Municipally owned utilities; authorize to accept electronic payments and to absorb transaction fees in its rate base.
The bill's enactment would potentially enhance financial flexibility and convenience for both municipal utilities and their customers. By allowing for electronic payments, municipalities can improve cash flow management and reduce the costs associated with handling cash and checks. Furthermore, absorbing transaction fees into the rate base could mitigate the financial burden placed on customers, making utilities more accessible and attractive to residents. However, this means municipalities will have to account for these fees in their pricing structures, possibly impacting future rate assessments.
Senate Bill 2143 aims to amend the Mississippi Code of 1972 to provide municipalities the authority to permit municipally owned utilities to accept various forms of electronic payments, including credit and debit cards. This bill also allows these utilities to absorb any associated fees or charges resulting from the use of electronic payments into their cost of service rate base. This change would help streamline payment processes for utility services and could encourage more residents to utilize electronic rather than traditional payment methods.
A notable point of contention surrounding SB2143 may revolve around the financial implications of absorbing payment processing fees into the utility's rate base. Critics might argue that this could lead to higher rates for residents in the long run, as municipalities recalibrate their pricing structures. Supporters, however, may counter that modernizing payment methods and reducing barriers to payment could ultimately benefit residents and encourage timely bill payments, leading to a healthier utility financial landscape.