Municipally owned energy distribution system; expand oversight., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Public Utilities

By: Representative

House Bill 1305

(As Sent to Governor)

AN ACT TO AMEND SECTION 77-3-5, MISSISSIPPI CODE OF 1972, TO
STIPULATE THAT CERTAIN MUNICIPALLY OWNED OR OPERATED PUBLIC UTILITIES SHALL
UNDERGO ANNUAL AUDITS CONDUCTED BY THIRD-PARTY FIRMS; TO PROVIDE FOR
SEVERABILITY OF THIS ACT; TO STIPULATE THAT THIS ACT SHALL NOT APPLY TO ANY
ACTIONS OR PROCEEDINGS PENDING ON THE EFFECTIVE DATE OF THIS ACT; AND FOR
RELATED PURPOSES.

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

SECTION 1.  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
for the production and gathering of natural gas or the sale * * * of natural gas and/or distribution 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 adequately
provided gas, water, electricity * * * or and sewage disposal services by
municipalities to * * *
such persons as said municipalities are authorized by law to serve customers
located within and including one (1) mile outside of their corporate boundaries;

(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 only if a public utility receives a
"D" or "F" rating from the Department of Health according to
the provisions of House Bill No. 1632, 2026 Regular Session, by request of the
mayor of the municipality, or by request of a supermajority of either the board
of alderman or city council of the municipality.  The cost of such review is to
be borne by the particular public utility subject to the review.  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 2.  If
any section, paragraph, sentence, clause, phrase or any part of this act is
declared unconstitutional or void, or if for any reason is declared to be
invalid or of no effect, the remaining sections, paragraphs, sentences,
clauses, phrases or parts thereof shall be in no matter affected thereby but
shall remain in full force and effect.

SECTION 3.
This act shall not apply to any actions or proceedings pending on the effective
date of this act.

SECTION 4.  This act
shall take effect and be in force from and after July 1, 2026.