House Bill 594

AN ACT TO AMEND SECTION 77-3-1, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MUNICIPAL OWNED PUBLIC UTILITIES SHALL NOT BE SUBJECT TO THE JURISDICTION OF THE PUBLIC SERVICE COMMISSION IF SUCH RATE INCREASE IS FOR CUSTOMERS WHO RESIDE MORE THAN ONE (1) MILE OUTSIDE OF MUNICIPAL BOUNDARIES AND THE INCREASE IS WITHIN THE COST OF LIVING ADJUSTMENT FROM THE PREVIOUS FISCAL YEAR; TO AMEND SECTION 77-3-6, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING SECTION; AND FOR RELATED PURPOSES.

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

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

77-3-1. (1) Except as otherwise provided in Section 77-3-6, 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; provided, however, if such extension of utilities is greater than one (1) mile and an increase in rates is proposed and such rate increase is within the cost of living increase from the previous fiscal year, then the increase shall not be subject to the provisions of this article.

(2) The provisions of this chapter shall not apply to the distribution of water by an eligible homeowners association only to its residents, irrespective of the subdivision's location inside of an area subject to a Certificate of Public Convenience and Necessity held by an eligible municipality. Additionally, the provisions of this chapter shall not apply to any entity supplying water to an eligible homeowners association for purposes of supplying water only to its residents. These provisions shall not apply whether an eligible homeowners association elects to provide water to its residents on a full-time basis or opts for an emergency connection to a private water source for use only when water from an eligible municipality is unavailable, unreliable or unsafe.

SECTION 2. Section 77-3-6, Mississippi Code of 1972, is amended as follows:

77-3-6. (1) Except as otherwise provided under Section 77-3-1 regarding rate increases for customers who reside more than one (1) mile outside of municipal boundaries, any dispute between a municipally owned or operated public utility and a customer of such public utility with regard to billing and/or services in excess of Two Thousand Five Hundred Dollars ($2,500.00) shall be subject to investigation, review and arbitration by the commission upon petition filed therefor with the commission by such public utility or customer. However, the commission shall not commence any investigation or proceedings pursuant to such petition if at the time of filing the petition suit has been filed in any court of this state or of the United States with regard to the subject matter of the dispute and in which such public utility and customer are parties. Any such petition shall be immediately dismissed if any such suit is filed after filing of the petition with the commission.

(2) In any arbitration proceedings commenced under the provisions of this section, the commission may, by order entered on its minutes and delivery of a certified copy thereof to the public utility, direct any municipally owned or operated public utility to provide the commission with copies of all statements, accounts and reports concerning operation of the public utility which the utility is required to provide the governing authorities of the municipality under Section 21-27-17. The commission is further authorized to conduct and shall conduct investigation of and informal hearings in the dispute and may negotiate with the public utility and the customer for the resolution thereof. In every arbitration proceeding under this section the commission shall perform such duties as it deems reasonable and likely to result in settlement of the dispute without commencement of litigation between the public utility and the customer.

(3) Participation in any investigation, proceeding, negotiation, or settlement under the provisions of this section shall be voluntary by the public utility and the customer; however, no suit may be commenced in any court of this state by either the public utility or customer based upon the facts giving rise to the dispute for a period of sixty (60) days after a petition is filed with the commission under this section.

(4) The provisions prescribed herein for the Public Service Commission to investigate, review and arbitrate disputes between a municipally owned or operated public utility and a customer of such public utility shall not extend to tort actions.

SECTION 3. This act shall take effect and be in force from and after July 1, 2024.