MISSISSIPPI LEGISLATURE

2001 Regular Session

To: Public Utilities

By: Representative Creel

AN ACT TO AMEND SECTION 77-3-13, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE PUBLIC SERVICE COMMISSION TO ISSUE MORE THAN ONE COMPETING CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE NATURAL GAS SERVICE IN THE SAME GEOGRAPHICAL AREA; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 77-3-13, Mississippi Code of 1972, is

amended as follows:

77-3-13. (1) The commission shall issue a certificate of

convenience and necessity to any person engaged in the

construction or operation of such equipment or facility as is

mentioned in subsection (1) of Section 77-3-11 on March 29, 1956,

for the construction or operation then being conducted, without

requiring proof that public convenience and necessity will be

served by such construction or operation, and without further

proceedings, if application for such certificate shall have been

made to the commission within six (6) months after March 29, 1956. Any utility covered by this chapter which has heretofore been under the jurisdiction of the commission shall, upon application within six (6) months of March 29, 1956, be issued a certificate authorizing it to conduct operations and make extensions within any area covered by its service area map or maps on file with the

commission on March 29, 1956.

(2) The commission shall issue a certificate of convenience

and necessity to any person engaged in the construction or

operation of a sewage disposal service as mentioned in subsection

(2) of Section 77-3-11 on August 9, 1968, for the construction or

operation then being conducted, without requiring proof that

public convenience and necessity will be served by such

construction or operation, and without further proceedings, if

application for such certificate shall have been made to the

commission within six (6) months after August 9, 1968. Pending the filing of such application and the issuance of a certificate, the continuance of such construction or operation shall be lawful.

Except as otherwise specifically provided by subsection (2)

of Section 77-3-11 or by this subsection, that portion of the

business of a public utility dealing with the operation of a

sewage disposal service as provided by subsection (2) of Section

77-3-11 shall be subject to provisions of this chapter, in like

manner and with like effect as if such business had been included

within the definition of a "public utility" in the original

enactment of this chapter.

(3) In all other cases, the commission shall set the

matter for hearing, and shall give reasonable notice of the

hearing thereon to all interested persons as in its judgment may

be necessary under its rules and regulations, involving the

financial ability and good faith of the applicant, the necessity

for additional services and such other matters as the commission

deems relevant. The commission may issue a certificate of public

convenience and necessity, or refuse to issue the same or issue it

for the establishment or construction of a portion only of the

contemplated plant, route, line or system, or extension thereof,

or for the partial exercise only of such right or privilege, and

may attach to the exercise of the rights granted by the

certificate such reasonable terms and conditions as to time or

otherwise as in its judgment the public convenience, necessity and

protection may require, and may forfeit such certificate after

issuance for noncompliance with its terms, or provide therein for

an ipso facto forfeiture of the same for failure to exercise the

rights granted within the time fixed by the certificate.

 * * * However, nothing in this section shall be construed as

requiring such certificate for a municipally owned plant, project

or development, route, line or system or extension thereof in

areas not certificated to another utility. * * * Further, no

certificate shall be required for extensions or additions within

the corporate limits of a municipality being served by the holder

of a certificate of convenience and necessity.

(4) The commission shall, prior to issuing a certificate of

public convenience and necessity to a public utility for any new

construction, extension or addition to its property, ascertain

that all labor, materials, property or services to be rendered for

any proposed project will be supplied at reasonable prices. The

commission shall, after issuance of a certificate for facilities

estimated to cost Five Million Dollars ($5,000,000.00) or more or

estimated to cost an amount equal to one percent (1%) of the rate

base allowed by the commission in the utility's last rate case,

whichever is greater, assign the public utilities staff to monitor

such projects, to inspect periodically construction in progress,

and to report to the commission any variances or deviations as

found, if any, and to file progress reports thereon with the

commission. Such public utility shall file a similar report with

the commission at such times and in such form as the commission

shall require, including any substantial changes in plans and

specifications, cost allocations, construction schedule and funds

available to complete the project.

(5) The commission may issue a temporary certificate in

cases of emergency, to assure maintenance of adequate service or

to serve particular customers, without notice or hearing, pending

the determination of an application for a certificate, and may by

regulation exempt from the requirements of Sections 77-3-11

through 77-3-21: (a) temporary acts or operations for which the

issuance of a certificate will not be required in the public

interest; and (b) extensions or additions of service facilities

outside of municipalities under such general rules as will promote

the prompt availability of such service to prospective users, and

at the same time prevent unnecessary and uneconomic duplication of

such facilities as between two (2) or more persons.

(6) Prior to the acquisition pursuant to Section 77-3-17

or other provisions of law, by any public agency, authority, district, state or other agency, institution or political subdivision thereof, of any certificate of public convenience and necessity or portion thereof, service areas or portion thereof, or operating rights or portion thereof, issued or granted by the commission pursuant to the provisions of this section * * * and/or the facilities or other properties and equipment of the utility providing service therein; of any regulated utility as defined in Section 77-3-3(d)(i), (ii) and (iii), the commission shall first

determine if such service area, certificate of public convenience

and necessity, or operating right, or portions thereof, should be

cancelled as provided in Section 77-3-21.

(7) The commission may issue more than one (1) competing certificate of public convenience and necessity to provide services or commodities described in Section 77-3-3(d)(ii) in the same geographical area; however, the issuing of any additional certificates may not affect otherwise any certificate of public convenience and necessity issued before July 1, 2001, to any provider of those services or commodities.

(8) Notwithstanding any provision of this section to the

contrary, the certificate as applied for may be granted without a

hearing in uncontested cases; however, the commission may hear any

uncontested case if it determines that the public interest will be

served thereby.

SECTION 2. This act shall take effect and be in force from and after July 1, 2001.