WPC# N6(.*.q*eDr$3!?-(Nsb?Y֚D@<cUMB)Z#zўa pZU>6.A?˽L0ͱ{I}*Gkq^&iuW^/caDNaRc-C+$ڈMݣ,-wW~5\ RzDͼSY gh`Ɯ:ONVE7p8+ח.NABI+XB7 'ۄ拤KVL:S{y)P55,#זFΆtTr'tщ2_yY,Nf6ϟik폇ǽzc* :o~y?upBkޕ/y\C;7){ZǦ l4/C14LyU|@ ."Jؖ>1$G(t%M=5# F %Q nW 0P UBT } w@ 4S g v 0 ); 0DdUNbU:U:U:%"_U:HU:=U:$$U:^U:W}}U:U:4 n BU!U!U!U :r!r!r! D3!!! 0D!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! AO#"r"r" 0D8# D/|# B#HP LaserJet 4SiHPPCL5MS,,,,,,0nLhX<6X9`(*Courier 12pt10cpiXXx6X@JQX@((m$X  <6X9`(*Courier 12pt10cpi s  6$X  X#pXXX~XX#p@,@X ~~  5    ~~Tenn.CodeAnn.6534102(1)(1993Repl.).#~~# [{UUUӀ$U%U&H$tpp3|x(   #$X  X4XXXXX4@,@X   1      "  TheSupremeCourtmay,atitsdiscretion,answerquestionsoflawcertifiedtoitbythe ,  SupremeCourtoftheUnitedStates,aCourtofAppealsoftheUnitedStates,aDistrictCourtoftheUnitedStatesinTennessee,oraUnitedStatesBankruptcyCourtinTennessee.Thisrulemaybeinvokedwhenthecertifyingcourtdeterminesthat,inaproceedingbeforeit,therearequestionsoflawofthisstatewhichwillbedeterminativeofthecauseandastowhichitappearstothecertifyingcourtthereisnocontrollingprecedentinthedecisionsoftheSupremeCourtofTennessee.Tenn.R.Sup.Ct.23,1.(G2#$ m!X   X4XXXXX4,X   0  (#$  0  (9 Z 6Times New Roman Regular- -   6$X  X#pXXX~XX#p@,@X ~~  3    Thestatutedefinesthetermmunicipalitytoinclude anycounty,incorporatedcityortownof ,  thestate.Tenn.CodeAnn.734102(2)(1997Supp.)., AZ"Arial Regular   6$X  X#pXXX~XX#p@,@X ~~  2    Followingentryofthefinaljudgment,Hickmanacceptedfromtherespondentstheamount ,  specifiedasjustcompensation.Thus,theonlyinterestedpartiestothisappealaretherespondentsandGibson.,  AZ"Arial Regular,cAZ"Arial Regular  ` , , AZ"Arial Regular >  6$X  X#pXXX~XX#p@,@X ~~  4    ThisstatutewasthencodifiedatTenn.CodeAnn.61304.,  AZ"Arial Regular Xc XXX|| XXc   Ad FILEDXc X||  August31,1998CecilW.CrowsonAppellateCourtClerkdAM ,cAZ"Arial Regular+K AZ"Arial Regular   6$X  X#pXXX~XX#p@,@X ~~  3    Thestatutedefinesthetermmunicipalitytoinclude anycounty,incorporatedcityortownof ,  thestate.Tenn.CodeAnn.734102(2)(1997Supp.).,  AZ"Arial Regular   6$X  X#pXXX~XX#p@,@X ~~  2    Followingentryofthefinaljudgment,Hickmanacceptedfromtherespondentstheamount ,  specifiedasjustcompensation.Thus,theonlyinterestedpartiestothisappealaretherespondentsandGibson. s  6$X  !X#pXXX!~XX#p@,@X !~~  5    "~~Tenn.CodeAnn.6534102(1)(1993Repl.).#!~~#,  AZ"Arial Regular, AZ"Arial Regular Xc XXX|| XXc   Ad FILEDXc X||  August27,1998CecilW.CrowsonAppellateCourtClerkdAM  d,  AZ"Arial Regular$$$$'dxd(3$ !  -C<< CLevel 1Level 2Level 3Level 4Level 5($$   1  ' dxdP Pd m!X   X  BXX7fXXdd7    TR[A' Legal3'A' Legal3'T>B =XXdd==fXXdd=ӜINTHESUPREMECOURTOFTENNESSEEATNASHVILLE  B  Ӝ&r#*<,(j 8` `@E ` 8ttxP  r&&r*<,(j 8` `@E ` 8ttxP  r&$$̜̜%%X4X 3 (XXP(XX3CITYOFSOUTHFULTON,TENNESSEE p   )  FORPUBLICATION   CITYOFBRADFORD,TENNESSEE;and p   )    WEAKLEYCOUNTY,TENNESSEE,for p   )  Filed:  AugustAugust31,1998   theuseandbenefitofWeakleyCounty p   ) x MunicipalElectricSystem,     p   ) h  `     h      p   )   X  ` PlaintiffRespondent,     p   )  CertifiedQuestionofLaw (#  H  `     h      p   )  fromtheUnitedStates 8  `     h      p   )  CourtofAppealsforthe (x v. `     h      p   )  SixthCircuit.(No.966201) h  `     h      p   )HICKMANFULTONCOUNTIESRURAL p   ) H ELECTRICCOOPERATIVECORPORATION;  ) 8 WALLYBEYER,Administrator,Rural   p   )No.01S019710FD00215 ( ElectrificationAdministration,U.S.Department  )  ofAgriculture;CHARLESB.GILL,Governor, p   )   NationalRuralUtilitiesCooperativeFinance p   ) ! Corporation;NATIONALBANKFOR   p   ) " COOPERATIVES, h      p   ) #  `     h      p   ) ` Defendants,(TrialOnly)     p   ) h% !  `     h      p   )GIBSONELECTRICMEMBERSHIP   p   ) H'"# CORPORATION,   h      p   ) 8(#$  `     h      p   ) ` DefendantPetitioner.     p   ) *h%& ForPlaintiffRespondent: h     ForDefendant/Petitioner: /+, ?XXc(#X (XXP(X?FrankS.King,Jr.,     8   HerbertS.Sanger,Jr. 1,. King&Ballow     8   CharlesA.WagnerIII 2-/ Nashville,Tennessee   8   Wagner,Myers&Sanger,P.C. x3.0   0      8   Knoxville,Tennessee  0      8   G.GriffinBoyte  0      8   WarmathandBoyte  0      8   Humboldt,Tennessee #  (8x35  :X57 >` ,   &>` ,   &@.&>&&` &&, &&  &@+- XX4 OPINION#X4X -L#    >` ,   >` ,   B" ( Xq #XXXc(#XB  0      8    q   DROWOTA,J.>` ,   >` ,     B(X%X ( Xq #XB QUESTIONSCERTIFIED      ` PursuanttoRule23oftheRulesoftheSupremeCourtofTennessee,   #  1      ׀this   CourtacceptedcertificationofthefollowingtwoquestionsfromtheUnitedStatesCourtofAppealsfortheSixthCircuit.8 ` 1.DoesTennesseelaw,specificallytheMunicipalElectricPlantLaw,Tenn.CodeAnn.752101752310,theLocalGovernmentPublicObligationsAct,Tenn.CodeAnn.9211019211016,ortheRevenueBondLaw,Tenn.CodeAnn.734101734118,authorizeacitytocondemnthefacilitiesandserviceareasofanelectriccooperativeservingconsumerswithinthecitysmunicipalboundariesandtogranttoanothercountyselectricsystemtherighttooperatethosefacilitiesandprovideservicetoconsumerswithinthoseserviceareas? ` !` ! 8 ` 2.IfTennesseelawdoessoauthorize,doesTennesseeCodeAnnotatedSection651112neverthelessprohibitthecityfromalteringanyserviceareasthatwereoutsidethecitysmunicipalboundariesonMarch6,1968? ` !` ! > ` Asmorefullyexplainedbelow,ourconclusionwithrespecttothefirstquestionisthatTennesseelaw,specificallytheRevenueBondLaw,authorizesacitytocondemnthefacilitiesandserviceareasofanelectriccooperativeservingconsumerswithinthecitysmunicipalboundariesandtogranttoanothercountyselectricsystem -#& therighttooperatethosefacilitiesandprovideservicetoconsumerswithinthoseserviceareas.Withrespecttothesecondcertifiedquestion,weconcludethatTenn.CodeAnn.651112doesnotprohibitthecityfromalteringserviceareasthatwereoutsidethecitysmunicipalboundariesonMarch6,1968. @) BACKGROUND   'X: XXX#p ` Thefollowingsummaryoffactsrelevanttothelegalquestionsinthisappeal  wasderivedfromthecertificationorderoftheSixthCircuit.Until1994electricserviceintheCityofBradford,TennesseewasprovidedbybothGibsonElectricMembershipCorporation(Gibson)andWeakleyCountyMunicipalElectricSystem(WCMES).IntheCityofSouthFulton,Tennessee,electricservicewasprovidedbythreedistributors:Gibson,WCMES,andHickmanFultonCountiesRuralElectricCooperativeCorporation(Hickman).InApril1994,themayorofSouthFultonnotifiedthethreedistributorsthattheelectricplantfranchiseforthecityhadexpired.HeexplainedthattheBoardofCommissionerswouldconsideranypertinentinformationsubmittedbythedistributorsregardingratesandtermsandthatthedistributorswouldhaveanopportunitytoaddresstheBoardatameetinginMay.Allthreedistributorsappearedatthismeeting.TheBoardthendeterminedthatWCMEScouldprovidethebestserviceatthemostreasonableratesandgranteditatwentyfiveyearexclusivefranchisewithinthecorporatelimitsofSouthFulton.BradfordgrantedatwentyyearexclusivefranchisetoWCMESwithinitscorporatelimits. ` SouthFultonandBradfordofferedtopurchasefromGibsonandHickmantheservicerightsfortheirconsumerslocatedwithinthecityboundaries.Thecooperativesrefusedtosell.SouthFulton,Bradford,andWeakleyCounty,forthebenefitofWCMES,thenfiledpetitionsforcondemnationinstatecourt.Thecaseswereremovedtofederalcourtpursuantto28U.S.C.1441. 5p+0 Ї ` Thereafter,thefederaldistrictcourtconsolidatedthecasesintoasingleproceeding.HickmanandGibson#X#pX X'X:G#'X: XXX#pԀfiledmotionstodismissasserting,inpertinentpart,   thattherespondentsdonothaveauthorityunderTennesseelawtocondemntheirproperty.Thefederaldistrictcourtdeniedthepetitionersmotionstodismiss.Eventually,t#X#pX X'X:$#'X: XXX#phepartiesenteredanagreedfinaljudgmentsettingtheamountofjust \0 compensationduetoHickmanandGibsonfortheirrespectivepropertyandservicerightswithinthemunicipalboundariesofSouthFultonandBradfordandpreservingGibsonsrighttoappealthequestionoftherespondentsrighttotake.  #  2          ` GibsonthenappealedtotheSixthCircuitCourtofAppeals,challengingtherespondentsrighttocondemnGibsonspropertyandservicerightsinthetwomunicipalities.#X#pX X'X: &#Concludingthattheappealinvolveddeterminativequestionsof  Tennesseelaw,theSixthCircuitenteredanordercertifyingtothisCourtthetwoquestionssetforthabove.Weacceptedcertificationofthequestionsposedandaddresseachhereafter.  I.FIRSTQUESTIONEMINENTDOMAINAUTHORITY  T'(     ` Webeginwiththequestion [d]oesTennesseelaw,specificallytheMunicipalElectricPlantLaw,Tenn.CodeAnn.752101752310,theLocalGovernmentPublicObligationsAct,Tenn.CodeAnn.9211019211016,ortheRevenueBondLaw,Tenn.CodeAnn.734101734118,authorizeacitytocondemnthefacilitiesandserviceareasofanelectriccooperativeservingconsumerswithin 0&* thecitysmunicipalboundariesandtogranttoanothercountyselectricsystemtherighttooperatethosefacilitiesandprovideservicetoconsumerswithinthoseserviceareas?X#pXXX#p   #X#pXXX#p"-#'X: XXX#p ` WebeginouranalysisofthisquestionwiththeRevenueBondLaw,Tenn.Code  Ann.734101to118.#X#pX X'X:z-#'X: XXX#pԀAportionofthatstatuteprovidesthatamunicipality  #  3      has xL  thepowerto:8 ` Construct,acquirebygift,purchase,ortheexerciseoftherightof   eminentdomain,reconstruct,improve,betterorextendanypublicworks,   withinorwithoutthemunicipality,orpartiallywithinorpartiallywithoutthe  municipality,andacquirebygift,purchaseortheexerciseoftherightofeminentdomain,landsorrightsinlandorwaterrightsinconnectiontherewith[.] ` !` ! l/Tenn.CodeAnn.734104(1)(1992Repl.)(emphasisadded).Theterm publicworksisdefinedbythestatutetoinclude electricheat,lightorpowerworks,plantsandsystems...togetherwithallpartsthereofandappurtenancestheretoincluding,butnotlimitedto,supplyanddistributionssystems....Tenn.CodeAnn.734102(1992Repl.&Supp.1997). ` #X#pX X'X:`.#'X: XXX#pInDuckRiverElec.MembershipCorp.v.CityofManchester,529S.W.2d202 )" (Tenn.1975)#X#pX X'X:~3#'X: XXX#p,thisCourtheldthatSection104(1)   #  4      ׀authorizedamunicipalcorporation * $ tocondemntheelectricsystemofanotforprofitelectricmembershipcorporationlocatedwithinthecityboundaries.DuckRiverElectricMembershipCorporationhadsuppliedelectricitytotheCityofManchesterunderafifteenyearfranchisethat 80 &* expiredonJanuary8,1973.Thefranchisewasnotrenewed,butDuckRivercontinuedtosupplyelectricitytotheCity.However,inJuneof1974,theCityofManchesteradoptedanordinancedeclaringthatitwouldestablishamunicipallyownedelectricdistributionsystem.Thereafter,theCityofManchesterbroughtsuitseekingtoacquirebyeminentdomainthatportionofDuckRiverselectricdistributionsystemlocatedwithinthecorporatelimitsofthecity. ` OnappealtothisCourt,DuckRiverchallengedtheCitysauthoritytoacquirethepropertybyeminentdomain.ThisCourtrejectedthechallengeandheldthatthe#X#pX X'X:14#'X: XXX#p ` CitywasauthorizedundertheRevenueBondLawtocondemnDuckRiversproperty.Insoholding,westated:8 ` Intheclearestoflanguagethisstatuteempowersthecitytoacquirebycondemnation,anypublicworks,andlandorrightsinland,inconnectiontherewith.Thisisaclearandcompleteremedy.Itisnotnecessaryto  relyuponanyotherstatute. v` !` ! u9DuckRiver,529S.W.2dat205(emphasisadded). T#(  ` Inourview,theholdinginDuckRiverdictatesourresponsetothequestion &  presentedinthiscase.Asinthatcase,theRevenueBondLawherealsoprovidesa clearandcompleteremedy.UnderthestatuteasinterpretedinDuckRiver, *X $ BradfordandSouthFultonhavetheauthoritytocondemnGibsons#X#pX X'X:8#X#pXXX#pԀfacilitiesand P,$"& serviceareaswithintheirrespectivemunicipalboundaries#X#pXXX#p<#.Weneednotrefertoany 4.$( otherstatute. ` GibsonassertsthatthiscaseisdistinguishablefromDuckRiverbecause,unlike 3). theCityofManchester,BradfordandSouthFultonarenotestablishingmunicipally 5+0 ownedelectricdistributionsystems.X#pXXX#pGibsonassertsthatthisdifferenceisimportant ,  becausetheRevenueBondLawonlyauthorizescondemnationifacityisplanningtousethepropertytoestablish,operate,andmanageitsownmunicipalelectricdistributionsystem.Insupportofitsargument,GibsoncitesTenn.CodeAnn.734103(1992Repl.),whichprovides#X#pXXX#p>#asfollows:  8 ` Declarationofpolicy 󀄀(a)Itisdeclaredtobethepolicyofthisstate `  thatanymunicipalityacquiring,purchasing,constructing,reconstructing,improving,betteringorextendinganypublicworks...shallmanage l@  suchpublicworksinthemostefficientmannerconsistentwithsoundeconomyandpublicadvantagetotheendthattheservicesofthepublicworksshallbefurnishedtoconsumersatthelowestpossiblecost.<` !` ! 8 ` (b)Nomunicipalityshalloperatesuchpublicworksforgainorprofitor  primarilyasasourceofrevenuetothemunicipality,butshalloperatesuchpublicworksfortheuseandbenefitoftheconsumersservedbysuchpublicworksandforthepromotionofthewelfareandforthe  improvementofthehealthandsafetyoftheinhabitantsofthemunicipality. ` !` ! @X#pXXX#p(Emphasisadded.)#X#pXXX#ppD#X#pXXX#p.#X#pXXX#pD#X#pXXX#pԀContrarytoGibsonsargument,thisstatutedoesnotcontaina !p provisionwhichrequiresamunicipalitytoitselfoperatepublicworkspropertyacquiredbyeminentdomain.#X#pXXX#pE#X#pXXX#pInstead,itsimply#X#pXXX#p F#Ԁdeclaresthatasamatterofstate \%0 policy,municipalitiesmust managethepublicworksinthemannermostefficientandeconomicaltotheconsumer.Tothatend,thestatuteprohibitsmunicipalitiesfromoperatingpublicworksforgain,profit,orprimarilyasasourceofrevenue.NothinginthisstatuteprohibitsBradfordandSouthFultonfromdeterminingthatthemosteconomicallyefficientwaytomanagethedistributionofelectricitywithintheircorporatelimitsisthroughthegrantofanexclusivefranchisetoWCMES. (#  0p&)   |2P(+  ` Moreover,GibsonsargumentisundercutbythisCourtsdecisioninDuckRiver. ,   AlthoughtheCityofManchesterhadvotedtoestablishamunicipallyownedelectricservice,inrulingonapetitiontorehear,thisCourtdiscussedtheoptionsuponremand,statingtheCityofManchester, mayproceedwiththesuitoritmaydismiss,atitsoption.Itmayconstructitsownsystemoritmayfranchiseacompetingsystem,oritmayexercisenumerousotheroptionsandalternatives.DuckRiver,529S.W.2d `  at209.OurdecisioninDuckRiverclearlydidnotturnuponwhetherornottheCity l@  ofManchesterestablishedamunicipalelectricsystem.Instead,weexplicitlyrecognizedinDuckRiverthecitysrighttograntafranchisetoacompetingsystem, , andwestatedthat amunicipalityhastheexclusivepowertocontroldistributionofelectricitywithinitsboundaries.Id.at20607;seealsoFranklinPower&Lightv.  MiddleTenn.MembershipCorp.,222Tenn.182,434S.W.2d829(1968).Inthis  case,SouthFultonandBradfordhavechosentograntanexclusivefranchisetoWCMESratherthanestablishtheirownmunicipalelectricsystems.MunicipalitiesinTennesseehavetherighttograntexclusivefranchisesforpublicutilitiesandpublicservices,regardlessoftheformofthemunicipalgovernment.SeeTenn.CodeAnn. L&  62201(12)(1992Repl.&1997Supp.)(mayoraldermaniccharters);Tenn.CodeAnn.619101(12)(1992Repl.&1997Supp.)(citymanagercommissioncharters);Tenn.CodeAnn.633111(1992Repl.&1997Supp.)(modifiedmanagercouncilcharters).OurdecisioninDuckRiverdidnotinanywayeliminatethisright. -#&  ` Therefore,weconcludethatunderTenn.CodeAnn.734104,BradfordandSouthFultonmaycondemnreal,personal,ormixedpropertyofGibsonlocatedwithintheirrespectivemunicipalboundaries,andinaccordancewithTennesseelaw,grant L5 +. afranchisetoWCMES.Accordingly,thisCourtaffirmativelyanswersthefirstquestioncertifiedbytheSixthCircuit.@s s  II.SECONDQUESTION:IMPACTOFTENN.CODEANN.651112    ` HavingdecidedthatTennesseeauthorizesthecondemnation,wemustnextdeterminewhether TennesseeCodeAnnotatedSection651112neverthelessprohibitsthecityfromalteringanyserviceareasthatwereoutsidethecitysmunicipalboundariesonMarch6,1968?  ` Webeginouranalysisofthisissuewithabriefoverviewofthestatutorysection.Title6,Chapter51oftheTennesseeCodecontainsthestatutoryprovisionsthatgovernmunicipalannexation.Thespecificstatuteatissueinthiscase,Tenn.CodeAnn.651112(1992Repl.),delineatestheoptionsthatareavailablewhenamunicipalitywhichownsandoperatesitsownelectricsystemannexesanareatowhichelectricserviceisbeingprovidedbyanelectriccooperative.X#pXXX#pԀ#X#pXXX#pWV#Generally,this L&  statuteprovidesthattheannexingmunicipalitymusteitherpurchasethepropertyandservicerightsoftheelectriccooperative,or,inthealternative,granttheelectriccooperativeafranchisetoservetheannexedarea.Specifically,thestatuteprovides,inpertinentpart,asfollows:0 ` (a)Notwithstandingtheprovisionsofanyotherstatute,iftheannexing /%( municipalityownsandoperatesitsownelectricsystem,itshalleitherofferto 0p&) purchaseanyelectricdistributionpropertiesandservicerightswithintheannexedareaownedbyanyelectriccooperative,orgrantsuchcooperativeafranchisetoservetheannexedarea,ashereinafterprovided.... ` $` $   \40*- iX(Emphasisadded).Ifanannexingmunicipalitywhichownsandoperatesitsown electricsystemchoosestopurchasethepropertyandservicerightsoftheelectriccooperative,thestatutesetsforththeformulawhichmustbeutilizedtodeterminethefairpurchaseprice.Tenn.CodeAnn.651112(a)(2)(1992Repl).Intheeventtheannexingmunicipalitychoosestograntafranchisetoallowtheelectriccooperativetocontinuetoservethearea,thestatutesetsforththeprocedurewhichappliesandprovidesthatuponexpirationofthefranchise,themunicipalitymayagainexerciseitsoptiontopurchasethepropertyandservicerightsoftheelectriccooperative.Tenn.CodeAnn.651112(a)(4)(1992Repl.).Intheeventamunicipalitycontractsitsboundariestoexcludeanareapreviouslyservedbyanelectriccooperative,thestatuteallowstheelectriccooperativetheoptionofpurchasingthepropertyandservicerightstotheareaithadpreviouslyservedfromthemunicipallyownedelectricsystem.Tenn.CodeAnn.651112(a)(5)(1992Repl.). ` ThisbriefsummaryrevealsthatSection112isdesignedtogoverntherelationshipbetweenelectriccooperativesandannexingmunicipalitieswhichownandoperateelectricsystems.NeitherBradfordnorSouthFultonqualifyasanannexingmunicipalitywhichownsandoperatesitsownelectricsystem.Accordingly,Section112simplyisnotapplicableinthisappeal. ` ContrarytoGibsonscontention,Section112doesnotpreventallmunicipalities,otherthanthoseannexingmunicipalitieswhichownandoperateelectricsystems, fromacquiringthepropertyandservicerightsofanelectriccooperative.Section112 l3@), containsnosuchlimitation.Itsimplydoesnotapplytoanannexingmunicipalitywhichdoesnotownandoperateitsownelectricsystem.  ` GibsonalsoarguesthatithasastatutoryrighttocontinuetoprovideelectricitytocustomersthatitservedonMarch6,1968,evenifthosecustomersarenowwithintheboundariesofBradfordandSouthFulton.InsupportofthisargumentGibsonreliesuponSection112(a)(7)whichprovides:8 ` TheterritorialareaslyingoutsidemunicipalboundariesservedbymunicipalandcooperativeelectricsystemswillremainthesameasgenerallyestablishedbypowerfacilitiesalreadyinplaceorlegalagreementsonMarch6,1968,andnewconsumerslocatinginanyunservedareasbetweentherespectivepowersystemsshallbeservedbythepowersystemwhosefacilitieswerenearestonMarch6,1968,excepttotheextentthatterritorialareasarerevisedinaccordancewiththeprovisionsofthissection. ` !` ! ucTenn.CodeAnn.651112(a)(7)(1992Repl.). ` Inourview,Gibsonfailstorecognizethat,liketheotherportionsofSection112,subsection(a)(7)simplyisnotapplicableinthiscase.Asbetweenannexingmunicipalitieswhichownandoperateelectricsystemsandelectriccooperatives,thisprovisionappearstoestablishgeneralprioritiestonewserviceareaslyingoutsidemunicipalboundaries.X#pXXX#pThisdisputedidnotariseinthecontextofanannexation * # proceeding.#X#pXXX#p`g#BradfordandSouthFultonarenotannexingmunicipalitieswhichown ,"% andoperateelectricsystems.Thisappealdoesnotinvolvenewserviceareaswhichlieoutsidemunicipalboundaries.Thisstatutoryprovisionsimplyhasnorelevance orapplicationinthisappeal.Insteaditisdesignedtogoverntherelationship |2P(+ betweenelectriccooperativesandannexingmunicipalitieswhichownandoperateelectricsystems.  ` WealsorejectGibsonsalternativeargumentthatTenn.CodeAnn.6534103(1993Repl.),circumscribestherespondentsrighttoalteritsservicearea.Thatstatuteprovides,inpertinentpart,that8 ` Nononconsumerownedelectricsystemmayconstruct,acquire,or l@  maintainfacilities,lines,poles,orotherequipmentusedorusefulforthedistributionorsaleofelectricityoutsideitscurrentgeographicterritory, L  normayanynonconsumerownedelectricsystemprovide,bysaleorotherwise,electricitytoanyparceloflandlocatedoutsideitscurrentgeographicterritory. ` !` ! j(Emphasisadded.)Whilethestatutedefinestheterm currentgeographicterritorytomean theparcelsofland...towhichapublicelectricsystemwasprovidingelectricserviceonFebruary16,1989,   #  5      italsodefinestheterm nonconsumer   ownedelectricsystemas anypublicelectricsystemotherthanelectricand "` communityservicecooperativesandmunicipalelectricsystems.X#pXXX#pTenn.CodeAnn. l$@ 6534102(4)(1993Repl.)#X#pXXX#pDo#Ԁ(emphasisadded).Theterm municipalelectricsystem L&  isdefinedbythestatutetoinclude anyelectricsystemownedbyanycounty,municipality,powerdistrict,orothersubdivisionofTennessee.Tenn.CodeAnn.6534102(3)(1993Repl.).GibsonisanelectriccooperativeandWCMESisacountyownedelectricsystemX#pXXX#p.Neitherqualifiesasa nonconsumerownedelectric -#& system.Therefore,anylimitationcontainedinSection103isnotapplicableinthecontextofthiscase.#X#pXXX#pGq# 1`'* Ї@,,) CONCLUSION  ,   ` WeanswerthequestionscertifiedtousbytheUnitedStatesCourtofAppealsfortheSixthCircuitasfollows:X#pXXX#p   8 ` 1.TheRevenueBondLaw,Tenn.CodeAnn.734101734118,asinterpretedbythisCourtin#X#pXXX#ps#'X: XXX#pDuckRiverElec.MembershipCorp.v.City  ofManchester,529S.W.2d202(Tenn.1975)#X#pX X'X:s#'X: XXX#p,#X#pX X'X:t#X#pXXX#pԀauthorizesacityto  condemnthefacilitiesandserviceareasofanelectriccooperativeservingconsumerswithinthecitysmunicipalboundariesandtogranttoanothercountyselectricsystemtherighttooperatethosefacilitiesandprovideservicetoconsumerswithinthoseserviceareas. ` !` ! Hs8 ` 2.TennesseeCodeAnnotatedSection651112doesnotprohibitthecityfromalteringanyserviceareasthatwereoutsidethecitysmunicipalboundariesonMarch6,1968. ` !` ! #X#pXXX#pt#sv ` TheclerkwilltransmitthisopinioninaccordancewithRule23,Section8oftheRulesoftheSupremeCourt.ThecostsinthisCourtwillbetaxedtothepetitioner,GibsonElectricMembershipCorporation.- X(X%X- `     h     __________________________________ `     h     FRANKF.DROWOTA,III, `     h     JUSTICE  Concur Panel:  0(  Anderson,C.J.,Birch,Holder,Barker,JJ.