Read the full stored bill text
S. B. No. 2310 *SS36/R775* ~ OFFICIAL ~ G1/2
26/SS36/R775
PAGE 1 (aa\kr)
To: Energy
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Williams
SENATE BILL NO. 2310
AN ACT TO AMEND SECTION 77-3-22, MISSISSIPPI CODE OF 1972, TO 1
AUTHORIZE THE PUBLIC SERVICE COMMISSION TO CANCEL A MUNICIPALITY'S 2
CERTIFICATE TO PROVIDE WATER SERVICE GREATER THAN ONE MILE OUTSIDE 3
OF ITS BOUNDARIES UPON A FINDING OF INADEQUACY OF SERVICE; TO 4
BRING FORWARD SECTIONS 77-3-21 AND 77-3-1, MISSISSIPPI CODE OF 5
1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED 6
PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 77-3-22, Mississippi Code of 1972, is 9
amended as follows: 10
77-3-22. Notwithstanding Section 77-3-1(1), if the 11
commission determines that any privately owned water and/or sewer 12
system, or any municipally owned or operated electric utility or 13
water system providing service greater than one (1) mile outside 14
its municipal boundaries and within its jurisdiction is unable or 15
unwilling to adequately serve its customers or has been actually 16
or effectively abandoned by its owner, or that its management is 17
grossly inefficient, irresponsible or unresponsive to the needs of 18
its customers, the commission or its designated representative may 19
petition the Chancery Court of the First Judicial District of 20
S. B. No. 2310 *SS36/R775* ~ OFFICIAL ~
26/SS36/R775
PAGE 2 (aa\kr)
Hinds County or the chancery court of any county wherein the 21
public utility does business for an order attaching the assets of 22
the privately owned water and/or sewer system or municipally owned 23
or operated electric utility or water system and placing such 24
system under the sole control and responsibility of a receiver. 25
If the court determines that the petition is proper in all 26
respects and finds, after a hearing thereon, the allegations 27
contained in the petition are true, it shall order that the system 28
be placed in receivership. The court, in its discretion and in 29
consideration of the recommendation of the commission or its 30
designated representative, may appoint a receiver who shall be a 31
responsible individual, partnership, corporation or political 32
subdivision knowledgeable in water, sewer or electric service 33
affairs and who shall maintain control and responsibility for the 34
operation and management of the affairs of such system. The 35
receiver shall operate the system so as to preserve the assets of 36
the system and to serve the best interests of its customers. The 37
receiver shall be compensated from the assets of the system in an 38
amount to be determined by the court. 39
Control of and responsibility for the system shall remain in 40
the receiver until the court determines that it is in the best 41
interests of the customers that the system be returned to the 42
owner, transferred to another owner or assumed by another 43
operator, system or public service corporation. If the court, 44
after hearing, determines that control of and responsibility for 45
S. B. No. 2310 *SS36/R775* ~ OFFICIAL ~
26/SS36/R775
PAGE 3 (aa\kr)
the affairs of the system should not be returned to the legal 46
owner thereof, the receiver may proceed to liquidate the assets of 47
such system in the manner provided by law. 48
In any court-initiated receivership for a municipally owned 49
or operated electric utility providing service greater than one 50
(1) mile outside its municipal boundaries, the receiver shall 51
assume the responsibilities and obligations of the municipality 52
with regard to any existing wholesale power contract. 53
Mississippi laws and Mississippi Rules of Civil Procedure 54
generally applicable to receivership shall govern receiverships 55
created under this section. 56
This section is in addition to the provisions of Section 57
77-3-21. 58
SECTION 2. Section 77-3-21, Mississippi Code of 1972, is 59
brought forward as follows: 60
77-3-21. The commission may, after a hearing had upon due 61
notice, make such findings as may be supported by proof as to 62
whether any utility holding a certificate under the provisions of 63
this article is rendering reasonably adequate service in any area 64
covered by such utility's certificate. In the event the 65
commission finds that such utility is not rendering reasonably 66
adequate service, the commission may enter an order specifying in 67
what particulars such utility has failed to render reasonably 68
adequate service and order that such failure be corrected within a 69
reasonable time, such time to be fixed in such order. If the 70
S. B. No. 2310 *SS36/R775* ~ OFFICIAL ~
26/SS36/R775
PAGE 4 (aa\kr)
utility so ordered to correct such a failure fails to comply with 71
such order of the commission and the commission finds that 72
cancellation of its certificate would be in the best interest of 73
the consuming public served by the holder of the certificate, its 74
certificate for the area affected may be revoked and cancelled by 75
the commission. 76
Prior to any municipality exercising the power of eminent 77
domain as provided in Section 77-3-17, the commission shall 78
determine that the certificate of public convenience and necessity 79
granted to the utility pursuant to Section 77-3-13 for the service 80
area wherein such facilities are located, shall be cancelled as 81
provided in this section. Nothing in this paragraph shall be 82
construed to include service for water and sewage. 83
Notwithstanding Section 77-3-1(1), the commission shall have 84
jurisdiction to investigate whether any municipality that holds a 85
certificate to provide service greater than one (1) mile outside 86
its municipal boundaries is providing reasonably adequate service. 87
Following a hearing and upon making such a finding, the commission 88
shall have full authority to enter any order authorized under this 89
section, including canceling the certificate for the area that 90
extends beyond the municipalities' boundaries. 91
SECTION 3. Section 77-3-1, Mississippi Code of 1972, is 92
brought forward as follows: 93
77-3-1. (1) Except as otherwise provided in Section 77-3-6, 94
any public utility as defined in paragraph (d) of Section 77-3-3, 95
S. B. No. 2310 *SS36/R775* ~ OFFICIAL ~
26/SS36/R775
PAGE 5 (aa\kr)
ST: Inadequacy of water service; authorizing
the PSC to cancel a municipality's certificate
upon findings of.
owned or operated by a municipality shall not be subject to the 96
provisions of this article, except as to extension of utilities 97
greater than one (1) mile outside corporate boundaries after March 98
29, 1956. 99
(2) The provisions of this chapter shall not apply to the 100
distribution of water by an eligible homeowners association only 101
to its residents, irrespective of the subdivision's location 102
inside of an area subject to a Certificate of Public Convenience 103
and Necessity held by an eligible municipality. Additionally, the 104
provisions of this chapter shall not apply to any entity supplying 105
water to an eligible homeowners association for purposes of 106
supplying water only to its residents. These provisions shall not 107
apply whether an eligible homeowners association elects to provide 108
water to its residents on a full-time basis or opts for an 109
emergency connection to a private water source for use only when 110
water from an eligible municipality is unavailable, unreliable or 111
unsafe. 112
SECTION 4. This act shall take effect and be in force from 113
and after July 1, 2026. 114