Energy (Electric Grid)

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 2502, the "Electric Grid Resilience, Transparency, and Planning Act," requires local electric systems serving 10,000+ customers in Tennessee to publicly share detailed plans and reports. Key provisions include annual reliability reports identifying outage patterns, annual vegetation management plans, and a ten-year grid resilience plan outlining hardening strategies (like undergrounding) and prioritization criteria. It also mandates after-action reports following major outages and minimum emergency communication standards during severe weather events. The bill focuses on transparency and proactive planning for grid resilience, not new infrastructure construction, and applies to municipal and county utilities.

HB 2054 establishes a "Clean Transition Tariff" (CTT) requiring large energy users - such as data centers, AI facilities, and crypto operations consuming 25 megawatts or more - to pay a voluntary premium for new clean energy infrastructure. This ensures these facilities fund their own grid upgrades and new clean power generation, preventing costs from being shifted to residential and small business customers. The bill mandates that large users cover all proportional costs for transmission, distribution, and reliability upgrades needed to serve their new electricity demand. It also requires utilities to enforce this tariff structure and report annually on cost allocations, protecting smaller ratepayers while supporting grid reliability. The CTT must provide 100% clean power for the facility’s new demand without impacting other customers’ rates.