State Competitiveness: Tennessee

Tennessee permits municipal ownership of utilities statewide, subject to certain requirements.

Tennessee has a state consumer advocate office that represents ratepayers.

Tennessee's electric utility sector, including distribution utilities, is not highly concentrated. The state has a customer concentration (HHI) score of 547, which is below the 1,000 to 1,800 range that signals a moderately concentrated market. This indicates that a substantial number of utilities serve customers across the state.

Tennessee does not have statewide interconnection standards or guidelines, but its largest utility is not investor-owned. The largest utility in the state (by generation), Tennessee Valley Authority has procedures for small (<20 MW) and large (>20 MW) systems.

Tennessee does not allow PPAs.

Tennessee does not have a state net metering policy, but utility dual metering program(s) exist.

Tennessee has at least one approved utility green tariff program. Among the state’s five largest utilities by commercial and industrial (C&I) electricity sales, those offering green tariffs account for about 24% of total C&I sales within this top-five group, indicating limited access for large customers.

Tennessee does not permit residential electricity customers retail provider choice.

Tennessee does not permit commercial electricity customers retail provider choice.

Electricity generation in Tennessee is provided by a small number of power producers. The state has a generation concentration (HHI) score of 8,597, which exceeds the 1,800 threshold that indicates a highly concentrated market, indicating that electricity production is controlled by a small number of entities, suggesting limited competition.

Tennessee does not have a state policy allowing for CCA.

Tennessee does not have a formal requirement for competitive solicitations.

Tennessee partially participates in one wholesale market, PJM, covering about 1% of the state’s electricity customers. Additional parts of the state participate in bilateral trading through the Southeast Energy Exchange Market (SEEM).

Tennessee partially participates in one wholesale market (PJM), with non-voting participation available in PJM (about 1% of the state’s customers), a limited level of civil society participation opportunity overall.

Tennessee partially participates in one wholesale market (PJM), with advisory state authority in PJM (about 1% of the state’s customers), a limited level of wholesale market state authority.