House Bill 1569

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 IS NOT CHARGING FAIR RATES FOR SERVICES; TO AUTHORIZE THE COMMISSION TO FACILITATE MEDIATION PROCEEDINGS BETWEEN TWO WATER DISTRICTS WHENEVER THE DISPUTE BETWEEN THE DISTRICTS IS NEGATIVELY IMPACTING THE RATEPAYERS OF ONE OR BOTH DISTRICTS; TO AMEND SECTION 17-5-3, MISSISSIPPI CODE OF 1972, TO AUTHORIZE ALL COUNTIES AND MUNICIPALITIES TO PURCHASE WATERWORKS SYSTEMS AND TO BORROW MONEY FOR SUCH PURPOSE; TO BRING FORWARD SECTION 77-3-22, MISSISSIPPI CODE OF 1972, FOR PURPOSES 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. (1) 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.

(2) 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.

(3) 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 and charging fair rates for public utility services. 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.

(4) Notwithstanding Section 77-3-1(1), the commission has jurisdiction to review, investigate and mediate a dispute between two (2) certificated water districts whenever the conflict, in the determination of the commission, is negatively impacting the ratepayers of one (1) or both of the districts. The commission may compel the attendance of representatives of each involved water district at mediation proceedings. In a mediation proceeding under this subsection, the commission may facilitate negotiations between the water districts for the resolution of the dispute; however, the commission may perform only those duties relating to the dispute as the commission deems reasonable and likely to result in a resolution satisfactory to both water districts. Continued participation in an investigation, proceeding and mediation proceeding must be voluntary by the representatives of each water district. The commission may not commence proceedings or an investigation under this subsection if a suit has been filed in a state or federal court with regard to the subject matter of the dispute in which one (1) or both of the water districts are a party.

SECTION 2. Section 17-5-3, Mississippi Code of 1972, is amended as follows:

17-5-3. (1) Counties * * *or and municipalities * * * are * * *~~hereby~~ authorized and empowered, by resolution adopted by a majority vote of their governing bodies * * *, : (a) to acquire, lease, construct, improve or extend, within and without their territorial limits, waterworks systems, sewer systems, sewage disposal systems, garbage disposal systems, rubbish disposal systems, or any one (1) or any combination thereof; and (b) to borrow money and issue bonds therefor, pursuant to the provisions of Sections 17-5-3 through 17-5-11 without regard to the limitations and restrictions of any other law, for the purpose of financing the acquisition, leasing, construction, improvement or extension of any one (1) or any combination of such systems or public works, which bonds shall be payable as to both principal and interest from revenues derived from the operation of any one (1) or any combination of such systems or public works, as the same may be added to, extended or improved. Bonds issued pursuant to Sections 17-5-3 through 17-5-11 shall be subject to validation under the laws of this state, and nothing in the provisions of such sections shall operate to dispense with approvals respecting the authorized systems or public works by any state department or agency in accordance with law.

(2) The provisions of subsection (1) of this section authorizing the acquisition, leasing, construction, improvement or extension of garbage disposal systems and rubbish disposal systems shall not apply in any county having a land area of more than seven hundred (700) square miles and a population of more than ten thousand two hundred (10,200) but not more than ten thousand two hundred fifty (10,250) according to the 1990 federal census.

SECTION 3. Section 77-3-22, Mississippi Code of 1972, is brought forward 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 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 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, sewer or electric service affairs and who shall maintain control and responsibility for the operation and management of the affairs of such system. The receiver shall operate the system so as to preserve the assets of the system and to serve the best interests of its customers. The receiver shall be compensated from the assets of the system in an amount to be determined by the court.

Control of and responsibility for the system shall remain in the receiver until the court determines that it is in the best interests of the customers that the system be returned to the owner, transferred to another owner or assumed by another operator, system or public service corporation. If the court, after hearing, determines that control of and responsibility for the affairs of the system should not be returned to the legal owner thereof, the receiver may proceed to liquidate the assets of such 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 4. This act shall take effect and be in force from and after July 1, 2025.