Regulation of Energy Authorities Formed Pursuant to the Municipal Energy Authority Act - Articles

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Posted by: Azya Thornton on Dec 5, 2025

Court: TN Attorney General Opinions

Hearing Date: 11/14/2025

Opinion Number: 18

Question: Does a utility or energy authority formed pursuant to the Municipal Energy Authority Act have the same requirements or regulatory oversight regarding rates and fees as a government- owned utility or electric cooperative?

Opinion: Generally, no. State laws and regulations differ depending on utility type, and utilities created under the Municipal Energy Authority Act (i.e., “Energy Authorities”) typically set their own rates “without the necessity of review or approval by any other municipality, the state, or any commission or authority thereof.” Tenn. Code Ann. § 7-36-107(a)(7). Contracts between utilities and the Tennessee Valley Authority (“TVA”)—by far the largest energy provider in Tennessee— could impose other rate- and fee-setting requirements across all types of electric utilities, but those requirements would be contract specific.

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