Authority: T.C.A. §§ 65-2-102, 65-2-106, 65-4-104, and 65-4-114.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Repeal filed September 5, 2018; effective December 4, 2018.

Tenn. Comp. R. & Regs. 1220-04-13-.12 CUSTOMER RELATIONS

(1) Each public wastewater utility shall comply with applicable provisions of Rule 1220-04-03-.14 including, but not limited to, the following:

(a) Each public wastewater utility shall maintain a business location and a customer service telephone number at which it may be contacted directly by customers, applicants, or the Commission during its regular business hours.

(b) The public wastewater utility shall make a full and prompt investigation and maintain an accurate record of all written customer complaints that are received by the public wastewater utility. If the written complaint relates to a service problem, the record shall include appropriate identification of the customer or service issue, the time, the date, and the action taken to alleviate the trouble or satisfy the written complaint. This record shall be available to the Commission upon request.

(c) Each public wastewater utility, within ten (10) business days after being notified of a customer complaint filed with the Consumer Services Division of the Commission, shall file a written response to that complaint with the Commission’s Consumer Services Division.

(d) Each public wastewater utility shall provide a means by which it may be contacted at any time in the event of a service failure or emergency or by which a customer or applicant may leave a message reporting such failure or emergency.

(e) Insofar as practicable, every customer affected shall be notified in advance of any contemplated work which will result in interruption of service for more than twenty-four (24) hours, but such notice shall not be required in case of interruption due to situations beyond the control of or not reasonably foreseeable by the public wastewater utility.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-13-.13 CUSTOMER BILLING

(1) The Commission shall approve the rates that are included in the tariff submitted by the public wastewater utility before customers are charged for wastewater services. All bills for wastewater service shall state how the charge is calculated. The bill/statement shall contain the name, address, and telephone number of the public wastewater utility’s main office. A bill based upon water usage shall include applicable language as found in Rule 1220-04-03-.16.

(2) Bills shall be rendered at regular intervals as described in the public wastewater utility’s approved tariff. Public wastewater utilities shall not send a customer two successive estimated bills, except due to extenuating circumstances.

(3) No public wastewater utility shall charge, demand, collect or receive any greater, less, or different compensation for provision of wastewater service or for any service connected therewith, than those rates and charges approved by the Commission and in effect at the time of service. Each customer within a given classification (i.e., residential, commercial, or industrial) shall be charged the same approved rate, including tap fees, as every other customer within that classification, unless reasonable justification is shown for the use of a different rate (e.g., high strength effluent), and a contract or tariff setting the different rate has been filed and approved by the Commission.

(4) Where a public wastewater utility finds that through no fault of the customer the customer’s wastewater service is interrupted and remains out of service in excess of twenty four (24) hours after the customer has notified the public wastewater utility of the interruption, the public wastewater utility shall refund to that customer the pro-rata portion of the month’s charges for the period of days during which the service was not provided. The public wastewater utility may refund the amount owed as a credit toward the customer’s subsequent bill for service. This paragraph applies only to public wastewater utilities having service tariffs that provide for charges on a non-metered rate.

(5) Bills which are incorrect due to meter or billing errors shall be adjusted as found in Rule

Tenn. Comp. R. & Regs. 1220-04-13-.14 DENYING OR DISCONTINUING SERVICE

(1) No public wastewater utility shall discontinue service to any customer, without first providing adequate notice to the customer, provided, however, where an emergency exists fraudulent use is detected, or a dangerous condition is found to exist on the customer’s premises, the public wastewater utility may cut off water service without such notice by use of the cutoff valve or by agreement with the water provider.

(2) The public wastewater utility shall refuse new wastewater service after the effective date of these rules unless a customer agrees in writing to a “Subscription Service Contract” that would for the reasons listed in this part allow either:

(a) The public wastewater utility to install and have exclusive right to use a cutoff valve in the water line between the water meter and the premises (or in customer’s water line where no meter exists) in accordance with both the rules and regulations of the public wastewater utility, as found in the tariff approved by the Commission, and this rule; or (b) The public wastewater utility to execute an agreement with a water provider to terminate water services. If the water service is discontinued based on an agreement between a water service provider and the public wastewater utility, this agreement shall be submitted and on file with the Commission prior to any termination of water service in accordance with its provisions so that each customer is treated in a just and reasonable manner.

(3) The following shall not constitute sufficient cause for refusal of service to a present or prospective customer:

(a) Non-payment for service by a previous occupant of the premises to be served.

(b) Failure to pay for merchandise or special services purchased from the public wastewater utility.

(d) Failure to pay for a different type or class of public wastewater utility service.

(4) The public wastewater utility’s tariff on file with the Commission shall define all terms and conditions that relate to denying or discontinuing wastewater service.

(5) When a prospective customer is refused service, or an existing customer has service disconnected under the specific provisions included in the public wastewater utility’s tariff approved by the Commission, the public wastewater utility shall notify the customer or prospective customer promptly of the reason for refusal. The notification shall include an explanation of the Commission’s dispute resolution process found in Rule 1220-01-03. A copy of such notification or other documentation shall be sent within five (5) business days to the local county health department and the Commission. If service is disconnected using a water shut-off valve, the utility is not required to notify the county health department.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.” Amendments filed September 5, 2018; effective December 4, 2018.

Tenn. Comp. R. & Regs. 1220-04-13-.15 RECONNECTION

(1) The public wastewater utility’s tariff on file with the Commission shall define actions of the public wastewater utility to promptly restore service to the customer in all cases of discontinuance of service where the cause for discontinuance has been corrected, and there has been compliance with all rules of the public wastewater utility on file with the Commission.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Tenn. Comp. R. & Regs. 1220-04-13-.16 TRANSACTION WITH AFFILIATES

(1) This rule shall apply to all affiliate transactions between a public wastewater utility and any affiliate thereof. The primary purpose of this rule is to protect the ratepayers of a public wastewater utility from unauthorized or unwarranted cross-subsidies.

(2) For purposes of this rule, the following definitions shall apply:

(a) Affiliate – Any person who, directly or indirectly, is in control of, is controlled by, or is under common control with a public wastewater utility.

(b) Affiliate Transaction – Any sale, lease trade, purchase, or transfer of goods, or services between a public wastewater utility and any affiliate thereof. The term also means any sale, lease, trade, purchase, or transfer of assets, goods, or services between the accounts for the regulated and nonregulated activities of a single public wastewater utility.

(c) Asset – Any tangible or intangible property, or other right, entitlement, item, or thing of value that is recorded or should be recorded in the public wastewater utility’s Balance Sheet Accounts prescribed by the Uniform System of Accounts under 1220-04-01- .11(1)(h).

(d) Control – The ownership of twenty percent (20%) or more of the shares of stock entitled to vote for the election of directors in the case of a corporation, or twenty percent (20%) or more of the equity interests in the case of any other type of entity, or status as a director or officer of a corporation or limited liability company, or status as a partner of a partnership, or status as an owner of a sole proprietorship, or any other arrangement whereby a person has the power to choose, direct, or manage the board of directors or equivalent governing body, officers, managers, employees, proxies, or agents of another person.

(e) Cross-Subsidy – The unauthorized over-allocation of cost to a public wastewater utility resulting in an under-allocation of cost to an affiliate.

(f) Direct Cost – With regard to a particular good or service, the cost solely attributable, on a cost-causative basis, to the production or provision of such individual good or service, where the attribution does not require the use of allocations to separate the common costs incurred in the production or provision of other goods or services.

(g) Fair market Value – The sales price that could be obtained by selling an asset in an arm’s-length transaction to a nonaffiliated entry in an open market.

(h) Fully Allocated Cost – With regard to a particular good or service, the sum of the direct cost and indirect cost of such individual good or service.

(i) Good – Any tangible or intangible property, item, or other thing of value that is recorded or should be recorded in the public wastewater utility’s Income Accounts prescribed by the Uniform System of Accounts under 1220-04-01-.11(1)(h).

(j) Indirect Cost – With regard to a particular good or service, the cost, other than direct cost, properly attributable to the production or provision of such individual good or service; including the allocation of all common and overhead costs.

(k) Market Rate – The lowest price that is available for comparable goods or services from nonaffiliated entities in an open market.

(l) Net Book Value – The original cost of an asset less accumulated depreciation.

(m) Person – A corporation, limited liability company, partnership, sole proprietor, enterprise, association, trust, cooperative, concern, individual, or any other entity.

(n) Service – Any labor-related activity including but not confined to, auditing, accounting, consulting, engineering, managing, operating, financing, and legal, that is recorded or should be recorded in the public wastewater utility’s Balance Sheet and Income Accounts prescribed by the Uniform System of Accounts under 1220-04-01-.11(1)(h).

(3) A public wastewater utility shall record all affiliate transactions in its accounts as prescribed by the Uniform System of Accounts required under Rule 1220-04-01-.11(1)(h).

(4) When a public wastewater utility is a party to an affiliate transaction, as defined in this rule, the following methods must be used to record the transaction in the public wastewater utility’s accounts:

(a) When an affiliated sells, leases, trades, or transfers an asset to a public wastewater utility, such transactions shall be recorded in the public wastewater utility’s accounts at the lower of the affiliate’s net book value or the fair market value of the asset.

(b) When a public wastewater utility sells, leases, trades, or transfers an asset to an affiliate, such transaction shall be recorded in the public wastewater utility’s accounts at the tariff rate if an applicable tariff is on file with the Commission. If no tariff is applicable, such transaction shall be recorded in the public wastewater utility’s accounts at the higher of the public wastewater utility’s net book value or the fair market value of the asset.

(c) When an affiliate sells, leases, trades, or transfers goods or services to a public wastewater utility, such transaction shall be recorded in the public wastewater utility’s accounts at the affiliate’s fully allocated cost or the market rate, whichever is lower.

(d) When a public wastewater utility sells, leases, trades, or transfers goods or services to an affiliate, such transaction shall be recorded in the public wastewater utility’s accounts at the tariff rate if an applicable tariff is on file with the Commission. If no tariff is applicable, such transaction shall be recorded in the public wastewater utility’s accounts at the public wastewater utility’s fully allocated cost or the market rate, whichever is higher.

(5) A public wastewater utility shall record the following minimum information regarding each affiliate transaction:

(a) The name of the affiliate involved in the transaction.

(b) A description of the transaction, including:

The date of execution;
The business purpose underlying the transaction;
The starting date and termination date if the transaction is to be performed over a period of time; and 4. Identification of the assets), good(s), or service(s) related to the transaction.

(c) If the transaction involves an asset, the net book value and the fair market value of the asset. Fair market value may be substantiated by auction, appraisal, competitive bids, supplier catalogs, vendor price lists, advertisements, or clearly comparable transactions.

(d) If the transaction involves a good or service, the fully allocated cost incurred to produce or provision the good or service and the market rate of the good or service. The market rate may be substantiated by auction, appraisal, competitive bids, supplier catalogs, vendor price lists, advertisements, or clearly comparable transactions.

(6) A public wastewater utility shall preserve and maintain all records and information related to affiliate transactions required under subsection (4) of this rule for a minimum period of three (3) years as specified in Rule 1220-04-13-.03.

(7) In the Annual Report required to be filed with the Commission pursuant to Rule 1220-04-13- .04(1)(c), the public wastewater utility shall state for the reporting period whether or not it was a party to any affiliate transactions, as defined in this rule. If the public wastewater utility engaged in such affiliate transactions during the reporting period, it shall in its Annual Report:

(a) Identify each affiliate by name and business address:

(b) Describe the affiliate relationship between each affiliate and the public wastewater utility; and (c) For each affiliate, report the total dollar amount of affiliate transactions recorded in the public wastewater utility’s accounts as follows:

The total dollar amount of assets, goods, and services sold, leased, traded, or transferred to each affiliate by the public wastewater utility during the reporting period; and 2. The total dollar amount of assets, goods, and services sold, leased, traded, or transferred to the public wastewater utility by each affiliate during the reporting period.

(8) A public wastewater utility and each affiliate thereof shall provide the Commission, its staff, and its agents with full access to all relevant books and records of such entities in connection with the Commission’s regulatory responsibilities to examine any costs sought to be recovered by the public wastewater utility in rate proceedings or to determine a public wastewater utility’s compliance with this rule.

(9) For good cause the Commission may waive any of the requirements or provisions of this rule on the written application of any interested party or on its own motion. The Commission shall, after hearing, state the basis of any such waiver and may impose conditions or limitations on any such waiver consistent with the purpose of this rule.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Original rule filed September 5, 2018; effective December 4, 2018.

Tenn. Comp. R. & Regs. 1220-04-13-.17 MINIMUM REQUIREMENTS FOR NEW AND AMENDMENTS TO CERTIFICATES OF

PUBLIC CONVENIENCE AND NECESSITY.

(1) Any public wastewater utility requesting a Certificate of Public Convenience and Necessity (“CCN”) in accordance with Tenn. Code Ann. §§ 65-4-201, et seq., shall file an application that complies with Rule 1220-01-01-.03 and this rule. Each applicant shall demonstrate to the Commission that it possesses sufficient managerial, financial, and technical capabilities to provide the wastewater services for which it has applied. Each application shall demonstrate that there exists a public need for wastewater service and include the required financial security consistent with Tenn. Code Ann § 65-4-201, and these rules.

(2) Applications for a new or expanded CCN shall include the following information:

(a) General information about the applicant and the proposed system:

The legal corporate name, physical address and mailing address of the applicant.
An organizational chart showing each officer and any other key personnel by name and title.
A list of owners, members and officers of the wastewater utility. Provide the address, telephone number, and percentage ownership of each individual. If different, list the names of owners, members and officers located in Tennessee.
If the applicant has affiliated companies, provide a corporate organization chart showing all affiliate relationships. Describe in detail any transactions, direct or indirect, that occur or are expected to occur between affiliated entities.
A copy of the applicant’s articles of incorporation, partnership agreement, and/or by-laws.
A copy of the applicant’s license to engage in business within the State of Tennessee registered with the Secretary of State, inclusive of any assumed names of the company.
A complete description of the geographic territory to be served by the applicant, including the name and location of development (subdivision) and the number of acres. Include the name of the subdivision or development and the name of the wastewater system as stated in the TDEC permit. In addition, provide a legible map of the area with the proposed service territory clearly and accurately plotted.

The map should include:

(i) The location of the wastewater system, i.e., treatment plant, pre-application treatment facilities, collection infrastructure, building(s) for equipment, drip fields, disposal fields and/or wetland cells. Include the physical address of the wastewater system and the associated latitude and longitude coordinates.

(ii) The names of surrounding streets and roads.

(iii) A map to show access roads and names of access roads (if available) and other utilities necessary to provide wastewater service.

(iv) All residences and habitable structures served by the wastewater system.

(v) Any portion of the areas that will not be served when the wastewater system becomes operational. If the wastewater system will be operational in phases, show the phases on the map.

A description of the type of proposed wastewater system to be constructed including the design capacity and the maximum potential number of customers the public wastewater utility will service in the proposed service area. Indicate the technology used for the wastewater system (e.g., membrane, sand filter, wetland cell and/or lagoon). The type of system and design capacity should match the type and design capacity of the associated TDEC permit and permit application.
The estimated dates for the commencement and completion of the construction of the system and the estimated date the wastewater system will be placed into service. If the wastewater system will be constructed or placed into service in phases, provide the anticipated dates for each phase.
If portions of the wastewater system will be built in phases, state how many phases and the number of houses or units to be connected in each phase.
Identify the builder or developer that has requested that the utility provide wastewater service. Include the name of the company, primary contact, title, mailing address, email address, and phone number.
Respond completely to all information requests by Commission staff.

(b) Evidence that the requisite property rights and public need exists for wastewater services in the proposed service area:

A letter(s) from local government(s) and public wastewater utilities in or near the proposed service area stating that they do not provide wastewater service to the proposed service area and that they are unable or unwilling to provide wastewater service to the proposed service area within the ensuing twelve (12) months.
As applicable, a copy of any application for a franchise and the franchise agreement issued by a city or county.
All contracts or agreements between the builder(s) of the treatment and/or collection system, the utility, and the property and/or subdivision developer that show entitlement or ownership to the land, system specifications, costs for the wastewater system, timeline for the system to be built, and rights to the system once it is completed. Documents presented by the applicant should be signed by all parties and bear marks or stamps, such as those provided by notaries or public officials, as necessary.

(i) A copy of the construction agreement(s) for the treatment and/or collection of the system signed by all parties shall be filed with the Commission before the commencement of construction of the wastewater system.

(ii) A copy of the deed(s) and/or easement(s) for all the utility’s land and ownership rights to the wastewater system shall be filed with the Commission before any customers are connected to the wastewater system.

(iii) Once the area of development is approved by the city and/or county government, a copy of the signed plat shall be filed with the Commission before any customers are connected to the wastewater system.

Biographies of officers and/or key wastewater utility staff that demonstrate managerial ability. Include a list of certifications or professional licenses held by officers or wastewater utility staff with documentation.
Identify all states where the applicant is certified as a wastewater provider and/or the status of certification in states where an application is pending.
Copies of all contracts related to any pending merger or acquisition of the applicant, corporate parent or affiliate.
Proof that the party contracted to install the proposed system has a valid and current contractor’s license from the applicable licensing board of the State of Tennessee. A copy of the contractor’s license shall be filed with the Commission prior to the commencement of construction of the wastewater system.

(d) Evidence that the applicant possesses sufficient technical ability:

A copy of the application for the State Operating Permit (“SOP”) filed with TDEC.

Include the letter from TDEC indicating the receipt of a complete application.

Include any engineering and/or design reports submitted to TDEC, such as the Design Development Report and the Detailed Soils Investigation Report. If an operating permit has been issued, provide a copy of the permit. A copy of the final SOP shall be filed with the Commission prior to connecting any customers to the wastewater system.

A copy of the State Operator Certificate for the wastewater system operator of record. If the operator is a contract employee of the utility, provide a copy of the employment contract. A copy of the State Operator Certificate shall be filed with the Commission before any customers are connected to the wastewater system.
The name, address, and telephone number of the technical contact person responsible for and knowledgeable about the applicant’s proposed operations in Tennessee.
A list of any complaint(s), notices of violation or administrative action filed with or issued by a regulatory agency. Identify the nature of the complaint notices of violation or administrative action, which agency is involved, and how the issue was or is being resolved.
A copy of the as-built plans signed by the utility certifying that the wastewater system has been inspected and is approved to begin operations shall be filed with the Commission before any customers are connected to the wastewater system.

(e) Evidence that the applicant possesses sufficient financial capability:

Financial statements for the applicant covering the most recent year ended.

Include a balance sheet, income statement, and statement of cash flows.

Pro forma income statements for the wastewater utility for the first three (3) years of operations or for an expanded amended CCN, the first three years after the latest year-end financials. In the calculations of utility revenues show the number of consumers and the rates used in the calculations. Show operation and maintenance expenses by account number and provide the basis and/or assumptions used to arrive at these amounts.
A chart of accounts for the wastewater utility, following the NARUC Uniform System of Accounts (USA) for wastewater utilities.
A list of all plant-in-service account numbers with account names and estimated account balances as of the state of operations.
The depreciation rates the applicant intends to use for each plant account that will be on the wastewater utility’s books. Include the estimated useful life of each account. If no depreciation study has been performed, explain the basis for these rates.
The total estimated detailed cost of construction of the wastewater system to be constructed for the proposed service area. If the wastewater system will be constructed in phases, provide detailed construction cost estimates for each phase. Indicate whether the developer or the applicant will pay for the construction of the system.
Indicate the identity of the owner(s) of the wastewater system once construction is complete. If a party other than the utility pays the cost of construction and transfers ownership of the wastewater system to the applicant, provide a detailed breakdown of the estimated amount of contributed capital that will be recorded on the applicant’s financial books. A detailed breakdown by USOA plant account of the final amount of contributed capital that will be recorded on the applicant’s books shall be filed with the Commission before any customers are connected to the wastewater system.
A tariff showing products, services, terms, conditions and proposed rates to be charged for wastewater service. A tariff should include all pass-through fees, including but not limited to, customer deposits, disconnect or reconnect fees, late fees, tap fees, escrow fees, bond fees, franchise fees and taxes.
Provide estimates of costs and customers added by month for the first five (5) years based upon the construction build-out schedule for developers in the service area of the proposed wastewater system. For each year, by month, provided an estimated number of customers by customer class anticipated to be served by the wastewater system. Include the utility’s basis and assumptions used for this projection. Provide this information in a spreadsheet in Microsoft Excel format with all assumptions clearly documented.
Documentation describing bonding requirements imposed by municipal governments for the proposed wastewater system.
Demonstrate that the applicant has acquired a performance bond, an irrevocable letter of credit, or other sufficient financial security approved by the Commission, from the developer or builder of the wastewater system made payable to the utility to ensure construction of the wastewater system. The performance bond, irrevocable letter of credit, or other financial security approved by the Commission should be for an amount equal to or greater than the cost of the system as provided in contracts between the builder, developer, and/or utility. A copy of the performance bond, irrevocable letter of credit, or other financial security approved by the Commission shall be filed with the Commission prior to the commencement of construction of the wastewater system.
List all funding sources available to the applicant for the wastewater system proposed by the applicant.
Provide information demonstrating compliance with the financial security requirement of Rule 1220-04-13-.07.

(f) Sworn pre-filed written testimony by the applicant’s owner, member, officer or other principal having knowledge of the applicant’s operations and the proposed wastewater system. The testimony should, at a minimum, include the following information:

Evidence that a public need exists for wastewater services in the proposed service area.
A description of the wastewater system and the services to be provided.
A statement that the applicant is aware of and will abide by all applicable Tennessee statutes and TPUC Rules.
A discussion and demonstration of the technical, managerial, and financial capability of the applicant to provide the proposed wastewater service.
A statement that the applicant is aware of the requirement of Rule 1220-04-13- .09(7) concerning the completion of the construction of the wastewater system within three years of TPUC’s written approval of the CCN.
A signed affidavit stating that all information submitted concerning the wastewater CCN application is true and correct to the best of the witness’s knowledge and belief.

History

Authority: T.C.A §§ 65-2-102, 65-4-104, 65-4-201, and 65-4-204.
Administrative History: Original rule filed September 5, 2018; effective December 4, 2018. Amendments filed April 10, 2026; effective July 9, 2026.

Tenn. Comp. R. & Regs. 1220-04-13-.18 RESERVE/ESCROW ACCOUNTS

(1) Definitions (a) Reserve/escrow accounts are funds that are maintained in a separate, dedicated bank account with uses limited to emergency expenditures, necessary capital projects, or other uses as permitted by the Commission.

(b) Emergency expenses are those resulting from events that are infrequent and unusual in nature, and unrelated to the utility’s routine service or business activities.

(c) Necessary capital projects are expenditures other than routine operations and maintenance expenses required to repair, replace, or upgrade long-lived wastewater property, plant and equipment and include, but are not limited to, repairing line breaks, major pump repairs, pump replacements, major vault repairs, vault replacements, major panel upgrades, panel replacements, and plant upgrades and replacements.

(2) Reserve/escrow accounts established by a public wastewater utility shall be limited to paying for or reimbursing the utility for emergency expenses of the utility or for necessary capital projects, unless otherwise permitted by the Commission.

(a) The Commission may require public wastewater utility employees having signature

authority over such accounts to obtain a fidelity bond.

(b) The public wastewater utility’s tariff shall set forth the specific amount charged to customers to fund the reserve/escrow account. Such escrow charges and changes thereto shall be approved by the Commission.

(3) Procedures for accessing escrow/reserve account funds (a) Within thirty days of accessing escrow funds, a utility must file a written notice with the Commission detailing the situation that required the use of escrow funds, the amount and date of the withdrawal, and an accounting of how the funds were used, inclusive of supporting documentation such as invoices, bank statements, and account ledgers.

The Commission or its designee will decide whether the circumstances and use of the funds qualify as an emergency expense or a necessary capital project.

(b) If it is determined that the withdrawal of escrow funds was not due to an emergency expense or necessary capital project, it will notify the utility to either reimburse the escrow account for the amount of the withdrawal or file a petition with the Commission requesting to use the withdrawn funds for the specified purpose. If, within thirty days of the Commission’s notice, the utility fails to either reimburse the escrow account for the withdrawn funds or file a petition requesting approval to use the withdrawn funds, the Commission may order the utility to reimburse the escrow account with interest and may impose a civil penalty for the improper withdrawal.

(c) Prior to withdrawing escrow funds, a utility may file a petition requesting to use escrow funds for a purpose other than emergency expenses or necessary capital projects, and upon approval by the Commission, the utility may access escrow funds for such purposes.

(4) The TPUC may waive or modify requirements of this rule for good cause shown, including but not limited to affordability of rates, minimization of rate shock, or other operating characteristics of the utility.

History

Authority: T.C.A. §§ 65-2-102, 65-4-111, and 65-4-305.
Administrative History: New rule filed April 10, 2026; effective July 9, 2026.

Tenn. Comp. R. & Regs. 1220-04-03-.18 .

History

Authority: T.C.A. §§ 65-2-102 and 65-4-104.
Administrative History: Public necessity rule filed December 29, 2005; effective through June 12, 2006. Original rule filed March 29, 2006; effective June 12, 2006. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”

Chapter 1220-04-14 Utility Acquisitions

Tenn. Comp. R. & Regs. 1220-04-14-.01 DEFINITIONS

(1) “Acquired customers” means all customers of all classes served by the selling utility who will be served by the acquiring utility in the event the Commission approves the application for acquisition.

(2) “Acquired rate base” means the amount of the selling utility’s assets and acquisition adjustment, if any, the Commission determines should be incorporated into the acquiring utility's rate base for ratemaking purposes pursuant to Rule 1220-04-14-.03 and Rule 1220-04- 14-.04.

(3) “Acquiring utility” means a public utility subject to the jurisdiction of the Commission that provides electric, natural gas, water or wastewater public utilities services that is purchasing or acquiring a selling utility or a selling utility’s assets as a result of a voluntary arms-length transaction.

(4) “Acquisition adjustment” means the amount, whether positive or negative, the Commission determines should be incorporated into the acquired rate base under Rule 1220-04-14-.04.

(5) “Average embedded cost” means an acquiring utility’s plant in service, less associated accumulated reserve as recorded in the Uniform System of Accounts for the type of utility plant being acquired from the selling utility, divided by the acquiring utility’s existing customers.

(6) “Existing customers” means all customers of all classes served by the acquiring utility immediately prior to the Commission’s hearing and consideration of the application for acquisition.

(7) “Negotiated sales price” means the purchase price of the utility assets that the acquiring utility and the selling utility agree upon through voluntary, arms-length negotiations.

(8) “Rate base” means the amount of property, plant and equipment that is used and useful in providing public utilities services and upon which the acquiring utility is permitted to earn an authorized rate of return approved by the Commission.

(9) “Reproduction cost new less depreciation” means an estimate of the cost to construct, at current prices, an exact duplicate or replica of the utility assets, without regard to the original sources of funding for those assets, using the same material, construction standards, design, layout, and quality without adjustment for deficiencies and obsolescence of those assets, less depreciation.

November, 2021 2 (10) “Selling utility” means any provider of electric, natural gas, water or wastewater public utilities services in Tennessee that is being, or whose assets are being, purchased by an acquiring utility as a result of a voluntary arms-length transaction.

History

Authority: T.C.A. §§ 65-2-102 and 65-5-101, et seq.
Administrative History: New rules filed August 10, 2021; effective November 8, 2021.

Tenn. Comp. R. & Regs. 1220-04-14-.02 POWERS AND STANDARD OF REVIEW

(1) The Commission retains its regulatory authority, jurisdiction, and discretion as provided under Title 65, including as follows:

(a) The Commission has the authority after public notice and hearing to approve an acquiring utility’s purchase of a selling utility upon finding the acquisition to be in the public interest.

(b) The Commission shall maintain its statutory authority to set rates for the selling utility’s system after it is purchased by the acquiring utility.

(c) The Commission shall have the discretion to classify the acquired system as a separate entity for ratemaking purposes if such classification is in the public interest and maintains just and reasonable rates for acquired and existing customers.

History

Authority: T.C.A. §§ 65-2-102 and 65-5-101, et seq.
Administrative History: New rules filed August 10, 2021; effective November 8, 2021.

Tenn. Comp. R. & Regs. 1220-04-14-.03 VALUE OF ACQUIRED ASSETS

(1) The acquiring utility shall incorporate the acquired assets of the selling utility into the acquired rate base at the value ordered by the Commission after public notice and hearing.

(2) The applicant(s) shall present proof of the value of the acquired assets, including, but not confined to, evidence of the methodology used to value such assets and the sources of financial data, information and calculations used to derive the proposed value.

(3) The Commission recognizes the following methodologies may be appropriate to derive the value of the acquired assets:

(a) Average embedded cost of the acquiring utility;

(b) Reproduction cost new less depreciation;

(c) Any other reasonable valuation method proposed by a party to the acquisition proceeding and approved by the Commission; and (d) Any other valuation method found by the Commission to be reasonable.

(4) Nothing herein is intended to limit the Commission from gathering and considering information it deems necessary to determine a just and reasonable value of the acquired assets.

(5) Notwithstanding the foregoing, the value of the assets added to the acquired rate base shall be just and reasonable and in no event shall exceed the negotiated sales price.

History

Authority: T.C.A. §§ 65-2-102 and 65-5-101, et seq.
Administrative History: New rules filed August 10, 2021; effective November 8, 2021. November, 2021 3

Tenn. Comp. R. & Regs. 1220-04-14-.04 ;

(l) A statement discussing the factor(s) supporting any proposed acquisition adjustment to be incorporated in the acquired rate base under Rule 1220-04-14-.04, including the particular benefits, costs, or service changes, if any, that affect acquired customers and/or existing customers;

(m) A schedule identifying any assets that were contributed or donated to the selling utility that are included in the acquisition transaction;

(n) A statement discussing the proposed methodology and rate design for recovery from customers of any requested (i) acquisition adjustment; (ii) costs of post-acquisition capital investments; or (iii) regulatory, transaction and closing costs;

(o) A schedule detailing the pro-forma accounting entries for recording the proposed acquisition transaction in accordance with the Uniform System of Accounts;

(p) A schedule detailing the computation of post-acquisition rates and charges proposed for acquired customers by customer class;

November, 2021 6 (q) A schedule comparing the pre-acquisition and proposed post-acquisition rates and charges for acquired customers by customer class;

(r) A schedule detailing the computation of post-acquisition rates and charges proposed for existing customers by customer class;

(s) A schedule comparing the pre-acquisition and proposed post-acquisition rates and charges for existing customers by customer class;

(t) A statement describing in detail how the proposed public utility acquisition furthers the public interest; and (u) Written testimony supporting the application for acquisition.

(3) The acquiring utility shall possess a Certificate of Public Convenience and Necessity (CCN) or demonstrate its eligibility for a CCN to operate the selling utility’s system in accordance with applicable statutory law and Commission rules and regulations.

(4) The acquiring utility shall file a proposed tariff incorporating the acquired customers into the acquiring utility’s rates, charges and terms of provisioning public utilities services.

(5) The acquiring utility shall provide public notice of the proposed acquisition in accordance with applicable statutory law and Commission rules and regulations, as well as any additional public notice requirements ordered by the Commission or the Hearing Officer.

(6) The acquiring utility shall furnish any other pertinent information as determined and requested by the Commission or in accordance with the discovery phase of the acquisition proceeding.

(7) The Commission shall approve the acquiring utility’s acquisition of the selling utility if, after public notice and hearing, the Commission finds the acquisition to be in the public interest.

History

Authority: T.C.A. §§ 65-2-102 and 65-5-101, et seq.
Administrative History: New rules filed August 10, 2021; effective November 8, 2021.

Tenn. Comp. R. & Regs. 1220-04-14-.05 POST-ACQUISITION CAPITAL INVESTMENTS

(1) Post-acquisition capital investments in property, plant and equipment attributable to the selling utility’s system or service area shall be reasonable, prudent and used and useful in the provisioning of public utilities services if such investments are to be recovered from customers.

(2) Post-acquisition capital investments shall be depreciated in accordance with the acquiring utility’s most recently approved depreciation rates and methods unless otherwise ordered by the Commission.

(3) The acquiring utility’s return on post-acquisition capital investments shall be the rate of return approved by the Commission at the acquiring utility’s most recent general rate case.

History

Authority: T.C.A. §§ 65-2-102 and 65-5-101, et seq.
Administrative History: New rules filed August 10, 2021; effective November 8, 2021.

Tenn. Comp. R. & Regs. 1220-04-14-.06 REGULATORY, TRANSACTION AND CLOSING COSTS

(1) All regulatory, transaction and closing costs related to the acquiring utility’s purchase of the selling utility shall be reasonable and prudent in order to be recoverable from customers.

November, 2021 4 (2) For purposes of setting post-acquisition rates and charges, the Commission may in the exercise of its lawful discretion allocate the regulatory, transaction and closing costs between the acquiring utility’s owners/shareholders and its customers in recognition of the relative benefits of the acquisition to each and in consideration of the affordability of post-acquisition rates.

(3) For reasonable and prudent regulatory, transaction and closing costs recoverable from customers, the Commission may allow such costs to be deferred into a regulatory asset account and included as a regulatory asset in the acquiring utility’s rate base for future recovery by the acquiring utility unless such costs are to be recovered through another method approved by the Commission.

(4) The Commission shall allow the acquiring utility to amortize any deferred regulatory, transaction and closing costs included as a regulatory asset in the acquiring utility’s rate base over a reasonable period of time not to exceed 20 years.

(5) Regulatory, transaction and closing costs related to an acquisition application that is withdrawn by the acquiring utility or denied by the Commission shall not be recoverable from the acquiring utility’s existing customers.

History

Authority: T.C.A. §§ 65-2-102 and 65-5-101, et seq.
Administrative History: New rules filed August 10, 2021; effective November 8, 2021.

Tenn. Comp. R. & Regs. 1220-04-14-.07 POST-ACQUISITION RATES AND CHARGES

(1) The Commission shall have the authority, after public notice and hearing, to fix post-acquisition rates and charges for acquired customers and existing customers.

(2) Post-acquisition rates and charges shall be just and reasonable.

(3) In fixing post-acquisition rates and charges, the Commission may in the exercise of its lawful discretion allocate the recovery of costs between the acquired customers and existing customers on a rational basis that may, among other things, consider the relative benefits, costs, and intrinsic value of service.

(4) The Commission may in the exercise of its lawful discretion require the phase-in of postacquisition rates and charges over a reasonable period of time in circumstances when postacquisition rates and charges are substantially higher than pre-acquisition rates and charges or in consideration of affordability concerns.

History

Authority: T.C.A. §§ 65-2-102 and 65-5-101, et seq.
Administrative History: New rules filed August 10, 2021; effective November 8, 2021.

Tenn. Comp. R. & Regs. 1220-04-14-.08 APPLICATION FOR ACQUISITION AND FILING REQUIREMENTS

(1) The Commission shall approve or deny an application for acquisition within 120 days of the filing of a complete application by the acquiring utility. For good cause shown, the Commission or Hearing Officer may extend this period up to an additional 60 days either on its own motion or by request of any party to the acquisition proceeding.

(2) An application for acquisition shall, at a minimum, contain all the following information prior to such application being deemed complete unless a provision is waived by the Commission or Hearing Officer upon request by the applicant(s):

(a) A fully executed acquisition agreement, including all attachments, reflecting the terms and provisions of the acquisition transaction;

November, 2021 5 (b) Financial statements, including a balance sheet and income statement, of the selling utility’s three most recently completed fiscal years or reporting periods at the time the application for acquisition is filed;

(c) All tariffs, schedules or lists detailing the rates, charges and terms of service in effect for the selling utility at the time the application for acquisition is filed;

(d) A schedule detailing the number of customers by customer class served by the selling utility at the time the application for acquisition is filed;

(e) A statement and, if available, maps that comprehensively describe the service area of the selling utility;

(f) A forecasted income statement detailing the projected operating revenues, expenses, taxes and net income attributable to the selling utility’s operations for the twelve-month period following the estimated closing date of the acquisition transaction;

(g) Anticipated capital budgets based on due diligence detailing by project all projected postacquisition capital investments in property, plant and equipment attributable to the selling utility’s system or service area for the three-year period following the estimated closing date of the acquisition transaction;

(h) A schedule detailing the computation of regulatory, transaction and closing costs related to the proposed acquisition and the amount of such costs requested for recovery from the acquiring utility’s customers;

(i) A statement fully explaining the proposed methodology for valuing the acquired assets to be incorporated into the acquired rate base under Rule 1220-04-14-.03;

(j) A schedule and supporting workpapers detailing the computation of the value of the acquired assets requested for inclusion in the acquired rate base under Rule 1220-04- 14-.03;

(k) A schedule and supporting workpapers detailing the computation of any proposed acquisition adjustment requested for inclusion in the acquired rate base under Rule

Chapter 1220-04-15 Utility Cybersecurity Plans & Reporting

Tenn. Comp. R. & Regs. 1220-04-15-.01 DEFINITIONS

(1) Commission – The Tennessee Public Utility Commission.

(2) Cybersecurity Incident – An event that, without lawful authority, jeopardizes, disrupts, or otherwise impacts, or is reasonably likely to jeopardize, disrupt, or otherwise impact, the integrity, confidentiality, or availability of computers, information, or communications systems or networks, physical or virtual infrastructure controlled by computers or information systems, or information resident on the system. This definition includes an event that is under investigation or evaluation by the owner/operator as a possible cybersecurity incident without final determination of the event’s root cause or nature (such as malicious, suspicious, benign).

(3) Cybersecurity Plan – A plan or plans intended to protect the utility's information technology and operational technology systems from unauthorized use, alteration, ransom, or destruction of electronic data.

(4) Information Technology System – Any services, equipment, or interconnected systems or subsystems of equipment that are used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information that falls within the responsibility of the owner/operator to operate and maintain.

(5) Operational Technology System – A general term that encompasses several types of control systems, including industrial control systems, supervisory control and data acquisition systems, distributed control systems, and other control system configurations, such as programmable logic controllers, fire control systems, and physical access control systems, often found in the industrial sector and critical infrastructure. Such systems consist of combinations of programmable electrical, mechanical, hydraulic, pneumatic devices or systems that interact with the physical environment or manage devices that interact with the physical environment.

(6) Sworn Statement – A written statement made under oath that the statement is true based on personal knowledge.

(7) Utility – A public utility defined by T.C.A. § 65-4-101 that provides electric, water, wastewater, or natural gas services.

History

Authority: T.C.A. §§ 65-2-102, 65-4-101, and 65-4-127.
Administrative History: New rules filed June 27, 2023; effective September 25, 2023. September, 2023 2

Tenn. Comp. R. & Regs. 1220-04-15-.02 CONFIDENTIALITY

All documentation submitted in accordance with T.C.A. § 65-4-127 and these rules shall be treated as confidential and shall not be open for public inspection. The Commission shall treat this documentation consistent with any federal law, regulation, or rule that protects sensitive security information or similarly designated information regarding cybersecurity.

History

Authority: T.C.A. §§ 10-7-504(a)(21)(A)(i); 10-7-504(a)(21)(C)(iii); 65-2-102; and 65-4-127.
Administrative History: New rules filed June 27, 2023; effective September 25, 2023.

Tenn. Comp. R. & Regs. 1220-04-15-.03 CYBERSECURITY PLAN

(1) By July 1, 2023, or within one (1) year after a utility is formed, whichever is later, a utility shall prepare and implement a cybersecurity plan.

(2) Cybersecurity plans implemented in compliance with these rules must be assessed and updated by the utility no less frequently than once every two (2) years to address new threats.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-127.
Administrative History: New rules filed June 27, 2023; effective September 25, 2023.

Tenn. Comp. R. & Regs. 1220-04-15-.04 ANNUAL FILING REQUIREMENTS

(1) By July 1st of each calendar year, all utilities shall submit documentation that the utility has prepared and implemented a cybersecurity plan. At a minimum, the documentation shall include:

(a) Contact information for utility employee(s) responsible for cybersecurity;

(b) A statement indicating whether the utility conducts annual cybersecurity training for the utility personnel with access to any utility Information Technology System or Operational Technology System; and (c) A statement indicating whether the utility has procured cybersecurity insurance.

(2) The documentation filed must include a sworn statement by the utility’s chief executive officer, president, or another person with an equivalent role and authority, over the development and implementation of the cybersecurity plan. Such statement shall, at a minimum, confirm that:

(a) The utility has prepared and implemented the cybersecurity plan described in the filing;

(b) The cybersecurity plan has been prepared or updated within the last two (2) years; and (c) All documentation and information filed is current and accurate.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-127.
Administrative History: New rules filed June 27, 2023; effective September 25, 2023.

Tenn. Comp. R. & Regs. 1220-04-15-.05 FAILURE TO COMPLY; SANCTIONS

(1) A utility fails to comply with these rules, and is considered in non-compliance, when:

(a) The company does not file documentation required by these rules showing that it has prepared a cybersecurity plan by July 1 of each calendar year; or September, 2023 3 (b) The company does not file documentation required by these rules showing that it has implemented that cybersecurity plan by July 1 of each calendar year.

(2) After a hearing, the Commission may impose reasonable sanctions, including civil and monetary penalties, against a utility in non-compliance with these rules.

(3) Monetary penalties imposed by the Commission will be consistent with the statutory limit set in T.C.A. § 65-4-120.

(4) If the Commission determines that sanctions shall include a monetary penalty, it may consider:

(a) The efforts by the utility to comply with these rules;

(b) The financial stability of the utility; and (c) The impact of non-compliance on customers of the utility.

(5) The Commission may require a utility to establish a separate fund to further support its compliance with these rules.

(6) Any utility in non-compliance shall be reported to the General Assembly in accordance with T.C.A. § 65-4-127(f).

History

Authority: T.C.A. §§ 65-2-102, 65-4-120, and 65-4-127.
Administrative History: New rules filed June 27, 2023; effective September 25, 2023.

Tenn. Comp. R. & Regs. 1220-04-15-.06 REQUIRED NOTIFICATION TO THE COMMISSION OF CYBERSECURITY INCIDENT

A utility shall electronically notify the Commission’s Executive Director of any cybersecurity incident that results in interruption of service within 72 hours after discovery and confirmation, unless prohibited or recommended by law enforcement to avoid compromising an investigation. In such event, notification shall be required within 24 hours after such restriction is lifted by law enforcement.

History

Authority: T.C.A. §§ 65-2-102 and 65-4-127.
Administrative History: New rules filed June 27, 2023; effective September 25, 2023.

Tenn. Comp. R. & Regs. 1220-04-15-.07 COST RECOVERY FOR CYBERSECURITY INVESTMENT

(1) To the extent that costs related to action required by this rule are not already recovered in rates, the utility may seek cost recovery:

(a) By filing a petition pursuant to T.C.A. § 65-5-103; or (b) If permissible, by requesting an alternative regulatory mechanism pursuant to T.C.A. § 65-5-103(d).

History

Authority: T.C.A. §§ 65-2-102, 65-4-127, and 65-5-103.
Administrative History: New rules filed June 27, 2023; effective September 25, 2023.