Mississippi Senate Bill SB2038

Mississippi 2022 Regular Session

• Introduced: 1/6/22
• Refer: 1/6/22
• Failed: 2/1/22

Caption

Municipally owned waterworks; prohibit from charging higher rates to certain customers in another municipality.

Impact

If enacted, SB2038 would create a more uniform pricing structure for water services, ensuring that residents just outside the municipal boundaries are not excessively penalized with higher rates compared to their neighbors within the city limits. This change aims to reduce financial disparities and improve the overall affordability of water services for consumers who may live in unincorporated areas near municipalities. The bill also amends existing provisions related to municipal utilities to reflect these changes, aligning state regulations with the new guidelines.

Summary

Senate Bill 2038 aims to amend the Mississippi Code to establish guidelines regarding the rates charged by municipalities for water supplied to consumers. Specifically, it seeks to prohibit municipalities from charging higher rates for water supplied to consumers residing outside municipal limits and within one mile of the municipality compared to the rates charged for consumers residing within the municipality. The bill emphasizes equitable access to water services for all consumers, regardless of their residence relative to municipal boundaries.

Contention

There may be points of contention surrounding SB2038, particularly concerning its potential impact on municipal revenue. Some legislators and municipal officials might argue that this regulation could hinder a municipality's ability to adequately fund its water services, especially if the costs to serve consumers outside the corporate limits are significantly higher. On the other hand, proponents of the bill may insist that it is a necessary step toward ensuring fairness and protecting consumer interests, advocating for transparency in municipal utility rates.