TennesseeTennessee utilities must price some materials at cost and cap fees
Starting July 1, 2026, customers and approved contractors can choose whether to install street lights when they build utility infrastructure.
What it does
When needed construction material is available only from a utility, the utility must provide it to the customer or approved contractor at the price it paid.
Customers and approved contractors may install street lights while building utility infrastructure, but utilities cannot make them do it.
Utilities may charge for covered plan reviews, inspections, and testing, but those fees together cannot exceed 10% of the project's proposed cost.
Argument forCustomers and approved contractors could pay less for materials only sold by a utility because the utility must charge what it paid.
Argument againstUtilities could collect less from covered fees, which might leave them with less money to pay for plan reviews, inspections, and testing.
More detail
Utilities must provide certain materials at the price they paid for them. The material must be for a customer's or approved contractor's use in building utility infrastructure. This applies only when material needed to build utility infrastructure is available only from the utility. The utility cannot charge more in taxes than it paid when buying the material and must provide an itemized cost statement. The rule applies to conduct on or after July 1, 2026.
Customers and approved contractors may install street lights, but utilities cannot require them to do so. This applies to a customer or approved contractor installing utility infrastructure under the section. Street-light installation is optional when installing utility infrastructure under this section. The rule applies to conduct on or after July 1, 2026.
Covered plan review, inspection, and testing fees cannot exceed a combined cap. The fees are tied to the project whose plans and designs were submitted or whose inspection and testing were done. Inspection and testing fees must be reasonable and follow a fee schedule the utility adopts and makes public. The cap combines fees under the specified plan-review and inspection provisions. The cap applies to conduct on or after July 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 27Pub. Ch. 1122Latest
- May 27Effective date(s) 07/01/2026
- May 22Signed by Governor Bill Lee.Became Law
- May 11Transmitted to Governor for action.To Governor
- May 7Signed by H. SpeakerMajor
- Apr 30Signed by Senate SpeakerMajor
- Apr 29Enrolled and ready for signaturesMinor
- Apr 21Subst. for comp. HB.Major
- Vote recorded FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/21/2026 Passed. Result: pass.Lower
- Apr 21Am. withdrawn. (Amendment 1 - HA1072)Minor
- Apr 21Passed H., Ayes 88, Nays 0, PNV 2Passed House
- Mar 26Rcvd. from S., held on H. desk.
- Mar 23Senate adopted Amendment (Amendment 2 - SA0707)
- Vote recorded FLOOR VOTE: as Amended Third Consideration 3/23/2026 Passed. Result: pass.Upper
- Mar 23Amendment withdrawn. (Amendment 1 - SA0702)
- Mar 23Passed Senate as amended, Ayes 29, Nays 0Passed Senate
- Mar 23Engrossed; ready for transmission to HouseMinor
- Mar 20Placed on Senate Regular Calendar for 3/23/2026
- Mar 11Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 1 PNV 0
- Vote recorded SENATE ENERGY, AGRICULTURE AND NATURAL RESOURCES COMMITTEE: Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 1 PNV 0 3/11/2026 Passed. Result: pass.Upper
- Mar 5Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/11/2026
- Mar 4Action deferred in Senate Energy, Ag., and Nat. Resources Committee to 3/11/2026
- Feb 25Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/4/2026
- Feb 5Passed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources CommitteeMinor
- Feb 2Filed for introductionMinor
- Feb 2Introduced, Passed on First ConsiderationIntroduced
Consumer Protection