Section 37-16-9
Allocation and accounting of marginal costs related to nonutility support services; investments in, loans to, leases with broadband affiliates.
(a) An electric provider providing broadband services shall fully allocate and properly account for all marginal costs, including the internal imputation of such costs when the electric provider does not provide broadband services through an affiliate, related to the provision of nonutility support services, including any transactions provided for in subsection (b), and shall not use its electric services sales revenues for the subsidization of such nonutility support services. No transaction treated in accordance with subsection (b) shall be considered a cross-subsidy. Nothing in this subsection shall apply to an electric provider that is a Tennessee Valley distributor or an electric provider that is a utility as defined under paragraph a. of subdivision (7) of Section 37-4-1.
(b) Nothing in this section shall prevent an electric provider from making investments in broadband affiliates otherwise permitted by applicable law, making loans to broadband affiliates otherwise permitted by applicable law which have a repayment obligation from the affiliate, entering into capital or operating leases with the broadband affiliate, or entering into guarantees or other security arrangements for the benefit of a broadband affiliate, all on such terms and subject to such conditions as the board approves in the case of member cooperatives which are electric providers or as determined to be prudent or appropriate under applicable law in the case of other electric providers. An electric provider that is not a Tennessee Valley distributor or a utility as defined under paragraph a. of subdivision (7) of Section 37-4-1 shall separately allocate and account for all transactions described in this subsection as set forth in subsection (a).
(Act 2019-326, §1.)