EMPOWERING TELLICO VILLAGE BREAK

Fore Note: Below are three articles about the ongoing issues with the Tellico Village water and sewer management, or as some say, the lack of management. The first article is from WVLT.com, the second is the Tellico Village Property Owner's Association and the third is from a village activist group.

TELLICO VILLAGE, Tenn. (WVLT) -Homeowners in Tellico Village have been filing complaints to the state to step in and help solve a problem revolving around their utilities.

The Tellico Village Property Owners Association is in charge of utilities such as water and sewage. Neighbors say there were plans set where neighbors paid $80 a month as fees for the utilities that would help the community.

“It had a plan to negotiate some different plans, take that $80 a month off the table and kind of figure out what some good deals were to plan for that, and then all of a sudden the $80 came off 10 months or so later and so there’s still this a little bit of a confusion,” Lisa Nass, a Tellico Village neighbor said.

The situation has become confusing for homeowners who want guidance around these utilities.

“Well, it’s escalated with not a lot of real specifics in terms of how to actually deal with the problem going forward,” Nass said.

Neighbors are now filing complaints with the Tennessee Public Utilities Commission (TPUC), hoping the Tellico Village Property Owners Association can be regulated.

The main issue addressed in the petition is the POA is operating a public utility without a Certificate of Public Convenience and Necessity (CCN).

The Attorney Generals office said Tellico Village is considered an HOA and not required to have a CCN.

But, the complaint filed says it is not an HOA because it has both residential and commercial properties. From here, TPUC will hold a meeting, hear from both the POA and consumers and then determine if there is cause for a CCN.

The POA was notified earlier this week of an inquiry submitted by a property owner to the Tennessee Public Utility Commission (TPUC) asking whether or not POA utilities are subject to TPUC regulation. In response to recent social media commentary mischaracterizing the current regulatory discussion involving POA utilities, we want to clarify the facts and provide accurate context.

1. Original Property Owner Inquiry
The property owner’s original filing did not allege any wrongdoing or raise concerns about the POA’s utility policies, rates, or operations. It simply asked TPUC for a legal determination: Is the POA subject to TPUC regulation? That’s the sole question under consideration.

2. Consumer Advocate Division Filing
Following the inquiry, the Consumer Advocate Division of the Tennessee Attorney General’s Office filed a Petition to Intervene. Like the original inquiry, their filing did not include any complaints about the specific operation or financial management of the POA utilities. They are requesting that the POA show cause why it should not fall under the TPUC regulation. Again, this is a procedural administrative matter, not a reflection upon the operations, services, or rate structures of the POA utilities.

3. The Core Question
The fundamental issue is whether the POA must submit annual utility reports to TPUC, not whether our utilities are doing anything improper. This is a jurisdictional question, not a compliance issue.

4. Historical Context
The POA utilities have been operating successfully for over 40 years, long before the TPUC even existed. Our utilities were developed as an essential part of the Tellico Village Master Plan, which was approved by TVA and TRDA. We have always obtained the necessary permits through the Tennessee Department of Environment and Conservation (TDEC) and passed regular TDEC compliance inspections.

Furthermore, state law has long exempted entities like the POA from regulation by TPUC, and this exemption has been consistently acknowledged over the years by TDEC, the Tennessee State Comptroller, and the Tennessee Association of Utility Districts.

The POA has already met with the Consumer Advocate to further explain the POA’s statutory exemption from TPUC regulation. We remain confident that once the Consumer Advocate has reviewed the full background and legal structure of the POA utilities, this matter will be promptly resolved.

The POA encourages property owners to direct questions regarding this matter to POA management via HelpSpot for reliable information rather than social media.

We will keep the community updated as we work with the Consumer Advocate Division on this inquiry.

TVPOA has been busted by the Attorney General of the State of Tennessee for its water and sewer policies.

Please open and read the link below.

The entire complaint spans 240 pages. The majority of attachments supporting their case against our Village are included in the first 15 pages or so.

In short, it states that Tellico Village should come under the authority of the TENNESSEE PUBLIC UTILITY COMMISSION.

The complaint in Summary:

TN STATE ATTORNEY GENERAL verses TELLICO VILLAGE POA and BOARD OF DIRECTORS

CONSUMER ADVOCATE'S PETITION TO INTERVENE AND/OR COMPLAINT FOR THE TENNESSEE PUBLIC UTILITY COMMISSION TO CONVENE A SHOW CAUSE PROCEEDING AGAINST TELLICO VILLAGE PROPERTY OWNERS ASSOCIATION, INC

Violations of state law:

1. Operation of a public utility without a Certificate of Public Convenience and Necessity (CCN) in violation of Tenn. Code Ann. $65-4-201;
2. Failure to pay an annual inspection fee in violation of Tenn. Code Ann. $ 65-4-301(a);
3. Failure to file a tariff in violation of Tenn. Code Ann. $ 65-5-102; and4. Charging rates not approved by the Commission in violation of Tenn. Code Ann. $65-5-101 and/or 65-5-103

OH MY GOODNESS!

The major issue is our providing water/sewer services to commercial accounts in our Village. Evidently, our lawyer didn't consider this a problem and overlooked it as an issue. Indeed, the AG stated as much in the complaint, in his legal opinion regarding the $80 TAP fee added to our water bills.

The state law exempts HOA/POA’s from needing to be regulated on their utility operations and rate setting. They consider us a private concern, and why our board has been able to increase water rates and set the costing and funding of our water/sewer infrastructure project as they see fit.

So, what does this all mean going forward?

Well, the complaint has been filed with the Public Utility Commission (PUC) and is now on the PUC docket, pending a hearing before the commissioners. If it is upheld, then TV Sewer and Water will come under the authority of the TPUC, making TV a public utility and governed by the TPUC.

- It means, they need to get firm estimates of the required improvements. No “spitballing” and then slapping fees on our bills with little to no justification.

- It means the Tennessee Public Utility Commission (TPUC) will require our POA to do what is called a COSS (Cost of Services Study), which proves out the rates needed to pay for our projects.

- It means the POA will no longer be able to hide water profits in the General Fund to pay for their "pork" projects, eg, Tanasi clubhouse.

- It means no more TAP fees, ever again, unless they are justified by the TPUC.

- It means no more using water access, to force us into compliance.

- It means no more selling water at ridiculous rates to generate profits.

We fully expect the legacy board will have our lawyer fight this, using our funds, of course, and lining his pockets even more. But the writing is on the wall.

We should ask the POA Board of Directors not to fight this case brought against them with our property owners' money. They are in clear violation of the law. It is futile to defend the indefensible!

Now we need to ask ourselves a big question...how is it our legacy board, committees, and attorney led us to the point where the state needs to intervene to correct the negligence and abuse we have experienced in our village? It's evident that changes need to happen NOW! We cant wait for November.

I'm sure many of you have questions. Ask the legacy board for answers in upcoming town halls and POA BOD meetings. We will continue to work for more information. Please be sure to look for it in upcoming Newsletters.

OPEN THIS LINK AND READ THE COMPLAINT....