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House adopts conference committee changes to municipal utility boards, adds representation and pauses condemnation authority
Summary
The House adopted a conference committee report that adds voting seats to municipal utility boards for customers outside city boundaries (targeting Nashville and Memphis footprints) and places a one-year moratorium (effective Sept. 1, 2026) on municipal condemnation of electric co-op properties while members study longer-term solutions.
NASHVILLE — The Tennessee House voted to adopt a conference committee report on municipal utilities that would add representation on utility boards for customers who live outside municipal corporate boundaries and create a moratorium on condemnation of electric cooperative properties by municipal governments.
Chairman Jim Vaughn presented the conference committee report, describing two components: adding appointed voting members to boards that serve many customers outside the home municipality and a moratorium on condemnation beginning Sept. 1, 2026, so disputes over annexation and asset transfers can be resolved by mutual consent. “It authorizes representation of customer bases outside of the jurisdiction of the home municipality,” Vaughn said, adding that the change most directly affects Nashville and Memphis service areas.
Under the conference committee report described on the floor, Nashville Electric Service would add four voting members from surrounding counties (Wilson, Williamson, Rutherford and Sumner) to its board; Shelby County’s utility would add two voting members representing customers outside Memphis. Vaughn said the added members would likely be reappointments of individuals who have served as nonvoting advisory members.
Opponents framed the change as an incursion on local control. Representative Mitchell argued there was ‘‘nothing fair’’ about changing representation so that small percentages of ratepayers outside a city might have outsized voting power on a board. Representative Hemmer warned the measure could challenge home-rule principles and could lead to litigation if private acts are not amended.
Vaughn said the conference committee sought to increase the voice of ratepayers who are currently underrepresented and that the one-year delay would preserve existing agreements through Sept. 1, 2026, while the legislature studies longer-term solutions.
Members voted to adopt the conference committee report; the clerk declared the report adopted. The transcript records floor debate about board composition, appointment authority, and possible legal challenges. The report sets a near-term moratorium and directs further legislative consideration in the next session.
