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To: Energy
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Carter
SENATE BILL NO. 2788
AN ACT TO AMEND SECTION 77-3-1, MISSISSIPPI CODE OF 1972, TO 1
ENSURE THAT MUNICIPALLY OWNED OR OPERATED PUBLIC UTILITIES ARE 2
SUBJECT TO THE PROVISIONS OF THAT SECTION; TO AMEND SECTION 3
77-3-5, MISSISSIPPI CODE OF 1972, TO STIPULATE THAT MUNICIPALLY 4
OWNED OR OPERATED PUBLIC UTILITIES SHALL UNDERGO ANNUAL AUDITS 5
CONDUCTED BY THIRD-PARTY FIRMS; TO REQUIRE THAT THE RESULTS OF 6
SUCH AUDITS BE REPORTED TO THE PUBLIC SERVICE COMMISSION AND THE 7
PUBLIC UTILITIES STAFF; AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. Section 77-3-1, Mississippi Code of 1972, is 10
amended as follows: 11
77-3-1. * * * The provisions of this chapter shall not apply 12
to the distribution of water by an eligible homeowners association 13
only to its residents, irrespective of the subdivision's location 14
inside of an area subject to a Certificate of Public Convenience 15
and Necessity held by an eligible municipality. Additionally, the 16
provisions of this chapter shall not apply to any entity supplying 17
water to an eligible homeowners association for purposes of 18
supplying water only to its residents. These provisions shall not 19
apply whether an eligible homeowners association elects to provide 20
water to its residents on a full-time basis or opts for an 21
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emergency connection to a private water source for use only when 22
water from an eligible municipality is unavailable, unreliable or 23
unsafe. 24
SECTION 2. Section 77-3-5, Mississippi Code of 1972, is 25
amended as follows: 26
77-3-5. (1) Notwithstanding any other provision of law, and 27
subject only to the limitations imposed in this chapter and in 28
accordance with the provisions of this chapter, the Public Service 29
Commission shall have exclusive original jurisdiction over the 30
intrastate business and property of public utilities and, for 31
purposes of clarification of the existing scope of said exclusive 32
original jurisdiction, such exclusive original jurisdiction 33
extends, but is not limited to: the establishment of retail 34
rates; challenges, including customer complaints, to the amount of 35
a retail rate or customer bill or whether such rate is just and 36
reasonable; and challenges to the validity or accuracy of rates 37
charged by a public utility, or to the accuracy or reliability of 38
information submitted to the Public Service Commission by a public 39
utility or other person in support of or in opposition to a 40
proposed or approved rate, regardless of the legal theory upon 41
which any such challenge is made. However, the commission shall 42
not have jurisdiction over the production and gathering of natural 43
gas or the sale of natural gas in or within the vicinity of the 44
field where produced, or over the facilities and equipment 45
utilized in any such operations, including, but not limited to, 46
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such facilities as separators, scrubbers and gasoline plants of 47
all types. Further, the commission shall not have jurisdiction 48
over the governance, management or other internal affairs of 49
entities as described by paragraphs (b) and (c) below. Moreover, 50
the commission shall not have jurisdiction to regulate the rates 51
for the sales and/or distribution: 52
(a) Of gas, water, electricity or sewage disposal 53
services by municipalities to such persons as said municipalities 54
are authorized by law to serve; 55
(b) Of gas or electricity by cooperative gas or 56
electric power associations to the members thereof as consumers, 57
except as provided by Section 77-3-17, where service is rendered 58
in a municipality; 59
(c) Of water or sewage disposal service by nonprofit 60
corporations or associations where the governing body of such 61
corporation or association is elected by the consumers thereof or 62
appointed by the county board of supervisors; or 63
(d) Of water by districts organized under the 64
provisions of Chapter 45, Laws of 1966-1967, Extraordinary 65
Session. 66
(2) Notwithstanding any other provision of law, the Public 67
Service Commission shall have the authority to contract with 68
third-party firms to conduct annual audits of municipally owned 69
and operated public utilities. The findings of such audits shall 70
be reported to the Public Service Commission and the Public 71
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ST: Municipally owned energy distribution
systems; expand oversight.
Utilities Staff by December 1 each year. Violation of this 72
subsection (2) shall result in a civil fine to be set by the 73
Public Service Commission. 74
SECTION 3. This act shall take effect and be in force from 75
and after July 1, 2026. 76