Chancellor Frank Brown, in a 26-page memorandum opinion, has dismissed a lawsuit brought by Comcast seeking to stop EPB from going into the cable TV business.
Chancellor Brown said EPB had met all the state requirements for going into the cable TV business.
He also noted that EPB had gotten the approval of the City Council and TVA.
EPB officials earlier voted to move ahead on a $219,830,000 bond issue, and the City Council approved the bond issue.
President Harold DePriest said the bonds will be used for a SmartGrid that he said will benefit EPB in a number of ways - including automatic meter reading and outage management as well as helping set up the cable TV venture.
He said EPB officials plan to come back on an inter-divisional loan that would allow moving on the cable TV venture.
A Nashville chancellor recently dismissed a similar suit, saying she did not have jurisdiction and the proper plaintiff had not brought the suit. That suit was brought by the state cable association, of which Comcast is a member.
EPB has said it plans to begin offering cable TV service later this year or early next year.
At the same time, AT&T is launching a cable TV division.
EPB plans to construct a state-of-the-art fiber optic network over 6,900 miles designed to serve the electric system and also the new cable TV venture.