Middle Tennessee Natural Gas Utility District is pleased to announce that Middle Tennessee Utility District (MTUD) has merged with the Upper Cumberland Gas Utility District of Cumberland County. Under the merger agreement, Middle Tennessee Utility District remains as the surviving utility and modifies its legal name slightly to Middle Tennessee Natural Gas Utility District (MTNG), serving a twenty two county area. MTNG CEO James Hodges commented, “This merger is definitely a win – win situation for the customers of the two merging Utility District’s”.
The Board of Commissioners for both utilities met separately in June, 2014 and approved by resolutions the agreement and plan of merger.
A petition seeking approval was filed on October 1st with the county mayors in each of the counties served by MTUD and the Upper Cumberland Gas Utility District. A public hearing was held last Thursday, October 23 in Crossville, at which time county mayors in attendance representing the service areas of the two utilities voted to approve the request.
MTUD served over 56,000 natural gas customers in all or a portion of twenty one counties including Bledsoe, Cannon, Coffee, Cumberland, DeKalb, Franklin, Grundy, Hamilton, Jackson, Marion, McMinn, Meigs, Overton, Putnam, Rhea, Rutherford, Smith, Van Buren, Warren, White, and Wilson Counties. The Upper Cumberland Gas Utility District served over 2,500 customers in a portion of Cumberland and Fentress Counties.
In the petition, MTNG asserts that “the merger of the two utility districts will provide for more efficient and convenient natural gas service in the areas served by both districts. The customers served by Upper Cumberland Gas Utility District will benefit by reduced rates and additional services. The customers of the petitioner (MTNG) will benefit from the added customers by spreading operating costs, providing access to additional natural gas pipeline supply, and allowing opportunities for customer growth in the resort and traditional communities served by Upper Cumberland Gas Utility District further spreading the operating costs. The proposed merger is economically sound and desirable and will serve the public convenience and necessity”.
Since the utility’s service area has grown from its beginnings in 1955, MTUD will further amend its map and legal boundaries to reflect these expansions. “In the years following the creation of the petitioner (MTUD), neighboring communities and counties have invited it to provide natural gas service. Those requests have been honored under authority found in Tennessee Code Annotated (state law) but the territorial limits described in the 1955 order (creating MTUD) have not been amended to reflect these expansions. An amendment of the map and legal description of the present service area as well as the expansion arising from the merger are sought to redefine the incorporated boundaries,” the petition states.
The petition to merge has also been filed with the Tennessee Utility Management Review Board, but for notice purposes only. The UMRB is not required to act.
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