House Bill 2592 amends the Tennessee Code Annotated to enhance the governance of municipal electric utilities by introducing a new chapter (7-70) that defines key terms and establishes requirements for utility boards. The bill mandates the expansion of utility boards to include additional voting members when a utility serves a specified number of retail electric customers in an outside locality or home county. It outlines the appointment process for these new members, ensuring they are residents and customers of the utility, while also detailing their terms of service and conditions for reappointment. Importantly, the bill clarifies that municipalities are not obligated to expand board membership if existing positions are already in place and prohibits the creation of additional board positions beyond those specified in the new chapter.

Furthermore, the bill includes provisions that ensure the composition of utility boards maintains a simple majority appointed by the home municipality, while also establishing notification requirements for utilities when customer thresholds are met. It specifies that board members appointed under this chapter are not considered employees of the municipality and do not receive employee benefits. The act emphasizes public welfare and is set to take effect upon becoming law, streamlining references to electric cooperatives and municipal electric systems to affirm municipalities' rights to operate their electric systems within their boundaries.

Statutes affected:
Introduced: 65-1-109(e), 65-1-109
Amended with SA1005, HA1185, HA1186, HA1225 -- 04/20/2026: 65-1-109(e), 65-1-109, 6-51-111(a), 6-51-111, 6-51-112, 6-51-103(a)(1)(A), 6-51-103, 65-25-126, 65-34-101(3), 65-34-101, 65-34-107, 65-36-108(a), 65-36-108