ÿWPC“ …# VUFa %§ 07­äO 4R f u w u 0J 0TÉ 0^ 0h{ 0rã 0|U 0†Ñ 0W 1uç U,\ 0dˆ U,ì U6B)NDCw AMºU* B1 0UN£‡£v~* D3¨vÓÛ 0@® AOîÆ= 0D D/G Bv˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0†<¾½Q 9Z ‹.Courier New RegularX&âõ$¡Ñ€²Ñ Ö€ÿÿÖ EÝ ƒ&¦)ÝÝ  Ýà@°°*ìàÚ  Ú2Ú  Ú©U!Ôp  3|x,!Ó€2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco< Œ 9p`(Courier New% Line 7 d!!!!7Border 1dd€-"Cþÿ << Gÿÿ< Œ 9p`(Arial d(-3¦$©©Ý ƒâõ!ÝÑ€²ÑÝ  Ý öÝ ƒ!ÝÔ€ÔÔ€ ÔÝ  ÝÔ€$ÔÔ€$ÔÓ  ÓÔ YYY ÔFILEDÔ€$XÔÌÌò òAugust€20,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€$ôÔAppellate€Court€Clerkó ó }Ý ƒ!ÝÔ€ÔÔ€ ÔÝ  ÝÝ ƒ&)ÝÝ  Ýà@ àÚ  ÚÚ  ÚPtPtHHÚ(ÿáÿâùFG(üHHØ(d'`%%%%'ÿÿdxdStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA Op Monaco ÒÒ  BA Op Monaco Ò("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€X„d&ÓÑ#€Xd#ÑÔ€ ÔÝ  ÝÑ € ÑÒ ü ÒÒ ° ÒÒ ü ÒÒ „ ÒÑ\R AØ'\ÑÑ  ÑÙ€€ÙÙ€€ÙÑ\R AØ'\ÑßL€#'";+'h|` ¤ `€€LßÌÌÌÌ€€€€€€€€€€€€€€€IN€THE€COURT€OF€APPEALS€OFÏTENNESSEE€ÌÌÌÌÌÌÌÌÌKNOXVILLE€UTILITIES€BOARD€€€€€€€:€€€€€LOUDON€CHANCERY€Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€:€€€€€CA€No.€03A01„9602„CH„00059Ì€€€€€Plaintiff„Appellee€€€€€€€€€:Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€:Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€:Ìvs.€€€€€€€€€€€€€€€€€€€€€€€€€€€€€:€€€€€HON.€FRANK€V.€WILLIAMS,€IIIÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€:€€€€€CHANCELLORÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€:Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€:ÌLENOIR€CITY€UTILITIES€BOARD€€€€€:€Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€:€€€€€AFFIRMED€IN€PART€andÌ€€€€€Defendant„Appellant€€€€€€€€:€€€€€REMANDEDÌÌÌÌÌÌÌÌÌTERRY€G.€VANN,€CITY€ATTORNEY,€OF€LENOIR€CITY,€and€ÌROBERT€B.€LITTLETON€and€AMANDA€HAYNES€YOUNG,€WITH€TRABUE,€STURDIVANT€&ÏDeWITT,€OF€NASHVILLE,€TENNESSEE,€FOR€APPELLANTÌÌÌROBERT€R.€CAMPBELL€and€JAMES€M.€CORNELIUS,€JR.,€WITH€HODGES,€DOUGHTY€&ÏCARSON,€OF€KNOXVILLE,€TENNESSEE,€FOR€APPELLEEÌÌÌÌÌÌÌÌÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€O€P€I€N€I€O€NÌÌÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Sanders,€Sp.J.ÌÌÌÓÓà àà àThe€only€issue€on€appeal€of€this€declaratory€judgment€suitÏis€whether€the€taking€by€the€City€of€Knoxville's€Utilities€Board€ofÏthe€properties€of€the€Lenoir€City's€Utilities€Board,€used€for€the€saleÏand€distribution€of€electricity€in€an€area€annexed€by€the€City€ofÏKnoxville,€is€governed€by€TCA€ðð€6„51„111€or€TCA€ðð€6„51„112.€€We€Ö€(ÖaffirmÏthe€holding€of€the€trial€court€that€it€is€governed€by€Ìðð€6„51„111.ÌÌà àà àThe€Plaintiff„Appellee,€Knoxville€Utilities€Board,€(KUB)€isÏa€municipal€utility€established€pursuant€to€the€charter€of€the€City€ofÏKnoxville.€€Defendant„Appellant€Lenoir€City€Utilities€Board€(LCUB)€isÏa€municipal€utilities€established€pursuant€to€the€charter€of€the€CityÏof€Lenoir€City.€€Neither€the€Plaintiff€nor€the€Defendant€is€anÏelectric€cooperative.ÌÌà àà àBetween€1986€and€1990,€the€City€of€Knoxville€annexed€certainÏproperties€adjacent€to€its€city€limits€on€which€the€businessÏestablishments€and€residences€were€served€with€electricity€by€LCUB.€ÍIn€1993€KUB€notified€LCUB€of€its€intention€to€take€over€the€provisionÏof€electrical€service€to€the€customers€being€served€by€LCUB€in€theÏterritory€annexed€by€the€City€of€Knoxville,€pursuant€to€TCA€Ìðð€6„5„111.ÌÌà àà àLCUB€did€not€dispute€the€right€or€authority€of€KUB€to€takeÏover€the€electrical€service€to€the€customers€or€its€electricalÏdistribution€facilities€located€within€the€city€limits.€€It€contended,Ïhowever,€the€taking€was€not€governed€by€TCA€ðð€6„51„111,€but€KUB€wasÏrequired€to€compensate€it€for€the€taking€as€provided€in€TCA€ðð€6„51„112,€and€that€precipitated€this€litigation.ÌÌà àà àKUB€filed€a€declaratory€judgment€suit€pursuant€to€TCA€Ìðð€29„14„101,€et€seq.,€and€Rule€57,€TRCP,€asking€the€court€to€declareÏthe€parties'€respective€rights€pursuant€to€TCA€ðð€6„51„111€andÌðð€6„51„112.ÌÌà àà àThe€trial€court€found€the€issues€in€favor€of€KUB,€and€LCUBÏhas€appealed,€saying€the€court€was€in€error.€€We€affirm€the€holding€ofÏthe€trial€court€that€the€rights€of€the€parties€are€governed€by€TCA€ððÏ6„51„111€and€not€ðð€6„51„112.€€We€remand,€however,€for€furtherÍproceedings€pursuant€to€TCA€ðð€6„51„111.€€TCA€ðð€6„51„111€(1995€Supp.),Ïas€pertinent,€provides:ÌÒ  ÒÒ „ ÒÒ  ÒÒ  ÒÓÓà à(a)€Upon€adoption€of€an€annexation€ordinance€orÏupon€referendum€approval€of€an€annexation€resolution€asÏhereinabove€provided,€an€annexing€municipality€and€anyÏaffected€instrumentality€of€the€state€of€Tennessee,Ïincluding,€but€not€limited€to,€a€utility€district,Ïsanitary€district,€school€district,€or€other€publicÏservice€district,€shall€attempt€to€reach€agreement€inÏwriting€for€allocation€and€conveyance€to€the€annexingÏmunicipality€of€any€or€all€public€functions,€rights,Ïduties,€property,€assets€and€liabilities€of€such€stateÏinstrumentality€that€justice€and€reason€may€require€inÏthe€circumstances.€€Any€and€all€agreements€entered€intoÏbefore€March€8,€1955,€relating€to€annexation€shall€beÏpreserved.€€The€annexing€municipality,€if€and€to€theÏextent€that€it€may€choose,€shall€have€the€exclusiveÏright€to€perform€or€provide€municipal€and€utilityÏfunctions€and€services€in€any€territory€which€itÏannexes,€notwithstanding€ðð€7„82„301€or€any€otherÏstatute,€subject,€however,€to€the€provisions€of€thisÏsection€with€respect€to€electric€cooperatives.Ìà à(b)€Subject€to€such€exclusive€right,€any€suchÏmatters€upon€which€the€respective€parties€are€not€inÏagreement€in€writing€within€sixty€(60)€days€after€theÏoperative€date€of€such€annexation€shall€be€settled€byÏarbitration€with€the€laws€of€arbitration€of€the€state€ofÏTennessee€effective€at€the€time€of€submission€to€theÏarbitrators,€and€ðð€29„5„101(2)€shall€not€apply€to€anyÏarbitration€arising€under€this€part€and€ðð€6„51„301.€€TheÏaward€so€rendered€shall€be€transmitted€to€the€chanceryÏcourt€of€the€county€in€which€the€annexing€municipalityÏis€situated,€and€thereupon€shall€be€subject€to€review€inÏaccordance€with€ðððð€29„5„113„„Ì29„5„115€and€29„5„118.Ìà à(c)(1)€If€the€annexed€territory€is€then€beingÏprovided€with€a€utility€service€by€a€stateÏinstrumentality€which€has€outstanding€bonds€or€otherÏobligations€payable€from€the€revenues€derived€from€theÏsale€of€such€utility€service,€the€agreement€orÏarbitration€award€referred€to€above€shall€also€provideÏthat:Ìà à(A)€The€municipality€will€operate€the€utilityÏproperty€in€such€territory€and€account€for€the€revenuesÏtherefrom€in€such€manner€as€not€to€impair€theÏobligations€of€contract€with€reference€to€such€bonds€orÏother€obligations;€orÌà à(B)€The€municipality€will€assume€the€operation€ofÏthe€entire€utility€system€of€such€state€instrumentalityÏand€the€payment€of€such€bonds€or€other€obligations€inÏaccordance€with€their€terms.€Ìà à(2)€Such€agreement€or€arbitration€award€shall€fullyÏpreserve€and€protect€the€contract€rights€vested€in€theÏholders€of€such€outstanding€bonds€or€other€obligations.Ìà à(d)(1)€Notwithstanding€the€provisions€of€any€law€toÏthe€contrary,€if€a€private€individual€or€business€entityÏprovides€utility€service€within€the€boundaries€of€aÏmunicipality€under€the€terms€of€a€privilege,€franchise,Ïlicense,€or€agreement€granted€or€entered€into€by€theÏmunicipality,€and€if€the€municipality€annexes€territoryÏwhich€includes€the€service€area€of€a€utility€district,Ïthen€such€private€individual€or€business€entity€and€theÏutility€district€shall€attempt€to€reach€agreement€inÏwriting€for€allocation€and€conveyance€to€such€privateÏindividual€or€business€entity€of€any€or€all€publicÏfunctions,€rights,€duties,€property,€assets,€andÏliabilities€of€such€utility€district€that€justice€andÏreason€may€require€in€the€circumstances.€€If€anÏagreement€is€not€reached,€then€notwithstanding€theÏchange€of€municipal€boundaries,€the€service€area€of€theÏutility€district€shall€remain€unchanged,€and€suchÏprivate€individual€or€business€entity€shall€not€provideÏutility€service€in€the€service€area€of€the€utilityÏdistrict.ÌÌÌÌTCA€ðð€6„51„112,€as€pertinent,€provides€as€follows:€ÌÌà à(a)€Notwithstanding€the€provisions€of€any€otherÏstatute,€if€the€annexing€municipality€owns€and€operatesÏits€own€electric€system,€it€shall€either€offer€toÏpurchase€any€electric€distribution€properties€andÏservice€rights€within€the€annexed€area€owned€by€anyÏelectric€cooperative,€or€grant€such€cooperative€aÍfranchise€to€serve€the€annexed€area,€as€hereinafterÏprovided:Ìà à(1)€The€municipality€shall€notify€the€affectedÏelectric€cooperative€in€writing€of€the€boundaries€of€theÏannexed€area€and€shall€indicate€such€area€on€appropriateÏmaps.Ìà à(2)€The€municipality€shall€offer€to€purchase€theÏelectric€distribution€properties€of€the€cooperativeÏlocated€within€the€annexed€area,€together€with€all€ofÏthe€cooperative's€rights€to€serve€within€such€area,€forÏa€cash€consideration€which€shall€consist€of:€....ÌÌÒ „ ÒÒ  ÒÒ „ ÒÒ „ ÒÓÓThe€statute€then€enumerates€in€detail€the€various€factors€to€beÏconsidered€in€fixing€the€amount€the€municipality€shall€pay€theÏcooperative€for€its€distribution€properties.€ÌÌà àà àThe€parties€entered€into€the€following€stipulation€of€facts,Ïwhich€appears€to€be€the€only€evidence€offered€upon€the€hearing€of€theÏcase:€€"The€parties,€by€and€through€counsel,€agree€to€the€followingÏstipulation€of€fact€with€respect€to€the€captioned€matter....:Ìà àà à"The€plaintiff,€Knoxville€Utilities€Board€(...'KUB;),€is€aÏmunicipal€utility€established€pursuant€to€Article€XI€of€the€Charter€ofÏthe€City€of€Knoxville,€Tennessee€and€is€not€an€electrical€cooperative.Ìà àà à"The€defendant,€Lenoir€City€Utilities€Board€(...'LCUB'),€is€aÏmunicipal€utility€established€pursuant€to€the€Charter€of€the€City€ofÏLenoir€City,€Tennessee,€and€is€not€an€electrical€cooperative.Ìà àà à"Both€KUB€and€LCUB€operate€under€the€provisions€of€theirÏrespective€city€charters€as€well€as€under€applicable€provisions€of€stateÏlaw.Ìà àà à"Both€LCUB€and€KUB€have€the€authority€and€responsibility€forÏthe€purchase,€production€and€distribution€of€electricity,€water€andÏnatural€gas,€as€well€as€management€of€the€sanitary€sewer€system€withinÏthe€corporate€limits€of€their€respective€cities,€as€well€as€in€certainÏareas€of€the€counties€in€which€their€cities€are€located€and€in€adjacentÏsurrounding€counties€outside€the€corporate€limits€of€their€respectiveÏcities.Ìà àà à"KUB€has€the€right€to€bring€suit€in€its€own€name.Ìà àà à"Between€1986€and€1990,€the€City€of€Knoxville€approvedÏOrdinance[s]€...€annexing€four€separate€parcels€of€real€property€lyingÏcontiguous€to€the€corporate€boundary€of€the€City€of€Knoxville€in€an€areaÏnorth€of€Kingston€Pike€and€west€of€Ten€Mile€Creek€at€the€intersection€ofÏNorth€Peters€Road€and€Kingston€Pike€constituting€a€shopping€center€knownÏas€'The€Commons'.à àà à€Ìà àà à"The€aforementioned€annexation€Ordinances€were€duly€passedÏand€approved€by€the€City€of€Knoxville,€incorporating€the€area€known€asÏ'The€Commons'€into€the€City€of€Knoxville.€€The€contents€of€suchÏannexation€ordinances€speak€for€themselves;€however,€such€ordinances€doÍnot€address€in€detail€the€provision€of€electrical€service€in€the€annexedÏareas.Ìà àà à"LCUB€has€supplied€electrical€services€to€the€businesses€andÏresidents€of€the€subject€annexed€areas€for€a€number€of€years€prior€toÏthe€annexation€and€up€to€the€present€time.€€The€electrical€distributionÏequipment€used€to€supply€the€electrical€services€within€the€subject€areaÏis€owned€by€LCUB.Ìà àà à"KUB€has€the€exclusive€right€to€provide€electrical€servicesÏto€the€subject€annexed€areas€or€to€grant€a€franchise€for€the€provisionÏof€electrical€services€in€the€subject€annexed€areas.Ìà àà à"KUB€has€notified€LCUB€that,€pursuant€to€the€provisions€ofÏT.C.A.€ðð€6„51„111,€it€is€KUB's€intention€to€take€over€the€provision€ofÏelectrical€services€in€the€subject€annexed€areas€with€compensation€toÏLCUB€as€prescribed€by€T.C.A.€ðð€6„51„111.Ìà à"LCUB€has€notified€KUB€of€its€position€that€it€is€entitled€toÏcompensation€for€its€electrical€distribution€properties€in€the€annexedÏarea€in€accordance€with€the€'Co„op€rule'€prescribed€in€T.C.A€ðð€6„51„112."ÌÌà àà àIt€is€the€insistence€of€KUB,€that€the€City€of€Knoxville€is€aÏstate€municipality€which€operates€its€electrical€utility€service€throughÏKUB€which€is€a€state€instrumentality€and€Lenoir€City€is€a€stateÍmunicipality€operating€its€electrical€utility€service€through€LCUB€whichÏis€a€state€instrumentality.€€Therefore,€since€it€is€a€municipalityÏtaking€over€the€public€services€and€distribution€facilities€of€anotherÏstate€instrumentality,€there€is€no€common€law€or€statutory€lawÏrequirement€under€ðð€6„51„111€for€it€to€compensate€LCUB€for€itsÏdistribution€facilities€within€Knoxville's€city€boundaries.ÌÌ€€à àà àIt€is€the€insistence€of€LCUB,€however,€that€ðð€6„51„111€isÏprocedural€in€nature€only€and€must€be€construed€with€ðð€6„51„112€andÏthat,€although€it€is€a€state€instrumentality,€KUB€is€without€authorityÏto€take€its€distribution€equipment€located€within€the€boundaries€of€theÏCity€of€Knoxville€without€just€compensation€to€be€determined€by€theÏterms€of€ðð€6„51„112€for€electric€cooperatives.ÌÌà àà àNo€provision€of€our€state's€constitution€is€better€known€inÏour€jurisprudence€than€Article€I,€Section€21,€which€provides:€€"No€man'sÏservices€or€property€shall€be€taken€without€consent€or€justÏcompensation".€€That€provision€of€the€constitution,€however,€has€beenÏheld€not€to€be€applicable€to€the€proprietary€rights€of€municipalÏcorporations€in€public€grounds€within€its€territorial€limits.ÌÌà àà àThe€general€rule€relating€to€property€held€in€a€public€orÏgovernmental€capacity€is€stated€in€56€Am.Jur.,€Municipal€Corporations€Ìðð€120,€as€follows:ÌÒ  ÒÒ „ ÒÒ  ÒÒ  ÒÓÓ€€€€The€power€of€the€legislature€over€the€property€whichÏa€municipal€corporation€has€acquired€in€its€public€orÏgovernmental€capacity,€and€devoted€to€public€orÏgovernmental€uses,€is€so€complete€that€a€municipality€inÏdealing€with€public€property€is€subject€to€suchÏrestrictions€and€limitations€as€the€legislature€mayÏimpose.€€The€legislature€may€take€the€control€of€suchÏproperty€from€the€officers€of€the€corporation€and€turnÏit€over€to€other€officers€under€the€more€directÏsupervision€and€control€of€the€state.€€The€state€may,€atÏits€pleasure,€modify€or€withdraw€the€power€to€hold€andÏmanage€property,€or€take€such€property€withoutÏcompensation....ÌÌðð€534€states:€ÌÌà àGenerally,€a€municipal€corporation€has€noÏpropietary€rights€in€public€grounds€within€itsÏterritorial€limits;€whatever€rights€it€has€in€them€areÏheld€merely€in€trust€for€the€public.€€It€has€also€beenÏheld€that€a€municipal€corporation€is,€as€to€propertyÏacquired€by€it€in€its€proprietary€capacity,€a€trusteeÏfor€the€inhabitants€of€the€territory€embraced€within€itsÏlimits.€€Under€constitutional€and€statutory€provisionÏthat€all€public€improvements€and€municipally€ownedÏutilities€are€public€property€with€title€vested€not€inÏthe€municipality€as€a€corporate€entity,€but€in€theÏpublic,€it€follows€that€the€municipality€in€itsÏcorporate€capacity€strictly€speaking€does€not€own€suchÏimprovements€and€utilities,€and€has€no€title€to€them.€ÏThey€are€owned€by€the€public.ÌÌÌÌÒ  ÒÒ „ ÒÒ  ÒÒ „ ÒÓÓà àà àThe€landmark€case€in€this€jurisdiction€which€announced€theÏcommon€law€rule€that€the€public€property€held€by€one€stateÍinstrumentality€would€pass€to€the€control€of€an€annexing€municipalityÏwhen€brought€within€the€boundaries€of€such€annexing€municipality€isÏò òPrescott€v.€Town€of€Lennoxó ó,€100€Tenn.€591,€47€S.W.€181€(1898).€€InÏò òPrescottó ó,€a€school€building€had€been€built€on€a€tract€of€landÏbelonging€to€the€Eighteenth€School€District€of€Shelby€County.€€In€1896Ïthe€property€was€taken€into€the€corporate€boundaries€of€the€town€ofÏLennox.€€The€school€board€for€the€Eighteenth€School€District€filedÏsuit€against€the€town€of€Lennox€and€its€board€of€education€seeking€toÏenjoin€them€from€interfering€with€its€control€over€the€schoolÏproperty.€The€trial€court€found€the€issues€in€favor€of€the€plaintiffs.€ÏOur€supreme€court€reversed,€saying,€"We€think€the€great€weight€ofÏauthority€is€to€the€effect€that€upon€the€division€of€a€municipality,Ïin€the€absence€of€legislative€regulations,€each€portion€will€hold€inÏseveralty,€for€€public€purposes,€the€public€property€which€fallsÏwithin€its€limits."€€Id.€592.€(Citations€Omitted).€€The€court€furtherÏsaid:ÌÒ  ÒÒ „ ÒÒ  ÒÒ  ÒÓÓà àMunicipal€corporations€are€called€into€being€in€theÏinterest€of€the€public,€and,€in€order€that€they€mayÏbetter€subserve€their€purpose,€they€have€the€right€toÏcreate€and€control€all€the€agencies€and€appliancesÏessential€to€the€health,€safety,€and€convenience€of€theÏcommunities€constituting€them.€€These€agencies€and€Ï"appliances,€whether€engine€house,€...€schoolhouse,€...Ïhydrants,€or€sewers,€are€so€distributed€as€to€be€of€theÏmost€efficient€service€to€the€public.€€They€are€broughtÏinto€existence€to€be€so€used.€€Now,€when€the€territorialÏlimits€of€a€corporation€are€diminished€by€excision€of€aÏpart€of€its€territory,€the€power€of€control€of€theÍpublic€agent€over€their€appliances,"€we€think,€must€beÏ"restricted€to€the€newly€defined€limits€of€theÏcorporation,€...."ÌÌÒ  ÒÒ  ÒÒ  ÒÒ „ Ò€Also€òòseeóó€ò òHamilton€County€v.€City€of€Chattanoogaó ó,€203€Tenn.€85,€310ÌÌ€S.W.2d€153€(1858)€and€ò òState€ex€rel.€Spoon€v.€Mayor€andó ó€ò òAldermen€ofÌÌ€Morristownó ó,€222€Tenn.€211,€431€S.W.2d€827€(1968).ÌÌÌÌÓÓà àà àThe€Tennessee€General€Assembly€enacted€what€is€now€TCAÌ€ðð€6„51„111(a)€and€(b)€in€1955€and€what€is€now€ðð€6„51„111(c)€in€1957.€ÏIt€enacted€what€is€now€TCA€ðð€6„51„112€in€1968.€€We€have€been€cited€toÏno€cases,€however,€nor€have€we€found€any€in€this€jurisdiction,€whichÏhas€required€an€annexing€municipality€to€compensate€another€municipalÏentity€in€accordance€with€ðð€6„51„112€for€public€property€brought€intoÏthe€city's€boundary€by€annexation.ÌÌà àTCA€ðð€6„51„111€governs€the€rights€of€the€parties€where€theÏterritory€annexed€by€the€annexing€municipality€affects€anÏ"instrumentality€of€the€state€of€Tennessee,€such€as,€but€not€limitedÏto,€a€utility€district,€sanitary€district,€school€district,€or€otherÏpublic€service€district."€€Also,€the€statute€makes€no€provision€for€orÏrequirement€that€the€annexing€municipality€compensate€theÏinstrumentality€of€the€state€for€its€public€property€within€itsÏboundaries.€€TCA€ðð€6„51„112€provides,€however,€as€pertinent:€€"[I]fÍthe€annexing€municipality€owns€and€operates€its€own€electric€system,Ïit€shall€either€offer€to€purchase€any€electric€distribution€propertiesÏand€service€rights€within€the€annexed€area€owned€by€any€òòelectricóóÏòòcooperativeóó,€or€grant€such€cooperative€a€franchise€to€serve€theÏannexed€area."€€(Emphasis€ours.)€ÌÌà àà àAlthough€LCUB€is€an€instrumentality€of€the€state,€it€objectsÏto€being€subject€to€the€provision€of€TCA€ðð€6„51„111€and€insists€itÏshould€be€cast€in€the€classification€of€an€electric€cooperative€andÏcompensated€according€to€the€provisions€of€TCAÌðð€6„15„112€for€electric€cooperatives.€€It€cites€the€following€cases€asÏsupportive€of€its€insistence:€€ò òDuck€River€Electric€Membershipó óÏò òCooperative€v.€City€of€Manchesteró ó,€529€S.W.2d€202€(Tenn.1995);Ïò òElectric€Power€Board€v.€Middle€Tenn.€Electric€Membership€Coop.ó ó,€841ÏS.W.2d€321€(Tenn.App.1992);€and€ò òForked€Deer€Electric€Co„Op€v.ó ó€ò òRipleyó ó,Ï883€S.W.2d€582€(Tenn.1994).€€We€find€LCUB's€reliance€on€these€cases€toÏbe€misplaced.€€None€of€these€cases€addresses€the€issue€of€an€annexingÏmunicipality€compensating€another€instrumentality€of€the€state€forÏpublic€property€located€within€the€boundaries€of€the€annexingÏmunicipality.ÌÌà àà àThe€decree€of€the€chancellor€in€holding€"KUB's€acquisitionÏof€LCUB's€distribution€facilities€are€[sic]€not€controlled€by€theÏprovision€of€TCA€ðð€6„51„112€and€thus€LCUB€is€not€entitled€to€beÏcompensated€on€the€basis€of€the€'co„op€rule'"€is€affirmed.€€We€alsoÏhold€the€rights€of€the€parties€are€controlled€by€TCA€ðð€6„51„111.ÌÌà àà àThe€court€takes€no€position€on€the€other€issues€and€the€caseÏis€remanded€to€the€trial€court€for€further€proceedings€on€allÏnecessary€matters€pertaining€to€TCA€ðð€6„51„111.ÌÌà àà àThe€cost€of€this€appeal€is€taxed€to€LCUB.ÌÓÓÌÌÌÌÌÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€__________________________Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Clifford€E.€Sanders,€Sp.J.€ÌÌÌÌÌCONCUR:€ÌÌÌ________________________ÌHouston€M.€Goddard,€P.J.ÌÌÌ________________________ÌHerschel€P.€Franks,€J.€ÌÌÌ€ÌÌÌÌÌÌÌÌÌÌ