MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Energy
By: Senator(s) Burton
AN ACT TO AMEND SECTION 77-3-17, MISSISSIPPI CODE OF 1972, TO REQUIRE ANY ELECTRIC COOPERATIVE WHICH OPERATES WITHIN ANY AREA OF A MUNICIPALITY TO PAY THAT MUNICIPALITY A CERTAIN PERCENTAGE OF THE GROSS REVENUE FROM SALES TO INDUSTRIAL CUSTOMERS WITHIN THE MUNICIPALITY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 77-3-17, Mississippi Code of 1972, is amended as follows:
77-3-17. In addition to
such other rights as it may have to use the streets, alleys and public places
of a municipality, a public utility which holds a certificate of public
convenience and necessity granted under the provisions of this article covering
the geographical area of such municipality, and which (1) is operating under a
municipal franchise on March 29, 1956, or (2) shall have previously operated
under such a municipal franchise which has expired within five (5) years prior
to said date, or (3) which shall hereafter operate under a municipal franchise
hereafter granted, may, after the expiration of any such franchise continue to
use the streets, alleys and public places therein situated upon condition that
(1) such utility shall pay the said municipality compensation therefor at the
rate of two percent (2%) of said utility's gross revenue from sales to
residential and commercial customers within said municipality, in the
case of a utility defined in subparagraphs (i) and (ii) of paragraph (d) of
Section 77-3-3 and in the case of a utility defined in subparagraph (iii) of
paragraph (d) of said section, the said utility shall pay two percent
(2%) of the monthly service charges in said municipality whether said utility
has a franchise to operate therein or not, such payments to be made quarterly
of each year, and (2) after the expiration of such franchise the municipality,
or any customer of such utility in such municipality, upon appropriate
petition, shall be entitled to a hearing as to whether or not the certificate
of convenience and necessity may then and thereafter be granted on a permanent
basis. Any co-operative which shall operate within any area of a municipality
shall likewise pay such municipality two percent (2%) of the co-operative's
gross revenue from sales to residential * * *, commercial and industrial
customers within said municipality.
Any municipality shall have the right to acquire by purchase, negotiation or condemnation the facilities of any utility that is now or may hereafter be located within the corporate limits of such municipality; provided, however, prior to any municipality exercising the right of eminent domain as provided herein, the commission shall determine that the certificate of public convenience and necessity granted to the utility pursuant to Section 77-3-13 for the service area wherein such facilities are located, shall be cancelled as provided in Section 77-3-21.
SECTION 2. This act shall take effect and be in force from and after July 1, 2014.