Tennessee Utility Regulators Vote To Start Process Of Removal Of Sevier County Utility Commissioners

Image Credit: TN Comptroller of the Treasury

The Tennessee Conservative Staff –

Members of the Tennessee Board of Utility Regulation voted to begin the process of removing Sevier County Utility District Board Commissioners.

The TN Board voted during a July 17 meeting, with David Purkey recusing himself because of personal relationships with board members.

At the meeting, current SCUD president James Green and attorney Janet Hayes spoke of the changes that had been made to turn things around following the January indictment of then-president Matthew Ballard. 

Ballard was accused of official misconduct and mismanagement of funds, as well as bribery of a public servant. He allegedly mishandled hundreds of thousands of dollars through kickback schemes with an electric company. 

Ballard had served as the president for more than 20 years. He was placed on leave and then fired in 2023. His indictment came after an investigation by the Tennessee Comptroller of the Treasury. Auditors identified over $1.7 million in questionable spending.

Hayes noted that the commission had been working to create a culture in which something like this would not happen again.

“I can say what I discovered was three leaders who were and are committed to the highest level of ethics and oversight. You’re being asked to remove these leaders, not because of what they did, but because of what they did not do,” said Hayes, “The question I think that is pertinent is, what is the current objective? If it is this board’s objective to provide stability and diligent oversight to Sevier County, I would argue you would find no one with better institutional knowledge, with more heightened awareness and with a better record of action than the commissioners.”

The TN Board, however, questioned how the mismanagement of funds was able to occur for such a long time.

“Once again, no judgment on anybody’s fault, but you read through these things, it’s hard for me to believe one person acted alone, that there weren’t other signs, and the things that’s been presented here, and as Mr. Colona presented, I think this board has acted in a consistent manner in the past and had they been newly-appointed board members, but I would move to accept a staff recommendation for the board to hereby initiate a contested case hearing to determine whether the sitting board members of SCUD’s governing body should be removed from office,” said TN Board Member Steve Stone.

The TN Board will now hold a hearing in which evidence will be presented. The eleven members will serve as a sort of jury, deciding whether the Sevier County commissioners will be removed.