Bill Text: MS HB1184 | 2025 | Regular Session | Introduced
Bill Title: Electrical utilities; authorize certain large customer supply and service agreements with customers have MDA approved project.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-20 - Referred To Public Utilities [HB1184 Detail]
Download: Mississippi-2025-HB1184-Introduced.html
MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Public Utilities
By: Representative Powell
House Bill 1184
AN ACT TO CREATE NEW SECTION 77-3-273, MISSISSIPPI CODE OF 1972, TO AUTHORIZE CERTAIN PUBLIC UTILITIES TO ENTER INTO A LARGE CUSTOMER SUPPLY AND SERVICE AGREEMENT WITH RETAIL ELECTRIC CUSTOMERS HAVING A PROJECT APPROVED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY AS MEETING MINIMUM REQUIREMENTS RELATING TO CAPITAL INVESTMENT AND NEW JOBS; TO AMEND SECTIONS 77-3-10, 77-3-11, 77-3-13, 77-3-14, 77-3-16, 77-3-35, 77-3-37, 77-3-39, 77-3-41, 77-3-93 AND 77-3-95, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 77-3-273, Mississippi Code of 1972:
77-3-273. (1) While regulation of public utilities is essential to the public interest, timely electrical infrastructure expansion in connection with economic expansion or resiliency has greater priority given the size, nature, and estimated economic impact of a project. Accordingly, the public convenience and necessity and the public interest require a public utility to construct, acquire, own, operate, maintain or improve the electric generation, transmission and distribution facilities, along with related property and rights-of-way, necessary to directly or indirectly provide electric service on an exclusive basis, including procuring the energy and capacity to meet the electrical service needs of an eligible project approved by the Mississippi Development Authority. The requirements of this section shall apply solely to facilities of a public utility for which a public utility has executed a large customer supply and service agreement.
(2) For purposes of this section, the following terms have the meanings ascribed herein unless otherwise plainly indicated:
(a) "Commission" means the Public Service Commission.
(b) "Customer" means a retail electric customer with a project meeting minimum requirements established by the Mississippi Development Authority relating to capital investment and number and average annual salary of new full-time jobs and approved as an eligible project by the authority.
(c) "Facility" or "facilities" means an electric generation, transmission or distribution facility constructed, acquired, owned, operated, maintained or improved by a public utility or purchased energy or capacity costs in order to directly or indirectly provide electric service to a customer in connection with an approved eligible project.
(d) "Large customer supply and service agreement" or "agreement" means a contract between a public utility and a customer in connection with an approved project.
(e) "Public utility" has the definition provided in Section 77-3-3.
(f) "Staff" means the Public Utilities Staff.
(3) A public utility may enter into a large customer supply and service agreement with a customer, which may include terms and pricing for electric service without reference to the rates or other conditions that may be established or fixed under Title 77, Chapter 3, Article 1, Mississippi Code of 1972. No approval by the commission of such agreement shall be required. With respect to such an agreement:
(a) The terms of the agreement shall be designed to provide other customers of the public utility with an economic benefit resulting from the customer's added electrical service needs;
(b) The agreement, including any pricing or charges for electric service, shall not be subject to alteration or any other modification or cancelation by the commission, for the entire term of the agreement;
(c) The commission shall not assign or impute a revenue requirement to the customer or the public utility in connection with a general retail rate proceeding, including a formula rate plan review, another cost recovery mechanism, or any proceeding associated therewith, in a manner that assigns or imputes a revenue requirement in an amount and allocation different than addressed by or realized pursuant to the terms and conditions of the agreement;
(d) Any agreement, including any amendments or renewals, and its terms, including all charges for electrical service, shall constitute a trade secret and confidential commercial and financial information as referenced in Section 79-23-1(2), and shall be exempt from public disclosure under the Mississippi Public Records Act of 1983;
(e) Any electric generating facility or energy or capacity source subject to this section that is added by a public utility shall meet at least two (2) of the following three (3) criteria:
(i) Promoting grid resiliency;
(ii) Enhancing fuel diversity; and/or
(iii) Implementing, currently or in the future, processes for the reduction or minimization of risk related to regulated air emissions, including reducing production of or capturing and sequestering such emissions.
(4) Notwithstanding any provision in Title 77, Mississippi Code of 1972, or any related rules of the commission, no action shall be required by a public utility prior to constructing, acquiring, owning, operating, maintaining or improving the electric generation, transmission and distribution facilities, or otherwise acquiring energy or capacity, necessary to directly or indirectly provide electric service to a customer. However, with respect to any such facilities or contracts, the public utility shall provide to the commission and staff, for informational purposes only, the following prior to project completion:
(a) How such generation, transmission or distribution facilities, or other means for acquisition of energy or capacity, are necessary to directly or indirectly serve the customer pursuant to the terms of a large customer supply and service agreement;
(b) An outline map of the utility's existing certificated area showing the location of the proposed new facilities;
(c) A detailed description of the facilities proposed;
(d) An estimate of construction or purchase costs;
(e) How any such generation facility technology or energy or capacity source meets at least two (2) of the three (3) criteria in subsection (3)(e) of this section; and
(f) If applicable, a copy of any contract for the acquisition or purchase of energy or capacity, which contracts shall be exempt from public disclosure under the Mississippi Public Records Act of 1983.
(5) For any facility, the public utility is authorized to begin land acquisition, including rights-of-way, or construction activities as expeditiously as practical, including prior to the receipt by the public utility of all required permits and governmental or regulatory approvals or satisfaction of regional transmission organization tariff requirements.
(6) The costs of any long-lead time equipment, preconstruction or construction activity, property right acquisition or infrastructure necessary to provide, directly or indirectly, timely service to the customer, and which is ordered, undertaken or incurred prior to receipt of required permits, governmental and regulatory approvals, and/or compliance with regional transmission organization tariff requirements shall be deemed used and useful under Section 77-3-44, irrespective of whether said permits or requests are granted or approved or actions are found compliant with applicable tariff requirements. Any such costs shall be subject to a prudence review by the commission as described in subsection (8)(d) of this section.
(7) Notwithstanding any provision in Title 77, Mississippi Code of 1972, any contracts of a public utility for construction, extension and/or repair of facilities, capture or sequestration of emissions, or purchase of energy or capacity shall not be subject to competitive bidding requirements.
(8) Notwithstanding any provision in Title 77, Mississippi Code of 1972, or any related rules of the commission regarding general retail rate proceedings, this subsection (8) shall prescribe cost recovery procedures for facilities. For any facilities or related costs, the public utility shall hire an independent public accounting firm to audit construction or purchase costs associated therewith. For any facilities or related costs, the staff shall be authorized to hire an independent consultant to assist in review of the prudence of costs related to the facilities. Such independent consultant shall be paid for by the public utility. Payment of any such audit or independent consultant by the public utility shall be considered as preconstruction, construction, operating or related costs and recoverable pursuant to the public utility's applicable rate schedules. Computation of time limitations prescribed herein shall be consistent with the rules of state courts of Mississippi. In addition:
(a) The public utility shall be allowed to annually forecast its revenue requirement, including costs described in paragraph (f) of this subsection (8), on a forward-looking basis, subject to look-back or true-up from the audit referenced in paragraph (b) of this subsection (8), for all construction or purchased capacity or energy costs, and to begin cost recovery based on such forecast within thirty (30) days of providing the commission with rate factors implementing its proposed cost recovery through interim capacity rate adjustments to the public utility's formula rate plan or through a separate rate rider schedule for this sole purpose;
(b) The public accounting firm shall audit any such costs subject to this section to determine that such costs are properly identified and recorded, with each annual audit covering the twelve (12) months ending November 30th of each year. The annual audit shall be submitted to the Staff Executive Director by January 31 of each year. The public utility may file cost factors as described in paragraph (a) of this subsection (8) within thirty (30) days following submission of the annual audit to the Staff Executive Director. All costs, including those described in paragraph (f) of this subsection (8), that are verified in each audit to be properly identified and recorded shall be presumed to be prudently incurred, unless a serious doubt is raised with respect to specific costs;
(c) The Staff Executive Director shall submit a report summarizing the review of the prudence of costs to the commission within ninety (90) days after each facility being placed in service. The public utility also shall provide the commission with revised rate factors implementing its proposed cost recovery. The commission shall rule within sixty (60) days of submission on the prudence of the costs submitted by the staff. In any case where costs are found to be imprudent or otherwise disallowed, the commission must grant any request for reconsideration by a public utility and hold a hearing, if requested, and issue an order within ninety (90) days;
(d) Upon a commission finding that all such costs were prudently incurred by the public utility, the commission shall allow recovery of all such prudently incurred costs through interim capacity rate adjustments to the public utility's formula rate plan or through a separate rate rider schedule for this sole purpose, which shall become effective within thirty (30) days after issuance of such commission prudence finding;
(e) Notwithstanding the foregoing, the public utility may reflect in its rates, subject to refund or credit to customer bills, all such costs incurred by it or an affiliate on its behalf in connection with this section during the pendency of any appeal of a commission order disallowing costs from recovery in rates, without any requirement to post a bond. Any such appeals shall be governed by Section 77-3-72;
(f) The commission shall allow in rate base, through interim capacity rate adjustments to the public utility's formula rate plan or other rate rider schedule, the original costs of any facilities expected to be used and useful within five (5) years of initially being reflected in rates;
(g) For any contracts for energy or capacity, the commission shall allow the public utility to begin recovery of all costs described by Section 77-3-93(1) to begin as promptly as feasible, but in no case longer than thirty (30) days after the public utility begins to purchase the applicable energy or capacity, through any existing applicable cost recovery mechanism on file with the commission, or through a separate rate rider schedule if requested by the public utility. The expenses associated, incurred or connected with processes for the reduction or minimization of risk related to air emissions, including reducing production of or capturing, transporting and sequestering such emissions, shall be considered as actual cost of fuel burned or consumed in generating facilities; and
(h) The recovery of any such costs shall not be subject to any cost caps applicable to or provided within the public utility's formula rate plan.
(9) Any application by a public utility for a state, county, local or other required permit associated with any facilities shall be prioritized in the permitting process. Any public notice and preapproval requirements related to the approval of signage, land use or zoning which apply to any county or municipality are hereby waived to permit any necessary approvals to occur so as to be approved within thirty (30) days of application. Any permits or approvals granted on an expedited basis under this section shall be valid and shall not be voided for reasons related to notice, failure to satisfy preapproval requirements or speed of approval.
SECTION 2. Section 77-3-10, Mississippi Code of 1972, is amended as follows:
77-3-10. (1) All public utilities, the rates of which are subject to regulation under the provisions of this chapter, shall file with the commission copies of contracts, wherein the consideration therefor is One Million Dollars ($1,000,000.00) or more, with any holding, managing, operating, constructing, engineering or purchasing company, which is an affiliate of or a subsidiary of, such public utility, and when requested by the commission, copies of such contracts wherein the consideration therefor is less than One Million Dollars ($1,000,000.00) and copies of contracts with any person selling service of any kind. The commission may, after hearing on reasonable notice, disallow any payment to be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base under any such contract if it is found by the commission to be unjust or unreasonable, or made for the purpose or with the effect of concealing, unreasonably transferring or unreasonably dissipating the earnings of the public utility. Provided, however, that in the case of a public utility with fewer than twenty-five thousand (25,000) customers, this subsection shall apply only to such contracts as the commission shall request such public utility to file.
(2) No public utility as described in subsection (1) of this section shall pay any fees, commission or compensation of any description whatsoever to any affiliated or subsidiary holding, managing, operating, constructing, engineering or purchasing company for services rendered or to be rendered without first filing copies of all agreements and contracts therefor with the commission. The commission may, after hearing on reasonable notice, disallow any such payment to be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base under such agreement or contract if it is found by the commission to be unjust or unreasonable. Provided, however, that this subsection shall not apply to motor carriers of passengers.
(3) The public service commission staff, upon direction of the commission, shall have full power and authority to investigate any such contract, arrangement, purchase or sale, and no payment disallowed by the commission shall be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base. If, in any such investigation, the public utility or affiliate shall unreasonably refuse to comply with any request of the commission for information with respect to relevant accounts and records, whether of such public utility or any affiliate, any portion of which may be applicable to any transaction under investigation, so that such parts thereof as the commission may deem material may be made part of the record, such refusal shall justify the commission in disapproving the transaction under investigation and disallowing payments in pursuance thereof, to be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base.
(4) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 3. Section 77-3-11, Mississippi Code of 1972, is amended as follows:
77-3-11. (1) No person
shall construct, acquire, extend or operate equipment for manufacture, mixing,
generating, transmitting or distributing natural or manufactured gas, or mixed
gas, or water, for any intrastate sale to or for the public for compensation,
or for the operation of a public utility operating a business and equipment or
facilities as contemplated by * * * Section
77-3-3(d)(iii), without first having obtained from the commission a
certificate that the present or future public convenience and necessity require
or will require the operation of such equipment or facility.
(2) No person shall construct, acquire, extend or operate equipment for manufacture, generating, transmitting or distributing electricity for any intrastate or interstate sale to or for the public for compensation without first having obtained from the commission a certificate that the present and future public convenience and necessity require or will require the operation of such equipment or facility. Provided, however, nothing herein contained shall be construed to require a joint municipal electric power agency organized in accordance with the provisions of Section 77-5-201 et seq., Mississippi Code of 1972, to obtain any permit, license, certificate or approval from the Mississippi Public Service Commission.
(3) No person shall construct, acquire, extend or operate equipment or facilities for collecting, transmitting, treating or disposing of sewage, or otherwise operating an intrastate sewage disposal service, to or for the public for compensation, without first having obtained from the commission a certificate that the present or future public convenience and necessity require or will require the operation of such equipment or facilities.
(4) However, nothing herein shall be construed to require any certificate of convenience and necessity from the commission for the production and gathering of natural gas, the sale of natural gas in or within the vicinity of the field where produced, the distribution or sale of liquefied petroleum gas, the sale of natural gas to the ultimate consumer for use as a motor vehicle fuel, or for the facilities and equipment utilized in any such operations.
(5) Upon complaints filed by not less than ten percent (10%) of the total subscribers or three thousand five hundred (3,500) subscribers of a public utility, whichever is less, then the commission shall hold a hearing on the adequacy of service as contemplated in Section 77-3-21.
(6) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 4. Section 77-3-13, Mississippi Code of 1972, is amended as follows:
77-3-13. (1) The commission shall issue a certificate of convenience and necessity to any person engaged in the construction or operation of such equipment or facility as is mentioned in subsection (1) of Section 77-3-11 on March 29, 1956, for the construction or operation then being conducted, without requiring proof that public convenience and necessity will be served by such construction or operation, and without further proceedings, if application for such certificate is made to the commission within six (6) months after March 29, 1956. Any utility covered by this chapter which has heretofore been under the jurisdiction of the commission shall, upon application within six (6) months of March 29, 1956, be issued a certificate authorizing it to conduct operations and make extensions within any area covered by its service area map or maps on file with the commission on March 29, 1956.
(2) The commission shall issue a certificate of convenience and necessity to any person engaged in the construction or operation of a sewage disposal service as mentioned in subsection (2) of Section 77-3-11 on August 9, 1968, for the construction or operation then being conducted, without requiring proof that public convenience and necessity will be served by such construction or operation, and without further proceedings, if application for such certificate is made to the commission within six (6) months after August 9, 1968. Pending the filing of such application and the issuance of a certificate, the continuance of such construction or operation shall be lawful.
Except as otherwise specifically provided by subsection (2) of Section 77-3-11 or by this subsection, that portion of the business of a public utility dealing with the operation of a sewage disposal service as provided by subsection (2) of Section 77-3-11 shall be subject to provisions of this chapter, in like manner and with like effect as if such business had been included within the definition of a "public utility" in the original enactment of this chapter.
(3) In all other cases, except as provided in subsection (9) of this section, the commission shall set the matter for hearing, and shall give reasonable notice of the hearing thereon to all interested persons, as in its judgment may be necessary under its rules and regulations, involving the financial ability and good faith of the applicant, the necessity for additional services and such other matters as the commission deems relevant. The commission may issue a certificate of public convenience and necessity, or refuse to issue the same or issue it for the establishment or construction of a portion only of the contemplated plant, route, line or system, or extension thereof, or for the partial exercise only of such right or privilege, and may attach to the exercise of the rights granted by the certificate such reasonable terms and conditions as to time or otherwise as, in its judgment, the public convenience, necessity and protection may require, and may forfeit such certificate after issuance for noncompliance with its terms, or provide therein for an ipso facto forfeiture of the same for failure to exercise the rights granted within the time fixed by the certificate. However, nothing in this section shall be construed as requiring such certificate for a municipally owned plant, project or development, route, line or system or extension thereof in areas within one (1) mile of the corporate boundaries which are not certificated to another utility, and nothing in this chapter or other provision of law shall be construed as allowing a municipally owned plant, project or development, route, line or system or extension thereof in areas certificated to another utility. No certificate shall be required for extensions or additions within the corporate limits of a municipality being served by the holder of a certificate of convenience and necessity.
(4) The commission shall, prior to issuing a certificate of public convenience and necessity to a public utility for any new construction, extension or addition to its property, ascertain that all labor, materials, property or services to be rendered for any proposed project will be supplied at reasonable prices. The commission shall, after issuance of a certificate for facilities estimated to cost Five Million Dollars ($5,000,000.00) or more or estimated to cost an amount equal to one percent (1%) of the rate base allowed by the commission in the utility's last rate case, whichever is greater, assign the public utilities staff to monitor such projects, to inspect periodically construction in progress, and to report to the commission any variances or deviations as found, if any, and to file progress reports thereon with the commission. Such public utility shall file a similar report with the commission at such times and in such form as the commission shall require, including any substantial changes in plans and specifications, cost allocations, construction schedule and funds available to complete the project.
(5) The commission may issue a temporary certificate in cases of emergency, to assure maintenance of adequate service or to serve particular customers, without notice or hearing, pending the determination of an application for a certificate, and may by regulation exempt from the requirements of Sections 77-3-11 through 77-3-21: (a) temporary acts or operations for which the issuance of a certificate will not be required in the public interest; and (b) extensions or additions of service facilities outside of municipalities under such general rules as will promote the prompt availability of such service to prospective users, and at the same time prevent unnecessary and uneconomic duplication of such facilities as between two (2) or more persons.
(6) Prior to the acquisition pursuant to Section 77-3-17, or other provisions of law, by any public agency, authority, district, state or other agency, institution or political subdivision thereof, of any certificate of public convenience and necessity or portion thereof, service areas or portion thereof, or operating rights or portion thereof, issued or granted by the commission pursuant to the provisions of this section and/or the facilities or other properties and equipment of the utility providing service therein of any regulated utility, as defined in Section 77-3-3(d)(i), (ii) and (iii), the commission shall first determine if such service area, certificate of public convenience and necessity, or operating right, or portions thereof, should be cancelled as provided in Section 77-3-21.
(7) Before the acquisition pursuant to any negotiated purchase agreement entered into before 1987, by any public agency, authority, district, state or other agency, institution or political subdivision thereof, of any certificate of public convenience and necessity or portion thereof, service areas or portion thereof, or operating rights or portion thereof, issued or granted by the commission pursuant to this section and/or the facilities or other properties and equipment of the utility providing service therein of any regulated utility defined in Section 77-3-3(d)(i), the commission first shall determine that such service area, certificate of public convenience and necessity, or operating right, or portions thereof, shall be cancelled as provided in Section 77-3-21.
(8) Notwithstanding any provision of this section to the contrary, the certificate as applied for may be granted without a hearing in uncontested cases; however, the commission may hear any uncontested case if it determines that the public interest will be served thereby.
(9) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 5. Section 77-3-14, Mississippi Code of 1972, is amended as follows:
77-3-14. (1) Notwithstanding the provisions of Section 77-3-11, Mississippi Code of 1972, and Section 77-3-13, Mississippi Code of 1972, no public utility or other person shall begin the construction of any facility for the generation and transmission of electricity to be directly or indirectly used for the furnishing of public utility service in this state, even though the facility be for furnishing the service already being rendered, without first obtaining from the commission a certificate that the public convenience and necessity requires, or will require, such construction.
(2) The commission shall develop, publicize and keep current an analysis of the long-range needs for expansion of facilities for the generation of electricity in Mississippi, including its estimate of the probable future growth of the use of electricity, the probable needed generation reserves, the extent, size, mix and general location of generating plants and arrangements for pooling power to the extent not regulated by the Federal Energy Regulatory Commission and other arrangements with other utilities and energy suppliers to achieve maximum efficiencies for the benefit of the people of Mississippi, and shall consider such analysis in acting upon any petition by any utility for construction. Each public utility engaged in the generation, transmission and distribution of electric energy shall, upon request of the commission, submit to the commission its forecasts and plans for the addition of generating capacity planned by the utility for an ensuing five-year period and shall furnish to the commission such documents and proof with respect to the need therefor as the commission may reasonably require. In considering these analyses and forecasts, the commission shall consult with the University Research Center, the utilities commissions or comparable agencies of neighboring states, the Federal Energy Regulatory Commission and other agencies having relevant information and/or duties and responsibilities in this area, and particularly with the Department of Economic and Community Development with reference to the accomplishment of the Mississippi Energy Plan provided for in Section 57-39-11, Mississippi Code of 1972.
(3) In acting upon any petition for the construction of any facility for the generation of electricity, the commission shall take into account the utility's arrangements with other electric utilities for interchange of power, pooling of plant, purchase of power and other methods for providing reliable, efficient and economical electric service.
(4) As a condition for receiving such certificate, the utility shall file an estimate of construction costs in such detail as the commission may require. The commission shall hold a public hearing on each application, and no certificate shall be granted unless the commission has approved the estimated construction costs.
(5) The commission shall maintain an ongoing review of such construction as it proceeds, and the applicant shall submit at such times as the commission shall require during construction a progress report and any revisions in the cost estimates for the construction.
(6) The certification requirements of this section shall not apply to persons who construct an electric generating facility primarily for that person's own use and not for the primary purpose of producing electricity, heat or steam for sale to or for the public for compensation; and the commission may provide for exemption from certification requirements for cogeneration facilities and small standby facilities; provided, however, that such persons shall, nevertheless, be required to report to the commission the proposed construction of such a facility before beginning construction thereof.
(7) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 6. Section 77-3-16, Mississippi Code of 1972, is amended as follows:
77-3-16. (1) All contracts for construction, extension and/or repair of facilities in excess of Two Hundred Thousand Dollars ($200,000.00) by or on the behalf of any public utility subject to rate regulations by the Mississippi Public Service Commission, shall be governed by this section. The public utility shall maintain a list of contractors and suppliers qualified to perform contracts within the scope of proposed utility projects. The public utility shall, upon written request of any qualified prospective bidder, add his or its name to such list. At least every six (6) months, the public utility shall publish in a newspaper, having general circulation in the area in which the utility operates, a notice requesting names of qualified contractors and suppliers. Upon written request by qualified contractors and suppliers, those names shall be added to such list. The public utility shall give to each contractor or supplier on said list who is qualified with respect to a project under consideration written invitation to bid those projects subject to this section. Contracts subject to this section shall be awarded to the lowest and best bidder. Provided, however, nothing contained herein shall prohibit any public utility from performing services covered by this section with its own regularly employed workforce.
(2) The public utility may enter into a master contract with the lowest and best contractor to cover all construction work to be performed in a specified geographic area.
(3) If the chief executive officer of a public utility determines that an emergency exists which affects the public health, safety or welfare, the provisions of this section shall not apply. As used in this section, an emergency is any occurrence in which service is interrupted.
(4) The provisions of this section shall not apply to contracts which by their nature are not adapted to competitive bidding, including, but not limited to:
(a) Items which may be acquired from a sole source;
(b) Contracts for professional services;
(c) Equipment and systems which, by reason of the training of personnel or of any inventory replacement of parts maintained by the utility, are or should be compatible with existing equipment;
(d) Contracts for interstate or intrastate carriage of persons or property with a common carrier or contract carrier at the rates set forth in the officially approved tariff of that carrier; and
(e) Such contracts as the commission may define by regulation.
(5) The Public Service Commission shall have the authority to monitor all conditions contained in this section.
(6) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
(7) Public utilities, as defined in Section 77-3-3, may provide a secure electronic interactive system for the submittal of bids requiring competitive bidding that shall be an additional bidding option for those bidders who choose to submit their bids electronically. Public utilities shall implement the provisions necessary to accept electronic bids from those bidders who choose to submit their bids electronically for all purchases requiring competitive bidding under this section.
When construction bids are submitted electronically, the requirement for including a certificate of responsibility or a statement that the bid enclosed does not exceed Fifty Thousand Dollars ($50,000.00) on the exterior of the bid envelope, as indicated in Section 31-3-21, shall be deemed met by including such certificate or statement as an attachment with the electronic bid submittal.
SECTION 7. Section 77-3-35, Mississippi Code of 1972, is amended as follows:
77-3-35. (1) Subject to the provisions of subsections (2) and (4) of this section, under such reasonable rules and regulations as the commission may prescribe, every public utility, as to the rates which are subject to regulation under the provisions of this article, shall file with the commission, within such time and in such form as the commission may designate, schedules showing such rates and charges established by it and collected and enforced, or to be collected or enforced within the jurisdiction of the commission. The utility shall keep copies of such schedules open to public inspection under such reasonable rules and regulations as the commission may prescribe.
No such public utility shall directly or indirectly, by any device whatsoever, or in anywise, charge, demand, collect or receive from any person or corporation for any service rendered or to be rendered by such public utility a greater or less compensation than that prescribed in the schedules of such public utility applicable thereto then filed in the manner provided in this section, and no person or corporation shall receive or accept any service from any such public utility for a compensation greater or less than prescribed in such schedules.
Utilities selling commodities or rendering any service to cooperatives, municipalities or other nonprofit organizations, shall, at the order of the commission, file schedules of such rates and charges for information purposes only.
The commission may provide, by rules and regulations to be adopted by it, the following:
(a) That utilities may contract with a manufacturer that is not a utility for furnishing the services or commodities described in Section 77-3-3(d)(i), (ii) and (iii) for use in manufacturing;
(b) That utilities described in Section 77-3-3(d)(i) also may contract with a customer that has a minimum yearly electric consumption of two thousand five hundred (2,500) megawatt hours per year or greater for furnishing the services or commodities described in Section 77-3-3(d)(i); and
(c) That utilities described in Section 77-3-3(d)(ii) also may contract with a customer that has a minimum yearly consumption of eight million five hundred thousand (8,500,000) cubic feet of gas per year or greater for furnishing the services or commodities described in Section 77-3-3(d)(ii).
These contracts may be entered into without reference to the rates or other conditions which may be established or fixed pursuant to other provisions of this article. Such regulations shall provide that before becoming effective any such contract shall be approved by the commission.
(2) (a) The Legislature recognizes that the maintenance of universal telephone service in Mississippi is a continuing goal of the commission and that the public interest requires that the commission be authorized and encouraged to formulate and adopt rules and policies that will permit the commission, in the exercise of its expertise, to regulate and control the provision of telecommunications services to the public in a changing environment where competition and innovation are becoming more commonplace, giving due regard to the interests of consumers, the public, the providers of telecommunications services and the continued availability of good telecommunications service. The commission is authorized to issue more than one (1) competing certificate of public convenience and necessity to provide local exchange telephone service in the same geographical area; provided, that the issuing of any such additional certificates shall not otherwise affect any certificate of public convenience and necessity heretofore issued to any provider of such services.
The commission shall adopt all rules and regulations necessary for implementing this subsection (2)(a).
The commission may apply standards adopted by the Federal Communications Commission that are generally applicable to companies that are designated and operate as eligible telecommunications carriers, pursuant to 47 USCS Section 214(e). The commission may exercise its authority to ensure that these carriers, including commercial mobile radio service providers that receive federal eligible telecommunications status, comply with those standards, only to the extent permitted by and consistent with applicable federal laws and regulations.
The commission retains the authority to issue orders to implement its rules, regulations and the provisions of this chapter, including the authority to grant and modify, impose conditions upon, or revoke a certificate.
(b) The commission may, on its own motion or at the request of any interested party, enter an order, after notice and opportunity for hearing, determining and directing that, in the provision of a service or facility by a utility of the type defined in Section 77-3-3(d)(iii), competition or other market forces adequately protect the public interest, or that a service or facility offered by the utility is discretionary, and that the public interest requires that the utility's rates and charges for such service or facility shall not thereafter be subject to regulation by the commission.
(c) In making its determination whether the rates and charges for a service or facility shall not be subject to regulation by the commission, the commission may consider individually or collectively:
(i) Whether the exercise of commission jurisdiction produces tangible benefits to the utility's customers that exceed those available by reliance on market forces or other factors;
(ii) Whether technological changes, competitive forces, discretionary nature of the service or facility, or regulation by other state and federal regulatory bodies render the exercise of jurisdiction by the Mississippi commission unnecessary or wasteful;
(iii) Whether the exercise of commission jurisdiction inhibits a regulated utility from competing with unregulated providers of functionally similar telecommunications services or equipment;
(iv) Whether the existence of competition tends to prevent abuses, unjust discrimination and extortion in the charges of telecommunications utilities for the service or facility in question;
(v) The availability of the service or facility from other persons and corporations; or
(vi) Any other factors that the commission considers relevant to the public interest.
In making the determination as above set forth, the commission may specify the period of time during which the utility's rates and charges for the service or facility shall not thereafter be subject to regulation. Likewise, after notice and opportunity for hearing, the commission may revoke a determination and direction made under this section, when the commission finds that commission regulation of the utility's rates and charges for the service or facility in question is necessary to protect the public interest.
(3) (a) The commission is authorized to consider and adopt alternative methods of regulation proposed by a utility of the type defined in Section 77-3-3(d)(i), (ii) or (iii) to establish rates for the services furnished by such utility that are fair, just and reasonable to the public and that provide fair, just and reasonable compensation to the utility for such services.
(b) For purposes of this subsection, the phrase "alternative methods of regulation" means the regulation of utility rates and charges by methods other than the rate base or rate of return method of regulation set forth in other provisions of this article.
(4) (a) Notwithstanding any other provisions of this article or any other statute to the contrary, and consistent with the provisions herein, for those public utilities of the type defined in Section 77-3-3(d)(iii) that are subject to the competitive requirements set forth in 47 USCS Section 251 or those public utilities that have waived a suspension granted by the commission of the requirements of 47 USCS Section 251(b) and (c) as authorized by 47 USCS Section 251(f)(2), the Legislature has determined that, in the provision of all services, other than switched access service, competition or other market forces adequately protect the public interest. Therefore, subject to paragraph (d) of this subsection, the commission no longer has jurisdiction over the services, other than the provision of intrastate switched access service, provided by such public utilities.
(b) For those public utilities of the type defined in Section 77-3-3(d)(iii) that have been granted a suspension by the commission of the requirements of 47 USCS Section 251(b) and (c) as authorized by 47 USCS Section 251(f)(2), the commission, at the request of such public utility, shall enter an order, after notice and opportunity for hearing, determining that such public utility's provision of service will be subject to the same level of regulation as provided in paragraph (a) of this subsection, but only after the commission determines that such public utility has satisfied one (1) of the following conditions:
(i) Has executed interconnection agreements which have been approved by the commission to the extent required under law with two (2) or more local exchange carriers unaffiliated with such public utility;
(ii) Offers for resale at wholesale rates, pursuant to 47 USCS Section 251(c)(4)(A) and (B), such public utility's retail telecommunications services provided to subscribers who are not telecommunications carriers;
(iii) At least two (2) competitive telecommunications providers unaffiliated with such requesting public utility are offering service to such public utility's subscribers; or
(iv) Has experienced a material reduction in access lines or minutes of use in two (2) consecutive years.
A waiver of suspension under paragraph (a) of this subsection shall be effective upon written notification to the commission. The initial rate utilized by such public utility shall be the rate for such service in effect at the time of such waiver under this section. The commission, upon request of the public utility, may return such public utility to a form of regulation permitted under this section.
(c) Subject to paragraph (d) of this subsection, a public utility of the type defined in Section 77-3-3(d)(iii) which is regulated under the provisions of paragraph (a) of this subsection shall not be subject to any rule, regulation or order promulgated by the commission with regard to retail services. The provisions of Section 77-3-23 shall not apply to such public utility regulated under the provisions of paragraph (a) of this subsection.
(d) Nothing in this chapter shall be construed to affect the duties of an incumbent local exchange carrier arising under 47 USCS Sections 251 and 252 and the Federal Communications Commission's regulations implementing these sections, or the commission's authority to approve, arbitrate and enforce interconnection agreements and to resolve disputes pursuant to 47 USCS Sections 251 and 252 and the Federal Communications Commission's regulations implementing these sections or any other applicable federal law or regulation. The commission shall exercise its jurisdiction in its role as a dispute resolution forum to hear complaints between certificated carriers, including complaints to prohibit anti-competitive practices and with respect to enforcement or modification of any wholesale self-effectuating enforcement mechanism plan in place as of July 1, 2011, and to issue orders to resolve such complaints, provided that such actions are consistent with federal telecommunications law. The commission shall interpret and apply federal, not state, substantive law. The commission shall adjudicate and enforce such claims in accordance with state procedural law and rules. No claim shall be brought to the commission as to which the FCC has exclusive jurisdiction. All complaints brought between carriers pursuant to this section shall be resolved by final order of the commission within one hundred eighty (180) days of the filing of the complaint.
(e) The commission shall retain exclusive original jurisdiction over customer complaints for those services that continue to be regulated. For services no longer regulated, the commission shall have exclusive original jurisdiction to interpret and enforce the terms and conditions of customer service agreements for telecommunications services, but it shall not alter, set aside or refuse to enforce the rates, terms and conditions thereof, either directly or indirectly. No other party shall be allowed to participate in any such complaint proceeding, except for the customer, legal counsel or other representative of the customer, or the public utility involved.
(f) A public utility of the type defined in Section 77-3-3(d)(iii) which is regulated under the provisions of paragraph (a) of this subsection shall not be required to file financial, service quality or other information with the commission. The calculation of the public utility regulatory tax established in Section 77-3-87 shall be based upon ninety thousandths of one percent (90/1000 of 1%) per year of the gross revenues from the intrastate operations of such public utility which is subject to regulation under the provision of paragraph (a) of this subsection. In addition, such public utility shall only be required to adhere to billing for retail telecommunications services in compliance with the federal truth in billing regulations prescribed by the Federal Communications Commission.
(g) (i) In order to transition to the changes effectuated by paragraph (a) of this subsection, the rates, terms and conditions for products and services no longer subject to regulation by the commission which were in effect with a specific term immediately prior to July 1, 2006, shall remain in effect for the duration of the specific term as to customers who subscribed to such products or services prior to July 1, 2006. If no term applied to such products or services at the time such customer subscribed to such products or services, then the rates, terms and conditions governing such products or services shall remain in effect until a written customer service agreement becomes effective as described in subparagraph (ii) of this paragraph (g).
(ii) Except as provided in subparagraph (i) of this paragraph (g), the service provider shall offer existing and new customers a written customer service agreement, which in the case of new customers shall be delivered no later than thirty (30) days after the initiation of service. The customer service agreement shall include a provision advising the customer that he has thirty (30) days from receipt in which to elect:
1. To terminate service with the service provider by contacting such service provider within the thirty-day time period, in which case the customer shall have the right to pay off the account in the same manner and under the same rates, terms and conditions as set forth in the written customer service agreement provided to the customer, which written customer service agreement shall relate back in its entirety to the date of a new customer's request for service or the date the agreement was sent to an existing customer, as applicable, and shall be in effect until termination through pay off; or
2. To use the services of the service provider or to otherwise continue the account with the service provider after the thirty-day time period has elapsed, either of which shall constitute the customer's assent to all the rates, terms and conditions of the written customer service agreement. The customer service agreement shall be deemed received three (3) business days after deposit in the United States mail, first-class delivery.
(iii) If any service provider desires to modify in any respect any rates, terms or conditions of a customer service agreement, it shall provide at least thirty (30) days' prior written notice of the modification and the proposed effective date to the customer. The customer service agreement shall include a provision advising the customer that he has the option:
1. To terminate service with the service provider by contacting such service provider prior to the effective date, in which case the customer shall have the right to pay off the account in the same manner and under the same rates, terms and conditions as then in effect; or
2. To use the services of the service provider or to otherwise continue the account with the service provider on or after the effective date, either of which shall constitute the customer's assent to the modified written customer service agreement. The customer service agreement shall be deemed received three (3) business days after deposit in the United States mail, first-class delivery.
(h) Nothing herein shall change the obligation of those public utilities described in Section 77-3-3(d)(iii) to obtain a certificate of public convenience and necessity pursuant to this chapter.
(5) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 8. Section 77-3-37, Mississippi Code of 1972, is amended as follows:
77-3-37. (1) No public utility shall make any change in any rate which has been duly established under this chapter, except as provided in this chapter. A public utility seeking a change in any rate or rates shall file with the secretary of the commission and the executive director of the public utilities staff a notice of intent to change rates. The commission may promulgate rules and regulations providing for notice to customers of the filing by any public utility for a rate increase. Routine changes in rates and schedules that do not involve any substantial revenue adjustment may go into effect after thirty (30) days' notice to the commission or after such shorter period of notice as the commission, for good cause shown, may allow. In all other cases, the notice of intent shall contain a statement of the changes proposed to be made in the rates then in force, the new level of revenues sought, the reasons for the proposed changes and the date proposed for such changes to become effective, which date shall not be less than thirty (30) days after the date of filing. The proposed changes may be shown by filing new schedules, by plainly indicating the changes upon schedules filed and in force at the time and kept open to public inspection or by such other manner as will clearly indicate the rates to be changed and the rates proposed. All direct testimony, exhibits and other information which any utility will rely upon in support of the proposed changes shall be filed concurrently with the filing of the notice of intent. Such other data or documentation as the commission shall request shall be supplied by such utility.
(2) The commission shall establish by rule and regulation a standard requirement list of documentation to be filed with or to be included in every notice of intent. With respect to any notice of intent involving a major change in rates as defined in subsection (8) of this section, the standard requirement list in each case shall include:
(a) A copy of its charter or articles of incorporation, if not already on file with the commission;
(b) A schedule of the present rates, fares, tolls, charges or rentals in effect, and the changes it is desired to make;
(c) A balance sheet of the utility prepared as of the last day of the latest month in which data shall be readily available;
(d) An actual operating statement setting forth revenue and expenses by account numbers for the twelve (12) months ending as the date of the balance sheet applicable to the utility filing the notice of intent;
(e) A pro forma operating statement in the same form as the actual operating statement showing estimate of revenue and expenses for the twelve-month period beginning with the effective date of the changed rates (i) without giving effect to the changed rates and (ii) giving effect to the changed rates;
(f) A pro forma operating statement in the same form as the actual operating statement for the same period giving effect to the proposed changes in rates and adjusted for known changes in the cost of operations;
(g) A statement showing the number of stations or customers by classes affected by the proposed changes in rates, the actual revenue under the old rates arising from each class and the annual amount of the proposed increase or decrease applicable to each class;
(h) A description of the utility's property, including a statement of the original cost of the property and the cost to the utility;
(i) A statement in full of the reasons why the change in rates is desired so that the commission may clearly see the justification therefor;
(j) The amount and kinds of stock authorized;
(k) The amount and kinds of stock issued and outstanding;
(l) The number and amount of bonds authorized and the number and amount issued;
(m) The rate and amount of dividends paid during the five (5) previous fiscal years, and the amount of capital stock on which dividends were paid each year;
(n) An analysis of surplus covering the period from the close of the last calendar year for which an annual report has been filed with the commission to the date of the balance sheet attached to the notice.
(3) The commission may, by rule and regulation, require the utility filing a notice of intent to change rates to supplement the above data with such other information as the commission or the public utilities staff may reasonably request.
(4) Unless the commission, upon application by a utility and for good cause shown, shall enter an order waiving one or more of the following requirements, then whenever a public utility files a notice of intent wherein an increase in the level of annual revenues in the amount of at least Fifteen Million Dollars ($15,000,000.00) is sought, the standard requirement list of documentation shall include:
(a) Guidelines or directives as to the public utility's presentation provided by a controlling affiliate, parent or holding company;
(b) Marginal cost data;
(c) Alternate rate design;
(d) Conservation effectiveness;
(e) A properly prepared, complete, detailed lead-lag study for the test year for the total company, Mississippi retail, other retail jurisdictions and Federal Energy Regulatory Commission wholesale rates in support of the public utility's total working capital requirement contained therein, including all working papers in support thereof;
(f) Direct testimony proposed to be offered at a hearing.
(5) The notice of intent for major changes in rates as defined in subsection (8) of this section shall state the test period adopted by the public utility in support of its proposed rate changes, which may be a twelve-month period beginning with the proposed effective date of the rates proposed in the notice. For the purpose of expediting the regulatory process, all public utilities shall keep the commission advised of their plans or needs for future requests for major rate changes.
(6) Within five (5) days after the notice of intent has been filed, the utility shall serve a copy of the notice of intent without documentation on all parties of record in its last proceeding in which a major change in rates was sought, and shall file a certificate of service with the commission. Thereafter, a copy of all material filed by the utility shall be furnished by the utility to those persons as may be provided for by the commission's rules and regulations.
(7) (a) When the rates in a notice of intent are suspended by commission order, the commission may issue a scheduling order which establishes deadlines for submitting data requests, responding to data requests, conducting prehearing conferences and hearings and disposing of other matters necessary for the orderly disposition of the case.
(b) The public utilities staff and all intervenors or protestants shall file all direct testimony, exhibits and other information which is to be relied upon regarding the proposed changes within eighty (80) days from the filing of such notice of intent. At the time of filing direct testimony, exhibits and other information, each party filing such documents shall serve copies of the documentation on all other parties of record and shall file a certificate of service with the commission.
(8) The commission, for good cause shown, may, except in the case of major changes, allow changes in rates to take effect at the end of thirty (30) days from the date of the filing and the notice of intent, or on the effective date set out in the notice, without requiring any further proceedings, under such conditions as it may prescribe. All such changes shall be immediately indicated by such public utility upon its schedules. "Major changes" means (a) an increase in rates which would increase the annual revenues of such public utility more than the greater of One Hundred Thousand Dollars ($100,000.00) or two percent (2%), but shall not include changes in rates allowed to go into effect by the commission or made by the public utility pursuant to an order of the commission after hearings held upon notice to the public, or (b) a change in the rate design which has a significant impact on a class or classes of ratepayers.
(9) For all major changes in rates and schedules as defined in subsection (8) of this section, a public utility as defined in Section 77-3-3(d)(iv) shall provide, not later than twenty (20) days after filing the notice of intent to change rates, notice of such proposed change within each affected customer's bill or invoice and in a newspaper having general circulation in the area where service is being provided by the public utility. The notice shall state the date on which the notice of intent was filed with the commission and shall include a financial impact statement showing the average amount of increase to customers by class and usage. The filing public utility shall file a copy of the notice, along with a certificate with the executive secretary of the commission, verifying that notice to each of the utility's affected customers was provided in a timely manner.
(10) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 9. Section 77-3-39, Mississippi Code of 1972, is amended as follows:
77-3-39. (1) Whenever there is filed with the commission by any public utility any notice of intent to change rates pursuant to the provisions of Section 77-3-37, the commission, if it so orders within thirty (30) days after the date such notice of intent is filed, shall hold a hearing to determine the reasonableness and lawfulness of such rate change. The commission shall hold such hearing in every case in which the change in rates constitutes a major change in rates, as defined in Section 77-3-37(8). An abbreviated proceeding may satisfy this requirement if the commission's order is supported by the data, documentation and exhibits on file in the proceeding.
(2) Pending such hearing and the decision thereon, the commission may, at any time before they become effective, suspend the operation of such rate or rates, but not for a period longer than one hundred twenty (120) days beyond the date of the filing of the notice of intent, except as provided in subsections (15) and (16) of this section.
(3) Prior to the hearing specifically provided for herein, the commission shall direct all parties of record to appear before a hearing examiner or member of the commission staff designated by it, for a prehearing conference.
(4) Such prehearing conference shall be held at least twenty (20) days before the date such rate case is set for hearing. The commission shall establish a procedure for conducting such prehearing conference, which procedure shall include: (a) setting forth issues upon which no evidence shall be taken, except upon offer of proof; (b) designation of specific issues upon which evidence will be taken; and (c) specific areas of agreement to be placed on the record, together with the original position of the utility, the public utilities staff and the interested parties of record.
(5) At such prehearing conference the commission, or its designee, and the parties shall consider: (a) the simplification of the issues; (b) the necessity or desirability of providing additional information to the commission; (c) the possibility of obtaining admissions or stipulations that will avoid unnecessary proof; and (d) such other matters as may aid in the disposition of the case.
(6) The commission may accept and adopt as its own, the agreements between any or all interested parties of record, or any portion thereof, resulting from the prehearing conference and allow such changes in rates, without requiring any further proceedings, to become effective immediately.
(7) The commission may enter its order reciting the action taken at the prehearing conference, the agreements made by the parties as to any matters considered and the limitation of the issues for hearing to those not disposed of by admissions or stipulations of counsel. If practicable, such order shall specify the facts that appear without substantial controversy, including the extent to which the rate change is not in controversy, and shall also direct such further proceedings in the case as are just.
(8) After the prehearing conference and no later than ten (10) days prior to the date set by the commission for a hearing:
(a) The public utilities staff shall submit to the commission all final exhibits, prepared testimony and evidence, and shall serve copies on all interested parties of record, which documents shall reflect the agreements made at the prehearing conference;
(b) The utility shall provide an exhibit indicating which portion, if any, of the public utilities staff's presentation and that of other parties it is prepared to accept and be free of future litigation, showing thereon the effect of such acceptance on the applicant's request for such changes, and shall serve copies on all parties of record;
(c) Parties other than the public utilities staff and the utility shall submit their amended exhibits, prepared direct testimony and evidence, reflecting the agreements made at the prehearing conference, and shall serve copies on all parties of record.
(9) If, after such hearing or abbreviated proceeding, the commission shall find any such rate or rates to be unjust, unreasonable or unreasonably discriminatory, or in anywise in violation of the law, the same shall be set aside, and the commission shall determine and fix by order such rate or rates as will yield a fair rate of return to the public utility for furnishing service to the public and shall make and file its conclusions and findings of facts supporting such order. A copy of such order shall be served upon the utility in the manner provided in this chapter, and the rates fixed by the commission shall be the legal rates until changed as prescribed by this chapter.
(10) Notwithstanding anything to the contrary contained in this chapter, the commission shall hold the hearing, render its decision and enter its order not more than one hundred twenty (120) days after the date of the filing of the said notice of intent. If the commission does not make a final determination concerning any schedule of rates within a period of one hundred twenty 120) days after the date of the filing of the notice of intent, and notwithstanding any order of suspension, except as provided in subsections (15) and (16) of this section, the public utility may put such suspended rate or rates into effect as temporary rates by filing with the commission a bond in a reasonable amount approved by the commission, with sureties approved by the commission, conditioned upon the refund, in a manner and to the parties to be prescribed by order of the commission, of the amount of the excess, with lawful interest thereon, if the rate or rates so put into effect are finally determined to be excessive. There may be substituted for such bond other arrangements satisfactory to the commission for the protection of the parties interested. During any such period when suspended rates are in effect under bond or other arrangement the commission may, in its discretion, require that the public utility involved shall keep an accurate account of payments made under the rate or rates which the public utility has put into operation in excess of the rate or rates in effect immediately prior thereto.
(11) In addition to the other remedies provided by law, should there be an appeal of the commission's final order, the commission shall allow the utility to place such portion of the schedule of rates that is approved by the commission in such final order into effect under refunding bond or other arrangements satisfactory to the commission for the protection of parties interested.
(12) Should the final judicial determination of an appeal of a commission's final order rendered pursuant to subsection (9) hereof result in a schedule of rates less than what the commission allowed, the commission shall by order require the refund to customers of any amounts collected by a utility under bond, or other arrangements, during the appellate process which the courts found to be in excess of the amounts that should have been allowed by the commission in its final order. Such refunds shall be made in full, including interest at the lawful rate and shall be made within ninety (90) days after such final judicial determination. In lieu of payment, the utility may credit the service account with the amount due under this subsection if the consumer entitled to the refund is, at that time, a consumer of the utility.
(13) Any bond, or other arrangements, approved by the commission pursuant to subsection (11) of this section shall be in such amount and with sufficient sureties to insure the prompt payment of any refunds if the rates so put into effect are finally determined by the commission or the courts to be excessive.
(14) For purposes of subsections (9), (11) and (12) of this section, the term "final order" means an order of the commission promulgated pursuant to subsection (9) of this section or, in the event of a rehearing conducted pursuant to Section 77-3-65, means an order of the commission promulgated subsequent to such rehearing.
(15) No public utility may have more than one (1) major change in rates in effect under refunding bond at the same time. When a case is pending before the commission or before any court which involves a major change in rates which are in effect under refunding bond, and when the commission shall find that the pending case involves an issue or issues necessary to be resolved before the commission can effectively proceed with the hearing, decision or order, the 120-day period provided for in subsections (2) and (10) of this section may be enlarged by the commission, in order to postpone the hearing on the notice of intent, decision or final order in any subsequent rate case filed by the same utility, until a final order has been rendered with respect to the prior pending change in rates.
(16) When a notice of
intent to change rates is filed with the commission, said notice shall be
assigned a docket number and the commission shall examine the filing to
determine if it contains the standard requirement list of documentation set out
in Section 77-3-37(2) and (4), if applicable, and in any rules and regulations
adopted by the commission under Section 77-3-37(2). Within five (5) days from
the date said notice is filed, the commission shall notify the filing utility
in writing of its failure to include with its notice any items included in such
standard requirement list of documentation. Such notification shall specify
the item or items not filed with said notice. The filing utility shall have
ten (10) days from the date it receives said notification to file the omitted
item or items with the commission. Provided, however, upon request by the
filing utility made within said ten-day period, the commission shall grant, by
order, such additional time as the filing utility may request, not to exceed
thirty (30) additional days, within which to file the omitted item or items.
If the filing utility fails to file the omitted item or items within said ten
(10) days or within such extended period of time as the commission by order
shall allow, the commission may refuse to consider any evidence in support of
said item or items in making the commission's final determination concerning
the schedule of rates filed with the notice. Notwithstanding the 120-day time
period imposed on the commission to render its decision and enter its order
under subsections (2) and (10) of this section and the 80-day time period
imposed on the public utilities staff, intervenors or * * * protestors for the filing
of all direct testimony, exhibits and other information under Section 77-3-37(7)(b),
if the filing utility is granted additional time within which to file the
omitted item or items, said 120-day and the 80-day time periods shall be
extended by the number of days between the date of the commission's order
granting the extension and the date such omitted items are filed with the
commission, but such extension of said 120-day and 80-day time periods shall
not exceed thirty (30) days.
(17) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 10. Section 77-3-41, Mississippi Code of 1972, is amended as follows:
77-3-41. (1) Whenever the commission, after hearing had on reasonable notice, finds that the existing rates in effect and collected by any public utility are unjust, unreasonable, materially excessive or insufficient or unreasonably discriminatory, or in anywise in violation of any provision of law, the commission shall determine, and fix by order, the just and reasonable rates which will yield a fair rate of return to the utility for furnishing service, which rates will thereafter be observed and in force. Said rates shall thereupon become the legal rates to be charged and paid until changed.
(2) The commission shall have power, when deemed by it necessary to prevent injury to the business or interest of the people or any public utility of this state in case of any emergency, to permit any public utility to alter, amend or suspend temporarily any existing rates, schedules and orders relating to or affecting any public utility or part of any public utility in this state except as provided in Section 77-3-42.
(3) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 11. Section 77-3-93, Mississippi Code of 1972, is amended as follows:
77-3-93. (1) Whenever a utility purchases at wholesale from a nonutility generator or some nonassociated source all or a portion of its electric capacity and/or energy requirements for a period in excess of thirty (30) days, such utility shall be entitled to include as expense items in its revenue requirements, for the purpose of the calculation of its rates for retail service, the cost of such capacity and energy so purchased, and in addition to such cost, an amount representing a return on the capacity purchased over the period of the test year which is being used to calculate the revenue requirements. This amount shall be calculated using the return allowed by the commission as provided in Section 77-3-95. Notwithstanding the above or any provision of law to the contrary, for any renewable power purchase entered into after July 1, 2020, including, but not limited to, solar, wind, biomass or storage, a utility shall be entitled to incorporate renewable purchased costs in its rate base.
(2) Nothing in Sections 77-3-91 through 77-3-95 shall be interpreted to allow a return on the energy purchased by a utility pursuant to its obligation to purchase energy under the federal Public Utilities Regulatory Policy Act of 1978.
(3) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 12. Section 77-3-95, Mississippi Code of 1972, is amended as follows:
77-3-95. (1) Before a utility may receive the return on the cost of such capacity purchase, the utility shall report the purchase to the Public Utilities Staff and the Public Service Commission. The utility shall also send notice of the purchase to persons who have requested same and are on the list maintained for that purpose by the Secretary of the Public Service Commission. The Public Utilities Staff shall investigate the purchase to determine:
(a) Whether the purchase is in the best interest of the utility and of the retail customers of the utility;
(b) Whether the portion of the purchase designated as capacity or energy requirements, or both, is appropriate; and
(c) Whether the return filed by the utility in the report of purchase is just and reasonable to the utility and to the retail customers of the utility.
(2) Any third person may comment as deemed appropriate on the report, but if any third person desires a hearing, a written petition must be filed along with all supporting documentation, including all proposed testimony and exhibits supporting the contention that a hearing is needed and supporting the issues that should be considered. These issues may include any of the matters set forth in this section. The Public Utilities Staff shall fully review the information contained in the utility's report and the material submitted by the third party and shall report in writing to the commission.
(3) If upon recommendation of the Public Utilities Staff or at the request of the third-party petitioner, or on its own initiative, the commission determines that a hearing should be held, then the commission will set a time for a hearing, determine the issues to be heard and set a schedule for such preliminary matters as it deems necessary for such hearing. If the commission determines that a hearing is not necessary on any or all of the issues set forth in this section, it may determine such issue or issues based upon the record before it and file its final order thereon which shall then be subject to appeal as provided in Sections 77-3-67 through 77-3-73.
(4) With respect to any facility or contract for a facility serving a customer under Section 77-3-271 or 77-3-273, nothing in this section shall supersede the provisions of Section 77-3-271 or 77-3-273.
SECTION 13. This act shall take effect and be in force from and after July 1, 2025.
