Tennessee Senate Bill SB2213

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Engrossed: 3/23/26
• Enrolled: 4/29/26
• Passed: 5/22/26
• Chaptered: 5/27/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 7; Title 13, Chapter 7; Title 65 and Title 68, relative to utilities.

Summary

SB2213 amends Tennessee utility law to limit what utilities may charge customers or approved contractors when they are building utility infrastructure. If a required construction material is only available from the utility, the utility must sell it at the same price the utility paid, may not add extra tax beyond what it paid, and must provide an itemized statement of the material costs. The bill also makes clear that customers or approved contractors installing utility infrastructure are not required to install street lights as part of that work. The bill further changes the review and inspection fee provisions for utility infrastructure projects. It allows utilities to charge reasonable fees for plan review, inspection, and testing, but caps the combined total of those fees at 10% of the proposed project cost. The bill takes effect July 1, 2026, and applies prospectively to conduct occurring on or after that date.

Impact

The bill amends Tennessee Code Annotated sections in Title 7 governing utility infrastructure installation and utility review fees. It imposes new pricing and disclosure requirements on utilities that are the sole source of certain construction materials, prohibits utilities from forcing street light installation in these projects, and limits the total amount utilities may charge for plan review, inspection, and testing. These changes affect utilities, customers, and approved contractors involved in utility infrastructure projects by reducing potential cost markups and clarifying project obligations.

Sentiment

The bill appears to have broad support and little visible opposition. It passed the Senate Energy, Agriculture and Natural Resources Committee 8-1, then passed the Senate 29-0 on third consideration and the House 87-0 on final passage. The unanimous floor votes suggest the measure was generally viewed favorably as a consumer- and contractor-protection bill with modest regulatory limits on utility charges.

Contention

The main points of contention likely centered on utility pricing authority and project requirements. Utilities may have objected to being required to sell sole-source materials at cost, to the restriction on passing through additional taxes, and to the 10% cap on combined review and inspection fees. There may also have been concern about the prohibition on requiring street light installation as part of utility infrastructure work. The lone committee no vote indicates some disagreement, but the overwhelming floor support suggests these concerns did not prevent passage.