AN ACT to amend Tennessee Code Annotated, Title 7; Title 13, Chapter 7; Title 65 and Title 68, relative to utilities.
SB1139 creates a new Tennessee law governing how utility infrastructure for new developments may be designed, reviewed, and installed by private contractors rather than solely by the utility. It requires utilities to allow customers or development applicants to use an approved contractor of their choosing for installation of water, wastewater, electric, natural gas, and stormwater infrastructure, and it requires utilities to publish the process for becoming an approved contractor. The bill also sets timelines for utility action: utilities must respond within 10 business days to contractor submissions, and in some cases within 60 business days to review plans and designs. If the utility misses those deadlines, the contractor may proceed or the plans may be deemed approved, subject to the bill’s requirements.
The bill further limits utilities’ ability to require specific vendors or manufacturers unless necessary for system integrity, and it allows customers to use a third-party plans examiner if the utility does not complete review on time. Even when private contractors or third-party examiners are used, utilities retain inspection authority, may charge reasonable inspection and testing fees, and are not required to accept infrastructure until it meets applicable standards. The bill also preserves utility authority to require direct utility installation in situations involving public safety or service reliability, and it defers to conflicting state or federal regulatory requirements.
In practical terms, the bill amends Tennessee law in Title 7 to create a framework for private installation and third-party plan review of utility infrastructure in development projects. It affects utilities regulated by the Tennessee Board of Utility Regulation, cooperatives, and county-, metropolitan-, and municipal-owned utilities that provide the covered services. It is prospective only, applying to plans of development submitted on or after July 1, 2025.
The general sentiment reflected in the voting history is favorable and bipartisan, with the bill advancing through committee on strong votes and no recorded opposition in the State & Local Government Committee. The Finance, Ways and Means Committee also recommended passage, though with a narrower 8-2 vote, suggesting some concern remained at the fiscal or policy level. No committee transcript was provided, so the record does not show detailed debate or sponsor testimony.
The main points of contention appear to be the balance between customer choice and utility control, and whether the bill’s deadlines and deemed-approval provisions could affect utility oversight, safety, or operational reliability. Utilities may be concerned about mandatory contractor approval processes, imposed review deadlines, and limits on specifying materials or vendors, while supporters likely view the bill as promoting competition, reducing delays, and giving developers more flexibility. The bill addresses those concerns in part by preserving inspection authority, allowing safety-based exceptions, and recognizing force majeure delays.
The bill adds a new part to Tennessee Code Annotated Title 7 establishing statewide rules for private contractor installation and third-party review of utility infrastructure in development projects. It affects utilities subject to state utility regulation, electric cooperatives, and local government-owned utilities providing water, wastewater, electric, natural gas, and stormwater services. The law requires utilities to maintain approved-contractor lists, review submissions within set deadlines, permit third-party plans examiners when utility review is delayed, and accept deemed approval or refund of fees in certain circumstances, while preserving utility inspection rights and compliance with other state and federal requirements.
The bill appears to have broad support and moved through committee with little recorded opposition, including unanimous or near-unanimous votes in the Senate State & Local Government Committee and a favorable recommendation from the Senate Finance, Ways and Means Committee. The final finance vote was somewhat closer, indicating some reservations, but the overall trajectory suggests a generally positive reception. Because no transcripts were provided, the specific arguments for or against the bill are not documented in the record supplied.
The likely areas of contention are whether utilities should be required to allow private contractors to install infrastructure and whether strict review deadlines could pressure utilities to approve plans too quickly. Utilities may object to limits on their ability to require particular vendors or to the deemed-approved mechanism if they miss deadlines, while developers and customers may support those provisions as a way to reduce delays and increase choice. The bill attempts to balance these interests by preserving utility inspection authority, allowing exceptions for public safety and service reliability, and deferring to conflicting regulatory requirements.