House approves bill giving outside ratepayers board representation and changing annexation rules for municipally owned utilities

Representative Boyd presented legislation (Senate Bill 21-02 / House bill package) to require representation for customers living outside municipal limits who purchase electricity from municipally owned utilities and to change rules on annexation transfers and purchases of utility assets. Sponsor testimony emphasized giving rural ratepayers a voice and preventing forced transfers that raise costs for co-op members.

Debate covered bond and contract protections, broadband and fiber overlap with the Tennessee Broadband Accessibility Act, and safeguards if a bonding company prevents a sale. Supporters noted the bill applies only in specific population thresholds and contains provisions to avoid creating a board majority for outside appointees. The House adopted the bill after committee amendments.