Tenn. Code § 65-34-103
No non-consumer owned electric system may construct, acquire, or maintain facilities, lines, poles, or other equipment used or useful for the distribution or sale of electricity outside its current geographic territory, nor may any non-consumer owned electric system provide, by sale or otherwise, electricity to any parcel of land located outside its current geographic territory. Should a non-consumer owned electric system enter into an agreement authorized by § 65-34-108, the current geographic territory of that non-consumer owned electric system and the current geographic territory of the municipal electric system or electric and community service cooperative system, which is a party to the agreement, shall be modified as provided in that agreement; provided, that nothing in this chapter shall restrict the construction, acquisition, or maintenance of facilities, lines, poles, or other equipment used exclusively in this state for the transmission or sale at wholesale of electricity to electric and community service cooperatives or municipal electric systems.
T.C.A. § 65-34-103