Energy (Utility Regulation)

SB 2565 requires Tennessee electric utilities and large transformer owners (public or private) to assess their high-voltage transformers (100kV+ and 25MVA+) for vulnerability to geomagnetically induced currents (GICs) caused by solar storms. By January 2027, these entities must complete technical assessments using specific industry standards and submit detailed reports by July 2027 to state officials. Reports must include transformer specifications, risk analysis, protection solutions, costs, and a priority list, while redacting sensitive location and operational details as "Critical Energy Infrastructure Information." The bill explicitly prohibits relying solely on operational fixes like load shedding for GIC protection.

SB 1999 creates a "Clean Transition Tariff" (CTT) requiring large data centers, AI facilities, and other energy-intensive operations (with 25+ megawatts of demand or focused on data/AI/cloud computing) to pay for new clean energy infrastructure and grid upgrades needed to support their growth. The bill ensures these costs are borne solely by the large users, preventing rate increases for residential and small business customers. It establishes a voluntary tariff system approved by the Tennessee Public Utility Commission, mandating that new clean power for these facilities must be "additional" and not funded through general ratepayers. The law also requires local utilities to enforce this cost responsibility and report on large-load impacts annually.