NASHVILLE, Tenn. — The Tennessee Board of Utility Regulation (TBOUR) has mandated that the South Fork Utility District (SFUD) enter into merger negotiations with the Bristol Bluff City Utility District (BBCUD) following several allegations of financial mismanagement by former SFUD leadership.
During a meeting held in Nashville at the Cordell Hull Building at 10 a.m. on Thursday, the TBOUR voted unanimously to require SFUD and BBCUD to negotiate a merger. This decision stems from ongoing concerns about SFUD’s financial practices, including conflicts of interest and questionable payments totaling $1.6 million, as identified in reports by the Tennessee Comptroller’s Office. The proceedings were streamed live via Microsoft Teams.
Background and Decision
SFUD, serving approximately 3,400 customers, was established in 2020 through the merger of two former utility districts. The utility district has been under scrutiny since April 2022, when the Tennessee Comptroller’s Office released a report highlighting significant financial discrepancies and conflicts of interest within SFUD. This led to the resignation of the general manager and several board members. In 2024, another report uncovered additional questionable payments amounting to nearly $150,000 by an SFUD employee, according to TBOUR reports.