Alright Sam, Sam started the recording.
Alright, so we're good to go. Good morning, everyone. We're here today for a status conference in docket number 20 two-00028 utility incorporated to amend a certificate of convenience and necessity to expand its service area to include a portion of severe county in Tennessee known as Thunder Mountain located on little Cove Road near the intersection of Thunder mountain Road. I'm Aaron Conclin, the administrative judge in this docket. As you've just heard we've got started here, the status conference is being recorded. So at this time if I could have the parties give introductions, I would appreciate it.
Good.
Well.
Thanks Chuck Welch. I'm partner in the Phelps Dunbar law firm National office with me is Dark Kendall, who is the owner and president and owner of the utility. And, I'm we're, we're all, we're all ears. Alright.
Hey mr. Milan.
Yes, Melbourne along with butter Snow on behalf of SAP investments and I think Luke Gill, one of our summer associates may also be on the call.
I do see mr. Gill is logged on. And then you have mr. Sapp, who's your client with SAP investment here on the call as well, correct?
Correct.
And I actually I see Jason Sapp and Logan Sapp.
That's correct.
And then for the record, I see parents to county, the consumer advocate is online, the consumer advocate is not is not a, intervening party in this matter, but they requested to observe, and so we're happy to accommodate that request. And also we have some commission staff.
Cole McCormick and Michelle Mayors are here and Timothy Drown with the commission legal division is also here. I think that covers everybody. I called this status conference primarily so we could discuss the status of the case. In that time we'll we'll touch on the issues to be.
Address the procedure and schedule for the case and we can also discuss any other issues that might be relevant to the progress of the docket if needed. Just by way of procedural history, this docket was reopened upon the following of a letter from mr. Kindle.
Requesting to cancel the CCN issued to Aqua Green for the thunder Mountain subdivision an order granting that CCN to okla Green to own and operate a wastewater system serving thunder Mountain was issued on 12 October 2022. Since that time from review of the document appears that aqua Green has.
Provided periodic updates concerning the progress of the system in accordance with the commission's order, and as late as this morning prior to our status conference here today, SAP investments filed an update on the status of the filing of the final plot with the with the county. The main issue for the commission determined concerning aqua gains request is whether.
It is in the public interest to allow Aqua Green to terminate at CCN for the thunder Mountain system. At this point let's hear from the parties on the on their view of the current status of the docket and any issues that may need to be addressed and we'll begin with Aqua Green since it's your request.
Mr. Welch.
Well, we want to surrender the CCN for this project. It's four years old, not sure exactly how the rules apply to that delay, but I think there are some.
And, we think it's a reasonable request. This project has gone along, there's a lot of things that's gotten off the rails, and proceeded as usual, and we think it's only appropriate that the commission allowed us to withdraw our CC.
Alright, mr. Malone, sat on behalf of SAP investments?
Yes, thank you. And, and we were, you know, respect the position that mr. Well just just laid out and we've we think there's a cooperative resolution here that would not entail drawing the CCN consistent with the applications submitted by awkward Green.
Investments the developer has in fact engaged in developing pursuant to that joint application and has, one cabin.
Up and running and cannot proceed with the rest of the development given the status of given the position of Alco Green, which does not serve the the public interests.
Oh, Aquargreen utility came before the commission and asked for a CCN and made certain commitments toward acting under that CCN.
And, with these types of systems, there usually is some, amount of time involved. We can, I don't think it's necessary, but we can get into details.
On the delay, not caused by directly by SAP investments, but the fact remains that the developer stands ready.
To proceed with the development as always planned and as laid out in the, the application on which the commission granted the CCN. We don't think.
The reasons the the summary reasons put forth for withdrawing the CCN serve the public interests. We also.
I'll, I'll I'll close my preliminary comments by stating that Aquargreen, the utility that submitted the CCN.
And then there's a separate company that I believe constructs and installs the s the system. And both of those companies are owned by the same people. So.
The SAP investments has paid hundreds of thousands of dollars for the construction and installation of the system, and for the same parties that.
Benefited from that hundreds of thousands of dollars to now turn and withdraw the CCN and leave SAP investments unable to further develop pursuant to the joint application that awkward utilities submitted, if not in the public interests.
I believe one more comment and I I believe there's been some statement that SAP investments could get another utility, another operator to come in and operate the system.
But the system, Aqua Green has not, there's only I think I don't wanna call it minor, but there's only a minimal step left for Aquargreen to get the certification from the county.
And we've been in contact with the county and and they described They said there probably was a misunderstanding between awkwa utility and the county, and that the county stands ready to move forward on that front. But until that's done.
We could not get someone else to come in and operate the system. And in fact, the manner in which awkward Green installs its systems is different than other operators. And so, to say that we could get another operator to come in and operate that system is an overstable.
Thank you mr. Mr. Welch, you, do you need to respond to anything there?
Well, we're, we're talking about a four year delay here. The conditions have changed. It's, it's not the same and I understand what Belong's talking about with installing the system and I think the system's good.
And the the developers paid for that portion of the system, but I don't think this agency wants to force a utility, four years down the line.
When, when circumstances have changed, the environment's changed, and the cost have changed. I don't think the agency wants to force a utility to provide the service.
Okay.
Can I can I respond to that, mr. Kunk? Sure by the passage of time, we're not in 2022 anymore. But to say that there's four years delay in and getting to this point is I I don't think it would encompass the total four years. But here's what's not changed.
Aqua Green utility submitted a joint application to the commission to serve this development. A company that is owned by the owners of Aqua Green totally a hundred percent.
Constructed, this system and has been paid hundreds of thousands of dollars for that. That hasn't changed. The developer represented in the joint application that the developer wanted to develop.
Of these cabins, and that has not changed, and the developer has taken the steps and actually completed the development of one of the cabins that needs to be hooked up on this system and that hasn't changed. So.
Yes, there's been some passage of time, but, the applications that were submitted under oath to the commission, the circumstances in those applications have not changed and the public interest that was presented.
By the developer and by Aquabrine utility in that joint application upon which the commission issued the certificate of convenience and necessity has not changed.
And in fact, the contractual agreement upon which the utility undertook to to build a system that it planned to own and operate.
Stated that Aqua Green would not commence any work toward building that the system until the land was transferred. But that's not what Aka Green did. Aquargreen went ahead.
And began and and we thank completed this system before the land transferred so you can't do that and then come back and complain that the land hadn't transferred and that's a reason to withdraw from the CCN.
If that's what Aquargreen wanted to do, it, it it could have not begun construction pursuant to the contract. That's not what Aquargreen did. So you can't, undertake to bill and construct and plan to operate, get a CCN on their own.
And then, come in and withdrawal because the land hadn't transferred because of circumstances under which the county controlled, but we have, we have assurances with the county.
That the county is, is prepared and ready to do the land transfer, which we could have done a few months ago, but we didn't do it because saying it did not want to own and operate and we didn't want to transfer the land.
Only to have to transfer it back but SAP investments has taken all steps necessary to be prepared to transfer this land and to notify the county, as soon as we can get assurances from Uncle Greens they're gonna op that they're gonna own and operate percentage to the CCN.
Mr. Well, it's your request, so I'll give you the last word.
Well, you can respond? You know, the, the CCN covers a whole lot more than the construction that's already been done with the affiliate, ok? There's four phases and the.
Construction that's been done is only to serve phase one and due to the change in the the overall environment, the, the cost.
The projected cost has gotten so out of control. It's gonna put this utility in financial spring. We don't want to do that this Belong is, is.
I don't think he's addressed the issue that this is a much bigger development and the obligation of the CCN is much larger and we're four years down the road, and the circumstances aren't the same. And it doesn't make sense economically.
For this utility to perform under a four year old CCN and the conditions that exist then, and we're gonna put the utility in a financial strike. Now, if we want to talk about limiting.
Limiting the service to phase one and the construction that's been done, that would require me to talk to my client for a little while, but, that's, that's a little different.
It's already been constructed, it's done. And I, I think that the developer got what he bargained for in the construction of that phase. So here we are. The rest of it doesn't make any sense.
All right, thank you for parties for your, your presentations there ultimately this the issue that's gotta be decided is one of the public interests that will be the ultimate issue that's decided by the commission. My response as the administrative judge is to get this docket procedurally and.
And evidentially in order so that the commission can decide that issue. One of the significant issues that we face in this particular proceeding is that, it was initiated by an eight line letter that that reopened the docket. It was not followed by an attorney despite.
Several prior occasions that mr. Kindless has been advised of the requirement of tennessee law that the corporation be represented by council and contested matters. So because of that, we don't have any references to the statutory provisions and rules concerning the require requirements and procedure for the abandonment cancellation or terminat.
Of a CCN. We don't have an evidentiary record that contains any evidence to support allegations of the letter, any pre filed testimony to support any position that's presented in the in the letter. While the letter allegeds a breach of contract, not only is there NO evidentiary.
Your support as I just mentioned for that statement, but also the commission is not the form to determine whether a party is in breach of a contract or the consequences of a, of an alleged breach. So frankly we don't have anything in the record for me to, put in order for the commission to have to decide an issue. So at this point, the only thing that I know to do to remedy the deficiencies in the, in the record is to request.
Or to direct Alcogreen to file an amended petition with appropriate evidenti evidentiary support and pre filed testimony. I'll set a deadline for that amended petition by to be noon on 31 July 2026.
And that amended petition will properly put the matter before the commission. At this point, I I really don't have anything to to prepare for the or for commission staff to review.
To, to analyze or to help prepare this for the commission to decide. So given that that deadline on June 3120 26, it appears from the following this morning that maybe some of the challenges that develop the that the development is.
Encountered maybe approaching resu resolution. I would suggest that the parties that the given the time to draft and follow them in a petition provides an opportunity to continue to discuss the status of the development and the resolution of any differences and challenges.
That you may have between you and I would encourage you to do so. I'll put down an order that sets the deadline for the filing of amended petition. Are there any questions or other issues we need to talk about at this time?
SAP investments would be glad to to sit down with council for awkward Green and awkward Green to see if there's some common ground that, that we could avoid.
An amended request and and what comes with that. We think there's a, a clear way forward, so we welcome the opportunity to do that to the extent that fails, I assume that SAP investments would have the opportunity to respond.
On to any amended requests.
Yes, and you'd be entitled to, you know, seek to intervene and file any response that you may, need to file.
Thank you.
Mr. Wellche, anything, anything from you guys at this point?
I don't think so. Thank you.
Alright, well if if that's that's kind of where we are, I'll I'll I'll just remind you that that deadline again is 31 July. That's a Friday so set that deadline at noon. I would encourage you guys.
Just to to take the opportunity to kind of see if there's a chance to resolve your differences in that meantime. And if there's nothing else I appreciate your willingness to get, get everyone together and let's let's talk and see where how we can move forward. So at this time we'll be adjourned. Thank you everyone.
Thank you.
Figure out of it.
Let me get her for this of the course.