The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Concerns for Elected Officials

Reference Number: MTAS-1460
Tennessee Code Annotated
Reviewed Date: May 31, 2017
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  • Maintaining adequate trained and certified staff. The city needs qualified and trained people to manage this necessary but potentially dangerous energy source.
  • Maintaining an adequate natural gas infrastructure to meet current and future demand. The system must be in good repair to keep the gas flowing and be available for new customers.
  • Cost of supply (short and long term). No one can forecast market trends. A goal for elected officials is to purchase natural gas for the system at a reasonable cost for the time period.
  • Expenses versus rates charged to customers. The financial situation of the gas department must be closely monitored due to the volatility of the market and cost of supply.
  • Flexibility and reliability of supply, either supplier, marketer or agent. All suppliers may not be able to totally supply your contract during a force majeure, but some suppliers may be able to deliver more gas than others.
  • Agents’ abilities and communications to the LDC. They must listen to you and you to them. They must be dependable and diligent in looking after your affairs.
  • Safety. Natural gas is a dangerous energy source if it is handled in a unsafe manner. The safety of the citizens and employees of a city should be a priority.
  • Growth. The system must prepare for growth internally as well as on the pipeline.
  • Under Tennessee law, revenue from a municipal gas system may not be used to support other operating departments of the municipality.
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