Mississippi Severe Winter Storm of 2026 Electric Utility Customer Relief and Electric Utility System Restoration Act; create.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Lamar

HOUSE BILL NO. 4069

AN ACT TO CREATE THE MISSISSIPPI SEVERE WINTER STORM OF 2026 1
ELECTRIC UTILITY CUSTOMER RELIEF AND ELECTRIC UTILITY SYSTEM 2
RESTORATION ACT"; TO ESTABLISH A MECHANISM BY WHICH THE 3
MISSISSIPPI PUBLIC SERVICE COMMISSION MAY AUTHORIZE AND CERTIFY AN 4
ELECTRIC UTILITY FINANCING ORDER AND THE STATE MAY ISSUE GENERAL 5
OBLIGATION BONDS TO PAY THE COSTS OF REPAIRING DAMAGE TO THE 6
SYSTEMS OF ELECTRIC UTILITIES CAUSED BY THE MISSISSIPPI SEVERE 7
WINTER STORM OF 2026; TO AUTHORIZE ELECTRIC UTILITIES TO PETITION 8
THE PUBLIC SERVICE COMMISSION FOR THE ISSUANCE OF A FINANCING 9
ORDER WHICH, WHEN TRANSMITTED TO THE STATE BOND COMMISSION BY AN 10
ELECTRIC UTILITY, AUTHORIZES THE ISSUANCE OF BONDS TO PAY THE 11
COSTS ASSOCIATED WITH RESTORING THE SYSTEM OF THE ELECTRIC 12
UTILITY; TO PROVIDE THE CONTENTS OF SUCH A PETITION; TO AUTHORIZE 13
THE PUBLIC UTILITIES STAFF TO CONDUCT AN INDEPENDENT INVESTIGATION 14
OF THE PETITION; TO ESTABLISH THE DUTIES OF THE PUBLIC SERVICE 15
COMMISSION WITH REGARD TO SUCH PETITIONS; TO PROVIDE FOR THE 16
CONTENTS OF FINANCING ORDERS; TO PROVIDE THAT THE FINANCING ORDER 17
SHALL REQUIRE THE ELECTRIC UTILITY TO COLLECT A SYSTEM RESTORATION 18
CHARGE FROM ITS RETAIL CUSTOMERS SUFFICIENT TO PAY THE DEBT 19
SERVICE ON ANY BONDS ISSUED PURSUANT TO THE FINANCING ORDER; TO 20
PROVIDE FOR ANNUAL ADJUSTMENTS TO THE SYSTEM RESTORATION CHARGES 21
TO ENSURE THAT THE CHARGES ARE SUFFICIENT TO PAY THE DEBT SERVICE 22
ON ANY BONDS ISSUED PURSUANT TO THIS ACT; TO PROVIDE THE METHOD 23
FOR APPEALING DECISIONS OF THE PUBLIC SERVICE COMMISSION WITH 24
RESPECT TO A FINANCING ORDER; TO PROVIDE FOR THE DURATION OF A 25
FINANCING ORDER; TO AUTHORIZE THE ISSUANCE OF STATE GENERAL 26
OBLIGATION BONDS IN AN AMOUNT NOT TO EXCEED THE AMOUNT SPECIFIED 27
IN THE FINANCING ORDER TO BE UTILIZED BY AN ELECTRIC UTILITY TO 28
PAY THE COST OF REPAIRS NECESSITATED BY THE MISSISSIPPI SEVERE 29
WINTER STORM OF 2026; TO AUTHORIZE THE CREATION OF SINKING FUNDS 30
INTO WHICH SYSTEM RESTORATION CHARGES COLLECTED BY THE ELECTRIC 31
UTILITY SHALL BE DEPOSITED AND TO PROVIDE THAT MONEY IN THE 32
SINKING FUNDS SHALL BE UTILIZED TO PAY THE DEBT SERVICE ON BONDS 33
ISSUED PURSUANT TO A FINANCING ORDER; TO BRING FORWARD SECTION 34
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27-65-19, MISSISSIPPI CODE OF 1972, WHICH IS A SECTION OF THE 35
MISSISSIPPI SALES TAX LAW, FOR THE PURPOSES OF POSSIBLE AMENDMENT; 36
AND FOR RELATED PURPOSES. 37
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 38
SECTION 1. This act shall be known and may be cited as the 39
"Mississippi Severe Winter Storm of 2026 ("Winter Storm") Electric 40
Utility Customer Relief and Electric Utility System Restoration 41
Act". 42
SECTION 2. It is hereby determined and declared to be the 43
policy of the State of Mississippi, for the benefit of customers 44
of the electric utilities within the state that the state 45
establish a mechanism by which the Mississippi Public Service 46
Commission may authorize and certify an electric utility financing 47
order and the state may issue system restoration bonds pursuant to 48
that financing order, the proceeds from which shall be used to 49
securitize the system restoration costs and storm damage reserve 50
levels of those electric utilities affected by the winter storm, 51
thereby providing electric utility customers relief from 52
traditional methods of recovering system restoration costs. The 53
exercise of powers conferred by this act are the performance of 54
essential public purposes. 55
SECTION 3. As used in this act: 56
(a) "Commission" or "Public Service Commission" means 57
the Mississippi Public Service Commission. 58
(b) "Customer" or "electric utility customer" means a 59
retail customer of an electric utility. 60
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(c) "Electric utility" or "utility" means any utility 61
as defined in Section 77-3-3(d)(i), Mississippi Code of 1972, but 62
not including electric power associations. 63
(d) "Eligible funds" means any funds derived from any 64
source which may by law or other authorization be used to retire 65
any obligations arising from or connected with the issuance of 66
system restoration bonds. 67
(e) "Financing costs" means: 68
(i) Interest and acquisition, defeasance or 69
redemption premiums that are payable on system restoration bonds 70
issued pursuant to this act; 71
(ii) Any amount required to fund or replenish any 72
system restoration sinking fund or other reserve, fund, or account 73
established pursuant to the authority conferred under this act and 74
the terms of any financing order or other financing documents 75
pertaining to system restoration bonds; and 76
(iii) Any other cost related to supporting, 77
repaying, servicing and refunding system restoration bonds, 78
including, but not limited to, servicing fees, accounting and 79
auditing fees, trustee fees, legal fees, consulting fees, 80
administrative fees, placement and underwriting fees, rating 81
agency fees, stock exchange listing and compliance fees and credit 82
enhancement fees. 83
(f) "Financing order" means an irrevocable final order 84
issued by the Public Service Commission pursuant to Section 4 of 85
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this act which provides a mechanism for an electric utility to 86
request the State Bond Commission to authorize the issuance of 87
system restoration bonds and the creation of system restoration 88
property. 89
(g) "Issuance costs" means: 90
(i) Any initial payment made on or before issuance 91
and any amount required to fund any system restoration sinking 92
fund or other account established pursuant to the authority 93
conferred under this act and the terms of any financing order; and 94
(ii) Any other cost related to issuance of system 95
restoration bonds, including, but not limited to, trustee fees, 96
legal fees, consulting fees, administrative fees, credit 97
enhancement fees, placement and underwriting fees, capitalized 98
interest, rating agency fees, stock exchange listing and 99
compliance fees, and filing fees, including costs related to 100
obtaining the financing order. 101
(h) "State" means the State of Mississippi. 102
(i) "Storm" means the Winter Storm, which began on 103
January 23, 2026, and caused catastrophic damages to the people 104
and property of and within the State of Mississippi, including 105
electric utilities and their facilities throughout the state, and 106
which has been declared a major disaster by the Federal Emergency 107
Management Agency (FEMA), dated February 6, 2026. 108
(j) "System restoration activity" means any activity or 109
activities by or on behalf of an electric utility in connection 110
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with the preparation for, the provision of and the restoration of 111
service associated with electric power outages affecting customers 112
of an electric utility as the result of the storm, including, but 113
not limited to, mobilization, logistical support staging, housing, 114
fueling, contracting and construction, removal, reconstruction, 115
replacement or repair of electric generation, transmission or 116
distribution facilities, the recovery of fuel costs related to the 117
operation of electric generation facilities in advance of and 118
through the duration of the Storm and related activities approved 119
by the commission. 120
(k) "System restoration bonds" or "bonds" means those 121
bonds, including refunding bonds, that are issued by the State 122
Bond Commission pursuant to this act. 123
(l) "System restoration charge" means the mechanism and 124
amounts authorized by the Public Service Commission to recover, 125
finance or refinance the system restoration bonds, financing costs 126
and any other cost necessary to otherwise ensure the timely 127
payment of system restoration bonds and other required amounts and 128
charges payable in connection with the system restoration bonds to 129
be imposed on, and as a part of, all customer bills and collected 130
by an electric utility or its successors or assignees, or a 131
collection agent, through a charge that is separate and apart from 132
the base rates of the electric utility, which charge shall be paid 133
by customers, including special contract customers, for and with 134
regard to all electric load directly or indirectly connected to 135
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electric facilities of the electric utility or its successors or 136
assignees under the Public Service Commission approved rate 137
schedules, even if the customer elects to purchase electricity 138
from an alternative electricity supplier following a fundamental 139
change in regulation of public utilities in this state. 140
(m) "System restoration costs" means, at the option and 141
request of the electric utility, and as approved by the commission 142
pursuant to Section 4 of this act, those prudent incremental costs 143
incurred or to be incurred, as determined by the commission, by an 144
electric utility in undertaking a system restoration activity. 145
Such costs shall be net of applicable insurance proceeds and, 146
where determined appropriate by the commission taking into account 147
the interests of the electric utility's customers, the need for 148
financial stability in the provision of electric utility service, 149
and the public interest, and such costs shall include adjustments 150
for normal capital replacement and operating costs and other 151
potential offsets and adjustments; however, such costs shall not 152
include system outage related lost profits. System restoration 153
costs may, in the commission's discretion, include the costs to 154
finance any deficiency or deficiencies in storm damage reserves 155
incurred before such time as the system restoration bonds are 156
issued and any costs of retiring any other existing indebtedness 157
relating to system restoration activities. 158
(n) "System restoration property" means: 159
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(i) All rights and interests of the state, as the 160
assignee of an electric utility under a financing order, arising 161
out of or in connection with the issuance of system restoration 162
bonds under this act, including the right to receive the system 163
restoration charges, as periodically adjusted, imposed, billed, 164
collected and transferred by the electric utility on behalf of the 165
state pursuant to a financing order, and the right to obtain 166
periodic adjustments to such charges as provided in the financing 167
order and this act. System restoration property shall not be an 168
asset of the electric utility; but, the electric utility shall 169
have only a duty to carry out its obligations and responsibilities 170
under this act and the State Bond Commission action taken under 171
this act with respect to system restoration property; and 172
(ii) All collections, claims, rights to payments, 173
payments, money or proceeds arising from the rights and interests 174
specified in subparagraph (i) of this paragraph, regardless of 175
whether such collections, claims, rights to payment, payments, 176
money or proceeds are imposed, billed, received, collected, or 177
maintained together with or commingled with other collections, 178
rights to payment, payments, money or proceeds. 179
(o) "Storm damage reserve" means an electric utility 180
storm reserve or such other similar reserve, as may be amended 181
from time to time, established by law, rule or pursuant to any 182
order of the commission. 183
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(p) "Mississippi Public Utilities Staff" means those 184
persons employed by the public utilities staff established in 185
Section 77-2-1, Mississippi Code of 1972. 186
SECTION 4. (1) Not more than one hundred eighty (180) days 187
after the effective date of this act, an electric utility affected 188
by the storm may petition the Public Service Commission for a 189
financing order to make such determinations as are provided for in 190
this section which, when transmitted by an electric utility to the 191
State Bond Commission as provided in this act, authorizes the 192
State Bond Commission to issue system restoration bonds. In 193
addition to any other information required by the Public Service 194
Commission, the applying electric utility shall: 195
(a) Describe the system restoration activities that the 196
electric utility has undertaken or proposes to undertake and 197
describe the reasons for undertaking the activities. 198
(b) Set forth the known prudently incurred system 199
restoration costs and an estimate of the costs of any system 200
restoration activities that are not completed, or for which the 201
costs are not yet known, as identified and requested by the 202
electric utility. 203
(c) Set forth the storm damage reserve that the 204
electric utility proposes to establish or replenish and that such 205
electric utility has determined would be appropriate to recover 206
through system restoration bonds. The electric utility shall also 207
identify the level that the electric utility is funding or will 208
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seek to fund through other means, together with a description of 209
the factors and calculations used in determining the amounts and 210
methods of recovery. 211
(d) Indicate whether the electric utility proposes to 212
finance all or a portion of the system restoration costs and storm 213
damage reserve using system restoration bonds. If the electric 214
utility proposes to finance a portion of such costs, the electric 215
utility shall identify that portion in its application. 216
(e) Estimate the financing costs and issuance costs 217
related to the system restoration bonds. 218
(f) Describe and estimate the system restoration charge 219
necessary to recover the system restoration cost and fund or 220
replenish the storm damage reserve, including any financing costs 221
and issuance costs and the period for recovery of such costs. 222
(g) Estimate any cost savings and demonstrate how it 223
would avoid or significantly mitigate rate impacts to customers 224
resulting from financing system restoration costs with system 225
restoration bonds as opposed to the traditional method of 226
recovering such costs from customers and through alternative 227
financing methods available to the electric utility. 228
(h) File with the Public Service Commission direct 229
testimony supporting the application. 230
(i) Timely provide the Public Service Commission or the 231
Mississippi Public Utilities Staff such additional information and 232
documentation as they may reasonably request. 233
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(j) Provide a copy of the petition to the State Bond 234
Commission. 235
(2) The Executive Director of the Mississippi Public 236
Utilities Staff, shall enter into a professional services contract 237
with a public accounting firm to assist the staff in auditing the 238
electric utility's system restoration costs to determine that such 239
costs are properly identified and recorded. Such audit shall 240
begin prior to the electric utility's petition as described in 241
Section 4(1) of this act and promptly after the effective date of 242
this act. Any expenses associated with such services shall be 243
included as part of financing costs and included in the total 244
amount of system restoration bonds issued pursuant to this act. 245
(3) (a) Proceedings on an application submitted pursuant to 246
subsection (1) of this section shall begin with a petition by an 247
electric utility and shall be disposed of in accordance with 248
applicable Public Service Commission procedural rules related to 249
miscellaneous application proceedings, except that the provisions 250
of this section, to the extent applicable, shall control. The 251
issuance of a financing order, the system restoration bonds and 252
the implementation or adjustment of a system restoration charge 253
under this act shall not constitute a change in rates pursuant to 254
Section 77-3-37 or 77-3-39, Mississippi Code of 1972. 255
(i) Not more than sixty (60) days after the date 256
the petition is filed, the commission shall issue a financing 257
order or an order rejecting the petition. A party to the Public 258
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Service Commission proceeding may petition the commission for 259
reconsideration of the financing order not more than seven (7) 260
days after the date the financing order is issued. The Public 261
Service Commission shall rule on the petition for reconsideration, 262
by and through the issuance of a final financing order upon 263
reconsideration, not more than fourteen (14) days after the filing 264
of the petition. A failure by the Public Service Commission to 265
act upon such petition for reconsideration within the specified 266
time period shall be deemed a refusal of the petition, and the 267
financing order shall remain in effect. Any judicial review shall 268
be as provided in Section 5 of this act. 269
(ii) Upon issuance of a final financing order to 270
an electric utility, the electric utility shall have sixty (60) 271
days from the issuance of the financing order to request the State 272
Bond Commission to issue system restoration bonds and the State 273
Bond Commission shall authorize and issue the system restoration 274
bonds as soon as commercially practicable. 275
(iii) If financing orders are issued to more than 276
one (1) electric utility, the State Bond Commission may aggregate 277
multiple financing orders into a single issue of system 278
restoration bonds so as to reduce the costs of issuance. 279
(b) In a financing order issued on behalf of an 280
electric utility, the Public Service Commission shall: 281
(i) Specify the amount of prudently incurred 282
system restoration costs and the level of storm damage reserves, 283
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taking into consideration, to the extent the Public Service 284
Commission deems appropriate, any other methods used to recover 285
these costs. 286
(ii) With advice from, and in consultation with, 287
the State Bond Commission and any outside consultant or counsel, 288
provide a description and estimate of the amount of financing 289
costs which may be recovered through system restoration charges 290
and the minimum and maximum period over which such costs may be 291
recovered. 292
(iii) Determine that the financing method proposed 293
pursuant to this act is reasonably expected to result in lower 294
overall costs or would avoid or significantly mitigate rate 295
impacts to customers as compared with alternative methods of 296
financing or traditional methods of recovering system restoration 297
costs. 298
(iv) Provide that, for the period specified 299
pursuant to subparagraph (ii) of this paragraph, the imposition 300
and collection of the system restoration charge authorized in the 301
financing order shall be paid by customers including special 302
contract customers, for and with regard to all electric load 303
directly or indirectly connected to electric facilities of the 304
electric utility or its successors or assignees under the Public 305
Service Commission approved rate schedules, even if the customer 306
elects to purchase electricity from an alternative electricity 307
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supplier following a fundamental change in regulation of public 308
utilities in this state. 309
(v) Set forth the level of the storm damage 310
reserves and any limitations on how the reserve may be held, 311
accessed or used. 312
(vi) With advice from, and in consultation with, 313
the State Bond Commission and any outside consultant or counsel, 314
the Public Service Commission shall establish and employ a 315
mechanism for making expeditious periodic adjustments in the 316
system restoration charge that customers are required to pay under 317
the financing order and for making any adjustments that are 318
necessary to correct for any overcollection or undercollection of 319
the system restoration charge or to otherwise ensure the timely 320
payment of system restoration bonds, financing costs and any other 321
required amounts and charges payable in connection with the system 322
restoration bonds. 323
(vii) Specify the system restoration property to 324
be created in favor of the petitioning electric utility and 325
require such electric utility to transfer such system restoration 326
property to the state upon the issuance of system restoration 327
bonds to secure prompt payment of the system restoration bonds 328
and any associated financing costs and any other required amounts 329
and charges payable in connection therewith as they shall come 330
due. Such transfer of the system restoration property by an 331
electric utility shall be an absolute transfer of such electric 332
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utility's right, title, and interest in the system restoration 333
property. 334
(viii) With advice from, and in consultation with, 335
the State Bond Commission and any outside consultant or counsel, 336
specify, to the extent possible, the terms and conditions of the 337
system restoration bonds, including, but not limited to, repayment 338
schedules, maximum interest rates, issuance costs, financing 339
costs, and any other required amounts and charges payable as they 340
shall come due. 341
(ix) Provide that the system restoration charge be 342
allocated to the customer rate classes in the same manner that 343
each such class is allocated its portion of the electric utility's 344
annual base rate revenues using the criteria set out in Section 345
77-3-33, Mississippi Code of 1972, and the commission's rules, and 346
allocated proportionately to special contact customers that take 347
transmission level service. 348
(x) Provide that upon the issuance of system 349
restoration bonds, the electric utility shall institute the 350
resulting initial system restoration charge in accordance with the 351
financing order and such initial system restoration charge shall 352
be effective upon the issuance of such system restoration bonds 353
without further action of the Public Service Commission. 354
(c) In performing any of its responsibilities under 355
this subsection, the Public Service Commission may engage outside 356
consultants or counsel, including, but not limited to, the State 357
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Bond Commission. Any expenses associated with such services shall 358
be included as part of financing costs and included in the total 359
amount of system restoration bonds issued pursuant to this act. 360
(d) If the Public Service Commission issues a financing 361
order and the system restoration charge is collected, the electric 362
utility shall file with the Public Service Commission at least 363
once annually a petition or a letter requesting the Public Service 364
Commission to review the system restoration charge established in 365
the financing order and make any necessary adjustments described 366
in paragraph (b)(vi) of this subsection. Within thirty (30) days 367
after receiving an electric utility's petition or letter pursuant 368
to this paragraph, the Public Service Commission shall, if 369
necessary, revise the system restoration charge and notify the 370
electric utility of such revision, or, if no revision to the 371
system restoration charge is required, the Public Service 372
Commission shall so notify the electric utility. 373
(e) Upon the Public Service Commission's revision of a 374
system restoration charge and timely notification to the electric 375
utility, the electric utility shall promptly adjust the system 376
restoration charge to become effective the next practicable 377
billing cycle as specified in the Public Service Commission's 378
notification of such revision. 379
(f) Subsequent to the issuance of system restoration 380
bonds authorized by a financing order, the financing order shall 381
be irrevocable except as provided in this act. Except as provided 382
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in this act, the Public Service Commission may not amend, modify 383
or terminate the financing order by any subsequent action or 384
reduce, impair, postpone, terminate or otherwise adjust the system 385
restoration charge approved in the financing order. After the 386
issuance of a financing order, the electric utility retains sole 387
discretion to request the system restoration bonds be issued. 388
(g) At the request of an electric utility, the Public 389
Service Commission may commence a proceeding and issue a 390
subsequent financing order that authorizes the retirement or 391
refunding of system restoration bonds issued pursuant to the 392
original financing order if the Public Service Commission finds 393
that the subsequent financing order satisfies all of the criteria 394
specified in this subsection. Effective on retirement of the 395
system restoration bonds and the issuance of new system 396
restoration bonds, the Public Service Commission shall adjust the 397
related system restoration charge accordingly. 398
(h) An electric utility shall have sixty (60) days from 399
the issuance of a final financing order to request the State Bond 400
Commission to authorize the issuance of system restoration bonds. 401
Upon such request, the State Bond Commission shall authorize and 402
issue the system restoration bonds as soon as practicable. If no 403
such request is made by the electric utility within sixty (60) 404
days from the issuance of the final financing order by the Public 405
Service Commission, the financing order shall stand repealed. 406
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SECTION 5. A party to a proceeding on a petition for a 407
financing order may appeal the financing order, after 408
reconsideration as provided for in this act, by direct appeal to 409
the Mississippi Supreme Court. An appeal must be filed within 410
seven (7) days after the petition for reconsideration has been 411
refused or deemed refused, or within seven (7) days after the 412
issuance of the final financing order upon reconsideration. Every 413
appeal shall briefly state the nature of the proceedings before 414
the Public Service Commission, and shall specify the final 415
financing order, upon reconsideration, complained of. Upon the 416
filing of an appeal, the Clerk of the Mississippi Supreme Court 417
shall serve notice of the appeal upon the Public Service 418
Commission, and the Public Service Commission shall, within 419
twenty-one (21) days after the service of the notice, certify to 420
the court the record in the case, which shall include a transcript 421
of all testimony, together with all exhibits or copies of the 422
exhibits, all pleadings, orders, findings and opinions entered in 423
the case. The parties and the Public Service Commission may 424
stipulate that a specified portion of the record shall be 425
certified to the court as the record on appeal. Every appeal of 426
Public Service Commission financing orders shall take precedence 427
over other cases as a matter affecting the public interest, and 428
the court shall docket and dispose of the appeal at the earliest 429
time compatible with the ends of justice. The court may hear and 430
dispose of the appeal in termtime or vacation, and the court may 431
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sustain or dismiss the appeal, or modify or vacate the order 432
complained of in whole or in part, as the case may be. In case 433
the order is wholly or partly vacated, the court may also, in its 434
discretion, remand the matter to the Public Service Commission for 435
such further proceedings not inconsistent with the order of the 436
court as, in the opinion of the court, justice may require. The 437
final financing order upon reconsideration shall not be vacated or 438
set aside either in whole or in part, except for errors of law, 439
unless the court finds that the order of the Public Service 440
Commission is not supported by substantial evidence, is contrary 441
to the manifest weight of the evidence, is in excess of the 442
statutory authority or jurisdiction of the Public Service 443
Commission, or violates constitutional rights. If the Mississippi 444
Supreme Court remands the matter to the Public Service Commission 445
for further proceedings, the Public Service Commission shall enter 446
a final financing order upon remand not more than thirty (30) days 447
from the time of receipt of the mandate of the court. 448
SECTION 6. Except as provided in this act, a financing order 449
shall: 450
(a) Remain in effect until the system restoration bonds 451
issued pursuant to the order have been paid in full and the 452
commission-approved financing costs of the system restoration 453
bonds have been recovered in full. 454
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(b) Remain in effect and unabated notwithstanding the 455
bankruptcy, sale, transfer, reorganization, merger or dissolution 456
of the electric utility or its successors or assignees. 457
SECTION 7. (1) System restoration bonds issued pursuant to a 458
financing order shall not be the debt of the electric utility. 459
System restoration charges paid under any financing order shall 460
not be considered the revenue of the electric utility for any 461
purpose, including any evaluation of the electric utility made 462
pursuant to a formula-type rate of return rate plan established in 463
Section 77-3-2, Mississippi Code of 1972. System restoration 464
costs or financing costs, issuance costs and other costs specified 465
in the financing order shall not be considered the costs of the 466
electric utility. 467
(2) System restoration bonds shall not be used to finance 468
any project, addition, plant, facility, extension, capital 469
improvement, equipment, fuel charge, or any other expenditure, 470
unless the electric utility has filed a petition under this act to 471
finance such expenditure using system restoration bonds. No 472
action taken by an electric utility pursuant to a financing order 473
issued under this act shall be deemed to be unjust or 474
unreasonable. 475
SECTION 8. (1) (a) Upon transfer of the system restoration 476
property by the electric utility to the state, all system 477
restoration property that is specified in a financing order shall 478
constitute an existing, present property right or interest of the 479
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state in the property, notwithstanding that the imposition and 480
collection of a system restoration charge depends on the electric 481
utility to which the financing order is issued performing its 482
servicing functions relating to the collection of the system 483
restoration charge and on future provision of electric service. 484
System restoration property shall exist whether or not the 485
revenues or proceeds arising from the property have been billed, 486
have accrued, or have been collected and notwithstanding the fact 487
that the value or amount of the property is dependent on the 488
future provision of service to customers by the electric utility 489
or its successors or assignees. 490
(b) System restoration property specified in a 491
financing order shall continue to exist until the system 492
restoration bonds issued pursuant to the financing order are paid 493
in full and all financing costs and other costs of the bonds have 494
been recovered in full. 495
(c) All system restoration property specified in a 496
financing order shall be pledged to secure system restoration 497
bonds issued pursuant to the financing order. 498
(d) Upon transfer of the system restoration property by 499
the electric utility to the state, the electric utility shall have 500
no right to nor any interest in the system restoration property 501
other than the obligation to collect the system restoration 502
charges and transfer those charges to the state as directed in any 503
financing order and any resolution of the State Bond Commission. 504
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(e) Upon transfer of the system restoration property by 505
the electric utility to the state, the interest of the state in 506
the system restoration property specified in a financing order 507
issued to an electric utility, and in the revenue and collections 508
arising from that system restoration property, is not subject to 509
setoff, counterclaim, surcharge or defense by the electric utility 510
or any other person or in connection with the reorganization, 511
bankruptcy or other insolvency of the electric utility or any 512
other entity. 513
(f) Any successor to an electric utility, whether 514
pursuant to any reorganization, bankruptcy or other insolvency 515
proceeding, or whether pursuant to any merger or acquisition, 516
sale or other business combination, or transfer by operation of 517
law, as a result of electric utility restructuring or otherwise, 518
shall perform and satisfy all obligations of, and have the same 519
rights under a financing order as, the electric utility under the 520
financing order in the same manner and to the same extent as the 521
electric utility, including collecting and paying to the person 522
entitled to receive the revenues, collections, payments or 523
proceeds of the system restoration property. 524
SECTION 9. (1) A special fund, to be designated the 525
"Mississippi Severe Winter Storm of 2026 Electric Utility Customer 526
Relief and Electric Utility System Restoration Fund", is created 527
within the State Treasury. The fund shall be maintained by the 528
State Treasurer as a separate and special fund, separate and apart 529
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from the General Fund of the state. Unexpended amounts remaining 530
in the fund at the end of a fiscal year shall not lapse into the 531
State General Fund, and any interest earned or investment earnings 532
on amounts in the fund shall be deposited into such fund to the 533
credit of the appropriate account. 534
(2) The expenditure of money deposited into the fund shall 535
be under the direction of the commission, and such funds shall be 536
paid by the State Treasurer upon warrants issued by the 537
commission upon requisitions submitted by electric utilities and 538
approved by the commission pursuant to an exclusive procedure 539
developed by the State Bond Commission with advice from, and in 540
consultation with, the commission. This procedure shall be 541
incorporated in the State Bond Commission's resolution authorizing 542
the sale of the bonds. Money deposited into the fund shall be 543
disbursed to electric utilities from the appropriate account to 544
pay the costs associated with system restoration activity by the 545
electric utility that is necessary as a result of the storm. 546
(3) There shall be created accounts in the fund for each 547
electric utility for which a financing order is issued. The 548
proceeds of system restoration bonds issued pursuant to a 549
financing order shall be allocated to the account of the electric 550
utility for which the financing order was issued. 551
(4) Immediately upon the deposit to the fund of the proceeds 552
of the system restoration bonds, electric utilities shall be 553
entitled to requisition disbursements from the appropriate account 554
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of the fund sufficient to recover the system restoration costs 555
incurred by the electric utility prior to the date of the deposit 556
of the proceeds of the system restoration bonds if the costs are 557
approved by the commission in the financing order issued to the 558
electric utility. An electric utility may requisition 559
disbursements from the appropriate account of the fund for costs 560
incurred after the deposit to the fund of the proceeds of system 561
restoration bonds if the costs are approved by the commission in 562
conjunction with the financing order. 563
(5) The primary purpose of this act being to serve the 564
public good and to benefit the public as a whole, any 565
distributions of the bond proceeds to recover system restoration 566
costs pursuant to this section are intended to be contributions to 567
the capital of the electric utility companies making the 568
requisitions. 569
SECTION 10. (1) For the purpose of providing for the 570
payment of the principal of and interest upon bonds issued under 571
the provisions of this act and any related debt service costs, the 572
State Treasurer shall establish in the State Treasury a system 573
restoration bond sinking fund for each electric utility for which 574
bonds are issued under this act pursuant to a financing order. 575
Each sinking fund shall consist of the system restoration property 576
required to be deposited into the fund by an electric utility 577
pursuant to this act and such other eligible funds as may 578
otherwise be designated for deposit therein. Funds required in 579
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excess of the amounts available in the system restoration bond 580
sinking fund established for an electric utility to pay the 581
principal of and interest when due upon bonds issued pursuant to a 582
financing order issued for the electric utility pursuant to the 583
provisions of this act shall be appropriated from the State 584
General Fund. Unexpended amounts remaining in a sinking fund at 585
the end of a fiscal year shall not lapse into the State General 586
Fund, and any interest earned or investment earnings on amounts in 587
a sinking fund shall be deposited into the sinking fund. 588
(2) All system restoration property received by an electric 589
utility shall be deposited in the sinking fund of the electric 590
utility not less than monthly upon receipt by the electric 591
utility. The State Treasurer shall mandate the manner in which 592
such deposit shall be made. 593
(3) Any eligible funds other than system restoration 594
property received by a participating electric utility or the state 595
from any source for the purpose of financing or meeting system 596
restoration costs shall be paid into the system restoration 597
sinking fund of each participating electric utility in proportion 598
to their obligation for the payment of the system restoration 599
bonds. If such funds are directed to the state, the state shall 600
determine the amount of money it would have directed to a 601
participating electric utility in the absence of the participation 602
by the electric utility in financing system restoration costs 603
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under this act, and direct that amount to the system restoration 604
sinking fund of the participating electric utility. 605
(4) The money in each bond sinking fund established for an 606
electric utility pursuant to this act shall be used to pay the 607
principal and interest on system restoration bonds issued under a 608
financing order issued to the electric utility when due, and 609
shall, when advisable, be paid as soon as possible to reduce the 610
bonded indebtedness secured by that fund. It is the purpose of 611
this act to ensure that the system restoration bonds are retired 612
as soon as possible, consistent with the terms of the bonds, the 613
costs involved and the best interests of the electric utility 614
customers to be benefited. 615
(5) When the State Bond Commission determines that a system 616
restoration sinking fund or system restoration sinking funds are 617
sufficient to retire the outstanding bonds, it shall certify this 618
to the commission in writing. The State Bond Commission shall 619
retire the bonds not more than sixty (60) days after such 620
certification. Any unexpended amounts remaining in the sinking 621
fund following the retirement of the bonds shall be credited to 622
the State General Fund. 623
(6) Upon the retirement of the bonds, the electric utility 624
shall immediately petition the Public Service Commission for a 625
determination to cease collection of system restoration charges 626
from electric utility customers. 627
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SECTION 11. (1) An electric utility desiring the issuance of 628
system restoration bonds pursuant to a financing order shall 629
deliver a timely request to the State Bond Commission. Upon 630
receipt of such request, the State Bond Commission, in its 631
discretion, may act as the issuing agent, prescribe the form of 632
the bonds, advertise for and accept bids, issue and sell the bonds 633
so authorized to be sold, and do any and all other things 634
necessary and advisable in connection with the issuance and sale 635
of such bonds. With advice and consultation from the commission, 636
the State Bond Commission shall determine the amount of bonds to 637
be issued; however, the amount of bonds issued shall not exceed 638
the amount authorized in the financing order. 639
(2) Prior to the issuance of system restoration bonds under 640
this act, the State Bond Commission shall request that the State 641
Treasurer establish necessary system restoration bond sinking 642
funds as provided in Section 10 of this act. 643
(3) Any investment earnings on amounts deposited into the 644
Mississippi Severe Winter Storm of 2026 Electric Utility Customer 645
Relief and Electric Utility System Restoration Fund created in 646
Section 9 of this act shall be used to pay debt service on bonds 647
issued under this act, in accordance with the proceedings 648
authorizing issuance of such bonds. 649
SECTION 12. The principal of and interest on the bonds 650
authorized under this act shall be payable in the manner provided 651
in this section. Such bonds shall bear such date or dates, be in 652
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such denomination or denominations, bear interest at such rate or 653
rates (not to exceed the limits set forth in Section 75-17-101, 654
Mississippi Code of 1972), be payable at such place or places 655
within or outside of the State of Mississippi, shall mature 656
absolutely at such time or times not more than twenty-five (25) 657
years from date of issue, be redeemable before maturity at such 658
time or times and upon such terms, with or without premium, shall 659
bear such registration privileges, and shall be substantially in 660
such form, all as shall be determined by resolution of the State 661
Bond Commission. 662
SECTION 13. The bonds authorized by this act shall be signed 663
by the Chairman of the State Bond Commission, or by either his 664
facsimile signature or electronic signatures, and the official 665
seal of the State Bond Commission shall be affixed thereto, 666
attested by the Secretary of the State Bond Commission. The 667
interest coupons, if any, to be attached to such bonds may be 668
executed by the facsimile signatures or electronic signatures of 669
such officers. Whenever any such bonds shall have been signed by 670
the officials designated to sign the bonds who were in office at 671
the time of such signing but who may have ceased to be such 672
officers before the sale and delivery of such bonds, or who may 673
not have been in office on the date such bonds may bear, the 674
signatures of such officers upon such bonds and coupons shall 675
nevertheless be valid and sufficient for all purposes and have the 676
same effect as if the person so officially signing such bonds had 677
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remained in office until their delivery to the purchaser, or had 678
been in office on the date such bonds may bear. However, 679
notwithstanding anything herein to the contrary, such bonds may be 680
issued as provided in the Registered Bond Act of the State of 681
Mississippi. 682
SECTION 14. All bonds and interest coupons issued under the 683
provisions of this act have all the qualities and incidents of 684
negotiable instruments under the provisions of the Uniform 685
Commercial Code, and in exercising the powers granted by this act, 686
the State Bond Commission shall not be required to and need not 687
comply with the provisions of the Uniform Commercial Code. 688
SECTION 15. The State Bond Commission shall act as the 689
issuing agent for the bonds authorized under this act, prescribe 690
the form of the bonds, advertise for and accept bids or negotiate 691
the sale of the bonds, issue and sell the bonds so authorized to 692
be sold, pay all fees and costs incurred in such issuance and 693
sale, and do any and all other things necessary and advisable in 694
connection with the issuance and sale of such bonds. The State 695
Bond Commission is authorized and empowered to pay the costs that 696
are incident to the sale, issuance and delivery of the bonds 697
authorized under this act from the proceeds derived from the sale 698
of such bonds. The State Bond Commission may sell such bonds on 699
sealed bids at public sale or may negotiate the sale of the bonds 700
for such price as it may determine to be for the best interest of 701
the state. 702
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If such bonds are sold by sealed bids at public sale, notice 703
of the sale of any such bonds shall be published at least one 704
time, not less than ten (10) days before the date of sale, and 705
shall be so published in one or more newspapers published or 706
having a general circulation in the City of Jackson, Mississippi, 707
selected by the State Bond Commission. 708
The State Bond Commission, when issuing any bonds under the 709
authority of this act, may provide that bonds, at the option of 710
the state, may be called in for payment and redemption at the 711
call price named therein and accrued interest on such date or 712
dates named therein. 713
SECTION 16. The bonds issued under the provisions of this act 714
shall be payable from the appropriate sinking fund established 715
pursuant to Section 10 of this act and, in the discretion of the 716
State Bond Commission, may be issued as revenue bonds or general 717
obligations of the State of Mississippi. If the bonds are issued 718
as general obligations of the state the full faith and credit of 719
the State of Mississippi shall be irrevocably pledged for the 720
payment thereof, and if the funds available in the appropriate 721
sinking fund and any funds appropriated by the Legislature for 722
such purpose are insufficient to pay the principal of and the 723
interest upon such bonds as they become due, the deficiency shall 724
be paid by the State Treasurer from any funds in the State 725
Treasury not otherwise appropriated. All such general obligation 726
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bonds shall contain recitals on their faces substantially covering 727
the foregoing provisions of this section. 728
If the bonds are issued as revenue bonds of the state, the 729
principal of and interest on such bonds shall be payable solely 730
from and shall be secured by the appropriate sinking fund created 731
in Section 10 of this act. Such revenue bonds shall never 732
constitute an indebtedness of the State of Mississippi within the 733
meaning of any state constitutional provision or statutory 734
limitation and shall never constitute or give rise to a pecuniary 735
liability of the State of Mississippi, or a charge against its 736
general credit or taxing powers, and such fact shall be plainly 737
stated on the face of each such bond. Such revenue bonds shall not 738
be considered when computing any limitation of indebtedness of the 739
State of Mississippi. 740
All bonds issued under the authority of this act and all 741
interest coupons applicable thereto shall be construed to be 742
negotiable instruments, despite the fact that they are payable 743
solely from a specified source. 744
SECTION 17. Upon the issuance and sale of bonds under the 745
provisions of this act, the State Bond Commission shall transfer 746
the proceeds of any such sale or sales to the special fund created 747
in Section 9 of this act. The proceeds of such bonds shall be 748
disbursed solely as provided in Section 9 of this act. 749
SECTION 18. The bonds authorized under this act may be 750
issued without any other proceedings or the happening of any other 751
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conditions or things other than those proceedings, conditions and 752
things which are specified or required by this act. Any 753
resolution providing for the issuance of bonds under the 754
provisions of this act shall become effective immediately upon its 755
adoption by the State Bond Commission, and any such resolution may 756
be adopted at any regular or special meeting of the State Bond 757
Commission by a majority of its members. 758
SECTION 19. The bonds authorized under the authority of this 759
act may be validated in the Chancery Court of the First Judicial 760
District of Hinds County, Mississippi, in the manner and with the 761
force and effect provided by Chapter 13, Title 31, Mississippi 762
Code of 1972, for the validation of county, municipal, school 763
district and other bonds. The notice to taxpayers required by 764
such statutes shall be published in a newspaper published or 765
having a general circulation in the City of Jackson, Mississippi. 766
SECTION 20. Any holder of bonds issued under the provisions 767
of this act or of any of the interest coupons pertaining thereto 768
may, either at law or in equity, by suit, action, mandamus or 769
other proceeding, protect and enforce any and all rights granted 770
under this act, or under such resolution, and may enforce and 771
compel performance of all duties required by this act to be 772
performed, in order to provide for the payment of bonds and 773
interest thereon. 774
SECTION 21. All bonds issued under the provisions of this 775
act shall be legal investments for trustees and other fiduciaries, 776
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and for savings banks, trust companies and insurance companies 777
organized under the laws of the State of Mississippi, and such 778
bonds shall be legal securities which may be deposited with and 779
shall be received by all public officers and bodies of this state 780
and all municipalities and political subdivisions for the purpose 781
of securing the deposit of public funds. 782
SECTION 22. Upon an application by an electric utility to 783
the commission pursuant to Section 4 of this act and the issuance 784
of a financing order by the commission, the State Bond Commission 785
shall, upon the request of the electric utility, issue refunding 786
bonds for the purpose of paying any system restoration bonds at or 787
prior to their maturity or upon acceleration or redemption. 788
Refunding bonds may be issued at such time prior to the maturity 789
or redemption of the refunded bonds as the commission and the 790
State Bond Commission may determine. The refunding bonds shall be 791
issued pursuant to the Mississippi Bond Refinancing Act, Section 792
31- 27-1 et seq., Mississippi Code of 1972, or the General 793
Refunding Law of 1934, Section 31-15-1 et seq., Mississippi Code 794
of 1972. 795
SECTION 23. Bonds issued under the provisions of this act 796
and income therefrom shall be exempt from all taxation in the 797
State of Mississippi. 798
SECTION 24. The proceeds of the bonds issued under this act 799
shall be used solely for the purposes herein provided, including 800
the costs incident to the issuance and sale of such bonds. 801
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SECTION 25. The State Treasurer is authorized, without 802
further process of law, to certify to the Department of Finance 803
and Administration the necessity for warrants, and the Department 804
of Finance and Administration is authorized and directed to issue 805
such warrants, in such amounts as may be necessary to pay when due 806
the principal of, premium, if any, and interest on, or the 807
accreted value of, all bonds issued under this act; and the State 808
Treasurer shall forward the necessary amount to the designated 809
place or places of payment of such bonds in ample time to 810
discharge such bonds, or the interest thereon, on the due dates 811
thereof. 812
SECTION 26. (1) System restoration charges shall not be 813
included within the gross income of the utility in the calculation 814
of any sales tax pursuant to Section 27-65-19, Mississippi Code of 815
1972, or the calculation of any gross revenues of the electric 816
utility in the calculation of any franchise fees pursuant to 817
Section 77-3-17 Mississippi Code of 1972, or pursuant to any 818
franchise fee agreement between any electric utility and any 819
municipality. 820
(2) Nothing in this act shall be construed or interpreted as 821
lessening or reducing the rights and privileges of an electric 822
utility set out in Section 79-23-1, Mississippi Code of 1972, and 823
in the Mississippi Uniform Trade Secrets Act, Section 75-26-1 et 824
seq., Mississippi Code of 1972, and in the rules and regulations 825
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of the Public Service Commission implementing the provisions of 826
such statutes. 827
SECTION 27. The state pledges to and agrees with 828
bondholders, the owners of the system 829
restoration property, and other financing parties that the state 830
will not: 831
(a) Alter the provisions of this act which make the 832
system restoration charge imposed by a financing order 833
irrevocable; or 834
(b) Except as allowed under this act, reduce, alter or 835
impair the system restoration charge that is to be imposed, 836
collected and remitted for the benefit of the bondholders and 837
other financing parties until any and all principal, interest, 838
premium, financing costs and other fees, expenses or charges 839
incurred, and any contracts to be performed, in connection with 840
the related system restoration bonds have been paid and performed 841
in full. 842
SECTION 28. The provisions of this act shall be deemed to be 843
full and complete authority for the exercise of the powers therein 844
granted, but this act shall not be deemed to repeal or to be in 845
derogation of any existing law of this state. 846
SECTION 29. Section 27-65-19, Mississippi Code of 1972, is 847
brought forward as follows: 848
27-65-19. (1) (a) (i) Except as otherwise provided in 849
this subsection, upon every person selling to consumers, 850
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electricity, current, power, potable water, steam, coal, natural 851
gas, liquefied petroleum gas or other fuel, there is hereby 852
levied, assessed and shall be collected a tax equal to seven 853
percent (7%) of the gross income of the business. Provided, gross 854
income from sales to consumers of electricity, current, power, 855
natural gas, liquefied petroleum gas or other fuel for residential 856
heating, lighting or other residential noncommercial or 857
nonagricultural use, and sales of potable water for residential, 858
noncommercial or nonagricultural use shall be excluded from 859
taxable gross income of the business. Provided further, upon 860
every such seller using electricity, current, power, potable 861
water, steam, coal, natural gas, liquefied petroleum gas or other 862
fuel for nonindustrial purposes, there is hereby levied, assessed 863
and shall be collected a tax equal to seven percent (7%) of the 864
cost or value of the product or service used. 865
(ii) Gross income from sales to a church that is 866
exempt from federal income taxation under 26 USCS Section 867
501(c)(3) of electricity, current, power, natural gas, liquefied 868
petroleum gas or other fuel for heating, lighting or other use, 869
and sales of potable water to such a church shall be excluded from 870
taxable gross income of the business if the electricity, current, 871
power, natural gas, liquefied petroleum gas or potable water is 872
utilized on property that is primarily used for religious or 873
educational purposes. 874
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(b) (i) There is hereby levied, assessed and shall be 875
collected a tax equal to one and one-half percent (1-1/2%) of the 876
gross income of the business from the sale of naturally occurring 877
carbon dioxide and anthropogenic carbon dioxide lawfully injected 878
into the earth for: 879
1. Use in an enhanced oil recovery project, 880
including, but not limited to, use for cycling, repressuring or 881
lifting of oil; or 882
2. Permanent sequestration in a geological 883
formation. 884
(ii) The one and one-half percent (1-1/2%) rate 885
provided for in this subsection shall apply to electricity, 886
current, power, steam, coal, natural gas, liquefied petroleum gas 887
or other fuel that is sold to a producer of oil and gas for use 888
directly in enhanced oil recovery using carbon dioxide and/or the 889
permanent sequestration of carbon dioxide in a geological 890
formation. 891
(c) The one and one-half percent (1-1/2%) rate provided 892
for in this subsection shall not apply to sales of fuel for 893
automobiles, trucks, truck-tractors, buses, farm tractors or 894
airplanes. 895
(d) (i) Upon every person providing services in this 896
state, there is hereby levied, assessed and shall be collected: 897
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1. A tax equal to seven percent (7%) of the 898
gross income received from all charges for intrastate 899
telecommunications services. 900
2. A tax equal to seven percent (7%) of the 901
gross income received from all charges for interstate 902
telecommunications services. 903
3. A tax equal to seven percent (7%) of the 904
gross income received from all charges for international 905
telecommunications services. 906
4. A tax equal to seven percent (7%) of the 907
gross income received from all charges for ancillary services. 908
Sales of computer software, computer software services, 909
specified digital products, or other products delivered 910
electronically, including, but not limited to, music, games, 911
reading materials or ring tones, shall be taxed as provided in 912
other sections of this chapter. 913
(ii) A person, upon proof that he has paid a tax 914
in another state on an event described in subparagraph (i) of this 915
paragraph (d), shall be allowed a credit against the tax imposed 916
in this paragraph (d) on interstate telecommunications service 917
charges to the extent that the amount of such tax is properly due 918
and actually paid in such other state and to the extent that the 919
rate of sales tax imposed by and paid in such other state does not 920
exceed the rate of sales tax imposed by this paragraph (d). 921
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(iii) Charges by one (1) telecommunications 922
provider to another telecommunications provider holding a permit 923
issued under Section 27-65-27 for services that are resold by such 924
other telecommunications provider, including, but not limited to, 925
access charges, shall not be subject to the tax levied pursuant to 926
this paragraph (d). 927
(iv) For purposes of this paragraph (d): 928
1. "Telecommunications service" means the 929
electronic transmission, conveyance or routing of voice, data, 930
audio, video or any other information or signals to a point, or 931
between points. The term "telecommunications service" includes 932
such transmission, conveyance or routing in which computer 933
processing applications are used to act on the form, code or 934
protocol of the content for purposes of transmission, conveyance 935
or routing without regard to whether such service is referred to 936
as Voice over Internet Protocol services or is classified by the 937
Federal Communications Commission as enhanced or value added. The 938
term "telecommunications service" shall not include: 939
a. Data processing and information 940
services that allow data to be generated, acquired, stored, 941
processed or retrieved and delivered by an electronic transmission 942
to a purchaser where such purchaser's primary purpose for the 943
underlying transaction is the processed data or information; 944
b. Installation or maintenance of wiring 945
or equipment on a customer's premises; 946
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c. Tangible personal property; 947
d. Advertising, including, but not 948
limited to, directory advertising; 949
e. Billing and collection services 950
provided to third parties; 951
f. Internet access service; 952
g. Radio and television audio and video 953
programming services regardless of the medium, including the 954
furnishing of transmission, conveyance and routing of such 955
services by the programming service provider. Radio and 956
television audio and video programming services shall include, but 957
not be limited to, cable service as defined in 47 USCS 522(6) and 958
audio and video programming services delivered by commercial 959
mobile radio service providers, as defined in 47 CFR 20.3; 960
h. Ancillary services; or 961
i. Digital products delivered 962
electronically, including, but not limited to, computer software, 963
computer software services, electronically stored or maintained 964
data, music, video, reading materials, specified digital products, 965
or ring tones. 966
2. "Ancillary services" means services that 967
are associated with or incidental to the provision of 968
telecommunications services, including, but not limited to, 969
detailed telecommunications billing, directory assistance, 970
vertical service and voice mail service. 971
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a. "Conference bridging" means an 972
ancillary service that links two (2) or more participants of an 973
audio or video conference call and may include the provision of a 974
telephone number. Conference bridging does not include the 975
telecommunications services used to reach the conference bridge. 976
b. "Detailed telecommunications billing 977
service" means an ancillary service of separately stating 978
information pertaining to individual calls on a customer's billing 979
statement. 980
c. "Directory assistance" means an 981
ancillary service of providing telephone number information and/or 982
address information. 983
d. "Vertical service" means an ancillary 984
service that is offered in connection with one or more 985
telecommunications services, which offers advanced calling 986
features that allow customers to identify callers and to manage 987
multiple calls and call connections, including conference bridging 988
services. 989
e. "Voice mail service" means an 990
ancillary service that enables the customer to store, send or 991
receive recorded messages. Voice mail service does not include 992
any vertical services that the customer may be required to have in 993
order to utilize the voice mail service. 994
3. "Intrastate" means telecommunications 995
service that originates in one (1) United States state or United 996
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States territory or possession, and terminates in the same United 997
States state or United States territory or possession. 998
4. "Interstate" means a telecommunications 999
service that originates in one (1) United States state or United 1000
States territory or possession, and terminates in a different 1001
United States state or United States territory or possession. 1002
5. "International" means a telecommunications 1003
service that originates or terminates in the United States and 1004
terminates or originates outside the United States, respectively. 1005
(v) For purposes of paragraph (d), the following 1006
sourcing rules shall apply: 1007
1. Except for the defined telecommunications 1008
services in item 3 of this subparagraph, the sales of 1009
telecommunications services sold on a call-by-call basis shall be 1010
sourced to: 1011
a. Each level of taxing jurisdiction 1012
where the call originates and terminates in that jurisdiction, or 1013
b. Each level of taxing jurisdiction 1014
where the call either originates or terminates and in which the 1015
service address is also located. 1016
2. Except for the defined telecommunications 1017
services in item 3 of this subparagraph, a sale of 1018
telecommunications services sold on a basis other than a 1019
call-by-call basis, is sourced to the customer's place of primary 1020
use. 1021
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3. The sale of the following 1022
telecommunications services shall be sourced to each level of 1023
taxing jurisdiction as follows: 1024
a. A sale of mobile telecommunications 1025
services other than air-to-ground radiotelephone service and 1026
prepaid calling service is sourced to the customer's place of 1027
primary use as required by the Mobile Telecommunication Sourcing 1028
Act. 1029
A. A home service provider shall be 1030
responsible for obtaining and maintaining the customer's place of 1031
primary use. The home service provider shall be entitled to rely 1032
on the applicable residential or business street address supplied 1033
by such customer, if the home service provider's reliance is in 1034
good faith; and the home service provider shall be held harmless 1035
from liability for any additional taxes based on a different 1036
determination of the place of primary use for taxes that are 1037
customarily passed on to the customer as a separate itemized 1038
charge. A home service provider shall be allowed to treat the 1039
address used for purposes of the tax levied by this chapter for 1040
any customer under a service contract in effect on August 1, 2002, 1041
as that customer's place of primary use for the remaining term of 1042
such service contract or agreement, excluding any extension or 1043
renewal of such service contract or agreement. Month-to-month 1044
services provided after the expiration of a contract shall be 1045
treated as an extension or renewal of such contract or agreement. 1046
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B. If the commissioner determines 1047
that the address used by a home service provider as a customer's 1048
place of primary use does not meet the definition of the term 1049
"place of primary use" as defined in subitem a.A. of this item 3, 1050
the commissioner shall give binding notice to the home service 1051
provider to change the place of primary use on a prospective basis 1052
from the date of notice of determination; however, the customer 1053
shall have the opportunity, prior to such notice of determination, 1054
to demonstrate that such address satisfies the definition. 1055
C. The department has the right to 1056
collect any taxes due directly from the home service provider's 1057
customer that has failed to provide an address that meets the 1058
definition of the term "place of primary use" which resulted in a 1059
failure of tax otherwise due being remitted. 1060
b. A sale of postpaid calling service is 1061
sourced to the origination point of the telecommunications signal 1062
as first identified by either: 1063
A. The seller's telecommunications 1064
system; or 1065
B. Information received by the 1066
seller from its service provider, where the system used to 1067
transport such signals is not that of the seller. 1068
c. A sale of a prepaid calling service 1069
or prepaid wireless calling service shall be subject to the tax 1070
imposed by this paragraph if the sale takes place in this state. 1071
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If the customer physically purchases a prepaid calling service or 1072
prepaid wireless calling service at the vendor's place of 1073
business, the sale is deemed to take place at the vendor's place 1074
of business. If the customer does not physically purchase the 1075
service at the vendor's place of business, the sale of a prepaid 1076
calling card or prepaid wireless calling card is deemed to take 1077
place at the first of the following locations that applies to the 1078
sale: 1079
A. The customer's shipping address, 1080
if the sale involves a shipment; 1081
B. The customer's billing address; 1082
C. Any other address of the 1083
customer that is known by the vendor; or 1084
D. The address of the vendor, or 1085
alternatively, in the case of a prepaid wireless calling service, 1086
the location associated with the mobile telephone number. 1087
4. A sale of a private communication service 1088
is sourced as follows: 1089
a. Service for a separate charge related 1090
to a customer channel termination point is sourced to each level 1091
of jurisdiction in which such customer channel termination point 1092
is located. 1093
b. Service where all customer 1094
termination points are located entirely within one (1) 1095
jurisdiction or levels of jurisdiction is sourced in such 1096
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jurisdiction in which the customer channel termination points are 1097
located. 1098
c. Service for segments of a channel 1099
between two (2) customer channel termination points located in 1100
different jurisdictions and which segments of a channel are 1101
separately charged is sourced fifty percent (50%) in each level of 1102
jurisdiction in which the customer channel termination points are 1103
located. 1104
d. Service for segments of a channel 1105
located in more than one (1) jurisdiction or levels of 1106
jurisdiction and which segments are not separately billed is 1107
sourced in each jurisdiction based on the percentage determined by 1108
dividing the number of customer channel termination points in such 1109
jurisdiction by the total number of customer channel termination 1110
points. 1111
5. A sale of ancillary services is sourced to 1112
the customer's place of primary use. 1113
(vi) For purposes of subparagraph (v) of this 1114
paragraph (d): 1115
1. "Air-to-ground radiotelephone service" 1116
means a radio service, as that term is defined in 47 CFR 22.99, in 1117
which common carriers are authorized to offer and provide radio 1118
telecommunications service for hire to subscribers in aircraft. 1119
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2. "Call-by-call basis" means any method of 1120
charging for telecommunications services where the price is 1121
measured by individual calls. 1122
3. "Communications channel" means a physical 1123
or virtual path of communications over which signals are 1124
transmitted between or among customer channel termination points. 1125
4. "Customer" means the person or entity that 1126
contracts with the seller of telecommunications services. If the 1127
end user of telecommunications services is not the contracting 1128
party, the end user of the telecommunications service is the 1129
customer of the telecommunications service. Customer does not 1130
include a reseller of telecommunications service or for mobile 1131
telecommunications service of a serving carrier under an agreement 1132
to serve the customer outside the home service provider's licensed 1133
service area. 1134
5. "Customer channel termination point" means 1135
the location where the customer either inputs or receives the 1136
communications. 1137
6. "End user" means the person who utilizes 1138
the telecommunications service. In the case of an entity, "end 1139
user" means the individual who utilizes the service on behalf of 1140
the entity. 1141
7. "Home service provider" has the meaning 1142
ascribed to such term in Section 124(5) of Public Law 106-252 1143
(Mobile Telecommunications Sourcing Act). 1144
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8. "Mobile telecommunications service" has 1145
the meaning ascribed to such term in Section 124(7) of Public Law 1146
106-252 (Mobile Telecommunications Sourcing Act). 1147
9. "Place of primary use" means the street 1148
address representative of where the customer's use of the 1149
telecommunications service primarily occurs, which must be the 1150
residential street address or the primary business street address 1151
of the customer. In the case of mobile telecommunications 1152
services, the place of primary use must be within the licensed 1153
service area of the home service provider. 1154
10. "Post-paid calling service" means the 1155
telecommunications service obtained by making a payment on a 1156
call-by-call basis either through the use of a credit card or 1157
payment mechanism such as a bank card, travel card, credit card or 1158
debit card, or by charge made to a telephone number which is not 1159
associated with the origination or termination of the 1160
telecommunications service. A post-paid calling service includes 1161
a telecommunications service, except a prepaid wireless calling 1162
service that would be a prepaid calling service except it is not 1163
exclusively a telecommunications service. 1164
11. "Prepaid calling service" means the right 1165
to access exclusively telecommunications services, which must be 1166
paid for in advance and which enables the origination of calls 1167
using an access number or authorization code, whether manually or 1168
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electronically dialed, and that is sold in predetermined units or 1169
dollars of which the number declines with use in a known amount. 1170
12. "Prepaid wireless calling service" means 1171
a telecommunications service that provides the right to utilize 1172
mobile wireless service as well as other nontelecommunications 1173
services, including the download of digital products delivered 1174
electronically, content and ancillary service, which must be paid 1175
for in advance that is sold in predetermined units or dollars of 1176
which the number declines with use in a known amount. 1177
13. "Private communication service" means a 1178
telecommunications service that entitles the customer to exclusive 1179
or priority use of a communications channel or group of channels 1180
between or among termination points, regardless of the manner in 1181
which such channel or channels are connected, and includes 1182
switching capacity, extension lines, stations and any other 1183
associated services that are provided in connection with the use 1184
of such channel or channels. 1185
14. "Service address" means: 1186
a. The location of the 1187
telecommunications equipment to which a customer's call is charged 1188
and from which the call originates or terminates, regardless of 1189
where the call is billed or paid. 1190
b. If the location in subitem a of this 1191
item 14 is not known, the origination point of the signal of the 1192
telecommunications services first identified by either the 1193
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seller's telecommunications system or in information received by 1194
the seller from its service provider, where the system used to 1195
transport such signals is not that of the seller. 1196
c. If the location in subitems a and b 1197
of this item 14 are not known, the location of the customer's 1198
place of primary use. 1199
(vii) 1. For purposes of this subparagraph (vii), 1200
"bundled transaction" means a transaction that consists of 1201
distinct and identifiable properties or services which are sold 1202
for a single nonitemized price but which are treated differently 1203
for tax purposes. 1204
2. In the case of a bundled transaction that 1205
includes telecommunications services, ancillary services, internet 1206
access, or audio or video programming services taxed under this 1207
chapter in which the price of the bundled transaction is 1208
attributable to properties or services that are taxable and 1209
nontaxable, the portion of the price that is attributable to any 1210
nontaxable property or service shall be subject to the tax unless 1211
the provider can reasonably identify that portion from its books 1212
and records kept in the regular course of business. 1213
3. In the case of a bundled transaction that 1214
includes telecommunications services, ancillary services, internet 1215
access, audio or video programming services subject to tax under 1216
this chapter in which the price is attributable to properties or 1217
services that are subject to the tax but the tax revenue from the 1218
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different properties or services are dedicated to different funds 1219
or purposes, the provider shall allocate the price among the 1220
properties or services: 1221
a. By reasonably identifying the portion 1222
of the price attributable to each of the properties and services 1223
from its books and records kept in the regular course of business; 1224
or 1225
b. Based on a reasonable allocation 1226
methodology approved by the department. 1227
4. This subparagraph (vii) shall not create a 1228
right of action for a customer to require that the provider or the 1229
department, for purposes of determining the amount of tax 1230
applicable to a bundled transaction, allocate the price to the 1231
different portions of the transaction in order to minimize the 1232
amount of tax charged to the customer. A customer shall not be 1233
entitled to rely on the fact that a portion of the price is 1234
attributable to properties or services not subject to tax unless 1235
the provider elects, after receiving a written request from the 1236
customer in the form required by the provider, to provide 1237
verifiable data based upon the provider's books and records that 1238
are kept in the regular course of business that reasonably 1239
identifies the portion of the price attributable to the properties 1240
or services not subject to the tax. 1241
(2) Persons making sales to consumers of electricity, 1242
current, power, natural gas, liquefied petroleum gas or other fuel 1243
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ST: Mississippi Severe Winter Storm of 2026
Electric Utility Customer Relief and Electric
Utility System Restoration Act; create.
for residential heating, lighting or other residential 1244
noncommercial or nonagricultural use or sales of potable water for 1245
residential, noncommercial or nonagricultural use shall indicate 1246
on each statement rendered to customers that such charges are 1247
exempt from sales taxes. 1248
(3) There is hereby levied, assessed and shall be paid on 1249
transportation charges on shipments moving between points within 1250
this state when paid directly by the consumer, a tax equal to the 1251
rate applicable to the sale of the property being transported. 1252
Such tax shall be reported and paid directly to the Department of 1253
Revenue by the consumer. 1254
SECTION 30. This act shall take effect and be in force from 1255
and after its passage. 1256