Council Approves $150M in EPB Bonds
Chattanooga's City Council unanimously backed up to $150 million in new bonds for the city-owned utility EPB.
Updated on Nov. 11, 2026 in Utilities
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The Chattanooga City Council voted unanimously Tuesday to approve up to $150 million in new bonds for EPB. The borrowing is part of EPB's $430 million capital improvement plan through 2031.
Why it matters
The bonds will fund ongoing work on EPB's electric system, including transformers, equipment, infrastructure and facilities, supporting expansion and improvement of the grid. Repayment comes from utility revenue rather than city taxes, and the borrowing would not immediately affect customer bills.
The council approved up to $150 million in bonds within EPB's $430 million capital plan through 2031, with EPB expecting roughly $8 million a year in principal and interest. The stub does not identify which individual projects the proceeds will be assigned to.
The players
EPB
EPB is the Chattanooga-based municipal electric utility that serves customers across Southeast Tennessee and Northwest Georgia.
Chattanooga City Council
The Chattanooga City Council is the legislative body of the city of Chattanooga, which owns and oversees the utility EPB.
The details
The unanimous vote was held Tuesday, and the bonds will be repaid specifically through EPB utility revenue under the resolution. EPB serves 205,000 customers across Southeast Tennessee and Northwest Georgia.
Timeline
Tuesday, November 10, 2026: City Council unanimously approves up to $150 million in bonds for EPB.
Through 2031: period covered by EPB's $430 million capital improvement plan.
Market Landscape
The approval is a funding step within EPB's $430 million capital improvement plan running through 2031, which covers ongoing investment in its electric system. Financing the work through utility-revenue-backed bonds rather than city taxes keeps the upgrades tied to the utility's own cash flow.
The borrowing is not expected to immediately change EPB customer bills, since repayment comes from utility revenue rather than taxes. Customers in Southeast Tennessee and Northwest Georgia should see the effects over time as the grid work proceeds through the capital plan.
The takeaway
Utility bond approvals like this one are funded by ratepayer revenue, so the bigger question for customers is how capital spending is ultimately prioritized. Watching how the $430 million plan is executed will show whether the investment translates into reliability gains.
Further reading
Explore more local coverage in Utilities for the latest on Chattanooga's power infrastructure.
Source note: This article includes information reported by Timesfreepress.
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