City of Cookeville v. Upper Cumberland Electric Membership Corp.

OPINION

ROGERS, Circuit Judge.

In this case, we affirm the federal district court’s resolution of a dispute over one element of the compensation that Tennessee law requires when a city annexes territory and exercises its right to purchase electric utility property within the annexed territory. The federal court had jurisdiction because a federal agency, the Rural Utilities Service (“RUS”), was a party defendant. We reverse, however, a post-judgment order enjoining the city from providing electric service in this annexed area pending resolution of the compensation dispute.

When a Tennessee…