House Bill 809

AN ACT TO AMEND SECTION 21-27-39, MISSISSIPPI CODE OF 1972, TO PROHIBIT CERTAIN MUNICIPALITIES FROM CHARGING GREATER RATES FOR WATER SUPPLIED TO CONSUMERS RESIDING OUTSIDE OF AND WITHIN ONE MILE OF THE CORPORATE LIMITS OF THE MUNICIPALITY THAN FOR WATER SUPPLIED TO CONSUMERS RESIDING WITHIN THE MUNICIPALITY; TO AMEND SECTIONS 77-3-1 AND 77-2-3, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PREVIOUS SECTION; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 21-27-39, Mississippi Code of 1972, is amended as follows:

21-27-39. All municipalities owning or operating any system or systems may supply consumers residing outside of and within five (5) miles of the corporate limits of the municipality. In any county traversed by two (2) or more natural gas transmission lines and having therein two (2) or more natural gas compressor stations engaged in rendering service in interstate commerce, and wherein a natural gas transmission line of a municipality can be laid wholly in alluvial soil, where it is necessary for any municipality having a population of less than one thousand (1,000), according to the federal census of 1950, to construct a gas transmission line for a distance of more than five (5) miles but not more than eleven (11) miles from its corporate limits to the nearest point at which an adequate supply of natural gas can be obtained, and where there are not less than two hundred (200) prospective gas customers residing outside the corporate limits of such municipality but along and within one-half (1/2) mile of the gas transmission line so constructed by the municipality, then and in that event, the municipality may supply natural gas to such customers. Any municipality having its own natural gas transmission system in any county bordering the State of Alabama, in which U.S. Highway No. 78 and State Highway No. 25 intersect, and in which there is a publicly supported junior college, may extend its transmission lines and supply customers within the county for a distance of fifteen (15) miles from the corporate limits. Any municipality having a population of less than one thousand (1,000) people, according to the federal census of 1960, and being located in the county in which U.S. Highway 51 and U.S. Highway 82 intersect, and in the county where the main line of Illinois Central Railroad and Columbus and Greenville Railroad intersect, may construct a gas transmission line and supply customers within a four-county area for a distance of forty-five (45) miles from the corporate limits of the municipality. Any municipality having its own water distribution system, the construction or expansion of which has been financed in whole or in part by an agency of the United States government, and having a population of less than five hundred (500) persons, and located in a county in which Mississippi State Highways Number 12 and Number 429 intersect, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of fifteen (15) miles from the corporate limits. Any municipality having its own water distribution system, the construction or expansion of which has been financed in whole or in part by an agency of the United States government, and having a population of less than fifteen hundred (1500) persons, and located in a county in which Highway 15 and Highway 32 intersect and has a national forest, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of fifteen (15) miles from the corporate limits.

Any municipality having its own water distribution system and located in a county having two (2) judicial districts, and in which Mississippi Highways 17 and 35 intersect, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of fifteen (15) miles from the corporate limits. Any municipality having its own water distribution system, wherein U.S. Highway 51 and Mississippi Highway 35 intersect, and located in a county in which U.S. Highway 82 and Mississippi Highway 17 intersect, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of fifteen (15) miles from the corporate limits. Whenever such service shall be furnished to any consumer residing outside the corporate limits thereof, such consumer may not be charged at a rate greater than twice the rate charged for such services within the municipality.

Any municipality having its own water distribution system and having a population of more than one hundred fifty thousand (150,000), according to the 1990 federal decennial census, may construct, expand and operate its water distribution system within the county or adjoining counties for a distance of five (5) miles from the corporate limits of the municipality, subject to the provisions of Section 77-3-1 et seq. Whenever such service shall be furnished to any consumer residing outside of and within one (1) mile of the corporate limits of the municipality, such consumer may not be charged at a rate greater than the rate charged for such services within the municipality, unless the municipal governing authority, by written report filed with the Public Service Commission and the Public Utilities Staff, shows in sufficient detail that a higher rate is just and reasonable and necessary to defray additional costs of serving consumers residing within such area outside of but within one (1) mile of the municipal corporate limits. The Public Utilities Staff shall review the report and conduct such evaluation and investigation as it deems necessary and file a written recommendation for approval, disapproval or revision of such rate with the commission within forty-five (45) days of the filing date of the municipality's report with the staff. The municipality shall cooperate fully with the staff's evaluation and investigation, and failure to do so may result in disapproval of the higher rate. The commission, by order, shall make a final determination of the rate to be charged after a public hearing thereon to be held within thirty (30) days of the filing date of the staff's written recommendation. However, in no event shall the rate exceed twice the rate within the municipal corporate limits.

Any municipality located within a county bordering the Mississippi River and in which Highways 49 and 61 intersect may acquire, construct, expand and operate its railroad transportation system for the transportation of passengers and freight for more than five (5) miles outside its corporate limits and outside the boundaries of the county in which it is located. Any municipality having a population of more than forty-five thousand (45,000) but less than forty-five thousand one hundred (45,100) according to the 1970 federal decennial census, may expand its motor vehicle transportation system for the transportation of passengers for more than five (5) miles outside its corporate limits.

Any municipality having a population of less than five hundred (500) according to the 1980 federal decennial census, being located north of U.S. Highway 82 in a county in which is located a United States Air Force base and a state-supported institution of higher learning established primarily for women, which criteria the Legislature finds to be conducive to the expansion of natural gas service to support contiguous areas of such Air Force base, may construct, own and/or operate a public utility or natural gas system and supply customers within the county for a distance of eleven (11) miles from the corporate limits.

SECTION 2. Section 77-3-1, Mississippi Code of 1972, is amended as follows:

77-3-1. Except as otherwise provided in Section 77-3-6 and Section 21-27-39, any public utility as defined in paragraph (d) of Section 77-3-3, owned or operated by a municipality shall not be subject to the provisions of this article, except as to extension of utilities greater than one (1) mile outside corporate boundaries after March 29, 1956.

SECTION 3. Section 77-2-3, Mississippi Code of 1972, is amended as follows:

77-2-3. (1) The public utilities staff created pursuant to Section 77-2-1 and the Public Service Commission and commission staff shall have and possess all of the rights and powers to perform all of the duties vested by this chapter as well as any other duties required by state law.

(2) The functions of the commission, with the aid and assistance of its staff, shall be regulatory and quasi-judicial in nature. It may make such investigations and determinations, hold such hearings, prescribe such rules and issue such orders with respect to the control and conduct of the businesses coming within its jurisdiction. It may adjudicate all proceedings brought before it in which the violation of any law or rule administered by the commission is alleged.

(3) The primary functions of the public utilities staff shall be investigative and advisory in nature.

SECTION 4. This act shall take effect and be in force from and after its passage.