Municipally owned utilities; authorize to accept electronic payments and to absorb transaction fees in its rate base.
If enacted, SB2070 would significantly impact municipal utilities across Mississippi by expanding the methods by which customers can pay for services. This change aims to promote more efficient billing practices and potentially increase the on-time payment rates of utility bills. Municipalities would be empowered to implement modern payment systems that align with current consumer preferences for digital transactions. Furthermore, allowing municipalities to absorb transaction fees associated with electronic payments within their service rates would help smooth billing operations and potentially minimize financial burdens on customers.
Senate Bill 2070 seeks to amend Section 21-27-23 of the Mississippi Code to authorize municipalities to permit their municipally owned utilities to accept electronic payments, including credit and debit cards. The bill also allows these utilities to absorb any fees or charges from electronic payments into their cost of service rate base. The purpose of this legislation is to modernize the payment methods available to utility customers and to facilitate increased convenience when settling utility bills. By enabling electronic payments, it is anticipated that utility companies can enhance their billing processes and customer satisfaction.
While proponents of SB2070 argue that the bill represents a positive step towards modernization and improved customer service, there may be concerns raised regarding the financial implications of absorbing transaction fees. Critics might question whether municipalities should bear the responsibility of additional costs that arise from processing electronic payments, particularly if those costs significantly impact rate structures. The debate might focus on whether the benefits of improved convenience for customers outweigh potential fiscal strains on municipal budgets and whether such measures may lead to higher rates for services in the long run.