While the Tennessee state legislature has not yet approved any laws specifically addressing smart grid, as early as 1979 it has looked into some distributed generation technologies and created contractual methods for entering into solar easements for solar energy systems. 
The majority of rates that have an impact on smart grid come from Entergy Arkansas, however Entergy Arkansas only serves approximately twenty-two accounts in Tennessee. The Tennessee Regulatory Authority will often have a docket to review and approve what the Arkansas Public Service Commission has already decided. The Tennessee Regulatory Authority approved Time of Use for both business and residential customers by 1992., By 2007 they had reviewed distributed generation, including net metering, and demand-side management. [3, 4, 5, 6]
“To consider adoption of PURPA Standard 14 (“Time-Based Metering and Communications”) as enacted in EPACT 2005, the Tennessee Regulatory Authority held separate proceedings for Entergy Arkansas, Kentucky Utilities, Appalachian Power, and Kingsport Power. Ultimately, in each of the proceedings the Tennessee Regulatory Authority decided not to adopt PURPA Standard 14:
- Entergy Arkansas: In January 2007, the Tennessee Regulatory Authority determined that Entergy Arkansas’s rates and services already met the standard set by EPACT 1252 so there was no need to adopt it.
- Kentucky Utilities Company: In January 2007, the Tennessee Regulatory Authority determined that Kentucky Utilities Company’s rates and services already met the standard set by EPACT 1252 so there was no need to adopt it.
- Appalachian Power: In August 2006, the Tennessee Regulatory Authority determined that Appalachian Power’s rates and services already met the standard set by EPACT 1252 so there was no need to adopt it.
- Kingsport Power: In August 2006, the Tennessee Regulatory Authority determined that Kingsport Power’s rates and services already met the standard set by EPACT 1252 so there was no need to adopt it.” 
Time of Use rates break the cost for electricity into periods on a seasonal basis for energy and demand pricing with either on-peak or off-peak pricing, it also includes preferential rates for the customer shifting usage to off-peak time periods.
Distributed generators include small qualifying power production facilities and net metering where prices are based on the company's avoided cost or the energy is carried forward for billing purposes.
Demand-side management includes curtailable demand and interruptible service. Curtailable demand and interruptible service requires reducing consumption to attain a minimum level of consumption when called upon by the company to be credited a posted hourly price, during a contract time period.
Utilities and Rate Schedules
Entergy Arkansas, Inc.
- Entergy Arkansas, Inc. Residential Rates
- Entergy Arkansas, Inc. Business Rates
Kentucky Utilities Company
- Kentucky Utilities Company Rates
Kingsport Power Company
- Kingsport Power Company Rates
See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx
Tennessee offers sales tax and use credit, production incentives for wind, solar, water, and geothermal. The state also has a tax exemption for wind energy systems, and grants for wind and solar.
More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=TN
State Energy Office:
- Department of Economic & Community Development Office of Energy Policy
State Authority Dealing with Energy Regulation:
- Tennessee Regulatory Authority
- Docket Search: http://www.state.tn.us/tra/indexes/docketregular.htm
Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=TN
 Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
 Database of State Incentives for Renewables & Efficiency, Tennessee Solar Easements, 03/23/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=TN01R&re=1&ee=1
 Residential Rate and Rider Schedules Entergy Arkansas, Inc. URL: http://www.entergy-arkansas.com/your_home/tariffs.aspx
 Commercial and Industrial Rate and Rider Schedules Entergy Arkansas, Inc. URL: http://www.entergy-arkansas.com/Your_Business/Business_Tariffs.aspx
 Before The Tennessee Regulatory Authority, Application of Entergy Arkansas, Inc. for Approval of Changes in Rates for Retail Electric Service, 1/17/2008. URL: http://www.state.tn.us/tra/orders/2006/0600216am.pdf
 Kingsport Power Company d/b/a American Electric Power Kingsport, Tennesseee, 4/12/2010. URL: https://www.appalachianpower.com/global/utilities/lib/docs/ratesandtariffs/Tennessee/kgtariff02-11.pdf