House Bill 1484

AN ACT TO AMEND SECTION 77-3-21, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE PUBLIC SERVICE COMMISSION TO CANCEL A MUNICIPALITY'S CERTIFICATE TO PROVIDE SERVICE GREATER THAN ONE MILE OUTSIDE ITS CORPORATE BOUNDARIES UPON A FINDING THAT THE MUNICIPALITY DID NOT PROVIDE REASONABLY ADEQUATE SERVICE; TO AMEND SECTION 77-3-22, MISSISSIPPI CODE OF 1972, TO INCLUDE MUNICIPALLY OWNED OR OPERATED ELECTRIC UTILITIES PROVIDING SERVICE GREATER THAN ONE MILE OUTSIDE OF MUNICIPAL BOUNDARIES; TO BRING FORWARD SECTION 77-3-1, MISSISSIPPI CODE OF 1972, FOR PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 77-3-21, Mississippi Code of 1972, is amended as follows:

77-3-21. The commission may, after a hearing had upon due notice, make such findings as may be supported by proof as to whether any utility holding a certificate under the provisions of this article is rendering reasonably adequate service in any area covered by such utility's certificate. In the event the commission finds that such utility is not rendering reasonably adequate service the commission may enter an order specifying in what particulars such utility has failed to render reasonably adequate service and order that such failure be corrected within a reasonable time, such time to be fixed in such order. If the utility so ordered to correct such a failure fails to comply with such order of the commission and the commission finds that cancellation of its certificate would be in the best interest of the consuming public served by the holder of the certificate, its certificate for the area affected may be revoked and cancelled by the commission.

Prior to any municipality exercising the power of eminent domain as provided in Section 77-3-17, 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 this section. Nothing in this paragraph shall be construed to include service for water and sewage.

Notwithstanding Section 77-3-1(1), the commission shall have jurisdiction to investigate whether any municipality that holds a certificate to provide service greater than one (1) mile outside its municipal boundaries is providing reasonably adequate service. Following a hearing and upon making such a finding, the commission shall have full authority to enter any order authorized under this section, including canceling the certificate for the area that extends beyond the municipalities' boundaries.

SECTION 2. Section 77-3-22, Mississippi Code of 1972, is amended as follows:

77-3-22. Notwithstanding Section 77-3-1(1), if the commission determines that any privately owned water and/or sewer system, or any municipally owned or operated electric utility providing service greater than one (1) mile outside its municipal boundaries and within its jurisdiction is unable or unwilling to adequately serve its customers or has been actually or effectively abandoned by its owner, or that its management is grossly inefficient, irresponsible or unresponsive to the needs of its customers, the commission or its designated representative may petition the Chancery Court of the First Judicial District of Hinds County or the chancery court of any county wherein the public utility does business for an order attaching the assets of the privately owned water and/or sewer system or municipally owned or operated electric utility and placing such * * *~~water and/or sewer~~ system under the sole control and responsibility of a receiver. If the court determines that the petition is proper in all respects and finds, after a hearing thereon, the allegations contained in the petition are true, it shall order that the * * *~~water and/or sewer~~ system be placed in receivership. The court, in its discretion and in consideration of the recommendation of the commission or its designated representative, may appoint a receiver who shall be a responsible individual, partnership, corporation or political subdivision knowledgeable in water * * *or, sewer or electric service affairs and who shall maintain control and responsibility for the operation and management of the affairs of such * * *~~water and/or sewer~~ system. The receiver shall operate the * * *~~water and/or sewer~~ system so as to preserve the assets of the * * *~~water and/or sewer~~ system and to serve the best interests of its customers. The receiver shall be compensated from the assets of the * * *~~water and/or sewer~~ system in an amount to be determined by the court.

Control of and responsibility for the * * *~~water and/or sewer~~ system shall remain in the receiver until the court determines that it is in the best interests of the customers that the * * *~~water and/or sewer~~ system be returned to the owner, transferred to another owner or assumed by another * * *~~water and/or sewer~~ operator, system or public service corporation. If the court, after hearing, determines that control of and responsibility for the affairs of the * * *~~water and/or sewer~~ system should not be returned to the legal owner thereof, the receiver may proceed to liquidate the assets of such * * *~~water and/or sewer~~ system in the manner provided by law.

In any court-initiated receivership for a municipally owned or operated electric utility providing service greater than one (1) mile outside its municipal boundaries, the receiver shall assume the responsibilities and obligations of the municipality with regard to any existing wholesale power contract.

Mississippi laws and Mississippi Rules of Civil Procedure generally applicable to receivership shall govern receiverships created under this section.

This section is in addition to the provisions of Section 77-3-21.

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

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