Tennessee House Bill HB2383

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Refer: 2/5/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 4 and Title 54, relative to utility relocation projects.

Impact

HB2383 establishes a statutory minimum reimbursement cap of $2.5 million for utility relocation projects, ensuring that costs for substantial projects are standardized while still allowing the Commissioner some discretion for project-specific reimbursements above this threshold. Importantly, this regulation does not impose additional costs on the state and clarifies that all utilities involved in the relocation will be treated equitably. The bill promotes financial transparency and aims to protect ratepayers from potential cost shifts due to utility relocations.

Summary

House Bill 2383 amends the Tennessee Code Annotated to clarify and update the definitions and processes related to utility relocation projects, particularly in relation to state highway rights-of-way. The bill aligns the statutory definition of 'utility' with current practices by explicitly including modern digital and broadband infrastructure, which ensures that these entities are eligible for relocation reimbursements. This change is primarily a technical refinement rather than an expansion of the scope of reimbursable utilities.

Conclusion

Ultimately, HB2383 seeks to reinforce Tennessee's commitment to modern infrastructure while ensuring that the processes governing utility relocations remain equitable and financially prudent. By codifying certain policies and clarifying existing regulations, the bill aims to enhance the operational efficiency of utility projects in the state, which is critical for the deployment of essential services like broadband. The implementation of this bill will certainly be monitored to assess its effectiveness in achieving these aims.

Contention

During discussions surrounding HB2383, notable points of contention emerged regarding the balance between the discretion afforded to the Commissioner and the need for clear guidelines that protect ratepayers and ensure cost-effective utility relocations. Concerns were raised about the potential for the legislation to inadvertently lead to increased costs for utilities if not adequately regulated. Stakeholders expressed the necessity for ongoing oversight to avoid unintended financial burdens on both utilities and consumers.