Tennessee Code Title 68. Health, Safety and Environmental Protection § 68-211-503

The municipality, for the production of any energy, shall charge the usual rates for such heating or cooling and may combine it with any other energy source produced. The municipality shall also have the right to enter into any agreements necessary for the sale of recyclable materials and sale of fuel mixtures and supplements including the right to pledge the revenue from the sale of such energy to pay bonds or loans issued under any bond legislation or any other state legislation permitting energy recovery facilities and resource recovery facilities.