Dickson Electric Delivers $1.2 Million Revenue Boost to City Budget
Dickson, TN — The Dickson City Council unanimously approved a resolution Feb. 2, 2026 authorizing a $1,224,821.39 payment from the Dickson Electric System to the City of Dickson — a contribution that functions much like property taxes but often goes unnoticed by residents.
The payment is part of what are known as Payments in Lieu of Taxes (PILOTs). Because municipal utilities are publicly owned and therefore exempt from paying traditional property taxes, state law allows them to make equivalent payments to the cities and counties they serve.
For Dickson, that means more than $1.22 million flowing directly into the city’s budget for fiscal year 2025.
What is a PILOT payment?
Municipal utilities like Dickson Electric do not pay property taxes the way private companies do. Instead, they calculate and distribute tax-equivalent payments to local governments based on their operations and service footprint.
In effect, the PILOT system ensures:
Cities and counties still receive revenue tied to utility property and infrastructure
Local governments benefit financially from publicly owned utilities
Residents are not indirectly subsidizing tax-exempt infrastructure
The City Council’s approval formalizes the annual distribution amount designated for Dickson.
Why it matters
While fireworks permits or zoning changes may draw public attention, PILOT payments represent a steady and significant funding source that helps support essential city services.
Revenue from these payments can be used for:
Public safety
Infrastructure maintenance
Parks and recreation
Administrative operations
For perspective, a $1.22 million revenue stream is equivalent to a sizable property tax base — yet it comes without increasing local tax rates.
Because Dickson Electric serves a five-county area, similar payments are distributed to other municipalities and counties within its service territory.
Utility growth supports local government
The PILOT payment comes as Dickson Electric continues to grow. During the same meeting, General Manager Darrell Gillespie presented the utility’s annual report showing increases in operating revenue and customer growth across its service area.
That growth not only supports system improvements and operations but also strengthens the tax-equivalent payments that flow back to local governments.
In many ways, the electric system functions as both an infrastructure provider and a revenue partner to the city.
The bigger picture
Municipal utilities are often viewed simply as service providers — keeping lights on and power flowing. But for Dickson, the electric system also plays a direct role in stabilizing the city’s financial foundation.
The approved $1,224,821.39 payment is a reminder that publicly owned infrastructure can do more than deliver electricity — it can help fund the very government services residents rely on every day.