Public Service Commission; revise jurisdiction for municipal owned utilities for rate increases for customers more than a mile from municipal boundary.
Impact
The implications of this bill could significantly alter how municipal-owned utilities manage rate increases, potentially giving them more autonomy in pricing structures for customers outside city limits. Moreover, this could lead to a differentiation in service costs between in-city residents and those living just outside municipal boundaries. Such changes may further affect consumer expectations and operations of municipal utilities, requiring adaptable strategies to maintain equity in service provision and customer relations.
Summary
House Bill 594 aims to amend Section 77-3-1 of the Mississippi Code of 1972, specifically addressing the jurisdiction of public utilities owned by municipalities. The bill stipulates that these municipal-owned public utilities will not fall under the jurisdiction of the Public Service Commission (PSC) for rate increases applicable to customers residing beyond one mile from municipal boundaries, provided that the increase remains within the cost of living adjustment from the previous fiscal year. This legislative change aims to clarify the regulatory framework for public utilities operating in proximity to municipal borders, thus potentially streamlining the rate adjustment process for these services.
Contention
Notably, the bill also makes amendments to Section 77-3-6, which addresses disputes arising between municipally owned public utilities and their customers over billing in excess of $2,500. While the PSC can intervene in disputes for substantial amounts, the bill specifies that if a lawsuit regarding the dispute has been filed, the PSC will dismiss any petition for investigation from either party. This aspect may raise concerns among consumer advocacy groups regarding the protections available to consumers in the face of potential utility rate hikes, particularly for those living outside municipal boundaries.