Municipally owned utilities; authorize to accept electronic payments and to absorb transaction fees in its rate base.

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To: Energy; Municipalities
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Thomas

SENATE BILL NO. 2060

AN ACT TO AMEND SECTION 21-27-23, MISSISSIPPI CODE OF 1972, 1
TO AUTHORIZE A MUNICIPALITY TO ALLOW A MUNICIPALLY OWNED UTILITY 2
TO ACCEPT PAYMENT FOR ITS SERVICES BY CREDIT CARD, DEBIT CARD OR 3
OTHER FORM OF ELECTRONIC PAYMENT AND TO ABSORB ANY FEES OR CHARGES 4
ASSOCIATED WITH THE USE OF SUCH ELECTRONIC PAYMENT IN ITS COST OF 5
SERVICE RATE BASE; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 21-27-23, Mississippi Code of 1972, is 8
amended as follows: 9
21-27-23. Any municipality may: 10
(a) Borrow money and issue revenue bonds therefor 11
solely for the purposes specified in this section and by the 12
procedure provided in Sections 21-27-41 through 21-27-69. 13
Money may be borrowed and bonds issued by any municipality of 14
the State of Mississippi, as defined in Section 21-27-11, to 15
acquire or improve any waterworks system, water supply system, 16
sewerage system, sewage disposal system, garbage disposal system, 17
rubbish disposal system or incinerators, gas producing system, gas 18
generating system, gas transmission system, or gas distribution 19
system, electric generating, transmission or distribution system, 20
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railroad transportation system for passengers and freight, or 21
motor vehicle transportation system, including any combination of 22
any or all of those systems into one (1) system, within or without 23
the corporate limits thereof, for the purpose of supplying the 24
municipality and the persons and corporations, both public and 25
private, whether within or without its corporate limits, with the 26
services and facilities afforded by the system, provided that 27
water, electric energy, or gas afforded by any system or systems 28
may be supplied to such ultimate consumers thereof by sale thereof 29
to the owners or operators of a distribution system for resale to 30
the public. Any municipality which shall borrow money and issue 31
revenue bonds to provide funds with which to acquire a gas 32
transmission system, if necessary in order to reach and obtain a 33
source of supply of gas for the municipality, may extend or 34
construct its gas transmission line into an adjoining state, and 35
may use and expend part of the proceeds of such issue of revenue 36
bonds for the purpose. 37
(b) * * * Assume all indebtedness for any system or 38
systems which may be acquired under the provisions of this section 39
as all or part of the consideration for the acquisition of such 40
system or systems and to issue its revenue bonds in exchange for 41
the bonds or notes evidencing the indebtedness. 42
(c) * * * Acquire or improve any system which it is 43
authorized to borrow money and issue revenue bonds under 44
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subsection (a) of this section to acquire or improve; and to make 45
contracts in furtherance thereof or in connection therewith. 46
(d) * * * Own, operate and maintain any such system or 47
combination of any and all of said systems into one (1) system. 48
(e) * * * Establish, maintain and collect rates for the 49
facilities and services offered by any such system; provided that 50
if there is a combination of systems into one or more systems, the 51
municipality establishing the same shall be and is empowered to 52
establish, maintain and collect rates for any and all of the 53
services or for any combination thereof, and the municipality may 54
discontinue any or all of the services upon any failure to 55
promptly pay the charges fixed for the services. The rates so 56
fixed for services rendered by any system or combination thereof 57
may be charged for all services rendered thereby, regardless of 58
whether the services may have been previously rendered without 59
rates or charges therefor by the previously existing waterworks 60
system, water supply system, sewerage system, sewage disposal 61
system, garbage disposal system, rubbish disposal system or 62
incinerators, gas producing system, gas generating system, gas 63
transmission system, or gas distribution system, electric 64
generating, transmission or distribution system, which shall have 65
been merged into the combined system. Any such municipality may 66
pledge for the payment of any bonds issued to acquire or improve 67
any such combined system, or to refund any bonds previously issued 68
to acquire or improve any such combined system or to acquire or 69
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improve any system merged with such combined system, the revenues 70
to be derived from the operation of such combined system, 71
including the charges authorized to be imposed by this section. 72
A municipality may authorize a municipally owned utility to 73
make early payment of the utility's bills to its electricity 74
suppliers which offer early payment discounts to the municipally 75
owned utility. The municipality may immediately refund to a 76
customer of the municipally owned utility his or her deposit for 77
municipal utility services after the municipal utility has 78
determined that payment for all services and any other obligations 79
which the customer may have incurred in regard to the municipal 80
utility has been made. 81
A municipality may authorize a municipally owned utility to 82
accept payment for its services by credit card, debit card or 83
other form of electronic payment and to absorb any fees or charges 84
associated with the use of such electronic payment in its cost of 85
service rate base. 86
If the revenues of any previously existing system being 87
merged into a combined system are subject to a prior lien, the 88
revenues and the expenses of any previously existing system shall 89
be accounted for separately to the extent necessary to satisfy the 90
covenants relating to the prior lien for so long as the 91
indebtedness secured by the revenues shall remain outstanding. 92
Only surplus revenues remaining after the satisfaction of all 93
covenants relating to the outstanding indebtedness may be pledged 94
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to the retirement of any indebtedness to be secured by the 95
revenues of a combined system. The existence of the outstanding 96
indebtedness shall not, in and of itself, prevent the combining of 97
systems as herein provided, so long as the prior lien on the 98
revenues of any previously existing system is fully satisfied from 99
the revenues of the previously existing system. 100
(f) * * * Acquire property, real or personal, which may 101
be necessary to effectuate the powers conferred by this section. 102
The municipality may purchase electric transmission line 103
materials, electric distribution system substation equipment, 104
transformer equipment, and all other appliances, apparatus, 105
machinery, equipment and appurtenances necessary for the sale of 106
electricity, such as utility vehicles and fencing, from the 107
surplus inventory of the Tennessee Valley Authority or any other 108
similar agency of the federal government and electric power 109
associations. These purchases by the municipality shall be exempt 110
from the public bid requirements prescribed in Sections 31-7-12 111
and 31-7-13. If the power of eminent domain is exercised, it 112
shall be exercised in the manner provided by Sections 11-27-1 113
through 11-27-51. 114
(g) * * * Enter into contract with the United States of 115
America or any agency thereof, under the provisions of acts of the 116
Congress of the United States, to aid or encourage public works 117
and the regulations made in pursuance thereof, for the sale of 118
bonds issued in accordance with the provisions of Sections 119
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ST: Municipally owned utilities; authorize to
accept electronic payments and to absorb
transaction fees in its rate base.
21-27-41 through 21-27-69 or for the acceptance of a grant to aid 120
such municipality in acquiring or improving any such system; and 121
the contracts may contain terms and conditions as may be agreed 122
upon by and between the municipality and the United States of 123
America or any agency thereof, or any purchaser of the bonds. 124
(h) * * * Adopt the ordinances and resolutions and to 125
do all things and perform all acts necessary, proper or desirable 126
to effectuate the full intent and purpose of Sections 21-27-11 127
through 21-27-69, including processing, marketing, custom 128
processing, sale and resale of materials processed through any 129
facility under its jurisdiction. 130
(i) * * * Borrow from the Mississippi Development Bank 131
in order to fund the advance purchase of energy for its gas 132
producing, generating, transmission or distribution system or its 133
electric generating, transmission or distribution system. 134
(j) Enter into an interlocal agreement in accordance 135
with Section 21-27-75. 136
SECTION 2. This act shall take effect and be in force from 137
and after July 1, 2026. 138