State Energy Guide

Tennessee Commercial Energy & Utility Guide

Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in Tennessee.

Energy Market Overview

Regulated MarketTN

Tennessee has a regulated electricity market supplied primarily by the Tennessee Valley Authority (TVA), a federally-owned corporation. Local power companies (LPCs) distribute TVA power to commercial customers. Nashville Electric Service, Memphis Light Gas and Water, and Knoxville Utilities Board are major distributors. Commercial customers cannot choose their electricity supplier.

What this means for property managers:

In Tennessee's regulated market, your utility provides both generation and distribution at rates set by the state public utility commission. While you cannot choose your electricity supplier, you can optimize costs through rate schedule analysis, demand management, and participation in utility efficiency programs.

Regulated Market

Rates are set by the public utility commission. No supplier choice available.

Average Commercial Energy Rates

$0.11Avg. Commercial Electric
$0.85Avg. Commercial Gas

Stable

TVA rates have remained relatively stable due to the authority's diverse generation portfolio including nuclear, hydro, and natural gas. Modest 3-4% increases in recent years for grid infrastructure maintenance.

Energy Regulations & Benchmarking

No Statewide Benchmarking

Tennessee has no statewide energy benchmarking or building performance mandates. TVA's federal status creates a unique regulatory environment where state energy policy has limited jurisdiction over electricity rates. Nashville has adopted a sustainability plan with voluntary building energy goals. TVA offers commercial demand response and energy efficiency programs.

Cities in Tennessee

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