§ 65-5-101 — Power to fix rates of public utilities

(a) The Tennessee public utility commission has the power after hearing upon notice, by order in writing, to fix just and reasonable individual rates, joint rates, tolls, fares, charges or schedules thereof, as well as commutation, mileage, and other special rates which shall be imposed, observed, and followed thereafter by any public utility as defined in § 65-4-101 , whenever the commission shall determine any existing individual rate, joint rate, toll, fare, charge, or schedule thereof or commutation, mileage, or other special rates to be unjust, unreasonable, excessive, insufficient, or unjustly discriminatory or preferential, howsoever the same may have heretofore been fixed or established. In fixing such rates, joint rates, tolls, fares, charges or schedules, or commutation, mileage or other special rates, the commission shall take into account the safety, adequacy and efficiency or lack thereof of the service or services furnished by the public utility. (b) Notwithstanding any other state law, special rates and terms negotiated between public utilities that are telecommunications providers and business customers shall not constitute price discrimination. Such rates and terms shall be presumed valid. The presumption of validity of such special rates and terms shall not be set aside except by complaint or by action of the Tennessee public utility commission commissioners, which Tennessee public utility commission action or complaint is supported by substantial evidence showing that such rates and terms violate applicable legal requirements other than the prohibition against price discrimination. Records of such special rates and terms shall be retained by the telecommunications provider for the length of time that such rates and terms apply, but shall not be filed with the commission. Such rates shall be effective upon execution by the parties. (c) Notwithstanding any other law, the tariffs of incumbent local exchange telephone companies establishing rates or terms, or both, for telecommunications services shall be filed with the commission and shall be effective twenty-one (21) days after filing, subject to the following requirements: (1) Tariffs establishing rates or terms that are valid only for one hundred eighty (180) days or less shall be effective one (1) business day after filing; (2) Tariffs may be revoked by the commission after notice and a hearing; (3) (A) Tariffs may be suspended pending such hearing on a showing by a complaining party that: (i) The complaining party has filed a complaint before the commission alleging with particularity that the tariff violates a specific law; (ii) The complaining party would be injured as a result of the tariff and has specifically alleged how it would be so injured; and (iii) The complaining party has a substantial likelihood of prevailing on the merits of its complaint; (B) The commission may suspend a tariff pending a hearing, on its own motion, upon finding such suspension to be in the public interest. The standard established herein for suspension of tariffs shall apply at all times including the twenty-one-day or one-day period between filing and effectiveness; (C) The standard established herein for suspension of tariffs shall not be applicable in any way to the determination by the commission of whether to convene a contested case to consider revocation of a tariff. The commission may choose to convene a contested case, or decline to convene a contested case, in its own discretion, to promote the public interest. The standard established in this subdivision (c)(3) for suspension of tariffs shall not be applicable in any way to any decision by the commission regarding revocation of a tariff; (4) Nothing in this subsection (c) shall alter the existing power of the commission to review those rate increases that are governed by price regulation or rate of return; and (5) Notwithstanding this subsection (c), the commission may, in its discretion, shorten the twenty-one-day period between filing and effectiveness for good cause shown. (d) In fixing rates, joint rates, tolls, fares, charges, or schedules for service, no privately owned public utility that supplies water to municipal governments is allowed to charge rates, joint rates, tolls, fares, charges, or schedules of any kind whatsoever in connection with fire hydrant service to a municipal government providing fire protection services within the service area. The utility, however, may recover its costs of providing fire hydrant service by charging rates, joint rates, tolls, fares, charges or schedules to its non-municipal government customers within the service area as approved by the Tennessee public utility commission. New rates shall take effect as prescribed by the Tennessee public utility commission in a rate proceeding. Such rate proceeding shall be initiated by the utility or the Tennessee public utility commission itself. Such rate proceeding shall be commenced within one hundred twenty (120) days after May 18, 2004. The utility shall continue to collect its current authorized rates from a municipality until new rates are placed into effect by the Tennessee public utility commission. The municipal government will reimburse the state for any consequent increase in expenditures to the state, up to fifty thousand dollars ($50,000), which results directly from this subsection (d).

Legislative History

Amended by 2017 Tenn. Acts, ch. 94, s 52, eff. 4/4/2017. Acts 1919, ch. 49, § 4; Shan. Supp., § 3059a87; Code 1932, § 5450; Acts 1974, ch. 470, § 1; T.C.A. (orig. ed.), § 65-518; Acts 1995, ch. 305, § 23; 2003 , ch. 41, § 1; T.C.A. §65-5-201; Acts 2004, ch. 545, § 1; 2004, ch. 716, § 1; 2005, ch. 173, § 1.