HB 796

INSTALLATION OF PUBLIC UTILITY INFRASTRUCTURE BY PRIVATE CONTRACTORS This bill requires a public utility in this state to (i) not require that the utility infrastructure be constructed by the utility; and (ii) allow a customer of the utility the option to use a contractor of the customer's choosing for the installation of utility infrastructure. As used in this bill, "public utility"" or ""utility"" means the water, wastewater, natural gas, or electric system of a county, metropolitan government, or municipality. REQUIRED INFRASTRUCTURE SPECIFICATIONS This bill generally authorizes a public utility to provide reasonable construction and manufacturer's specifications for utility infrastructure to ensure that the infrastructure is constructed properly and with appropriate materials. However, a public u tility must not require that materials or services for the construction of the utility infrastructure be provided by a specific vendor or manufacturer. REVIEW AND APPROVAL OF INFRASTRUCTURE PLANS AND DESIGNS This bill authorizes a public utility to review the plans and designs of the utility infrastructure to be installed for approval. If the utility performs or requires such review, then the utility must (i) complete the review within 30 days of submission of the plans and designs and (ii) not charge a fee of more than $1, 000 for review of the plans and designs. If the public utility does not complete its review of the plans and designs within the 30-day period, or the utility charges a fee that exceeds $ 1, 000 for review of the plans and designs, then the plans and designs are deemed approved if the utility customer has the plans and designs certified as accepted and in compliance with applicable design standards by an engineer who is licensed in accordance with state law and has appropriate liability insurance with limits of liability of not less than the utility customer's budgeted cost for the utility infrastructure. ON FEBRUARY 5, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 717, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, clarify that, n otwithstanding a municipal charter, ordinance, regulation, or franchise agreement to the contrary, prior to the acquisition of assets of a natural gas utility regulated by the Tennessee public utility commission by a new owner or any other change in control of such assets, the commission has exclusive authority to approve the acquisition or change in control, including the assignment of franchise rights, upon a finding by the commission that such t ransfers of assets or control is in the public interest. Any commission order on or after October 1, 2025, finding such transfer to be in the public interest, effect s the transfer, including franchise rights, from one regulated franchisee to another. Upon such transfer, all terms and conditions applicable to any existing natural gas service franchise apply to the successor entity."