Tenn. Code Ann. § 65-36-103

The general assembly hereby finds and determines that participating in interlocal agreements by electric cooperatives and municipal utilities, as authorized by this chapter, provides a mutual benefit by reducing the expense of operations of municipal utilities and electric cooperatives and, as a result, reduces the cost of electricity for the citizens of this state. Accordingly, the general assembly hereby finds that all contributions of financial and administrative resources and associated costs and expenses that are made by a municipal utility pursuant to an interlocal agreement as authorized by this chapter, are made for a public and governmental purpose, and that all such contributions benefit the contributing municipal utilities.