MISSISSIPPI LEGISLATURE

2025 Regular Session

To: Energy

By: Senator(s) Carter

Senate Bill 2369

AN ACT TO AMEND SECTION 77-3-1, MISSISSIPPI CODE OF 1972, TO ENSURE THAT MUNICIPALLY OWNED OR OPERATED PUBLIC UTILITIES ARE SUBJECT TO THE PROVISIONS OF THAT SECTION; TO AMEND SECTION 77-3-5, MISSISSIPPI CODE OF 1972, TO STIPULATE THAT MUNICIPALLY OWNED OR OPERATED PUBLIC UTILITIES SHALL UNDERGO ANNUAL AUDITS CONDUCTED BY THIRD-PARTY FIRMS; TO REQUIRE THAT THE RESULTS OF SUCH AUDITS BE REPORTED TO THE PUBLIC SERVICE COMMISSION AND THE PUBLIC UTILITIES STAFF; 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.

(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 77-3-5, Mississippi Code of 1972, is amended as follows:

     77-3-5.  (1)  Notwithstanding any other provision of law, and subject only to the limitations imposed in this chapter and in accordance with the provisions of this chapter, the Public Service Commission shall have exclusive original jurisdiction over the intrastate business and property of public utilities and, for purposes of clarification of the existing scope of said exclusive original jurisdiction, such exclusive original jurisdiction extends, but is not limited to:  the establishment of retail rates; challenges, including customer complaints, to the amount of a retail rate or customer bill or whether such rate is just and reasonable; and challenges to the validity or accuracy of rates charged by a public utility, or to the accuracy or reliability of information submitted to the Public Service Commission by a public utility or other person in support of or in opposition to a proposed or approved rate, regardless of the legal theory upon which any such challenge is made.  However, the commission shall not have jurisdiction over the production and gathering of natural gas or the sale of natural gas in or within the vicinity of the field where produced, or over the facilities and equipment utilized in any such operations, including, but not limited to, such facilities as separators, scrubbers and gasoline plants of all types.  Further, the commission shall not have jurisdiction over the governance, management or other internal affairs of entities as described by paragraphs (b) and (c) below.  Moreover, the commission shall not have jurisdiction to regulate the rates for the sales and/or distribution:

          (a)  Of gas, water, electricity or sewage disposal services by municipalities to such persons as said municipalities are authorized by law to serve;

          (b)  Of gas or electricity by cooperative gas or electric power associations to the members thereof as consumers, except as provided by Section 77-3-17, where service is rendered in a municipality;

          (c)  Of water or sewage disposal service by nonprofit corporations or associations where the governing body of such corporation or association is elected by the consumers thereof or appointed by the county board of supervisors; or

          (d)  Of water by districts organized under the provisions of Chapter 45, Laws of 1966-1967, Extraordinary Session.

     (2)  Notwithstanding any other provision of law, the Public Service Commission shall have the authority to contract with third-party firms to conduct annual audits of municipally owned and operated public utilities.  The findings of such audits shall be reported to the Public Service Commission and the Public Utilities Staff by December 1 each year.  Violation of this subsection (2) shall result in a civil fine to be set by the Public Service Commission.

     SECTION 3.  This act shall take effect and be in force from and after July 1, 2025.