House Bill 405

AN ACT TO AMEND SECTION 77-3-35, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT PUBLIC UTILITIES THAT ARE SUBJECT TO THE JURISDICTION OF THE MISSISSIPPI PUBLIC SERVICE COMMISSION AND PROVIDE ELECTRICITY SHALL NOT ASSESS RECONNECTION FEES OR CHARGES DUE TO NONPAYMENT OF ELECTRIC SERVICES THAT EXCEED ONE PERCENT OF THE DELINQUENT AMOUNT; TO AMEND SECTION 77-5-33, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE MISSISSIPPI RURAL ELECTRIFICATION AUTHORITY SHALL NOT ASSESS RECONNECTION FEES OR CHARGES DUE TO NONPAYMENT OF ELECTRIC SERVICES THAT EXCEED ONE PERCENT OF THE DELINQUENT AMOUNT; TO AMEND SECTION 77-5-155, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT POWER DISTRICTS SHALL NOT ASSESS RECONNECTION FEES OR CHARGES DUE TO NONPAYMENT OF SERVICES THAT EXCEED ONE PERCENT OF THE DELINQUENT AMOUNT; TO AMEND SECTION 77-5-235, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CORPORATIONS OF THE ELECTRIC POWER ASSOCIATION SHALL NOT ASSESS RECONNECTION FEES OR CHARGES DUE TO NONPAYMENT OF ELECTRIC SERVICES THAT EXCEED ONE PERCENT OF THE DELINQUENT AMOUNT; TO AMEND SECTION 77-5-743, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MUNICIPALITIES SHALL NOT ASSESS RECONNECTION FEES OR CHARGES DUE TO NONPAYMENT OF ELECTRIC SERVICES THAT EXCEED ONE PERCENT OF THE DELINQUENT AMOUNT; TO AMEND SECTION 77-5-745, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT JOINT AGENCIES SHALL NOT ASSESS RECONNECTION FEES OR CHARGES DUE TO NONPAYMENT OF ELECTRIC SERVICES THAT EXCEED ONE PERCENT OF THE DELINQUENT AMOUNT; TO AMEND SECTION 21-27-29, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 77-3-35, Mississippi Code of 1972, is amended as follows:

77-3-35. (1) Subject to the provisions of subsection (2) of this section, under such reasonable rules and regulations as the commission may prescribe, every public utility, the rates of which are subject to regulation under the provisions of this article, shall file with the commission, within such time and in such form as the commission may designate, schedules showing all rates and charges established by it and collected and enforced, or to be collected or enforced within the jurisdiction of the commission. The utility shall keep copies of such schedules open to public inspection under such reasonable rules and regulations as the commission may prescribe.

No such public utility shall directly or indirectly, by any device whatsoever, or in anywise, charge, demand, collect or receive from any person or corporation for any service rendered or to be rendered by such public utility a greater or less compensation than that prescribed in the schedules of such public utility applicable thereto then filed in the manner provided in this section, and no person or corporation shall receive or accept any service from any such public utility for a compensation greater or less than prescribed in such schedules.

Utilities of the same type as herein covered, engaged in rendering interstate service to and from points and places in the state, shall file with the commission tariffs of rates and charges of such and rates and charges affecting service to or from points and places in the state. Also, utilities selling commodities or rendering any service to cooperatives, municipalities or other nonprofit organizations, shall, at the order of the commission, file schedules of such rates and charges for information purposes only.

The commission may provide, by rules and regulations to be adopted by it, the following:

(a) That utilities may contract with a manufacturer that is not a utility for furnishing the services or commodities described in Section 77-3-3(d)(i), (ii) and (iii) for use in manufacturing;

(b) That utilities described in Section 77-3-3(d)(i) also may contract with a customer that has a minimum yearly electric consumption of two thousand five hundred (2,500) megawatt hours per year or greater for furnishing the services or commodities described in Section 77-3-3(d)(i); and

(c) That utilities described in Section 77-3-3(d)(ii) also may contract with a customer that has a minimum yearly consumption of eight million five hundred thousand (8,500,000) cubic feet of gas per year or greater for furnishing the services or commodities described in Section 77-3-3(d)(ii).

These contracts may be entered into without reference to the rates or other conditions which may be established or fixed pursuant to other provisions of this article. Such regulations shall provide that before becoming effective any such contract shall be approved by the commission.

(2) (a) The Legislature recognizes that the maintenance of universal telephone service in Mississippi is a continuing goal of the commission and that the public interest requires that the commission be authorized and encouraged to formulate and adopt rules and policies that will permit the commission, in the exercise of its expertise, to regulate and control the provision of telecommunications services to the public in a changing environment where competition and innovation are becoming more commonplace, giving due regard to the interests of consumers, the public, the providers of telecommunications services and the continued availability of good telecommunications service. The commission is authorized to issue more than one (1) competing certificate of public convenience and necessity to provide local exchange telephone service in the same geographical area; provided, that the issuing of any such additional certificates shall not otherwise affect any certificate of public convenience and necessity heretofore issued to any provider of such services.

The commission shall adopt all rules and regulations necessary for implementing this subsection (2)(a).

The commission retains the authority to issue orders to implement its rules, regulations and the provisions of this chapter, including the authority to grant and modify, impose conditions upon, or revoke a certificate.

(b) Notwithstanding any provisions of this chapter or any other statute, the commission may, on its own motion or at the request of any interested party, enter an order, after notice and opportunity for hearing, determining and directing that, in the provision of a service or facility by a utility of the type defined in Section 77-3-3(d)(iii), competition or other market forces adequately protect the public interest, or that a service or facility offered by the utility is discretionary, and that the public interest requires that the utility's rates and charges for such service or facility shall not thereafter be subject to regulation by the commission.

(c) In making its determination whether the rates and charges for a service or facility shall not be subject to regulation by the commission, the commission may consider individually or collectively:

(i) Whether the exercise of commission jurisdiction produces tangible benefits to the utility's customers that exceed those available by reliance on market forces or other factors;

(ii) Whether technological changes, competitive forces, discretionary nature of the service or facility, or regulation by other state and federal regulatory bodies render the exercise of jurisdiction by the Mississippi commission unnecessary or wasteful;

(iii) Whether the exercise of commission jurisdiction inhibits a regulated utility from competing with unregulated providers of functionally similar telecommunications services or equipment;

(iv) Whether the existence of competition tends to prevent abuses, unjust discrimination and extortion in the charges of telecommunications utilities for the service or facility in question;

(v) The availability of the service or facility from other persons and corporations; or

(vi) Any other factors that the commission considers relevant to the public interest.

In making the determination as above set forth, the commission may specify the period of time during which the utility's rates and charges for the service or facility shall not thereafter be subject to regulation. Likewise, after notice and opportunity for hearing, the commission may revoke a determination and direction made under this section, when the commission finds that commission regulation of the utility's rates and charges for the service or facility in question is necessary to protect the public interest.

(3) (a) Notwithstanding any other provisions of this article or any other statute to the contrary, the commission is authorized to consider and adopt alternative methods of regulation proposed by a utility of the type defined in Section 77-3-3(d)(i), (ii) or (iii) to establish rates for the services furnished by such utility that are fair, just and reasonable to the public and that provide fair, just and reasonable compensation to the utility for such services. No public utility that provides electricity, as described in Section 77-3-3(d)(i), shall assess reconnection fees or charges in excess of one percent (1%) of the delinquent amount due to the nonpayment of electric service to any customer.

(b) For purposes of this subsection, the phrase "alternative methods of regulation" means the regulation of utility rates and charges by methods other than the rate base or rate of return method of regulation set forth in other provisions of this article.

SECTION 2. Section 77-5-155, Mississippi Code of 1972, is amended as follows:

77-5-155. Any district created pursuant to this article shall have the power:

(a) To sue and be sued.

(b) To have a seal.

(c) To acquire by purchase, gift, devise, lease or exercise of the power of eminent domain or other mode of acquisition and to hold and dispose of real and personal property of every kind within or without the district, subject to mortgages or any other liens.

(d) To make and enter into contracts, conveyances, mortgages, deeds of trust, bonds or leases.

(e) To incur debts, to borrow money, to issue negotiable bonds and other evidences of indebtedness and to provide for the rights of holders thereof.

(f) To fix, maintain and collect rates and charges for any service; however, if a customer is disconnected from electric service due to nonpayment for such service, no reconnection fees or charges shall be assessed to a customer in excess of one percent (1%) of the delinquent amount.

(g) To pledge all or any part of its revenues.

(h) To make such covenants in connection with the issuance of bonds, or to secure the payment of bonds, that a private business corporation can make under the general laws of the state, notwithstanding that such covenants may operate as limitations on the exercise of any power granted by this article.

(i) To use any right-of-way, easement or other similar property right necessary or convenient in connection with the acquisition, improvement, operation or maintenance of a utility, held by the state or any political subdivision thereof, provided that the governing body of such political subdivision shall consent to such use.

SECTION 3. Section 77-5-33, Mississippi Code of 1972, is amended as follows:

77-5-33. The authority shall not be operated for gain or profit or primarily as a source of revenue to the state. The authority shall, however, prescribe and collect reasonable rates, fees or charges for the services, facilities and commodities made available by it, and shall revise such rates, fees or charges from time to time whenever necessary so that the authority shall be and always remain self-supporting, and shall not require appropriations by the state to enable it to carry out its purpose. However, the authority shall not assess reconnection fees or charges in excess of one percent (1%) of the delinquent amount for any customer who is disconnected from electric service due to the nonpayment of such service that is provided by the authority. The rates, fees, or charges prescribed shall be such as will produce revenue at least sufficient (a) to pay when due all bonds and interest thereon, for the payment of which such revenue is or shall have been pledged, charged or otherwise incumbered, including reserves therefor, and (b) to provide for all expenses of operation, maintenance or improvement of the system or systems acquired by the authority, including reserves therefor. Any surplus thereafter remaining shall be devoted solely to the reduction of rates.

SECTION 4. Section 77-5-235, Mississippi Code of 1972, is amended as follows:

77-5-235. A corporation formed under the provisions of this article shall have power to charge reasonable fees, rents, tolls, prices and other charges for service rendered which shall be sufficient at all times to pay all operating and maintenance expenses necessary or desirable for the prudent conduct and operation of its business and to pay the principal of and interest on such obligations as the corporation may have issued and/or assumed in the performance of the purpose for which it was formed. However, a corporation shall not assess reconnection fees or charges in excess of one percent (1%) of the delinquent amount to any customer who is disconnected from electric service due to the nonpayment of service that is provided by the corporation. The revenues and receipts of a corporation shall first be devoted to such operating and maintenance expenses and to the payment of such principal and interest and thereafter to such reserves for improvement, new construction, depreciation and contingencies as the board may from time to time prescribe. Revenues and receipts not needed for these purposes shall be returned to the members, by the reimbursement of membership fees, or by way of general rate reductions, as the board may decide.

SECTION 5. Section 77-5-743, Mississippi Code of 1972, is amended as follows:

77-5-743. A municipality is hereby authorized to fix, charge and collect rents, rates, fees and charges for electric power and energy and other services, facilities and commodities sold, furnished or supplied through the facilities of its electric system or its interest in any joint project. However, a municipality shall not assess reconnection fees or charges to any customer in excess of one percent (1%) of the delinquent amount to any customer who is disconnected from electric service due to the nonpayment of such service that is provided by the municipality. For so long as any bonds of a municipality are outstanding and unpaid, the rents, fees and charges shall be so fixed as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its electric system, and its interest in any joint project, and all necessary repairs, replacements or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds and other evidences of indebtedness payable from said revenues, to create and maintain reserves as may be required by any resolution authorizing and securing bonds, to pay when due the principal of, premium, if any, and interest on all bonds heretofore or hereafter issued to finance additions, improvements and betterments to its electric system, and to pay any and all amounts which the municipality may be obligated to pay from said revenues by law or contract. Nothing herein contained shall be construed to prohibit any municipality from expending any revenues in excess of that required herein in any manner otherwise permitted by law.

SECTION 6. Section 77-5-745, Mississippi Code of 1972, is amended as follows:

77-5-745. A joint agency is hereby authorized to fix, charge and collect rents, rates, fees and charges for electric power and energy and other services, facilities and commodities sold, furnished or supplied through the facilities of its projects. However, a joint agency shall not assess reconnection fees or charges to any customer in excess of one percent (1%) of the delinquent amount to any customer who is disconnected from electric service due to the nonpayment of such service that is provided by the joint agency. For so long as any bonds of a joint agency are outstanding and unpaid, the rents, rates, fees and charges shall be so fixed as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its projects, and all necessary repairs, replacements or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds and other evidences of indebtedness payable from said revenues, to create and maintain reserves as may be required by any resolution authorizing and securing bonds, and to pay any and all amounts which the joint agency may be obligated to pay from said revenues by law or contract.

SECTION 7. Section 21-27-29, Mississippi Code of 1972, is amended as follows:

21-27-29. Except for reconnection fees or charges for electric service as provided in Sections 77-5-743 and 77-5-745, rates charged for services furnished by any system or combined system purchased, constructed, improved, enlarged, extended or repaired under the provisions of Sections 21-27-11 to 21-27-69 shall not be subject to supervision or regulation by any state bureau, board, commission, or other like instrumentality or agency thereof. It shall not be necessary for any municipality operating under the provisions of said sections to obtain any franchise or other permit from any state bureau, board, commission or other instrumentality thereof, in order to construct, improve, enlarge, extend or repair any system or combined system. However, billing and service disputes between the system and its customers shall be subject to review and arbitration by the Public Service Commission as provided under Section 77-3-6.

SECTION 8. This act shall take effect and be in force from and after July 1, 2006.