§ 77-1-1. Creation of commission; terms, compensation and qualifications of commissioners [Repealed effective December 31, 2020].

A public service commission, hereinafter referred to in this chapter as the commission, is hereby created, consisting of three (3) members, one (1) to be elected from each of the three (3) Supreme Court districts by the qualified electors of such district. Elections for such officers shall be held in the general election in November 1959, and every four (4) years thereafter, and the terms of office of the three (3) commissioners elected at the general election in November 1959 shall expire on December 31, 1963.

The commissioners shall each receive a yearly salary fixed by the Legislature, payable monthly.

The commissioners shall each possess the qualifications prescribed for the Secretary of State. The commissioners shall not operate, own any stock in, or be in the employment of any common or contract carrier by motor vehicle, telephone company, gas or electric utility company, or any other public utility that shall come under their jurisdiction or supervision.

HISTORY: Codes, 1942, § 7688; Laws, 1938, ch. 139; Laws, 1948, ch. 417, § 1; Laws, 1952, ch. 330, § 1; Laws, 1956, ch. 371, § 1; Laws, 1960, ch. 394, § 1; Laws, 1964, ch. 542, § 6; Laws, 1966, ch. 445, § 23; reenacted without change, Laws, 1982, ch. 389, § 1; Laws, 1989, ch. 573, § 1; reenacted, Laws, 1990, ch. 530, § 1; reenacted and amended, Laws, 1993, ch. 616, § 1; reenacted without change, Laws, 1996, ch. 526, § 1; reenacted without change, Laws, 1998, ch. 303, § 1; reenacted without change, Laws, 2002, ch. 452, § 1; reenacted without change, Laws, 2006, ch. 386, § 1; reenacted without change, Laws, 2008, ch. 406, § 1; reenacted without change, Laws, 2011, ch. 456, § 1; reenacted without change, Laws, 2012, ch. 542, § 1; reenacted without change, Laws, 2013, ch. 332, § 1; reenacted without change, Laws, 2016, ch. 437, § 1, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 1, eff from and after July 1, 2018.

§ 77-1-3. Seal [Repealed effective December 31, 2020].

The commission shall have a seal, having around the margin the words “Mississippi Public Service Commission,” and in the center such device as it may select. The acts of the commission shall be authenticated by its seal.

HISTORY: Codes, 1942, § 7695; Laws, 1938, ch. 139; reenacted without change, Laws, 1982, ch. 382, § 2; reenacted, Laws, 1990, ch. 530, § 2; reenacted without change, Laws, 1993, ch. 616, § 2; reenacted without change, Laws, 1996, ch. 526, § 2; reenacted without change, Laws, 1998, ch. 303, § 2; reenacted without change, Laws, 2002, ch. 452, § 2; reenacted without change, Laws, 2006, ch. 386, § 2; reenacted without change, Laws, 2008, ch. 406, § 2; reenacted without change, Laws, 2011, ch. 456, § 2; reenacted without change, Laws, 2012, ch. 542, § 2; reenacted without change, Laws, 2013, ch. 332, § 2; reenacted without change, Laws, 2016, ch. 437, § 2, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 2, eff from and after July 1, 2018.

§ 77-1-5. Office, meetings and minutes of commission [Repealed effective December 31, 2020].

The commission shall keep an office in the City of Jackson, which shall be kept open Monday through Friday of each week for eight (8) hours each day. The commission shall meet at its office on the first Tuesday of each month and at such other times and places as its duties may require. The commission may sit from day to day and from time to time, and any meeting may be pretermitted not exceeding two (2) in any year.

The members of the commission shall devote their entire time to the performance of their official duties on every business day, except on the legal holidays enumerated in Section 3-3-7, Mississippi Code of 1972. However, official acts of the commission done on legal holidays shall be valid.

The commission shall keep regular minutes of its proceedings, which shall be a public record, and all orders, findings and acts of the commission shall be entered on the minutes.

Two (2) members of the commission shall be a quorum.

HISTORY: Codes, 1942, §§ 7688, 7696; Laws, 1938, ch. 139; Laws, 1948, ch. 417, § 1; Laws, 1952, ch. 330, § 1; Laws, 1956, ch. 371, § 1; Laws, 1960, ch. 394, § 1; Laws, 1964, ch. 542, § 6; Laws, 1966, ch. 445, § 23; reenacted without change, Laws, 1982, ch. 389, § 3; reenacted, Laws, 1990, ch. 530, § 3; reenacted without change, Laws, 1993, ch. 616, § 3; reenacted without change, Laws, 1996, ch. 526, § 3; reenacted without change, Laws, 1998, ch. 303, § 3; reenacted without change, Laws, 2002, ch. 452, § 3; reenacted without change, Laws, 2006, ch. 386, § 3; reenacted without change, Laws, 2008, ch. 406, § 3; reenacted without change, Laws, 2011, ch. 456, § 3; reenacted without change, Laws, 2012, ch. 542, § 3; reenacted without change, Laws, 2013, ch. 332, § 3; reenacted without change, Laws, 2016, ch. 437, § 3, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 3, eff from and after July 1, 2018.

§ 77-1-6. Establishment of Public Service Commission Regulation Fund; administration; annual audit; funding of agency expenses; deposit of monies into State General Fund [Repealed effective December 31, 2020].

There is hereby established in the State Treasury a special fund to be known as the “Public Service Commission Regulation Fund.” Such fund shall be the sole fund of the commission for all monies collected and deposited to the credit of or appropriated to the commission. The fund shall be administered as provided in this title and shall be audited annually by the State Auditor.

From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law and as determined by the State Fiscal Officer.

From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Laws, 1987, ch. 343, § 1; reenacted and amended, Laws, 1990, ch. 530, § 4; Laws, 1991, ch. 525, § 3; reenacted without change, Laws, 1993, ch. 616, § 4; Laws, reenacted without change, Laws, 1996, ch. 526, § 4; reenacted without change, Laws, 1998, ch. 303, § 4; reenacted without change, Laws, 2002, ch. 452, § 4; reenacted without change, Laws, 2006, ch. 386, § 4; reenacted without change, Laws, 2008, ch. 406, § 4; reenacted without change, Laws, 2011, ch. 456, § 4; reenacted without change, Laws, 2012, ch. 542, § 4; reenacted without change, Laws, 2013, ch. 332, § 4; reenacted without change, Laws, 2016, ch. 437, § 4; Laws, 2016, ch. 459, § 49; Laws, 2017, 1st Ex Sess, ch. 7, § 37, eff from and after passage (approved June 23, 2017); reenacted without change, Laws, 2018, ch. 402, § 4, eff from and after July 1, 2018.

§ 77-1-7. Repealed.

Repealed by Laws of 1983, ch. 467, § 32, eff from and after April 6, 1983.

[Codes 1942, § 7697; Laws, 1938, ch. 139; reenacted without change, Laws, 1982, ch. 389, § 4]

§ 77-1-9. Repealed.

Repealed by Laws of 1983, ch. 467, § 33, eff from and after July 1, 1983.

[Codes, 1942, § 7698; Laws, 1938, ch. 139; reenacted without change, Laws, 1982, ch. 389, § 5]

§ 77-1-11. Acceptance by or offering to commission members, candidates or employees of gifts, passes, campaign contributions or other benefits [Repealed effective December 31, 2020].

1. It shall be unlawful for any public service commissioner, any candidate for public service commissioner, or any employee of the Public Service Commission or Public Utilities Staff to knowingly accept any gift, pass, money, campaign contribution or any emolument or other pecuniary benefit whatsoever, either directly or indirectly, from any person interested as owner, agent or representative, or from any person acting in any respect for such owner, agent or representative of any common or contract carrier by motor vehicle, telephone company, gas or electric utility company, or any other public utility that shall come under the jurisdiction or supervision of the Public Service Commission. Any person found guilty of violating the provisions of this subsection shall immediately forfeit his or her office or position and shall be fined not less than Five Thousand Dollars ($5,000.00), imprisoned in the State Penitentiary for not less than one (1) year, or both.
2. It shall be unlawful for any person interested as owner, agent or representative, or any person acting in any respect for such owner, agent or representative of any common or contract carrier by motor vehicle, telephone company, gas or electric utility, or any other public utility that shall come under the jurisdiction or supervision of the Public Service Commission to offer any gift, pass, money, campaign contribution or any emolument or other pecuniary benefit whatsoever to any public service commissioner, any candidate for public service commissioner or any employee of the Public Service Commission or Public Utilities Staff. Any party found guilty of violating the provisions of this subsection shall be fined not less than Five Thousand Dollars ($5,000.00), or imprisoned in the State Penitentiary for not less than one (1) year, or both.
3. For purposes of this section, the term “emolument” shall include salary, donations, contributions, loans, stock tips, vacations, trips, honorarium, directorships or consulting posts. Expenses associated with social occasions afforded public servants shall not be deemed a gift, emolument or other pecuniary benefit as defined in Section 25-4-103(k), Mississippi Code of 1972.
4. For purposes of this section, a person who is a member of a water, gas, electric or other cooperative association regulated by the Public Service Commission shall not, by virtue of such membership, be deemed an owner, agent or representative of such association unless such person is acting in any respect for or as an owner, agent or representative of such association; nor shall a person who owns less than one-half of one percent (1/2 of 1%) in stock, the value thereof not to exceed Ten Thousand Dollars ($10,000.00), of any public utility that is regulated by the Public Service Commission, or of any holding company of such public utility, by virtue of such ownership, be deemed an owner, agent or representative of such public utility unless such person is acting in any respect for or as an owner, agent or representative of such public utility.

HISTORY: Codes, 1892, § 4274; 1906, § 4827; Hemingway’s 1917, § 7612; 1930, § 7026; 1942, §§ 7688, 7807; Laws, 1938, ch. 139; Laws, 1948, ch. 417, § 1; Laws, 1952, ch. 330, § 1; Laws, 1956, ch. 371, § 1; Laws, 1960, ch. 394, § 1; Laws, 1964, ch. 542, § 6; Laws, 1966, ch. 445, § 23; reenacted without change, Laws, 1982, ch. 389, § 6; reenacted and amended, Laws, 1990, ch. 530, § 5; Laws, 1991, ch. 586, § 1; reenacted and amended, Laws, 1993, ch. 616, § 5; reenacted without change, Laws, 1996, ch. 526, § 5; reenacted without change, Laws, 1998, ch. 303, § 5; reenacted without change, Laws, 2002, ch. 452, § 5; reenacted without change, Laws, 2006, ch. 386, § 5; reenacted without change, Laws, 2008, ch. 406, § 5; reenacted without change, Laws, 2011, ch. 456, § 5; reenacted without change, Laws, 2012, ch. 542, § 5; reenacted without change, Laws, 2013, ch. 332, § 5; reenacted without change, Laws, 2016, ch. 437, § 5, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 5, eff from and after July 1, 2018.

§ 77-1-13. Repealed.

Repealed by Laws of 1983, ch. 467, § 34, eff from and after April 6, 1983.

[Codes, 1942, § 7688; Laws, 1938, ch. 139; Laws, 1948, ch. 417, § 1; Laws, 1952, ch. 330, § 1; Laws, 1956, ch. 371, § 1; Laws, 1960, ch. 394, § 1; Laws, 1964, ch. 542, § 6; Laws, 1966, ch. 445, § 23; reenacted without change, Laws, 1982, ch. 389, § 7]

§ 77-1-15. Employment and duties of executive secretary; funding of agency expenses; deposit of monies into State General Fund [Repealed effective December 31, 2020].

1. There shall be an executive secretary of the commission, hereinafter referred to in this chapter as the secretary, to be appointed by the commission, by and with the advice and consent of the Senate, for the term of the commissioners. The secretary must have the same qualifications as the commissioners and shall be subject to the same disqualifications and to like penalties, except that he shall not be liable to impeachment. He shall receive a salary fixed by the Legislature. He shall take the oath of office and shall be removable at the pleasure of the commission, which may fill any vacancy until the Senate confirms a successor. The secretary shall make bond as provided for other state officers, in the sum of Ten Thousand Dollars ($10,000.00), conditioned upon the faithful performance of the duties of his office.
2. The secretary shall collect all fees and penalties collected by or paid to the commission, and shall cover the same into the State Treasury; and all fees and penalties collected under the Mississippi Motor Carrier Regulatory Law of 1938 shall be covered into the Public Service Commission Regulation Fund.
3. The secretary of the commission shall be the custodian of all records, documents, and the seal of the commission. He shall issue all citations, subpoenas and other rightful orders and documents, and perform all other duties usually required of such officer, and as required by the commission.
4. It shall be the duty and responsibility of the secretary to supervise and manage the offices and staff of the Public Service Commission and formulate written policies and procedures for the effective and efficient operation of the office and present these policies and procedures to the board for promulgation.
5. From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.
6. From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Codes, 1942, § 7689; Laws, 1938, ch. 139; Laws, 1946, ch. 352, § 2; Laws, 1948, ch. 418, § 1; Laws, 1952, ch. 330, § 2; Laws, 1958, ch. 350, § 1; Laws, 1960, ch. 394, § 2; Laws, 1966, ch. 445, § 24; reenacted without change, Laws, 1982, ch. 389, § 8; Laws, 1987, ch. 343, § 2; reenacted and amended, Laws, 1990, ch. 530, § 6; reenacted without change, Laws, 1993, ch. 616, § 6; reenacted without change, Laws, 1996, ch. 526, § 6; reenacted without change, Laws, 1998, ch. 303, § 6; reenacted without change, Laws, 2002, ch. 452, § 6; reenacted without change, Laws, 2006, ch. 386, § 6; reenacted without change, Laws, 2008, ch. 406, § 6; reenacted without change, Laws, 2011, ch. 456, § 6; reenacted without change, Laws, 2012, ch. 542, § 6; reenacted without change, Laws, 2013, ch. 332, § 6; reenacted without change, Laws, 2016, ch. 437, § 6; Laws, 2016, ch. 459, § 50, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 6, eff from and after July 1, 2018.

§ 77-1-17. Employment and duties of rate expert and assistant [Repealed effective December 31, 2020].

The commission is hereby authorized to employ for the term of the commissioners a competent rate expert at a salary fixed by the commission, and an assistant rate expert at a salary fixed by the commission, for the collection of data and evidence for the use of the state in protecting the interest of the state involving duties and obligations of all common carriers, all common carriers by motor vehicle, all restricted common carriers by motor vehicle, and all contract carriers by motor vehicle, and for the establishment of proof in litigation now pending or which may hereafter be instituted.

The rate expert and his assistant shall make all needed investigations affecting rates and rate making and shall perform such other duties as the commission may find necessary for them to do in the interest of the state.

Said duties shall also include the checking and investigating of the filing of rate schedules with the commission, and making of reports to the commission respecting tariffs filed by any of the above-mentioned carriers with the commission involving the increase of any rates for movements within the State of Mississippi, and the general checking and reports to the commission affecting any rates increased from points without the State of Mississippi to points within the State of Mississippi, and from points in the State of Mississippi to points without the State of Mississippi. Said rate experts may be discharged by the commission for incompetency or other good cause, but they shall have notice and an opportunity to be heard in respect to any charge for removal.

HISTORY: Codes, 1942, § 7690; Laws, 1938, ch. 139; Laws, 1946, ch. 352, § 3; Laws, 1948, ch. 418, § 2; Laws, 1952, ch. 330, § 3; Laws, 1958, ch. 350, § 2; Laws, 1966, ch. 445, § 25; reenacted without change, Laws, 1982, ch. 389, § 9; reenacted and amended, Laws, 1990, ch. 530, § 7; reenacted without change, Laws, 1993, ch. 616, § 7; reenacted without change, Laws, 1996, ch. 526, § 7; reenacted without change, Laws, 1998, ch. 303, § 7; reenacted the section without change, Laws, 2002, ch. 452, § 7; reenacted without change, Laws, 2006, ch. 386, § 7; reenacted without change, Laws, 2008, ch. 406, § 7; reenacted without change, Laws, 2011, ch. 456, § 7; reenacted without change, Laws, 2012, ch. 542, § 7; reenacted without change, Laws, 2013, ch. 332, § 7; reenacted without change, Laws, 2016, ch. 437, § 7, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 7, eff from and after July 1, 2018.

§ 77-1-19. Employment of personnel to implement Motor Carrier Regulatory Law [Repealed effective December 31, 2020].

The commission is authorized to employ the following additional employees to carry out and enforce the provisions of the Motor Carrier Regulatory Law of 1938:

An assistant secretary and two (2) stenographer-clerks;

One (1) combined bookkeeper and stenographer;

One (1) stenographer competent to serve as a reporter of evidence taken before the commission; and

Twelve (12) additional employees, which includes seven (7) employees to be transferred from the utility department to the motor carrier department to perform the duties of the commission imposed upon it by the provisions of said Motor Carrier Regulatory Law.

HISTORY: Codes, 1942, § 7692; Laws, 1938, ch. 139; Laws, 1944, ch. 268, § 2; Laws, 1946, ch. 352, § 5; Laws, 1948, chs. 327, § 10, 418, § 3; Laws, 1952, ch. 330, § 4; Laws, 1958, ch. 350, § 3; Laws, 1960, ch. 394, § 3; Laws, 1966, ch. 445, § 26; Laws, 1968, ch. 535, § 1; Laws, 1974, ch. 311; Laws, 1978, ch. 377, § 1; reenacted, Laws, 1982, ch. 389, § 10; reenacted and amended, Laws, 1990, ch. 530, § 8; reenacted without change, Laws, 1996, ch. 526, § 8; reenacted without change, Laws, 1998, ch. 303, § 8; reenacted without change, Laws, 2002, ch. 452, § 8; reenacted without change, Laws, 2006, ch. 386, § 8; reenacted without change, Laws, 2008, ch. 406, § 8; reenacted without change, Laws, 2011, ch. 456, § 8; reenacted without change, Laws, 2012, ch. 542, § 8; reenacted without change, Laws, 2013, ch. 332, § 8; reenacted without change, Laws, 2016, ch. 437, § 8, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 8, eff from and after July 1, 2018.

§ 77-1-21. Employment of enforcement officer and inspectors to implement Motor Carrier Regulatory Law [Repealed effective December 31, 2020].

1. For the purpose of enforcing the provisions of the Mississippi Motor Carrier Regulatory Law of 1938, the Mississippi Department of Transportation is authorized to employ, in addition to personnel already employed by the department, one (1) chief enforcement officer and twenty-one (21) inspectors, who shall be under the management of the department. The chief enforcement officer and the inspectors shall devote their full time to the performance of their duties and shall take an oath faithfully to perform the duties of their position. The department shall require bonds to be carried on such employees as the department may deem necessary, the cost thereof to be paid by the department. The chief enforcement officer and inspectors shall be qualified by experience and training in law enforcement or investigative work, and shall attend and satisfactorily complete an appropriate course of instruction established by the Commissioner of Public Safety at the Law Enforcement Officers Training Academy. The chief enforcement officer and the inspectors referred to in this section shall be selected after an examination as to physical and mental fitness. Such employees shall be citizens of the United States and the State of Mississippi, and of good moral character. All such members of staff shall be appointed by the Mississippi Department of Transportation and shall be subject to removal at any time by the department.
2. The Public Service Commission shall transfer all employees, equipment, inventory and resources of the commission employed and used to enforce the Motor Carrier Regulatory Law of 1938 to the Mississippi Department of Transportation on July 1, 2004. The transfer of personnel shall be commensurate with the number and classification of positions allocated to that law enforcement. The transfer also shall include direct support, clerical, data processing and communications positions allocated to that law enforcement.
3. The Public Service Commission shall transfer to the Mississippi Department of Transportation each year the amount of funds necessary to support the law enforcement functions being performed for the commission by the department, as specified in the appropriation bill for the Public Service Commission.
4. Any reference in any statute, rule or regulation to law enforcement duties being performed by the Public Service Commission shall be construed to mean law enforcement duties being performed for the commission by the Mississippi Department of Transportation.

HISTORY: Codes, 1942, § 7692-01; Laws, 1958, ch. 505, § 2; Laws, 1962, ch. 512, § 1; Laws, 1966, ch. 445, § 27; Laws, 1982, ch. 389, § 11; reenacted, Laws, 1990, ch. 530, § 9; reenacted, Laws, 1993, ch. 616, § 8; reenacted without change, Laws, 1996, ch. 526, § 9; reenacted without change, Laws, 1998, ch. 303, § 9; reenacted without change, Laws, 2002, ch. 452, § 9; Laws, 2004, ch. 595, § 22; reenacted without change, Laws, 2006, ch. 386, § 9; reenacted without change, Laws, 2008, ch. 406, § 9; reenacted without change, Laws, 2011, ch. 456, § 9; reenacted without change, Laws, 2012, ch. 542, § 9; reenacted without change, Laws, 2013, ch. 332, § 9; reenacted without change, Laws, 2016, ch. 437, § 9, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 9, eff from and after July 1, 2018.

§ 77-1-23. Repealed.

Repealed by Laws of 1992, ch. 496, § 57, eff from and after July 1, 1992.

[Codes, 1942, §§ 7806-01, 7806-02; Laws, 1970, ch. 429, §§ 1, 2; Laws, 1980, ch. 561, § 41; reenacted, Laws, 1982, ch. 389, § 12; reenacted, Laws, 1990, ch. 530, § 10, eff from and after July 1, 1990]

§ 77-1-25. Use of commission property and political activity regulated [Repealed effective December 31, 2020].

No member of the staff of the commission, or any other person, shall use uniforms, material, or equipment of the commission for private or political purposes. Members of the staff of the commission may be candidates for political office but must take a leave of absence to do so. Members of the staff of the commission may take part in political campaigns other than campaigns for Public Service Commission but may not solicit or receive campaign contributions from regulated utilities. Anyone violating the provisions of this section shall be guilty of a misdemeanor and, upon conviction, shall be punished as provided by law and shall be dismissed from the staff of the commission.

HISTORY: Codes, 1942, §§ 7692-07, 7806-07; Laws, 1958, ch. 505, § 8; Laws, 1970, ch. 429, § 7; reenacted without change, Laws, 1982, ch. 389, § 13; reenacted, Laws, 1990, ch. 530, § 11; reenacted and amended, Laws, 1993, ch. 616, § 9; reenacted without change, Laws, 1996, ch. 526, § 10; reenacted without change, Laws, 1998, ch. 303, § 10; reenacted without change, Laws, 2002, ch. 452, § 10; reenacted without change, Laws, 2006, ch. 386, § 10; reenacted without change, Laws, 2008, ch. 406, § 10; reenacted without change, Laws, 2011, ch. 456, § 10; reenacted without change, Laws, 2012, ch. 542, § 10; reenacted without change, Laws, 2013, ch. 332, § 10; reenacted without change, Laws, 2016, ch. 437, § 10, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 10, eff from and after July 1, 2018.

§ 77-1-27. Payment of salaries [Repealed effective December 31, 2020].

All commission employees provided for in this chapter, and the reasonable and necessary expenses of the administration of the duties imposed on the commission by the Motor Carrier Regulatory Law of 1938, shall be paid out of the appropriations made to defray the expenses of the commission, upon requisitions and warrants in the same manner provided by law for the disbursements of appropriations for the commission. An itemized account shall be kept of all receipts and expenditures and shall be reported to the Legislature by the commission.

HISTORY: Codes, 1942, §§ 7691, 7693, 7806-09; Laws, 1938, ch. 139; Laws, 1944, ch. 268, §§ 1, 2; Laws, 1946, ch. 352, §§ 4, 5; Laws, 1948, ch. 327, § 11; ch. 417, § 2; Laws, 1952, ch. 330, § 5; Laws, 1956, ch. 371, §§ 2, 3; Laws, 1958, ch. 350, § 4; Laws, 1960, ch. 394, § 4; Laws, 1966, ch. 445, § 28; Laws, 1970, ch. 429, § 9; reenacted without change, Laws, 1982, ch. 389, § 14; Laws, 1987, ch. 343, § 3; reenacted and amended, Laws, 1990, ch. 530, § 12; Laws, 1991, ch. 525, § 4; Laws, 1992, ch. 496, § 59; reenacted, Laws, 1993, ch. 616, § 10; reenacted without change, Laws, 1996, ch. 526, § 11; reenacted without change, Laws, 1998, ch. 303, § 11; reenacted without change, Laws, 2002, ch. 452, § 11; reenacted without change, Laws, 2006, ch. 386, § 11; reenacted without change, Laws, 2008, ch. 406, § 11; reenacted without change, Laws, 2011, ch. 456, § 11; reenacted without change, Laws, 2012, ch. 542, § 11; reenacted without change, Laws, 2013, ch. 332, § 11; reenacted without change, Laws, 2016, ch. 437, § 11, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 11, eff from and after July 1, 2018.

§ 77-1-29. Payments to and disbursements from Public Service Commission Regulation Fund; funding of agency expenses; deposit of monies into State General Fund [Repealed effective December 31, 2020].

On or before the twentieth day of each calendar month, the commission shall pay into the State Treasury to the account of the “Public Service Commission Regulation Fund” all monies collected by it during the preceding calendar month, showing from whom collected, when collected and for what purposes collected. All disbursements made by the commission or from the regulation fund for any purposes, other than for salaries provided by law, shall be supported by a detailed and itemized statement approved by the commission for commission disbursements. The commission shall not expend funds from the “Public Service Commission Regulation Fund” to employ personnel whose services would duplicate services provided by any employee of the Public Utilities Staff.

From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.

From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Codes, 1942, § 7694; Laws, 1938, ch. 139; Laws, 1944, ch. 268, § 3; Laws, 1946, ch. 352, § 5; Laws, 1948, ch. 327, § 12; Laws, 1952, ch. 330, § 6; Laws, 1958, ch. 505, § 11; Laws, 1962, ch. 512, § 2; Laws, 1966, ch. 541, § 2; Laws, 1968, ch. 536; Laws, 1972, ch. 472, § 1; Laws, 1974, ch. 312; Laws, 1978, ch. 518, § 1; Laws, 1981, ch. 345, § 1; reenacted, Laws, 1982, ch. 389, § 15; Laws, 1983, ch. 530; Laws, 1987, ch. 343, § 4; reenacted and amended, Laws, 1990, ch. 530, § 13; Laws, 1991, ch. 525, § 5; reenacted without change, Laws, 1993, ch. 616, § 11; reenacted without change, Laws, 1996, ch. 526, § 12; reenacted without change, Laws, 1998, ch. 303, § 12; reenacted without change, Laws, 2002, ch. 452, § 12; reenacted without change, Laws, 2006, ch. 386, § 12; reenacted without change, Laws, 2008, ch. 406, § 12; reenacted without change, Laws, 2011, ch. 456, § 12; reenacted without change, Laws, 2012, ch. 542, § 12; reenacted without change, Laws, 2013, ch. 332, § 12; reenacted without change, Laws, 2016, ch. 437, § 12; Laws, 2016, ch. 459, § 51, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 12, eff from and after July 1, 2018.

§ 77-1-31. Docket of petitions and complaints [Repealed effective December 31, 2020].

The commission shall keep a docket of petitions and complaints, which shall be entered in regular order. The docket shall be called at each regular meeting of the board, and the cases thereon disposed of, or, if necessary, continued until the next meeting.

HISTORY: Codes, 1892, § 4280; 1906, § 4832; Hemingway’s 1917, § 7617; 1930, § 7031; 1942, § 7808; reenacted without change, Laws, 1982, ch. 389, § 16; reenacted, Laws, 1990, ch. 530, § 14; reenacted without change, Laws, 1993, ch. 616, § 12; reenacted without change, Laws, 1996, ch. 526, § 13; reenacted without change, Laws, 1998, ch. 303, § 13; reenacted without change, Laws, 2002, ch. 452, § 13; reenacted without change, Laws, 2006, ch. 386, § 13; reenacted without change, Laws, 2008, ch. 406, § 13; reenacted without change, Laws, 2011, ch. 456, § 13; reenacted without change, Laws, 2012, ch. 542, § 13; reenacted without change, Laws, 2013, ch. 332, § 13; reenacted without change, Laws, 2016, ch. 437, § 13, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 13, eff from and after July 1, 2018.

§ 77-1-33. Process for witnesses; penalty for failure to testify [Repealed effective December 31, 2020].

In any matter of inquiry pending before the commission or any member thereof, subpoenas for witnesses, and subpoenas duces tecum, may be issued by the secretary, under seal, or by any member without the seal, and shall be executed and returned by any sheriff, constable, or marshal, under the like penalties of law for failure to execute and return the process of the circuit court. If any person duly summoned to appear and testify before the commission, or before any one or more of the commissioners, shall fail or refuse to appear and testify, or to bring and produce, as commanded, any book, paper, or document, without a lawful excuse, or shall refuse to answer any proper question propounded to him by the commission or any of the commissioners, or if any person shall obstruct the commission, or one or more of the commissioners in the discharge of duty, or shall conduct himself in a rude, disrespectful, or disorderly manner before the commission deliberating in the discharge of duty, such witness or person shall be guilty of a misdemeanor, and, upon conviction, shall be fined not more than One Thousand Dollars ($1,000.00), or be imprisoned in the county jail for a period not exceeding six (6) months, or both.

HISTORY: Codes, 1892, § 4285; 1906, § 4837; Hemingway’s 1917, § 7622; 1930, § 7034; 1942, § 7811; reenacted without change, Laws, 1982, ch. 389, § 17; reenacted and amended, Laws, 1990, ch. 530, § 15; reenacted without change, Laws, 1993, ch. 616, § 13; reenacted without change, Laws, 1996, ch. 526, § 14; reenacted without change, Laws, 1998, ch. 303, § 14; reenacted without change, Laws, 2002, ch. 452, § 14; reenacted without change, Laws, 2006, ch. 386, § 14; reenacted without change, Laws, 2008, ch. 406, § 14; reenacted without change, Laws, 2011, ch. 456, § 14; reenacted without change, Laws, 2012, ch. 542, § 14; reenacted without change, Laws, 2013, ch. 332, § 14; reenacted without change, Laws, 2016, ch. 437, § 14, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 14, eff from and after July 1, 2018.

§ 77-1-35. Administration of oaths; taking of affidavits; examination of witnesses; perjury [Repealed effective December 31, 2020].

The several members of the commission and the secretary may, in the discharge of their duties, administer oaths and take affidavits. The commission and each member thereof may examine witnesses under oath in all matters coming before them. If any person shall testify falsely, or make any false affidavit or oath before the commission, or before any of the commissioners, or before any officer, to any matter coming before the commission, he shall be guilty of perjury, and, upon conviction, shall be punished according to law.

HISTORY: Codes, 1892, § 4279; 1906, § 4831; Hemingway’s 1917, § 7616; 1930, § 7035; 1942, § 7812; reenacted without change, Laws, 1982, ch. 389, § 18; reenacted, Laws, 1990, ch. 530, § 16; reenacted without change, Laws, 1993, ch. 616, § 14; reenacted without change, Laws, 1996, ch. 526, § 15; reenacted without change, Laws, 1998, ch. 303, § 15; reenacted without change, Laws, 2002, ch. 452, § 15; reenacted without change, Laws, 2006, ch. 386, § 15; reenacted without change, Laws, 2008, ch. 406, § 15; reenacted without change, Laws, 2011, ch. 456, § 15; reenacted without change, Laws, 2012, ch. 542, § 15; reenacted without change, Laws, 2013, ch. 332, § 15; reenacted without change, Laws, 2016, ch. 437, § 15, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 15, eff from and after July 1, 2018.

§ 77-1-37. Payment of witnesses [Repealed effective December 31, 2020].

Witnesses summoned to appear before the commission shall be entitled to the same per diem and mileage as witnesses attending the circuit court. Witnesses summoned by the commission on its behalf shall be paid as are other expenditures of the commission, upon the certificate of the commission showing the amount to which such witness may be entitled. Witnesses summoned for any carrier shall be paid by it.

HISTORY: Codes, 1892, § 4335; 1906, § 4889; Hemingway’s 1917, § 7676; 1930, § 7036; 1942, § 7813; Laws, 1908, ch. 85; reenacted without change, Laws, 1982, ch. 389, § 19; reenacted, Laws, 1990, ch. 530, § 17; reenacted and amended, Laws, 1993, ch. 616, § 15; reenacted without change, Laws, 1996, ch. 526, § 16; reenacted without change, Laws, 1998, ch. 303, § 16; reenacted without change, Laws, 2002, ch. 452, § 16; reenacted without change, Laws, 2006, ch. 386, § 16; reenacted without change, Laws, 2008, ch. 406, § 16; reenacted without change, Laws, 2011, ch. 456, § 16; reenacted without change, Laws, 2012, ch. 542, § 16; reenacted without change, Laws, 2013, ch. 332, § 16; reenacted without change, Laws, 2016, ch. 437, § 16, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 16, eff from and after July 1, 2018.

§ 77-1-39. Transcripts of oral testimony [Repealed effective December 31, 2020].

In all cases where the testimony of witnesses is given orally before the commission any interested party or the commission shall have the right to have said testimony taken down and transcribed by a stenographer or court reporter, who is not an employee of the commission, to be agreed upon by the parties or appointed by the commission. The stenographer or court reporter so employed shall be duly sworn and his or her certificate that the transcript of such evidence is correct together with the official certificate of any one (1) of the commissioners that he has read the same and that it is in his opinion correct shall entitle such transcript or a certified copy thereof to be received in evidence on any appeal or in any court in this state subject only to any objection that the same is not relevant or material. The stenographer or court reporter shall be paid in accordance with the provisions of Section 9-13-33. The commission shall have the right to require any party demanding an official stenographer to guarantee or prepay the costs thereof in all proper cases.

HISTORY: Codes, 1930, § 7037; 1942, § 7814; Laws, 1926, ch. 128; reenacted without change, Laws, 1982, ch. 389, § 20; reenacted and amended, Laws, 1990, ch. 530, § 18; reenacted without change, Laws, 1993, ch. 616, § 16; reenacted without change, Laws, 1996, ch. 526, § 17; reenacted without change, Laws, 1998, ch. 303, § 17; reenacted without change, Laws, 2002, ch. 452, § 17; reenacted without change, Laws, 2006, ch. 386, § 17; reenacted without change, Laws, 2008, ch. 406, § 17; reenacted without change, Laws, 2011, ch. 456, § 17; reenacted without change, Laws, 2012, ch. 542, § 17; reenacted without change, Laws, 2013, ch. 332, § 17; reenacted without change, Laws, 2016, ch. 437, § 17, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 1, eff from and after July 1, 2018.

§ 77-1-41. Findings and determinations shall be in writing; proof and effect thereof [Repealed effective December 31, 2020].

All findings of the commission and the determination of every matter by it shall be made in writing and placed upon its minutes. Proof thereof shall be made by a copy of the same duly certified by the secretary under the seal of the commission. Whenever any matter has been determined by the commission, in the course of any proceeding before it the fact of such determination, duly certified, shall be received in all courts and by every officer in civil cases as prima facie evidence that such determination was right and proper. The record of the proceedings of the commission shall be deemed a public record, and shall at all reasonable times be subject to the inspection of the public.

HISTORY: Codes, 1892, § 4284; 1906, § 4836; Hemingway’s 1917, § 7621; 1930, § 7038; 1942, § 7815; reenacted without change, Laws, 1982, ch. 389, § 21; reenacted, Laws, 1990, ch. 530, § 19; reenacted without change, Laws, 1993, ch. 616, § 17; reenacted without change, Laws, 1996, ch. 526, § 18; reenacted without change, Laws, 1998, ch. 303, § 18; reenacted without change, Laws, 2002, ch. 452, § 18; reenacted without change, Laws, 2006, ch. 386, § 18; reenacted without change, Laws, 2008, ch. 406, § 18; reenacted without change, Laws, 2011, ch. 456, § 18; reenacted without change, Laws, 2012, ch. 542, § 18; reenacted without change, Laws, 2013, ch. 332, § 18; reenacted without change, Laws, 2016, ch. 437, § 18, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 18, eff from and after July 1, 2018.

§ 77-1-43. Enforcement of laws and orders, decisions and determinations of commission [Repealed effective December 31, 2020].

The commission may apply to the circuit or chancery court, by proper proceeding, for aid in the enforcement of obedience to its process, and to compel compliance with Title 77, Mississippi Code of 1972, and its lawful rules, regulations, orders, decisions, and determinations. Said courts shall have jurisdiction to grant aid and relief in such cases, subject to the right of appeal to the Supreme Court by the party aggrieved. The commission itself may, by order after notice and hearing, institute such proceedings or, at the request of the commission by order after notice and hearing, the Attorney General, or district attorney in his district, shall institute such proceedings in the name of the commission.

HISTORY: Codes, 1892, § 4286; 1906, § 4838; Hemingway’s 1917, § 7623; 1930, § 7040; 1942, §§ 7701, 7817; Laws, 1938, ch. 139; reenacted without change, Laws, 1982, ch. 389, § 22; reenacted and amended, Laws, 1990, ch. 530, § 20; reenacted without change, Laws, 1993, ch. 616, § 18; reenacted without change, Laws, 1996, ch. 526, § 19; reenacted without change, 1998, ch. 303, § 19; reenacted without change, Laws, 2002, ch. 452, § 19; reenacted without change, Laws, 2006, ch. 386, § 19; reenacted without change, Laws, 2008, ch. 406, § 19; reenacted without change, Laws, 2011, ch. 456, § 19; reenacted without change, Laws, 2012, ch. 542, § 19; reenacted without change, Laws, 2013, ch. 332, § 19; reenacted without change, Laws, 2016, ch. 437, § 19, eff from and after July 1, 2016; reenacted and amended, Laws, 2018, ch. 402, § 19, eff from and after July 1, 2018.

§ 77-1-45. Repealed.

Repealed by Laws of 1992, ch. 356, § 3, eff from and after July 1, 1992.

[Codes, 1942, §§ 7683, 7699; Laws, 1938, chs. 139, 142; reenacted without change, Laws, 1982, ch. 389, § 23; reenacted, Laws, 1990, ch. 530, § 21, eff from and after July 1, 1990]

§ 77-1-47. Appeal bonds; supersedeas bonds [Repealed effective December 31, 2020].

Appeals from any final finding, order or judgment of the commission shall be taken and perfected by the filing of a bond in the sum of Five Hundred Dollars ($500.00) with two (2) sureties, or with a surety company qualified to do business in Mississippi as the surety, conditioned to pay the cost of such appeal. Said bond shall be approved by the chairman or secretary of the commission, or by the judge of the court to which such appeal is taken in case the chairman or secretary of the commission refuses to approve a proper bond tendered to them within the time limited for taking appeals. The commission may grant a supersedeas bond on any appeal, in such penalty and with such surety thereon as it may deem sufficient, and may, during the pendency of any appeal, at any time, require the increase of any such supersedeas bond or additional securities thereon. The judge of the Circuit Court of Hinds County may on petition therefor by any party entitled to an appeal, presented to him within six (6) months of the date of the final finding, order, or judgment of the commission appealed from, award a writ of supersedeas to any such final finding, order, or judgment of the commission, upon the filing of a supersedeas bond in an amount to be fixed by said judge. All appeal bonds for the payment of costs, and all supersedeas bonds, shall be made payable to the state and may be enforced in the name of the state by motion or other legal proceedings or remedy in any circuit court of this state having jurisdiction of a motion or action on such bond, and the process and proceedings thereon shall be as provided by law upon bonds of like character required and taken by any court of this state. Such circuit court may render and enter like judgments upon such bonds as may, by law, be rendered and entered upon bonds of like character, and process of execution shall issue upon such judgments, and may be levied and executed as provided by law in other cases.

HISTORY: Codes, 1942, §§ 7684, 7700; Laws, 1938, chs. 139, 142; reenacted without change, Laws, 1982, ch. 389, § 24; reenacted, Laws, 1990, ch. 530, § 22; reenacted without change, Laws, 1993, ch. 616, § 19; reenacted without change, Laws, 1996, ch. 526, § 20; reenacted without change, Laws, 1998, ch. 303, § 20; reenacted without change, Laws, 2002, ch. 452, § 20; reenacted without change, Laws, 2006, ch. 386, § 20; reenacted without change, Laws, 2008, ch. 406, § 20; reenacted without change, Laws, 2011, ch. 456, § 20; reenacted without change, Laws, 2012, ch. 542, § 20; reenacted without change, Laws, 2013, ch. 332, § 20; reenacted without change, Laws, 2016, ch. 437, § 20, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 20, eff from and after July 1, 2018.

§ 77-1-49. Annual reports of the commission [Repealed effective December 31, 2020].

The commission shall make a report every year to the Legislature of all its acts and doings for the preceding fiscal year.

HISTORY: Codes, 1892, § 4333; 1906, § 4887; Hemingway’s 1917, § 7674; 1930, § 7041; 1942, § 7818; Laws, 1908, ch. 84; Laws, 1970, ch. 523, § 1; reenacted without change, Laws, 1982, ch. 389, § 25; reenacted, Laws, 1990, ch. 530, § 23; reenacted and amended, Laws, 1993, ch. 616, § 20; reenacted without change, Laws, 1996, ch. 526, § 21; reenacted without change, Laws, 1998, ch. 303, § 21; reenacted without change, Laws, 2002, ch. 452, § 21; reenacted without change, Laws, 2006, ch. 386, § 21; reenacted without change, Laws, 2008, ch. 406, § 21; reenacted without change, Laws, 2011, ch. 456, § 21; reenacted without change, Laws, 2012, ch. 542, § 21; reenacted without change, Laws, 2013, ch. 332, § 21; reenacted without change, Laws, 2016, ch. 437, § 21, eff from and after July 1, 2016; reenacted without change, Laws, 2018, ch. 402, § 21, eff from and after July 1, 2018.

§ 77-1-51. Repeal of §§ 77-1-1 through 77-1-49.

Sections 77-1-1 through 77-1-49, Mississippi Code of 1972, which create the Public Service Commission and prescribe its powers and duties, shall stand repealed as of December 31, 2020.

HISTORY: Laws, 1979, ch. 301, § 53; Laws, 1982, ch. 389, § 26; Laws, 1990, ch. 530, § 24; Laws, 1993, ch. 616, § 21; Laws, 2002, ch. 452, § 22; Laws, 2006, ch. 386, § 22; Laws, 2008, ch. 406, § 22; Laws, 2011, ch. 456, § 22; Laws, 2012, ch. 542, § 22; Laws, 2013, ch. 332, § 22; Laws, 2016, ch. 437, § 22, eff from and after July 1, 2016; Laws, 2018, ch. 402, § 22, eff from and after July 1, 2018.

§ 77-1-53. Institution and conduct of proceedings for enforcement of statutes administered by commission or regulations or orders of commission; penalties; appeals; funding of agency expenses; deposit of monies into State General Fund.

1. Whenever the commission, an employee of the commission or any employee of the public utilities staff has reason to believe that a willful and knowing violation of any statute administered by the commission or any regulation or any order of the commission has occurred, the commission may cause a written complaint to be served upon the alleged violator or violators. The complaint shall specify the provisions of such statute, regulation or order alleged to be violated and the facts alleged to constitute a violation thereof and shall require that the alleged violator appear before the commission at a time and place specified in the notice and answer the charges complained of. The time of appearance before the commission shall not be less than twenty (20) days from the date of the service of the complaint, unless the commission finds that the public convenience or necessity requires that such hearing be held at an earlier date.
2. The commission shall afford an opportunity for a fair hearing to the alleged violator or violators at the time and place specified in the complaint. On the basis of the evidence produced at the hearing, the commission shall make findings of fact and conclusions of law and enter its order, which in its opinion will be in the best interests of the consuming public. Failure to appear at any such hearing, without prior authorization to do so from the commission, may result in the commission finding the alleged violator guilty of the charges complained of by default, and at such time an order may be entered, including the assessment of a penalty. The commission shall give written notice of such order to the alleged violator and to such other persons as shall have appeared at the hearing or made written request for notice of the order. The commission may assess such penalties as provided in subsection (3) of this section.
3. Any person found by the commission, pursuant to a hearing or by default as provided in this section, violating any statute administered by the commission, or any regulation or order of the commission in pursuance thereof, shall be subject to a civil penalty of not more than Five Thousand Dollars ($5,000.00) for each violation, to be assessed and collected by the commission. Each day that a violation continues shall constitute a separate violation. In lieu of, or in addition to, the monetary penalty, the commission, for any violation by a certificate holder, may impose a penalty in accordance with Section 77-3-21, Mississippi Code of 1972, if it finds that the violator is not rendering reasonably adequate service. Appeals from the imposition of the civil penalty may be taken to the Circuit Court of the First Judicial District of Hinds County in the same manner as appeals from orders of the commission constituting judicial findings.
4. All penalties collected by the commission under this section shall be deposited in the Public Service Commission Regulation Fund.
5. No portion of any penalty or costs associated with an administrative or court proceeding which results in the assessment of a penalty against a public utility for violation of any statute administered by the commission, or any regulation or order of the commission shall be considered by the commission in fixing any rates or charges of such public utility.
6. This section shall be in addition to any other law which provides for the imposition of penalties for the violation of any statute administered by the commission or any regulation or order of the commission.
7. From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.
8. From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Laws, 1991, ch. 562 § 1; Laws, 2016, ch. 459, § 52, eff from and after July 1, 2016.

§ 77-1-55. Commission authorized to hire attorneys or consultants to monitor, investigate and seek relief from existing or proposed interstate rates, charges, etc. [Repealed effective July 1, 2020].

1. The Public Service Commission, with the aid and the assistance of the Public Utilities Staff, shall have the power to monitor, investigate, and seek relief in any appropriate federal forum from all existing or proposed interstate rates, charges, allocations and classifications, and all rules and practices in relation thereto promulgated and prescribed by or for any public utility as defined in Section 77-3-3(d)(i).
2. The Public Service Commission, with the aid and the assistance of the Public Utilities Staff, may seek relief from any proposed or final decision, order, regulation, rule or law that has an impact on any existing or proposed interstate rate, charge, allocation or classification.
3. For the purpose of this section, the Public Service Commission and the Executive Director of the Public Utilities Staff may each enter into professional services contracts with one or more attorneys or consultants from a competent, qualified and independent firm as may be required by the commission or the executive director. Costs associated with the professional service contracts shall not exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) for each agency with respect to each rate regulated affected utility in any twelve-month period. The consultants or counsel shall submit periodically, but no less frequently than once each calendar quarter, to the executive director or the commission, as applicable, for approval of payment, itemized bills detailing the work performed. The executive director or the chairman of the commission, as applicable, shall requisition the applicable public utility to make the requisite payments to such consultants. The commission shall allow the utility to recover both the total costs the utility incurred under this section and the carrying charges for those costs through a rate rider established to recover the costs incurred and carrying charges incurred. Such rider shall include a true-up provision to ensure actual recovery of costs paid or otherwise incurred by the utility.
4. This section shall stand repealed from and after July 1, 2020.

HISTORY: Laws, 2012, ch. 527, § 1; Laws, 2013, ch. 332, § 23; Laws, 2016, ch. 437, § 23, eff from and after July 1, 2016; Laws, 2018, ch. 402, § 23, eff from and after July 1, 2018.

§ 77-2-1. Public utilities staff created.

There is hereby established a Public Utilities Staff, which shall be completely separate and independent from the Public Service Commission and the Public Service Commission staff. Such staff shall consist of the personnel positions of the executive director, the economic and planning division, legal division, engineering division and accounting division with a State Personnel Board organizational code of twenty thousand (20,000) or larger which were formerly authorized and appropriated under the provisions of Section 77-3-8, Mississippi Code of 1972. The executive director shall establish the organizational structure of the staff, and shall have the authority to create units as deemed appropriate to carry out the responsibilities of the staff. The Public Utilities Staff shall represent the broad interests of the State of Mississippi by balancing the respective concerns of the residential, commercial or industrial ratepayers, and the state and its agencies and departments, and the public utilities. The staff shall consist of a sufficient number of professional, administrative, technical, clerical and other personnel as may be necessary for the staff to perform its duties and responsibilities as hereinafter provided. All such personnel shall be competitively appointed by the executive director and shall be dismissed only for cause in accordance with the rules and regulations of the State Personnel Board. All equipment, supplies, records and any funds appropriated by the Legislature to the Public Service Commission for and on behalf of the Public Utilities Staff shall be transferred to such staff on September 1, 1990. The Public Utilities Staff shall be funded separately from the Mississippi Public Service Commission. Any appropriated funds to the Public Utilities Staff shall be maintained in an account separate from any funds of the Public Service Commission and shall never be commingled therewith.

Notwithstanding any provision of this chapter to the contrary, the personnel positions of the data processing division and the gas pipeline safety division of the Public Utilities Staff shall be the Public Service Commission staff positions authorized under Section 77-3-8, and shall be under the control and supervision of the Public Service Commission from and after March 15, 1991. However, the Public Service Commission staff shall continue to provide at no cost administrative support in the nature of data processing and bookkeeping to the Public Utilities Staff in order to avoid duplication of services.

HISTORY: Laws, 1990, ch. 530, § 25; Laws, 1991, ch. 369, § 1, eff from and after passage (approved March 15, 1991).

§ 77-2-3. Rights and powers of commission, its staff and public utilities staff; functions.

1. The public utilities staff created pursuant to Section 77-2-1 and the Public Service Commission and commission staff shall have and possess all of the rights and powers to perform all of the duties vested by this chapter.
2. The functions of the commission, with the aid and assistance of its staff, shall be regulatory and quasi-judicial in nature. It may make such investigations and determinations, hold such hearings, prescribe such rules and issue such orders with respect to the control and conduct of the businesses coming within its jurisdiction. It may adjudicate all proceedings brought before it in which the violation of any law or rule administered by the commission is alleged.
3. The primary functions of the public utilities staff shall be investigative and advisory in nature.

HISTORY: Laws, 1990, ch. 530, § 26, eff from and after September 1, 1990.

§ 77-2-5. Definitions.

For purposes of this chapter, the terms defined in this section shall have the meaning ascribed as follows:

“Regulatory function” means all duties and procedures concerning the execution and enforcement of the laws, rules, orders, directives, duties and obligations imposed for the control and government of the persons or businesses regulated, together with investigative activities incident thereto and procedures inherently administrative or executive in character.

“Quasi-judicial function” means the promulgation of all orders and directives of particular applicability governing the conduct of the regulated persons or businesses, together with procedures inherently judicial.

“Commission” means the Mississippi Public Service Commission.

“Public utilities staff” means those persons employed by the public utilities staff established in Section 77-2-1.

“Public service commission staff” means those persons employed by the Public Service Commission pursuant to Section 77-3-8, Mississippi Code of 1972.

HISTORY: Laws, 1990, ch. 530, § 27, eff from and after September 1, 1990.

§ 77-2-7. Executive director of public utilities staff; appointment; qualifications; salary.

1. An executive director of the public utilities staff shall be appointed, on or before July 1, 1990, by the Governor, from recommended candidates to be selected by the Public Service Commission, with the advice and consent of the Senate, to serve for a term of six (6) years. On or before May 15, 1990, the Public Service Commission shall submit to the Governor a list of not less than three (3) and no more than six (6) qualified candidates for the position of executive director. The Governor shall appoint the executive director from the list of qualified candidates nominated. Within sixty (60) days prior to the expiration of the term of the executive director, the Public Service Commission shall submit the names of candidates to the Governor in the manner provided herein. Whenever any vacancy shall occur in the position of executive director the Public Service Commission shall nominate and the Governor shall appoint an executive director, as provided herein, to fill the unexpired term. The executive director shall serve at the will and pleasure of the Governor.
2. The executive director of the public utilities staff shall hold at least a bachelors degree and shall have extensive managerial experience with a thorough knowledge of public utility economics and the principles of utility service and rate construction. The executive director of the public utilities staff shall possess the ability to analyze quantitative and qualitative data and to develop and adjust regulatory strategies or policies to attain commission objectives. The salary of the executive director shall be set by the Personnel Board and shall be such that it is comparable to salaries of those holding similar positions in other state and federal agencies and commensurate with the duties and responsibilities imposed on this official position which affects the broad interests of the State of Mississippi. Nothing herein shall be construed to prevent reappointment of the executive director for consecutive terms.

HISTORY: Laws, 1990, ch. 530, § 28, eff from and after passage (approved April 2, 1990).

§ 77-2-9. Powers and duties of executive director; former staff abolished; appointment of new personnel; qualifications; duties and responsibilities of staff.

1. The executive director shall have general charge of the operations and administration of the Public Utilities Staff. It shall be the duty and responsibility of the executive director to supervise and manage the offices and personnel on the Public Utilities Staff and formulate written policies and procedures for the effective and efficient operation thereof. The executive director shall be responsible for hiring persons on the staff who meet established qualifications for comparable positions of duty and responsibility. The Public Utilities Staff as formerly created in Section 77-3-8, Mississippi Code of 1972, which consists of the Economic and Planning Division, Legal Division, Engineering Division, Accounting Division and Administrative Services Division, and has a State Personnel Board organizational code of twenty thousand (20,000) or larger, is abolished from and after August 31, 1990. All such former employees shall be eligible to be rehired by the executive director for positions on the Public Utilities Staff created pursuant to Section 77-2-1. Such former employees shall not, by virtue of abolishing such staff, lose any vacation or sick leave benefits previously accrued and, if rehired, shall continue vacation and sick leave as if they had not been terminated. For a period of one (1) year after July 1, 1990, the personnel actions of the Public Utilities Staff shall be exempt from State Personnel Board procedures in order to give the Public Utilities Staff flexibility in making an orderly, effective and timely transition to the mandated reorganization.
2. The following personnel and members of the Public Utilities Staff shall be competitively appointed by the executive director and shall have at least the knowledge, skills and abilities set forth herein. These requirements shall not be waived, and possession thereof shall be certified by the State Personnel Board:
   1. A chief engineer who is a graduate licensed engineer and who has a thorough knowledge of engineering principles as applied to the design, construction, operation, maintenance and expansion of utility facilities and rate structure determination. The chief engineer shall possess a thorough knowledge of techniques and practices of public utility service and regulation and shall have the ability to evaluate same and to formulate accurate conclusions therefrom.
   2. A certified public accountant who possesses a thorough knowledge of standard accounting procedures, techniques and systems with specific reference to the utility industry. Such accountant shall be experienced in public utility accounting and shall have a thorough knowledge of the financial and organizational structure of public utility companies to include knowledge of the methods by which financing of major additions and extensions to utility operations is acquired.
   3. A director of economics and planning who holds at least a bachelor’s degree in economics and possesses a thorough knowledge of the principles and techniques of economic and financial research and statistical analysis. The director of economics and planning shall have a thorough knowledge of the sources of economic, financial and statistical information and the methods of utilizing these sources, as well as considerable knowledge of capital markets with specific reference to utility financing. This employee shall be experienced in conducting analyses of the utility industry, the economy, cost of money, availability and cost of fuel and energy and other related matters within the authority of the commission.
   4. Supportive technical personnel consisting of rate analysts, accountants, inspectors and statisticians as authorized and appropriated by the Legislature.
   5. A general counsel, who shall be a member of The Mississippi Bar, shall have practiced law for a minimum of five (5) years and who shall possess considerable knowledge of utility regulation generally and of the case law, statutory law and the common law relating thereto.
3. It shall be the duty and responsibility of the Public Utilities Staff by and through the executive director to:
   1. In uncontested matters review, investigate and make appropriate written recommendations to the commission with respect to the reasonableness of rates charged or proposed to be charged by any public utility and with respect to the consistency of such rates with the public policy of assuring an energy supply adequate to protect the public health and safety and to promote the general welfare;
   2. Review, investigate and make appropriate written recommendations to the commission with respect to the service furnished or proposed to be furnished by any utility;
   3. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public, and the public utilities, make written recommendations and reports to the commission regarding all commission proceedings affecting the rates or service of any public utility;
   4. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public, and the public utilities, petition the commission to initiate proceedings to review, investigate and take appropriate action with respect to the rates or service of public utilities. Receipt of such petition shall be spread on the minutes of the Public Service Commission. The commission shall, within thirty (30) days of receipt of such petition, spread upon its minutes and forward to the Executive Director of the Public Utilities Staff a response detailing actions taken or proposed to be taken;
   5. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public, and the public utilities, make written recommendations and reports to the commission regarding all certificate applications filed and provide assistance to the commission in making the analysis and plans required;
   6. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public, and the public utilities, make written recommendations and reports to the commission regarding all proceedings wherein any public utility proposes to reduce or abandon service to the public;
   7. Make studies with respect to standards, regulations, practices or service of any public utility; however, the Public Utilities Staff shall have no duty, responsibility or authority with respect to the enforcement of natural gas pipeline safety law, or the federal railroad safety laws, rules or regulations;
   8. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public, and the public utilities, make written recommendations and reports to the commission regarding all commission proceedings with respect to transfers of franchises, mergers, consolidation and combination of public utilities;
   9. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public and the public utilities, review and investigate contracts of public utilities with affiliates or subsidiaries;
   10. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public, and the public utilities, advise the commission with respect to regulations and transactions;
   11. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public and the public utilities, review and make recommendations to the commission on all miscellaneous uncontested filings;
   12. Advise the Public Service Commission in writing as to the broad public interest of the State of Mississippi, the using and consuming public, and the public utilities in all major rate cases and automatic adjustment clauses;
   13. When deemed necessary by the executive director, in the broad public interest of the State of Mississippi, the using and consuming public, and the public utilities, review and investigate the justness and reasonableness, to both the public and the public utility, of rates charged or proposed to be charged by any public utility, the rates of which are subject to regulation under the provisions of this chapter; and
   14. Accumulate evidence and other information from public utilities and other sources as required or as may be requested by the Public Service Commission.
4. The Executive Director of the Public Utilities Staff shall employ the resources of the staff to furnish to the commission, in a timely and expeditious manner, such information and reports or conduct such investigations and provide such other assistance as may be required in order to enforce the laws providing for the regulation of public utilities.
5. All written recommendations and reports provided to the Public Service Commission from the Public Utilities Staff shall bear the signature of the executive director, who shall maintain a record thereof, including the date such recommendation or report was submitted to the commission.
6. In no event shall the duties and responsibilities of the Public Utilities Staff be exercised with regard to matters not within the jurisdiction and powers of the Public Service Commission.

HISTORY: Laws, 1990, ch. 530, § 29; Laws, 2014, ch. 379, § 1, eff from and after July 1, 2014.

§ 77-2-11. Former employees of public service commission, public service commission staff or public utilities staff prohibited from accepting certain employment; prohibition against offering such employment; penalties.

1. A person who serves as (a) Commissioner of the Public Service Commission, (b) Executive Director of the public utilities staff, or (c) Executive Secretary of the commission shall not, while employed with or within one (1) year after leaving the commission or public utilities staff, accept employment with, receive compensation directly or indirectly from, or enter into a contractual relationship with an entity, or an affiliate company of an entity, that was subject to rate regulation by the commission at the time of his departure.
2. An entity or an affiliate company of an entity that is subject to rate regulation by the commission, or a person acting on behalf of the entity or its affiliate, shall not negotiate or offer to employ or compensate a commissioner of the Public Service Commission, Executive Director of the public utilities staff or the Executive Secretary of the commission, while the person is so employed or within one (1) year after the person leaves that employment.
3. A person who is employed with the public utilities staff shall not, within one (1) year, after leaving the public utilities staff, accept employment with, or receive compensation, directly or indirectly from the Public Service Commission or the public service commission staff.
4. A person who is employed with the Public Service Commission or public service commission staff, shall not, within one (1) year, after leaving the commission or public service commission staff, accept employment with, or receive compensation, directly or indirectly, from the public utilities staff.
5. A person who violates this section is subject to a civil penalty not to exceed Ten Thousand Dollars ($10,000.00) for each violation. The Attorney General may bring an action in circuit court to collect the penalties provided in this section.

HISTORY: Laws, 1990, ch. 530, § 30, eff from and after September 1, 1990.

§ 77-2-13. Communications regarding issues in contested proceedings prohibited; exceptions; penalties; contested proceeding defined.

1. A public service commissioner, commission or public utilities staff employee, or consultant assisting the commission in investigating, compiling, evaluating and analyzing the record shall not communicate, directly or indirectly, regarding any issue in a contested proceeding other than communications necessary to procedural aspects of maintaining an orderly process, with any commission employee or consultant who has participated in the proceeding in a public advocacy or prosecutorial capacity, any party, his agent or other person acting on his behalf who has a direct or indirect pecuniary interest in the outcome of the proceeding, without notice and opportunity for all parties to participate.
2. A commission or public utilities staff employee, or consultant who has participated in investigating, compiling, evaluating and analyzing the record in a public advocacy or prosecutorial capacity; any party, his agent or other person acting on his behalf who has a direct or indirect pecuniary interest shall not communicate, directly or indirectly, regarding any issue in a contested proceeding other than communications necessary to procedural aspects of maintaining an orderly process, with any commissioner, employee or consultant assisting the commissioners in investigating, compiling, evaluating and analyzing the record, or any person who is or may reasonably be expected to be involved in the decisional process of the proceeding, without notice and opportunity for all parties to participate.
3. The provisions of this section shall not apply to the following:
   1. Commissioners may communicate with one another regarding any proceeding;
   2. Commissioners, either individually or as a group, may receive aid in investigating, compiling, evaluating and analyzing the record from legal counsel, other employees or consultants of the commission or public utilities staff who have not participated in the proceeding in a public advocacy or prosecutorial capacity; and
   3. Commissioners may communicate, either individually or as a group, with the general public about matters not regarding a contested proceeding.
4. The commission shall, in the event of a violation of this section, take whatever action is necessary to ensure that such violation does not prejudice any party or adversely affect the fairness of the proceedings to include but is not limited to the following:
   1. A public service commissioner, consultant, or employee of the commission or public utilities staff who is or may reasonably be expected to be involved in the investigation, compilation, evaluation, analysis or decisional process of a contested proceeding who receives an ex parte communication in violation of this section shall place on the public record of the pending matter all written communications received, all written responses to the communications, and a memorandum stating the substance of all oral communications received, all responses made, and the identity of each person from whom the ex parte communication was received. The chairman of the commission shall advise all parties that these matters have been placed on the record. Upon request made within ten (10) days after notice of the ex parte communication, any party desiring to rebut the communication shall be allowed to place a written rebuttal statement on the record. Portions of the record pertaining to ex parte communications or rebuttal statements do not constitute evidence of any fact at issue in the matter unless a party moves the admission of that portion of the record for purposes of establishing a fact at issue and that portion of the record is so admitted.
   2. If necessary to eliminate the effect of an ex parte communication received in violation of this section, a commissioner who receives the communication may be disqualified, and the portions of the record pertaining to the communication may be sealed by protective order.
   3. The commission may, in its discretion, require, to the extent consistent with the interests of justice and the policy of underlying statutes, the communicator to show cause why his claim in the contested case should not be dismissed, denied, disregarded or otherwise adversely affected as a result of such violation.
   4. Any person found guilty of violating any provision of this section shall be guilty of a misdemeanor and shall be punished by imprisonment not to exceed six (6) months or a fine not to exceed One Thousand Dollars ($1,000.00), or both.
5. A proceeding shall be considered contested in the following:
   1. Upon the initiation of any proceedings requiring a party to show cause why any action by the commission should not be taken;
   2. In a rate change proceeding when a rate filing is suspended; and
   3. In any adversarial proceeding, when any objection or contest is filed by any party.

      A contested proceeding remains pending until the commission has issued its final order, and the time to petition for reconsideration has expired or the commission has issued an order finally disposing of an application for reconsideration, whichever is later.

HISTORY: Laws, 1990, ch. 530, § 31, eff 60 days after passage (approved April 2, 1990) [See Editor’s Note, below].

§ 77-2-15. Agreements with agencies permitted.

Nothing in this chapter prevents the public utilities staff, the public service commission staff or the commission from entering into agreements with other agencies to coordinate and share services, to conduct joint projects or investigations on matters within the authority and jurisdiction of the parties thereto, or to temporarily assign staff to such projects. No cooperative effort shall interfere with the independence and integrity of either the commission, the public service commission staff, the public utilities staff or any other agency that is a party.

HISTORY: Laws, 1990, ch. 530, § 32, eff from and after July 1, 1990.

§ 77-2-17. Continued force and effect of prior rules and orders; public utilities staff to have access to all data filed with commission.

1. All valid rules, orders and directives heretofore enforced, issued or promulgated by the Public Service Commission shall remain and continue in force and effect until repealed, modified or superseded by duly authorized rules, orders or directives of the Public Service Commission.
2. The Public Service Commission shall ensure that the public utilities staff, upon request, shall have access to and copies of all data filed with the commission in connection with any proceeding before the commission.

HISTORY: Laws, 1990, ch. 530, § 33, eff from and after July 1, 1990.

§ 77-2-19. Establishment of Public Utilities Staff Regulation Fund; administration generally; annual audits; disbursements from fund.

1. There is hereby established in the State Treasury a special fund to be known as the “Public Utilities Staff Regulation Fund.” Such fund shall be the sole fund of the Public Utilities Staff for all monies collected and deposited to the credit of or appropriated to the Public Utilities Staff. The fund shall be administered as provided in this section and Section 77-3-87 and shall be audited annually by the State Auditor.
2. The Department of Finance and Administration shall advise the Public Utilities Staff of the amount of money on hand in the “Public Utilities Staff Regulation Fund” from time to time. All expenses of the Public Utilities Staff shall be paid by the State Treasurer upon warrants issued by the State Fiscal Officer, and the State Fiscal Officer shall issue his warrants upon requisitions signed by the Executive Director of the Public Utilities Staff. All disbursements made by the executive director from the fund for any purposes, other than salaries, shall be supported by a detailed and itemized statement approved by the executive director. The salaries of all employees of the Public Utilities Staff shall be paid out of the appropriations made to defray the expenses of the Public Utilities Staff upon requisitions and warrants as provided herein. Of the revenue arising from the increased regulatory tax imposed in Section 77-3-87, an amount not less than Three Hundred Fifty-four Thousand One Hundred Thirty-nine Dollars ($354,139.00) may be expended by the executive director for operating increase and salaries to fund additional accounting and telecommunication positions for the Public Utilities Staff. An itemized account shall be kept of all receipts and expenditures and shall be reported to the Legislature by the Public Utilities Staff.

HISTORY: Laws, 1991, ch. 525, § 2, eff from and after passage (approved April 10, 1991).

§ 77-3-1. Application of article to municipal public utilities.

Except as otherwise provided in Section 77-3-6, any public utility as defined in paragraph (d) of Section 77-3-3, owned or operated by a municipality shall not be subject to the provisions of this article, except as to extension of utilities greater than one (1) mile outside corporate boundaries after March 29, 1956.

HISTORY: Codes, 1942, § 7716-01; Laws, 1956, ch. 372, § 1; Laws, 1968, ch 502, § 1; Laws, 1990, ch. 455, § 2, eff from and after July 1, 1990.

§ 77-3-2. Declaration of policy.

1. The Legislature finds and determines that the rates, services and operations of public utilities as defined in this title are affected with the public interest and that the availability of an adequate and reliable service by such public utilities to the people, economy and government of the State of Mississippi is a matter of public policy. The Legislature hereby declares to be the policy of the State of Mississippi:
   1. To provide fair regulation of public utilities in the interest of the public;
   2. To promote the inherent advantage of regulated public utilities;
   3. To promote adequate, reliable and economical service to all citizens and residents of the state;
   4. To provide just and reasonable rates and charges for public utility services without unjust discrimination, undue preferences or advantages, or unfair or destructive competitive practices and consistent with long-term management and conservation of energy resources by avoiding wasteful, uneconomic and inefficient uses of energy;
   5. To encourage and promote harmony between public utilities, their users and the environment;
   6. To foster the continued service of public utilities on a well-planned and coordinated basis that is consistent with the level of service needed for the protection of public health and safety and for the promotion of the general welfare;
   7. To cooperate with other states and the federal government in promoting and coordinating interstate and intrastate public utility service and reliability;
   8. To encourage the continued study and research for new and innovative rate-making procedures which will protect the state, the public, the ratepayers and the utilities, and where possible reduce the costs of the rate-making process; and
   9. With respect to rate-regulated public utilities, to foster, encourage, enable and facilitate economic development in the State of Mississippi, and to support and augment economic development activities, and to authorize and empower the Public Service Commission, in carrying out its statutory responsibilities, to take every opportunity to advance the economic development of the state.
2. To these ends, therefore, authority shall be vested in the Mississippi Public Service Commission to regulate public utilities in accordance with the provisions of this title.
3. 1. The commission shall, in addition to its other powers and duties, be authorized and empowered, in its discretion, to consider and adopt a formula type rate of return evaluation rate which may include provision for the commission to:
      1. Periodically review and adjust, if required, the utility’s level of revenues based upon the actual books and records of the utility which are periodically the subject of independent audits and regulatory audits;
      2. Review the utility’s performance in certain areas or categories which may be used by the commission in the manner selected by it which may include rate incentives or penalties so long as such are found to be fair and reasonable and result in a level of revenue which is fair and reasonable; and
      3. Use such other provisions which may be permitted by this chapter.
   2. When a formula type rate of return evaluation rate with periodic revenue adjustments is adopted by the commission, each periodic revenue adjustment will be separately considered for the purpose of determining whether a hearing is required pursuant to Section 77-3-39(1), and no such hearing shall be required if the amount of any separate periodic adjustment to the level of revenues of the utility is not a “major change” as defined in Section 77-3-37(8).
   3. In administering any such formula type rate of return evaluation rate, the following procedures shall be observed by the commission:
      1. Each periodic evaluation shall be supported with a sworn filing by the utility incorporating the data specified in the formula rate adopted by the commission, and such data shall be verified by the commission; and
      2. A hearing shall be required, as provided by law, to determine compliance with the formula rate plan and the accuracy of the data prior to any change in the level of revenues if the cumulative change in any calendar year exceeds the greater of Two Hundred Thousand Dollars ($200,000.00) or four percent (4%) of the annual revenues of the utility.
   4. The requirements of paragraphs (a), (b) and (c) of this subsection and other applicable provisions of Title 77, Chapter 3, Article 1, Mississippi Code of 1972, which are observed by the commission in administering such rate, are hereby declared to be procedural but are not required to be included in the rate itself.
4. It is the intention of the Legislature to validate, retroactively to its initial adoption by the commission, any formula type rate, including any revenue adjustments effected pursuant thereto, which has heretofore been adopted by the commission. For the purposes of the retroactive validation and the administration of any formula type rate heretofore adopted by the commission, should the provisions of Title 77, Chapter 3, Article 1, Mississippi Code of 1972, conflict with any provisions of such formula type rate, Title 77, Chapter 3, Article 1, Mississippi Code of 1972, shall be interpreted to prevail and the formula type rate shall hereafter be administered or revised to conform to Title 77, Chapter 3, Article 1, Mississippi Code of 1972; provided, however, such conflict, if any, shall not be held to invalidate the retroactive effect of this section upon such rate.

HISTORY: Laws, 1983, ch. 467, § 3; Laws, 1989, ch. 304, § 1; Laws, 1990 Ex Sess, ch. 48, § 1; Laws, 2015, ch. 360, § 2, eff from and after July 1, 2015.

§ 77-3-3. Definitions.

As used in this chapter:

The term “corporation” includes a private or public corporation, a municipality, an association, a joint-stock association or a business trust.

The term “person” includes a natural person, a partnership of two (2) or more persons having a joint or common interest, a cooperative, nonprofit, limited dividend or mutual association, a corporation, or any other legal entity.

The term “municipality” includes any incorporated city, town or village.

The term “public utility” includes persons and corporations, or their lessees, trustees and receivers now or hereafter owning or operating in this state equipment or facilities for:

The generation, manufacture, transmission or distribution of electricity to or for the public for compensation;

The transmission, sale, sale for resale, or distribution of natural, artificial, or mixed natural and artificial gas to the public for compensation by means of transportation, transmission, or distribution facilities and equipment located within this state; however, the term shall not include the production and gathering of natural gas, the sale of natural gas in or within the vicinity of the field where produced, or the distribution or sale of liquefied petroleum gas or the sale to the ultimate consumer of natural gas for use as a motor vehicle fuel;

The transmission, conveyance or reception of any message over wire, of writing, signs, signals, pictures and sounds of all kinds by or for the public, where such service is offered to the public for compensation, and the furnishing, or the furnishing and maintenance, of equipment or facilities to the public, for compensation, for use as a private communications system or part thereof; however, no person or corporation not otherwise a public utility within the meaning of this chapter shall be deemed such solely because of engaging in this state in the furnishing, for private use as last aforementioned, and moreover, nothing in this chapter shall be construed to apply to television stations, radio stations, community television antenna services, video services, voice over Internet protocol services (“VoIP”), any wireless services including commercial mobile services, Internet protocol (“IP”) - enabled services or broadband services; and

The transmission, distribution, sale or resale of water to the public for compensation, or the collection, transmission, treatment or disposal of sewage, or otherwise operating a sewage disposal service, to or for the public for compensation.

The term “public utility” shall not include any person not otherwise a public utility, who furnishes the services or commodity described in this paragraph only to himself, his employees or tenants as an incident of such employee service or tenancy, if such services are not sold or resold to such tenants or employees on a metered or consumption basis other than the submetering authorized under Section 77-3-97.

A public utility’s business other than of the character defined in subparagraphs (i) through (iv) of this paragraph is not subject to the provisions of this chapter.

The term “rate” means and includes every compensation, charge, fare, toll, customer deposit, rental and classification, or the formula or method by which such may be determined, or any of them, demanded, observed, charged or collected by any public utility for any service, product or commodity described in this section, offered by it to the public, and any rules, regulations, practices or contracts relating to any such compensation, charge, fare, toll, rental or classification; however, the term “rate” shall not include charges for electrical current furnished, delivered or sold by one public utility to another for resale.

The word “commission” shall refer to the Public Service Commission of the State of Mississippi, as now existing, unless otherwise indicated.

The term “affiliated interest” or “affiliate” includes:

Any person or corporation owning or holding, directly or indirectly, twenty-five percent (25%) or more of the voting securities of a public utility;

Any person or corporation in any chain of successive ownership of twenty-five percent (25%) or more of the voting securities of a public utility;

Any corporation of which fifteen percent (15%) or more of the voting securities is owned or controlled, directly or indirectly, by a public utility;

Any corporation twenty-five percent (25%) or more of the voting securities of which is owned or controlled, directly or indirectly, by any person or corporation that owns or controls, directly or indirectly, twenty-five percent (25%) or more of the voting securities of any public utility or by any person or corporation in any chain of successive ownership of twenty-five percent (25%) of such securities;

Any person who is an officer or director of a public utility or of any corporation in any chain of successive ownership of fifteen percent (15%) or more of voting securities of a public utility; or

Any person or corporation that the commission, after notice and hearing, determines actually exercises any substantial influence or control over the policies and actions of a public utility, or over which a public utility exercises such control, or that is under a common control with a public utility, such control being the possession, directly or indirectly, of the power to direct or cause the discretion of the management and policies of another, whether such power is established through ownership of voting securities or by any other direct or indirect means.

However, the term “affiliated interest” or “affiliate” shall not include a joint agency organized pursuant to Section 77-5-701 et seq. nor a member municipality thereof.

The term “facilities” includes all the plant and equipment of a public utility, used or useful in furnishing public utility service, including all real and personal property without limitation, and any and all means and instrumentalities in any manner owned, operated, leased, licensed, used, controlled, furnished or supplied for, by or in connection with its public utility business.

The term “cost of service” includes operating expenses, taxes, depreciation, net revenue and operating revenue requirement at a claimed rate of return from public utility operations.

The term “lead-lag study” includes an analysis to determine the amount of capital which investors in a public utility, the rates of which are subject to regulation under the provisions of this chapter, must provide to meet the day-to-day operating costs of the public utility prior to the time such costs are recovered from customers, and the measurement of (i) the lag in collecting from the customer the cost of providing service, and (ii) the lag in paying the cost of providing service by the public utility.

The term “broadband services” means any service that consists of or includes a high-speed access capability to transmit at a rate that is not less than two hundred (200) kilobits per second either in the upstream or downstream direction and either:

Is used to provide access to the Internet, or

Provides computer processing, information storage, information content or protocol conversion, including any service applications or information service provided over such high-speed access service.

The term “video services” means video programming services without regard to delivery technology, including Internet protocol technology (“Internet Protocol television or IPTV”) and video programming provided as a part of a service that enables users to access content, information, email or other services offered over the public Internet. The term “video programming” means any programming as defined in 47 USCS Section 522(20).

The term “Voice over Internet Protocol services” or “VoIP services” means any service that: (i) enables real-time, two-way voice communications that originate from or terminate to the user’s location in Internet protocol or any successor protocol; (ii) uses a broadband connection from the user’s location; and (iii) permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

The term “commercial mobile services” means any services as defined in 47 USCS Section 332(d).

The term “Internet protocol-enabled services” or “IP-enabled services” means any service, capability, functionality, or application provided using Internet protocol, or any successor protocol, that enables an end user to send or receive a communication in Internet protocol format, or any successor format, regardless of whether the communications is voice, data or video.

Nothing contained in this paragraph shall apply to retail services that are tariffed by the commission.

HISTORY: Codes, 1942, § 7716-01; Laws, 1956, ch. 372, § 1; Laws, 1968, ch. 502, § 1; Laws, 1983, ch. 467, § 4; Laws, 1988, ch. 310, § 1; Laws, 1990, ch. 530, § 41; Laws, 1993, ch. 304, § 1; Laws, 2002, ch. 513, § 2; Laws, 2005, ch. 305, § 1; Laws, 2012, ch. 447, § 1, eff from and after July 1, 2012; Laws, 2018, ch. 368, § 1, eff from and after passage (approved March 16, 2018).

§ 77-3-5. Jurisdiction and powers of commission.

Notwithstanding any other provision of law, and subject only to the limitations imposed in this chapter and in accordance with the provisions of this chapter, the Public Service Commission shall have exclusive original jurisdiction over the intrastate business and property of public utilities and, for purposes of clarification of the existing scope of said exclusive original jurisdiction, such exclusive original jurisdiction extends, but is not limited to: the establishment of retail rates; challenges, including customer complaints, to the amount of a retail rate or customer bill or whether such rate is just and reasonable; and challenges to the validity or accuracy of rates charged by a public utility, or to the accuracy or reliability of information submitted to the Public Service Commission by a public utility or other person in support of or in opposition to a proposed or approved rate, regardless of the legal theory upon which any such challenge is made. However, the commission shall not have jurisdiction over the production and gathering of natural gas or the sale of natural gas in or within the vicinity of the field where produced, or over the facilities and equipment utilized in any such operations, including, but not limited to, such facilities as separators, scrubbers and gasoline plants of all types. Further, the commission shall not have jurisdiction over the governance, management or other internal affairs of entities as described by paragraphs (b) and (c) below. Moreover, the commission shall not have jurisdiction to regulate the rates for the sales and/or distribution:

Of gas, water, electricity or sewage disposal services by municipalities to such persons as said municipalities are authorized by law to serve;

Of gas or electricity by cooperative gas or electric power associations to the members thereof as consumers, except as provided by Section 77-3-17, where service is rendered in a municipality;

Of water or sewage disposal service by nonprofit corporations or associations where the governing body of such corporation or association is elected by the consumers thereof or appointed by the county board of supervisors; or

Of water by districts organized under the provisions of Chapter 45, Laws of 1966-1967, Extraordinary Session.

HISTORY: Codes, 1942, § 7716-04; Laws, 1956, ch. 372, § 4; Laws, 1966, ch. 542, § 1; Laws, 1968, ch. 503, § 1; ch. 502, § 2; Laws, 2013, ch. 321, § 2; Laws, 2013, ch. 526, § 1; Laws, 2015, ch. 310, § 1, eff from and after passage (approved Mar. 13, 2013); Laws, 2018, ch. 402, § 24, eff from and after July 1, 2018.

§ 77-3-6. Investigations and arbitration of billing and services between public utilities and customers.

1. Any dispute between a municipally-owned or operated public utility and a customer of such public utility with regard to billing and/or services in excess of Two Thousand Five Hundred Dollars ($ 2,500.00) shall be subject to investigation, review and arbitration by the commission upon petition filed therefor with the commission by such public utility or customer. However, the commission shall not commence any investigation or proceedings pursuant to such petition if at the time of filing the petition suit has been filed in any court of this state or of the United States with regard to the subject matter of the dispute and in which such public utility and customer are parties. Any such petition shall be immediately dismissed if any such suit is filed after filing of the petition with the commission.
2. In any arbitration proceedings commenced under the provisions of this section, the commission may, by order entered on its minutes and delivery of a certified copy thereof to the public utility, direct any municipally-owned or operated public utility to provide the commission with copies of all statements, accounts and reports concerning operation of the public utility which the utility is required to provide the governing authorities of the municipality under Section 21-27-17. The commission is further authorized to conduct and shall conduct investigation of and informal hearings in the dispute and may negotiate with the public utility and the customer for the resolution thereof. In every arbitration proceeding under this section the commission shall perform such duties as it deems reasonable and likely to result in settlement of the dispute without commencement of litigation between the public utility and the customer.
3. Participation in any investigation, proceeding, negotiation, or settlement under the provisions of this section shall be voluntary by the public utility and the customer; however, no suit may be commenced in any court of this state by either the public utility or customer based upon the facts giving rise to the dispute for a period of sixty (60) days after a petition is filed with the commission under this section.
4. The provisions prescribed herein for the Public Service Commission to investigate, review and arbitrate disputes between a municipally-owned or operated public utility and a customer of such public utility shall not extend to tort actions.

HISTORY: Laws, 1990, ch. 455, § 1, eff from and after July 1, 1990.

§ 77-3-7. Bonding of commission employees; preference for full-time employees; additional personnel.

1. The commission may require such bonds to be carried on its employees as the commission may deem necessary, the cost thereof to be paid by the commission. Insofar as possible to do so, personnel of the commission shall be retained on a full-time basis and shall have no other employment of any kind. As to any part-time or specially employed person, the minutes of the commission shall recite the necessity for deviation from full-time employment.
2. Nothing in this section should be interpreted to prevent the commission from utilizing the services of these additional personnel herein provided in rendering assistance to the commission in its other duties where such assignment does not interfere with duties in administering the provisions of this chapter.

HISTORY: Codes, 1942, § 7716-02; Laws, 1956, ch. 372, § 2; Laws, 1983, ch. 467, § 5; Laws, 1990, ch. 530, § 34, eff from and after July 1, 1990.

§ 77-3-8. Public service commission staff; Personnel Board to establish salaries; duties of staff; funding of agency expenses; deposit of monies into State General Fund.

1. There is established in the commission a Public Service Commission staff, which staff shall be a unit, remain as a unit therein, and be responsive to the commission. The Public Service Commission staff shall consist of a sufficient number of professional, administrative, technical, clerical and other personnel as may be necessary for the staff to perform its duties and responsibilities as hereinafter provided. All such personnel of the Public Service Commission staff shall be recommended by the executive secretary and hired or rejected by the commission. Personnel shall be dismissed only for cause in accordance with the rules and regulations of the State Personnel Board. The personnel of the Public Service Commission staff shall be compensated and reimbursed for their actual and necessary expenses, including food, lodging and travel, by the commission from the Public Service Commission Regulation Fund established by Section 77-1-6, and as authorized by Section 25-3-41. The Public Service Commission staff shall be responsible for gathering and analyzing information relating to all matters within the authority of the commission.
2. The State Personnel Board shall establish and maintain entry-level salaries sufficiently competitive to attract competent, qualified applicants for the specialized skills and positions required by this section without regard to the salaries paid the commissioners and notwithstanding any other provisions of law to the contrary. The State Personnel Board shall authorize, where necessary, a range of salaries within which salary negotiations may be conducted for those positions for which specific knowledge, skills and abilities are set forth herein.
3. The Public Service Commission staff shall perform such duties as are assigned to them by the commission.
4. From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.
5. From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Laws, 1983, ch. 467, § 6; Laws, 1987, ch. 343, § 5; Laws, 1990, ch. 530, § 35; Laws, 2016, ch. 459, § 53, eff from and after July 1, 2016.

§ 77-3-9. Attorney for public service commission.

The Public Service Commission shall appoint an attorney who shall assist and advise the commission in all matters affecting its powers and duties and to perform such duties and services in connection with this chapter and the enforcement thereof as the commission may require. Such attorney shall be a member of the Mississippi State Bar, shall have practiced law for a minimum of five (5) years and shall possess considerable knowledge of utility regulation generally and of the case law, statutory law and the common law relating thereto. The attorney for the commission shall, upon request of the commission, aid in any investigation or hearing held under the provisions of this chapter. His salary shall be set by the commission, and his salary and expenses shall be paid in the same manner and from the same funds as the salary and expenses of the commissioners.

HISTORY: Codes, 1942, § 7716-03; Laws, 1956, ch. 372, § 3; Laws, 1983, ch. 467, § 7; Laws, 1990, ch. 530, § 36, eff from and after July 1, 1990.

§ 77-3-10. Regulated utilities to file with commission copies of contracts with affiliates; authority of commission to disallow certain payments as operating costs.

1. All public utilities, the rates of which are subject to regulation under the provisions of this chapter, shall file with the commission copies of contracts, wherein the consideration therefor is One Million Dollars ($1,000,000.00) or more, with any holding, managing, operating, constructing, engineering or purchasing company, which is an affiliate of or a subsidiary of, such public utility, and when requested by the commission, copies of such contracts wherein the consideration therefor is less than One Million Dollars ($1,000,000.00) and copies of contracts with any person selling service of any kind. The commission may, after hearing on reasonable notice, disallow any payment to be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base under any such contract if it is found by the commission to be unjust or unreasonable, or made for the purpose or with the effect of concealing, unreasonably transferring or unreasonably dissipating the earnings of the public utility. Provided, however, that in the case of a public utility with fewer than twenty-five thousand (25,000) customers, this subsection shall apply only to such contracts as the commission shall request such public utility to file.
2. No public utility as described in subsection (1) of this section shall pay any fees, commission or compensation of any description whatsoever to any affiliated or subsidiary holding, managing, operating, constructing, engineering or purchasing company for services rendered or to be rendered without first filing copies of all agreements and contracts therefor with the commission. The commission may, after hearing on reasonable notice, disallow any such payment to be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base under such agreement or contract if it is found by the commission to be unjust or unreasonable. Provided, however, that this subsection shall not apply to motor carriers of passengers.
3. The public service commission staff, upon direction of the commission, shall have full power and authority to investigate any such contract, arrangement, purchase or sale, and no payment disallowed by the commission shall be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base. If, in any such investigation, the public utility or affiliate shall unreasonably refuse to comply with any request of the commission for information with respect to relevant accounts and records, whether of such public utility or any affiliate, any portion of which may be applicable to any transaction under investigation, so that such parts thereof as the commission may deem material may be made part of the record, such refusal shall justify the commission in disapproving the transaction under investigation and disallowing payments in pursuance thereof, to be capitalized or included as an operating cost of the public utility in the fixing of rates or as an asset in fixing a rate base.

HISTORY: Laws, 1983, ch. 467, § 8; Laws, 1990, ch. 530, § 37, eff from and after July 1, 1990.

§ 77-3-11. Certificate of public convenience and necessity required; exceptions; complaints prompting hearing as to adequacy of service.

1. No person shall construct, acquire, extend or operate equipment for manufacture, mixing, generating, transmitting or distributing natural or manufactured gas, or mixed gas, or water, for any intrastate sale to or for the public for compensation, or for the operation of a public utility operating a business and equipment or facilities as contemplated by subparagraph (iii) of paragraph (d) of Section 77-3-3, without first having obtained from the commission a certificate that the present or future public convenience and necessity require or will require the operation of such equipment or facility.
2. No person shall construct, acquire, extend or operate equipment for manufacture, generating, transmitting or distributing electricity for any intrastate or interstate sale to or for the public for compensation without first having obtained from the commission a certificate that the present and future public convenience and necessity require or will require the operation of such equipment or facility. Provided, however, nothing herein contained shall be construed to require a joint municipal electric power agency organized in accordance with the provisions of Section 77-5-201 et seq., Mississippi Code of 1972, to obtain any permit, license, certificate or approval from the Mississippi Public Service Commission.
3. No person shall construct, acquire, extend or operate equipment or facilities for collecting, transmitting, treating or disposing of sewage, or otherwise operating an intrastate sewage disposal service, to or for the public for compensation, without first having obtained from the commission a certificate that the present or future public convenience and necessity require or will require the operation of such equipment or facilities.
4. However, nothing herein shall be construed to require any certificate of convenience and necessity from the commission for the production and gathering of natural gas, the sale of natural gas in or within the vicinity of the field where produced, the distribution or sale of liquefied petroleum gas, the sale of natural gas to the ultimate consumer for use as a motor vehicle fuel, or for the facilities and equipment utilized in any such operations.
5. Upon complaints filed by not less than ten percent (10%) of the total subscribers or three thousand five hundred (3,500) subscribers of a public utility, whichever is less, then the commission shall hold a hearing on the adequacy of service as contemplated in Section 77-3-21.

HISTORY: Codes, 1942, §§ 7716-05, 7716-45; Laws, 1956, ch. 372, § 5; Laws, 1968, ch. 502, § 3; Laws, 1983, ch. 467, § 9; Laws, 1985, ch. 446; Laws, 1990, ch. 530, § 38; Laws, 1993, ch. 304, § 2, eff from and after July 1, 1993.

§ 77-3-12. Certificate of public convenience and necessity grants exclusive right to public utility to provide services for which certificate issued; utility systems authorized to extend facilities through certificated area of another utility for purposes other than certificated need.

1. A certificate of public convenience and necessity issued by the Public Service Commission authorizing public utility services to or for the public for compensation in an area grants an exclusive right to the public utility to provide that service in the certificated area.
2. Nothing contained in subsection (1) of this section or any other provision of law shall prohibit any utility system from extending its system plant, lines or other facilities in or through the certificated area of another utility for purposes other than providing services to or for the public for compensation in such certificated area similar to those services provided by the certificated utility.

HISTORY: Laws, 2002, ch. 499, § 27, eff from and after passage (approved Apr. 1, 2002).

§ 77-3-13. Issuance of certificates; temporary certificates; cancelability review upon change of ownership.

1. The commission shall issue a certificate of convenience and necessity to any person engaged in the construction or operation of such equipment or facility as is mentioned in subsection (1) of Section 77-3-11 on March 29, 1956, for the construction or operation then being conducted, without requiring proof that public convenience and necessity will be served by such construction or operation, and without further proceedings, if application for such certificate is made to the commission within six (6) months after March 29, 1956. Any utility covered by this chapter which has heretofore been under the jurisdiction of the commission shall, upon application within six (6) months of March 29, 1956, be issued a certificate authorizing it to conduct operations and make extensions within any area covered by its service area map or maps on file with the commission on March 29, 1956.
2. The commission shall issue a certificate of convenience and necessity to any person engaged in the construction or operation of a sewage disposal service as mentioned in subsection (2) of Section 77-3-11 on August 9, 1968, for the construction or operation then being conducted, without requiring proof that public convenience and necessity will be served by such construction or operation, and without further proceedings, if application for such certificate is made to the commission within six (6) months after August 9, 1968. Pending the filing of such application and the issuance of a certificate, the continuance of such construction or operation shall be lawful.

   Except as otherwise specifically provided by subsection (2) of Section 77-3-11 or by this subsection, that portion of the business of a public utility dealing with the operation of a sewage disposal service as provided by subsection (2) of Section 77-3-11 shall be subject to provisions of this chapter, in like manner and with like effect as if such business had been included within the definition of a “public utility” in the original enactment of this chapter.

3. In all other cases, the commission shall set the matter for hearing, and shall give reasonable notice of the hearing thereon to all interested persons, as in its judgment may be necessary under its rules and regulations, involving the financial ability and good faith of the applicant, the necessity for additional services and such other matters as the commission deems relevant. The commission may issue a certificate of public convenience and necessity, or refuse to issue the same or issue it for the establishment or construction of a portion only of the contemplated plant, route, line or system, or extension thereof, or for the partial exercise only of such right or privilege, and may attach to the exercise of the rights granted by the certificate such reasonable terms and conditions as to time or otherwise as, in its judgment, the public convenience, necessity and protection may require, and may forfeit such certificate after issuance for noncompliance with its terms, or provide therein for an ipso facto forfeiture of the same for failure to exercise the rights granted within the time fixed by the certificate. However, nothing in this section shall be construed as requiring such certificate for a municipally owned plant, project or development, route, line or system or extension thereof in areas within one (1) mile of the corporate boundaries which are not certificated to another utility, and nothing in this chapter or other provision of law shall be construed as allowing a municipally owned plant, project or development, route, line or system or extension thereof in areas certificated to another utility. No certificate shall be required for extensions or additions within the corporate limits of a municipality being served by the holder of a certificate of convenience and necessity.
4. The commission shall, prior to issuing a certificate of public convenience and necessity to a public utility for any new construction, extension or addition to its property, ascertain that all labor, materials, property or services to be rendered for any proposed project will be supplied at reasonable prices. The commission shall, after issuance of a certificate for facilities estimated to cost Five Million Dollars ($5,000,000.00) or more or estimated to cost an amount equal to one percent (1%) of the rate base allowed by the commission in the utility’s last rate case, whichever is greater, assign the public utilities staff to monitor such projects, to inspect periodically construction in progress, and to report to the commission any variances or deviations as found, if any, and to file progress reports thereon with the commission. Such public utility shall file a similar report with the commission at such times and in such form as the commission shall require, including any substantial changes in plans and specifications, cost allocations, construction schedule and funds available to complete the project.
5. The commission may issue a temporary certificate in cases of emergency, to assure maintenance of adequate service or to serve particular customers, without notice or hearing, pending the determination of an application for a certificate, and may by regulation exempt from the requirements of Sections 77-3-11 through 77-3-21: (a) temporary acts or operations for which the issuance of a certificate will not be required in the public interest; and (b) extensions or additions of service facilities outside of municipalities under such general rules as will promote the prompt availability of such service to prospective users, and at the same time prevent unnecessary and uneconomic duplication of such facilities as between two (2) or more persons.
6. Prior to the acquisition pursuant to Section 77-3-17, or other provisions of law, by any public agency, authority, district, state or other agency, institution or political subdivision thereof, of any certificate of public convenience and necessity or portion thereof, service areas or portion thereof, or operating rights or portion thereof, issued or granted by the commission pursuant to the provisions of this section and/or the facilities or other properties and equipment of the utility providing service therein of any regulated utility, as defined in Section 77-3-3(d)(i), (ii) and (iii), the commission shall first determine if such service area, certificate of public convenience and necessity, or operating right, or portions thereof, should be cancelled as provided in Section 77-3-21.
7. Before the acquisition pursuant to any negotiated purchase agreement entered into before 1987, by any public agency, authority, district, state or other agency, institution or political subdivision thereof, of any certificate of public convenience and necessity or portion thereof, service areas or portion thereof, or operating rights or portion thereof, issued or granted by the commission pursuant to this section and/or the facilities or other properties and equipment of the utility providing service therein of any regulated utility defined in Section 77-3-3(d)(i), the commission first shall determine that such service area, certificate of public convenience and necessity, or operating right, or portions thereof, shall be cancelled as provided in Section 77-3-21.
8. Notwithstanding any provision of this section to the contrary, the certificate as applied for may be granted without a hearing in uncontested cases; however, the commission may hear any uncontested case if it determines that the public interest will be served thereby.

HISTORY: Codes, 1942, §§ 7716-05, 7716-45; Laws, 1956, ch. 372, § 5; Laws, 1968, ch. 502, § 3; Laws, 1983, ch. 467, § 10; Laws, 1987, ch. 353, § 2; Laws, 2002, ch. 303, § 1, eff from and after passage (approved Mar. 4, 2002).

§ 77-3-14. Certificate of public convenience and necessity required for construction of electrical generating and transmitting facilities; commission to maintain analysis of electricity needs in state.

1. Notwithstanding the provisions of Section 77-3-11, Mississippi Code of 1972, and Section 77-3-13, Mississippi Code of 1972, no public utility or other person shall begin the construction of any facility for the generation and transmission of electricity to be directly or indirectly used for the furnishing of public utility service in this state, even though the facility be for furnishing the service already being rendered, without first obtaining from the commission a certificate that the public convenience and necessity requires, or will require, such construction.
2. The commission shall develop, publicize and keep current an analysis of the long-range needs for expansion of facilities for the generation of electricity in Mississippi, including its estimate of the probable future growth of the use of electricity, the probable needed generation reserves, the extent, size, mix and general location of generating plants and arrangements for pooling power to the extent not regulated by the Federal Energy Regulatory Commission and other arrangements with other utilities and energy suppliers to achieve maximum efficiencies for the benefit of the people of Mississippi, and shall consider such analysis in acting upon any petition by any utility for construction. Each public utility engaged in the generation, transmission and distribution of electric energy shall, upon request of the commission, submit to the commission its forecasts and plans for the addition of generating capacity planned by the utility for an ensuing five-year period and shall furnish to the commission such documents and proof with respect to the need therefor as the commission may reasonably require. In considering these analyses and forecasts, the commission shall consult with the University Research Center, the utilities commissions or comparable agencies of neighboring states, the Federal Energy Regulatory Commission and other agencies having relevant information and/or duties and responsibilities in this area, and particularly with the Department of Economic and Community Development with reference to the accomplishment of the Mississippi Energy Plan provided for in Section 57-39-11, Mississippi Code of 1972.
3. In acting upon any petition for the construction of any facility for the generation of electricity, the commission shall take into account the utility’s arrangements with other electric utilities for interchange of power, pooling of plant, purchase of power and other methods for providing reliable, efficient and economical electric service.
4. As a condition for receiving such certificate, the utility shall file an estimate of construction costs in such detail as the commission may require. The commission shall hold a public hearing on each application, and no certificate shall be granted unless the commission has approved the estimated construction costs.
5. The commission shall maintain an ongoing review of such construction as it proceeds, and the applicant shall submit at such times as the commission shall require during construction a progress report and any revisions in the cost estimates for the construction.
6. The certification requirements of this section shall not apply to persons who construct an electric generating facility primarily for that person’s own use and not for the primary purpose of producing electricity, heat or steam for sale to or for the public for compensation; and the commission may provide for exemption from certification requirements for cogeneration facilities and small standby facilities; provided, however, that such persons shall, nevertheless, be required to report to the commission the proposed construction of such a facility before beginning construction thereof.

HISTORY: Laws, 1983, ch. 467, § 11; Laws, 1988, ch. 518, § 90; Laws, 1992, ch. 496, § 54, eff from and after July 1, 1992.

§ 77-3-15. Two or more persons holding certificates for similar operations in same municipality.

Where there shall be two (2) or more persons holding certificates of convenience and necessity for similar operation in the same municipality, such operation may be carried on by such persons within their respective certificated areas and such persons shall be exempt from further application to the commission for extension of or additions to their facilities within their respective certificated areas of said municipality, including any extensions of the corporate limits thereof.

Municipally operated utilities shall not be subject to regulation under this article.

HISTORY: Codes, 1942, § 7716-05; Laws, 1956, ch. 372, § 5; Laws, 2013, ch. 321, § 1, eff from and after passage (approved Mar. 7, 2013).

§ 77-3-16. Bids required on certain public utility contracts; exceptions; list of contractors and suppliers.

1. All contracts for construction, extension and/or repair of facilities in excess of two hundred thousand dollars ($200,000.00) by or on the behalf of any public utility subject to rate regulations by the Mississippi Public Service Commission, shall be governed by this section. The public utility shall maintain a list of contractors and suppliers qualified to perform contracts within the scope of proposed utility projects. The public utility shall, upon written request of any qualified prospective bidder, add his or its name to such list. At least every six (6) months, the public utility shall publish in a newspaper, having general circulation in the area in which the utility operates, a notice requesting names of qualified contractors and suppliers. Upon written request by qualified contractors and suppliers, those names shall be added to such list. The public utility shall give to each contractor or supplier on said list who is qualified with respect to a project under consideration written invitation to bid those projects subject to this section. Contracts subject to this section shall be awarded to the lowest and best bidder. Provided, however, nothing contained herein shall prohibit any public utility from performing services covered by this section with its own regularly employed work force.
2. The public utility may enter into a master contract with the lowest and best contractor to cover all construction work to be performed in a specified geographic area.
3. If the chief executive officer of a public utility determines that an emergency exists which affects the public health, safety or welfare, the provisions of this section shall not apply. As used in this section an emergency is any occurrence in which service is interrupted.
4. The provisions of this section shall not apply to contracts which by their nature are not adapted to competitive bidding, including but not limited to:
   1. Items which may be acquired from a sole source;
   2. Contracts for professional services;
   3. Equipment and systems which by reason of the training of personnel or of any inventory replacement of parts maintained by the utility, are or should be compatible with existing equipment;
   4. Contracts for interstate or intrastate carriage of persons or property with a common carrier or contract carrier at the rates set forth in the officially approved tariff of that carrier; and
   5. Such contracts as the commission may define by regulation.
5. The public service commission shall have the authority to monitor all conditions contained in this section.

HISTORY: Laws, 1983, ch. 467, § 12, eff from and after passage (approved April 6, 1983).

§ 77-3-17. Operation of public utility following expiration of municipal franchise; municipal acquisition of utility.

In addition to such other rights as it may have to use the streets, alleys and public places of a municipality, a public utility which holds a certificate of public convenience and necessity granted under the provisions of this article covering the geographical area of such municipality, and which (1) is operating under a municipal franchise on March 29, 1956, or (2) shall have previously operated under such a municipal franchise which has expired within five (5) years prior to said date, or (3) which shall hereafter operate under a municipal franchise hereafter granted, may, after the expiration of any such franchise continue to use the streets, alleys and public places therein situated upon condition that (1) such utility shall pay the said municipality compensation therefor at the rate of two percent (2%) of said utility’s gross revenue from sales to residential and commercial customers within said municipality, in case of a utility defined in subparagraphs (i) and (ii) of paragraph (d) of Section 77-3-3 and in the case of a utility defined in subparagraph (iii) of paragraph (d) of said Section the said utility shall pay two percent (2%) of the monthly service charges in said municipality whether said utility has a franchise to operate therein or not, such payments to be made quarterly of each year, and (2) after the expiration of such franchise the municipality, or any customer of such utility in such municipality, upon appropriate petition, shall be entitled to a hearing as to whether or not the certificate of convenience and necessity may then and thereafter be granted on a permanent basis. Any co-operative which shall operate within any area of a municipality shall likewise pay such municipality two percent (2%) of the co-operative’s gross revenue from sales to residential and commercial customers within said municipality.

Any municipality shall have the right to acquire by purchase, negotiation or condemnation the facilities of any utility that is now or may hereafter be located within the corporate limits of such municipality; provided, however, prior to any municipality exercising the right of eminent domain as provided herein, the commission shall determine that the certificate of public convenience and necessity granted to the utility pursuant to Section 77-3-13 for the service area wherein such facilities are located, shall be cancelled as provided in Section 77-3-21.

HISTORY: Codes, 1942, § 7716-05; Laws, 1956, ch. 372, § 5; Laws, 1987, ch. 353, § 3, eff from and after passage (Governor’s veto overridden by Legislature on March 17, 1987).

§ 77-3-19. Applicant for certificate must obtain a municipal franchise.

Notwithstanding any provision in this article to the contrary, in any case where a utility is located and operates, or proposed to locate and operate in a municipality where streets and other public places are essential to such location and operation, no certificate of convenience and necessity shall be issued thereasto without prior franchise granted by the municipality. Such franchise shall not contain any provision conflicting with or repugnant to the exclusive jurisdiction of the commission to regulate rates and services of the utilities as provided in this article. Applicants for certificates of convenience and necessity shall attach to their applications true and correct copies of franchises issued to them by such municipality as the application may embrace. The commission is authorized so to amend such franchise as to exclude and remove therefrom any provision in conflict with or repugnant to the exclusive jurisdiction of the commission over rates and services and which shall in any way fix or affect rates. Should any municipality arbitrarily refuse to grant a franchise or provide for an election for a franchise as provided by law to a utility now operating within said municipality within ninety (90) days after application for said franchise is made, then the utility may obtain a certificate of convenience and necessity without the necessity of first obtaining a franchise. The commission shall so issue said certificate of convenience and necessity upon proper showing by the utility that said franchise is being arbitrarily withheld.

In the event the commission shall rule that a franchise is being arbitrarily withheld and shall issue a certificate of necessity as hereinabove mentioned, the utility obtaining said certificate of convenience and necessity shall not be required to pay to said municipality the two percent (2%) provided for in Section 77-3-17 until such a franchise has been granted to said utility.

In the case of a public utility as defined in subparagraph (iii) of paragraph (d) of Section 77-3-3 which has heretofore been under the jurisdiction of the commission and has its service area maps on file with the commission on March 29, 1956, under such reasonable rules and regulations as the commission shall prescribe, the commission is authorized to issue to such utility a certificate of convenience and necessity without requiring such utility to first obtain a municipal franchise as herein provided.

HISTORY: Codes, 1942, § 7716-05; Laws, 1956, ch. 372, § 5.

§ 77-3-21. Hearing on adequacy of service afforded by certificate holder.

The commission may, after a hearing had upon due notice, make such findings as may be supported by proof as to whether any utility holding a certificate under the provisions of this article is rendering reasonably adequate service in any area covered by such utility’s certificate. In the event the commission finds that such utility is not rendering reasonably adequate service the commission may enter an order specifying in what particulars such utility has failed to render reasonably adequate service and order that such failure be corrected within a reasonable time, such time to be fixed in such order. If the utility so ordered to correct such a failure fails to comply with such order of the commission and the commission finds that cancellation of its certificate would be in the best interest of the consuming public served by the holder of the certificate, its certificate for the area affected may be revoked and cancelled by the commission.

Prior to any municipality exercising the power of eminent domain as provided in Section 77-3-17, the commission shall determine that the certificate of public convenience and necessity granted to the utility pursuant to Section 77-3-13 for the service area wherein such facilities are located, shall be cancelled as provided in this section. Nothing in this paragraph shall be construed to include service for water and sewage.

HISTORY: Codes, 1942, § 7716-05; Laws, 1956, ch. 372, § 5; Laws, 1987, ch. 353, § 4; Laws, 1992, ch. 417, § 2, eff from and after passage (approved April 29, 1992).

§ 77-3-22. Placement of privately owned water and sewer systems in receivership; conditions.

If the commission determines that any privately owned water and/or sewer system within its jurisdiction is unable or unwilling to adequately serve its customers or has been actually or effectively abandoned by its owner, or that its management is grossly inefficient, irresponsible or unresponsive to the needs of its customers, the commission or its designated representative may petition the Chancery Court of the First Judicial District of Hinds County or the chancery court of any county wherein the public utility does business for an order attaching the assets of the privately owned water and/or sewer system and placing such water and/or sewer system under the sole control and responsibility of a receiver. If the court determines that the petition is proper in all respects and finds, after a hearing thereon, the allegations contained in the petition are true, it shall order that the water and/or sewer system be placed in receivership. The court, in its discretion and in consideration of the recommendation of the commission or its designated representative, may appoint a receiver who shall be a responsible individual, partnership, corporation or political subdivision knowledgeable in water or sewer service affairs and who shall maintain control and responsibility for the operation and management of the affairs of such water and/or sewer system. The receiver shall operate the water and/or sewer system so as to preserve the assets of the water and/or sewer system and to serve the best interests of its customers. The receiver shall be compensated from the assets of the water and/or sewer system in an amount to be determined by the court.

Control of and responsibility for the water and/or sewer system shall remain in the receiver until the court determines that it is in the best interests of the customers that the water and/or sewer system be returned to the owner, transferred to another owner or assumed by another water and/or sewer system or public service corporation. If the court, after hearing, determines that control of and responsibility for the affairs of the water and/or sewer system should not be returned to the legal owner thereof, the receiver may proceed to liquidate the assets of such water and/or sewer system in the manner provided by law.

Mississippi laws and Mississippi Rules of Civil Procedure generally applicable to receivership shall govern receiverships created under this section.

This section is in addition to the provisions of Section 77-3-21.

HISTORY: Laws, 1992, ch. 417, § 10; Laws, 1995, ch. 367, § 1, eff from and after passage (approved March 15, 1995).

§ 77-3-22.1. Preferences in transfer of ownership of privately owned water or sewer system in receivership.

In any county having a population of more than thirty-five thousand (35,000) but less than forty thousand (40,000), according to the most recent federal decennial census, any water or sewer system for which a finding is made under Section 49-17-44.1 or Section 77-3-22 by a court of competent jurisdiction that it is appropriate for a receiver to be appointed, the receiver shall give preference to a municipality within the county or to the governing authorities of the county in making any transfer of ownership of the water or sewer system. The term “preference,” as used in this section, means that no sale or transfer of the water or sewer system shall be approved by a court of competent jurisdiction or otherwise until two (2) years after the date of appointment of the receiver have elapsed. This right of preference may be waived by the local governmental entity given the preference under this section.

HISTORY: Laws, 2003, ch. 307, § 2, eff from and after passage (approved Feb. 27, 2003).

§ 77-3-23. Procedure for sale, assignment, lease or transfer of certificate.

It shall be lawful, under the conditions specified below, for public utilities to sell, assign, lease, transfer or otherwise dispose, including, without limitation, any change in control of (a) certificates of public convenience and necessity issued to them under the provisions of this article, or (b) any substantial part of its property necessary or useful in the performance of its duties to the public, including corporate stock that is not publicly traded.

Whenever a purchase, lease, assignment or transfer is proposed, the utility or utilities or the person seeking authority therefor shall present an application to the commission in such form as may be prescribed by the commission. Thereupon the commission shall notify the applicant or applicants and other parties known to have a substantial interest in the proceedings of the time and place for a public hearing at least twenty (20) days prior thereto, unless the commission shall find that public convenience or necessity requires that such hearings be held at an earlier date. Notice of all such hearings shall be given the persons interested therein by mailing such notice to each public utility which may be affected by any order resulting therefrom and by publication in a newspaper having general circulation in the county or counties wherein the facilities or areas that are the subject of the application are located. If, after such hearing, the commission finds that the transaction proposed is in good faith, that the proposed assignee, lessee, purchaser or transferee, is fit and able properly to perform the public utility services authorized by such certificate and to comply with the lawful rules, regulations and requirements of the commission, and that the transaction is otherwise consistent with the public interest, it may enter an order approving and authorizing such sale, lease, assignment or transfer upon such terms and conditions as it shall find to be just and reasonable and with such modifications as it may prescribe. Whenever such a transaction involves facilities that are included in the rate base of a public utility, the commission shall include, as a prerequisite to its finding that the transaction is consistent with the public interest, a finding that, upon the consummation of the transaction proposed: (a)(i) the native load customers of the public utility will continue to have a first priority to the use and/or benefit of such facilities, or (ii) any loss of such first priority by native load customers to the use and/or benefit of such facilities is not contrary to the public interest; and (b) any native load customers served by any transmission facilities shall be served on the same basis as before the transaction.

Notwithstanding any provision of this section to the contrary, the application may be granted as applied for without a hearing in uncontested cases; however, the commission may hear any uncontested case if it determines that the public interest will be served thereby.

HISTORY: Codes, 1942, § 7716-41; Laws, 1966, Ex Sess ch. 46, § 1; Laws, 1992, ch. 417, § 3; Laws, 1994, ch. 351, § 1; Laws, 2003, ch. 385, § 1, eff from and after passage (approved Mar. 14, 2003).

§ 77-3-25. Unlawful sale, lease, assignment or transfer of certificate or certain other utility property.

It shall be unlawful for any person, except as provided in Section 77-3-23 to accomplish or effectuate, or to participate in the accomplishing and effectuating, the sale, lease assignment or transfer of a certificate or other utility property described in Section 77-3-23, however the result is attained.

HISTORY: Codes, 1942, § 7716-42; Laws, 1966, Ex. Sess. ch. 46, § 2; Laws, 1994, ch. 351, § 2, eff from and after passage (approved March 14, 1994).

§ 77-3-27. Commission to investigate violations.

The commission is hereby authorized, upon complaint or upon its own initiative, to investigate and determine whether any person is violating the provisions of Section 77-3-25.

HISTORY: Codes, 1942, § 7716-43; Laws, 1966, Ex. Sess. ch. 46, § 3, eff from and after passage (approved December 28, 1966).

§ 77-3-29. Extension of service.

The commission may, after hearing, upon notice, by order in writing, require every public utility to establish, construct, maintain and operate any reasonable extension of its existing facilities within the certificated area upon findings and order that such extension is reasonable and practicable, and provided further, that in the case of gas and water a sufficient supply is available and obtainable therefor.

HISTORY: Codes, 1942, § 7716-06; Laws, 1956, ch. 372, § 6.

§ 77-3-31. Accounts and depreciation reports of utilities.

The commission, by rules and regulations, after notice and hearing shall establish a system of accounts to be kept by the public utilities, the rates of which are subject to regulation by the provisions of this chapter, or the commission may classify said public utilities and establish a system of accounts for each class, and prescribe the manner in which such accounts shall be kept. Every such public utility shall keep and render to the commission in the manner and form prescribed by the commission uniform accounts of all its public utility operations. In the case of any public utility subject to regulation by a federal regulatory agency, compliance with the system of accounts prescribed for the particular class of utilities by such federal regulatory agency may be deemed sufficient compliance with the system prescribed by the commission; provided, however, that the commission may prescribe forms of books, accounts, records and memoranda covering information in addition to that required by such federal regulatory agency, where such do not conflict with those prescribed by such federal regulatory agency.

The commission shall, after hearing held upon reasonable notice, from time to time ascertain, determine and by order fix the proper and adequate rates and methods of depreciation, amortization or depletion of the several classes of property of each such public utility or class of public utilities which is subject to regulation by the provisions of this chapter. The commission shall, after hearing had upon reasonable notice, by order in writing require every such public utility or class of public utilities, the rates of which are subject to regulation by the provisions of this chapter, to carry a reasonable and adequate depreciation account in accordance with such rates and methods and with such rules, regulations, orders and forms of accounts as the commission shall prescribe to the extent allowed by the Internal Revenue Code and the rules and regulations promulgated thereunder. Such public utility shall conform its depreciation accounts to the rates and methods so ascertained, determined and fixed. Such rates, methods and accounts shall be utilized uniformly and consistently throughout the rate setting and appeal proceedings.

In determining the allocation of tax savings derived from application of such methods as liberalized depreciation and amortization and the investment tax credit, the commission shall equitably balance the interests of present and future customers and shall apportion such benefits between consumers and the public utilities accordingly, to the extent allowed by the Internal Revenue Code and the rules and regulations promulgated thereunder. Where any portion of the investment tax credit has been retained by a public utility, that same amount shall be deducted from the original cost of the facilities or other addition to the rate base to which the credit applied, to the extent allowed by the Internal Revenue Code and the rules and regulations promulgated thereunder.

If the public utility is a member of an affiliated group that is eligible to file a consolidated income tax return, and if it is advantageous to the public utility to do so, income taxes shall be computed as though a consolidated return had been so filed and the utility had realized its fair share of the savings resulting from the consolidated return, unless it is shown to the satisfaction of the commission that it was reasonable to choose not to consolidate returns. The amount of income taxes saved by a consolidated group of which a public utility is a member by reason of the elimination in the consolidated return of the intercompany profit on purchases by the public utility from an affiliate shall be applied to reduce the cost of the property or services so purchased.

The commission shall require such public utilities to maintain a reasonably close relationship between their reserve for depreciation and the actual accumulated depreciation, and if such reasonably close relationship is not present, the commission may and should review and make appropriate changes in the annual charge to operating expenses on account of depreciation.

The commission, in determining the allowance for materials, equipment or services to be included in costs of operations for rate-making purposes, shall disallow any unreasonable profit made in the sale of materials, equipment or services supplied for any such public utility by any firm or corporation owned or controlled directly or indirectly by such utility or any affiliate, subsidiary, parent or holding company, associate or any corporation whose controlling stockholders are also controlling stockholders of such utility. The burden of proof shall be on the public utility to prove that no unreasonable profit is involved.

HISTORY: Codes, 1942, § 7716-07; Laws, 1956, ch. 372, § 7; Laws, 1983, ch. 467, § 13, eff from and after passage (approved April 6, 1983).

§ 77-3-33. Rates, classifications and service of utilities.

1. No rate made, deposit or service charge demanded or received by any public utility shall exceed that which is just and reasonable. Such public utility, the rates of which are subject to regulation under the provisions of this article, may demand, collect and receive fair, just and reasonable rates for the services rendered or to be rendered by it to any person. Rates prescribed by the commission shall be such as to yield a fair rate of return to the utility furnishing service, upon the reasonable value of the property of the utility used or useful in furnishing service.
2. Such utility shall furnish adequate, efficient and reasonable service, and may establish reasonable rules governing the conduct of its business and the conditions under which it shall be required to render service. The commission may, after hearing upon reasonable notice had, upon its own motion or upon complaint, ascertain and fix just and reasonable standards, regulations and practices of service which are to be furnished, imposed, observed and followed by all public utilities. The commission may require the service, rules and regulations of each public utility to be filed with the commission and subjected to its approval or to such changes therein as the commission reasonably may require. Practices required or sanctioned pursuant to the provisions hereof shall supersede other requirements of law.
3. Such utility may employ in the conduct of its business suitable and reasonable classifications of its service, patrons, rates, deposits and service charges. The classification may, in any proper case, take into account the nature of the use, the quantity and quality used, the time when used, the purpose for which used, and any other reasonable consideration.

HISTORY: Codes, 1942, § 7716-08; Laws, 1956, ch. 372, § 8.

§ 77-3-35. Regulation of rates and charges generally; approval of certain contracts of utilities; regulation of provision of telecommunication services; adoption of alternative methods of regulation; Public Service Commission authorized to regulate only rates, terms and conditions of certain switched access services and single-line flat rate voice communication services; incumbent local exchange carrier to provide primary single-line flat rate voice communication service to premises of permanent residence or business within its franchised service territory if cost to requesting party does not exceed certain amount; commission to retain exclusive original jurisdiction over customer complaints for services continuing to be regulated; certain telecommunication utilities required only to file financial or service quality information required to be filed with Federal Communications Commission.

1. Subject to the provisions of subsections (2) and (4) of this section, under such reasonable rules and regulations as the commission may prescribe, every public utility, as to the rates which are subject to regulation under the provisions of this article, shall file with the commission, within such time and in such form as the commission may designate, schedules showing such rates and charges established by it and collected and enforced, or to be collected or enforced within the jurisdiction of the commission. The utility shall keep copies of such schedules open to public inspection under such reasonable rules and regulations as the commission may prescribe.

   No such public utility shall directly or indirectly, by any device whatsoever, or in anywise, charge, demand, collect or receive from any person or corporation for any service rendered or to be rendered by such public utility a greater or less compensation than that prescribed in the schedules of such public utility applicable thereto then filed in the manner provided in this section, and no person or corporation shall receive or accept any service from any such public utility for a compensation greater or less than prescribed in such schedules.

   Utilities selling commodities or rendering any service to cooperatives, municipalities or other nonprofit organizations, shall, at the order of the commission, file schedules of such rates and charges for information purposes only.

   The commission may provide, by rules and regulations to be adopted by it, the following:

   1. That utilities may contract with a manufacturer that is not a utilityfor furnishing the services or commodities described in Section 77-3-3(d) (i), (ii)and (iii) for use in manufacturing;
   2. That utilities described in Section 77-3-3(d)(i) alsomay contract with a customer that has a minimum yearly electric consumptionof two thousand five hundred (2,500) megawatt hours per year or greaterfor furnishing the services or commodities described in Section 77-3-3(d)(i); and
   3. That utilitiesdescribed in Section 77-3-3(d)(ii) alsomay contract with a customer that has a minimum yearly consumptionof eight million five hundred thousand (8,500,000) cubic feet of gas per year or greater for furnishing the services or commodities described in Section 77-3-3(d)(ii).

      These contracts may be entered into without reference to the rates or other conditions which may be established or fixed pursuant to other provisions of this article. Such regulations shall provide that before becoming effective any such contract shall be approved by the commission.

2. 1. The Legislature recognizes that the maintenance of universal telephone service in Mississippi is a continuing goal of the commission and that the public interest requires that the commission be authorized and encouraged to formulate and adopt rules and policies that will permit the commission, in the exercise of its expertise, to regulate and control the provision of telecommunications services to the public in a changing environment where competition and innovation are becoming more commonplace, giving due regard to the interests of consumers, the public, the providers of telecommunications services and the continued availability of good telecommunications service. The commission is authorized to issue more than one (1) competing certificate of public convenience and necessity to provide local exchange telephone service in the same geographical area; provided, that the issuing of any such additional certificates shall not otherwise affect any certificate of public convenience and necessity heretofore issued to any provider of such services.

      The commission shall adopt all rules and regulations necessary for implementing this subsection (2)(a).

      The commission may apply standards adopted by the Federal Communications Commission that are generally applicable to companies that are designated and operate as eligible telecommunications carriers, pursuant to 47 USCS Section 214(e). The commission may exercise its authority to ensure that these carriers, including commercial mobile radio service providers that receive federal eligible telecommunications status, comply with those standards, only to the extent permitted by and consistent with applicable federal laws and regulations.

      The commission retains the authority to issue orders to implement its rules, regulations and the provisions of this chapter, including the authority to grant and modify, impose conditions upon, or revoke a certificate.

   2. The commission may, on its own motion or at the request of any interested party, enter an order, after notice and opportunity for hearing, determining and directing that, in the provision of a service or facility by a utility of the type defined in Section 77-3-3(d)(iii), competition or other market forces adequately protect the public interest, or that a service or facility offered by the utility is discretionary, and that the public interest requires that the utility’s rates and charges for such service or facility shall not thereafter be subject to regulation by the commission.
   3. In making its determination whether the rates and charges for a service or facility shall not be subject to regulation by the commission, the commission may consider individually or collectively:
      1. Whether the exercise of commission jurisdiction produces tangible benefits to the utility’s customers that exceed those available by reliance on market forces or other factors;
      2. Whether technological changes, competitive forces, discretionary nature of the service or facility, or regulation by other state and federal regulatory bodies render the exercise of jurisdiction by the Mississippi commission unnecessary or wasteful;
      3. Whether the exercise of commission jurisdiction inhibits a regulated utility from competing with unregulated providers of functionally similar telecommunications services or equipment;
      4. Whether the existence of competition tends to prevent abuses, unjust discrimination and extortion in the charges of telecommunications utilities for the service or facility in question;
      5. The availability of the service or facility from other persons and corporations; or
      6. Any other factors that the commission considers relevant to the public interest.

      In making the determination as above set forth, the commission may specify the period of time during which the utility’s rates and charges for the service or facility shall not thereafter be subject to regulation. Likewise, after notice and opportunity for hearing, the commission may revoke a determination and direction made under this section, when the commission finds that commission regulation of the utility’s rates and charges for the service or facility in question is necessary to protect the public interest.

3. 1. The commission is authorized to consider and adopt alternative methods of regulation proposed by a utility of the type defined in Section 77-3-3(d)(i), (ii) or (iii) to establish rates for the services furnished by such utility that are fair, just and reasonable to the public and that provide fair, just and reasonable compensation to the utility for such services.
   2. For purposes of this subsection, the phrase “alternative methods of regulation” means the regulation of utility rates and charges by methods other than the rate base or rate of return method of regulation set forth in other provisions of this article.
4. 1. Notwithstanding any other provisions of this article or any other statute to the contrary, and consistent with the provisions herein, for those public utilities of the type defined in Section 77-3-3(d)(iii) that are subject to the competitive requirements set forth in 47 USCS Section 251 or those public utilities that have waived a suspension granted by the commission of the requirements of 47 USCS Section 251(b) and (c) as authorized by 47 USCS Section 251(f)(2), the Legislature has determined that, in the provision of all services, other than switched access service, competition or other market forces adequately protect the public interest. Therefore, subject to paragraph (d) of this subsection, the commission no longer has jurisdiction over the services, other than the provision of intrastate switched access service, provided by such public utilities.
   2. For those public utilities of the type defined in Section 77-3-3(d)(iii) that have been granted a suspension by the commission of the requirements of 47 USCS Section 251(b) and (c) as authorized by 47 USCS Section 251(f) (2), the commission, at the request of such public utility, shall enter an order, after notice and opportunity for hearing, determining that such public utility’s provision of service will be subject to the same level of regulation as provided in paragraph (a) of this subsection, but only after the commission determines that such public utility has satisfied one (1) of the following conditions:
      1. Has executed interconnection agreements which have been approved by the commission to the extent required under law with two (2) or more local exchange carriers unaffiliated with such public utility;
      2. Offers for resale at wholesale rates, pursuant to 47 USCS Section 251(c)(4)(A) and (B), such public utility’s retail telecommunications services provided to subscribers who are not telecommunications carriers;
      3. At least two (2) competitive telecommunications providers unaffiliated with such requesting public utility are offering service to such public utility’s subscribers; or
      4. Has experienced a material reduction in access lines or minutes of use in two (2) consecutive years.

      A waiver of suspension under paragraph (a) of this subsection shall be effective upon written notification to the commission. The initial rate utilized by such public utility shall be the rate for such service in effect at the time of such waiver under this section. The commission, upon request of the public utility, may return such public utility to a form of regulation permitted under this section.

   3. Subject to paragraph (d) of this subsection, a public utility of the type defined in Section 77-3-3(d)(iii) which is regulated under the provisions of paragraph (a) of this subsection shall not be subject to any rule, regulation or order promulgated by the commission with regard to retail services. The provisions of Section 77-3-23 shall not apply to such public utility regulated under the provisions of paragraph (a) of this subsection.
   4. Nothing in this chapter shall be construed to affect the duties of an incumbent local exchange carrier arising under 47 USCS Sections 251 and 252 and the Federal Communications Commission’s regulations implementing these sections, or the commission’s authority to approve, arbitrate and enforce interconnection agreements and to resolve disputes pursuant to 47 USCS Sections 251 and 252 and the Federal Communications Commission’s regulations implementing these sections or any other applicable federal law or regulation. The commission shall exercise its jurisdiction in its role as a dispute resolution forum to hear complaints between certificated carriers, including complaints to prohibit anti-competitive practices and with respect to enforcement or modification of any wholesale self-effectuating enforcement mechanism plan in place as of July 1, 2011, and to issue orders to resolve such complaints, provided that such actions are consistent with federal telecommunications law. The commission shall interpret and apply federal, not state, substantive law. The commission shall adjudicate and enforce such claims in accordance with state procedural law and rules. No claim shall be brought to the commission as to which the FCC has exclusive jurisdiction. All complaints brought between carriers pursuant to this section shall be resolved by final order of the commission within one hundred eighty (180) days of the filing of the complaint.
   5. The commission shall retain exclusive original jurisdiction over customer complaints for those services that continue to be regulated. For services no longer regulated, the commission shall have exclusive original jurisdiction to interpret and enforce the terms and conditions of customer service agreements for telecommunications services, but it shall not alter, set aside or refuse to enforce the rates, terms and conditions thereof, either directly or indirectly. No other party shall be allowed to participate in any such complaint proceeding, except for the customer, legal counsel or other representative of the customer, or the public utility involved.
   6. A public utility of the type defined in Section 77-3-3(d)(iii) which is regulated under the provisions of paragraph (a) of this subsection shall not be required to file financial, service quality or other information with the commission. The calculation of the public utility regulatory tax established in Section 77-3-87 shall be based upon ninety thousandths of one percent (90/1000 of 1%) per year of the gross revenues from the intrastate operations of such public utility which is subject to regulation under the provision of paragraph (a) of this subsection. In addition, such public utility shall only be required to adhere to billing for retail telecommunications services in compliance with the federal truth in billing regulations prescribed by the Federal Communications Commission.

   7. 1. To terminate service with the service provider by contacting such service provider within the thirty-day time period, in which case the customer shall have the right to pay off the account in the same manner and under the same rates, terms and conditions as set forth in the written customer service agreement provided to the customer, which written customer service agreement shall relate back in its entirety to the date of a new customer’s request for service or the date the agreement was sent to an existing customer, as applicable, and shall be in effect until termination through pay off; or

      2. To use the services of the service provider or to otherwise continue the account with the service provider after the thirty-day time period has elapsed, either of which shall constitute the customer’s assent to all the rates, terms and conditions of the written customer service agreement. The customer service agreement shall be deemed received three (3) business days after deposit in the United States mail, first-class delivery.

      1. In order to transition to the changes effectuated by paragraph (a) of this subsection, the rates, terms and conditions for products and services no longer subject to regulation by the commission which were in effect with a specific term immediately prior to July 1, 2006, shall remain in effect for the duration of the specific term as to customers who subscribed to such products or services prior to July 1, 2006. If no term applied to such products or services at the time such customer subscribed to such products or services, then the rates, terms and conditions governing such products or services shall remain in effect until a written customer service agreement becomes effective as described in subparagraph (ii) of this paragraph (g).
      2. Except as provided in subparagraph (i) of this paragraph (g), the service provider shall offer existing and new customers a written customer service agreement, which in the case of new customers shall be delivered no later than thirty (30) days after the initiation of service. The customer service agreement shall include a provision advising the customer that he has thirty (30) days from receipt in which to elect:
      3. If any service provider desires to modify in any respect any rates, terms or conditions of a customer service agreement, it shall provide at least thirty (30) days’ prior written notice of the modification and the proposed effective date to the customer. The customer service agreement shall include a provision advising the customer that he has the option:

      1. To terminate service with the service provider by contacting such service provider prior to the effective date, in which case the customer shall have the right to pay off the account in the same manner and under the same rates, terms and conditions as then in effect; or

      2. To use the services of the service provider or to otherwise continue the account with the service provider on or after the effective date, either of which shall constitute the customer’s assent to the modified written customer service agreement. The customer service agreement shall be deemed received three (3) business days after deposit in the United States mail, first-class delivery.

   8. Nothing herein shall change the obligation of those public utilities described in Section 77-3-3(d)(iii) to obtain a certificate of public convenience and necessity pursuant to this chapter.

HISTORY: Codes, 1942, § 7716-09; Laws, 1956, ch. 372, § 9; Laws, 1988, ch. 338; Laws, 1994, ch. 315, § 1; Laws, 1995, ch. 348, § 1; Laws, 1996, ch. 304, § 1; Laws, 2006, ch. 313, § 1; Laws, 2012, ch. 447, § 2, eff from and after July 1, 2012.

§ 77-3-36. Recovery of costs of political advertising from ratepayers prohibited; recovery of costs of promotional or institutional advertising regulated; definitions.

1. No public utility, the rates of which are subject to regulation by the commission, shall be permitted to recover from its ratepayers any direct or indirect expenditure made by such utility for political advertising as defined herein. For the purposes of this paragraph, “political advertising” means any advertising for the purpose of influencing public opinion with respect to legislative, administrative or electoral matters, or with respect to any controversial issue of public importance.
2. Except to the extent authorized by general regulation of the commission, no public utility, the rates of which are subject to regulation by the commission, shall be permitted to recover from its ratepayers any direct or indirect expenditure made by such utility for promotional or institutional advertising as defined herein. For the purposes of this paragraph, “promotional advertising” means any advertising for the purpose of encouraging any person to select or use the service or additional service of any utility or the selection or installation of any appliance or equipment designed to use such utility’s service, and “institutional advertising” means any advertising for the purpose of promoting the general image of a public utility in the community.
3. The commission shall establish by general regulation the types of promotional and institutional advertising which a public utility shall be permitted to recover as cost of service from the ratepayers and the reasonable cost thereof.

HISTORY: Laws, 1983, ch. 467, § 14, eff from and after passage (approved April 6, 1983).

§ 77-3-37. Changes in rates.

1. No public utility shall make any change in any rate which has been duly established under this chapter, except as provided in this chapter. A public utility seeking a change in any rate or rates shall file with the secretary of the commission and the executive director of the public utilities staff a notice of intent to change rates. The commission may promulgate rules and regulations providing for notice to customers of the filing by any public utility for a rate increase. Routine changes in rates and schedules that do not involve any substantial revenue adjustment may go into effect after thirty (30) days’ notice to the commission or after such shorter period of notice as the commission, for good cause shown, may allow. In all other cases, the notice of intent shall contain a statement of the changes proposed to be made in the rates then in force, the new level of revenues sought, the reasons for the proposed changes and the date proposed for such changes to become effective, which date shall not be less than thirty (30) days after the date of filing. The proposed changes may be shown by filing new schedules, by plainly indicating the changes upon schedules filed and in force at the time and kept open to public inspection or by such other manner as will clearly indicate the rates to be changed and the rates proposed. All direct testimony, exhibits and other information which any utility will rely upon in support of the proposed changes shall be filed concurrently with the filing of the notice of intent. Such other data or documentation as the commission shall request shall be supplied by such utility.
2. The commission shall establish by rule and regulation a standard requirement list of documentation to be filed with or to be included in every notice of intent. With respect to any notice of intent involving a major change in rates as defined in subsection (8) of this section, the standard requirement list in each case shall include:
   1. A copy of its charter or articles of incorporation, if not already on file with the commission;
   2. A schedule of the present rates, fares, tolls, charges or rentals in effect, and the changes it is desired to make;
   3. A balance sheet of the utility prepared as of the last day of the latest month in which data shall be readily available;
   4. An actual operating statement setting forth revenue and expenses by account numbers for the twelve (12) months ending as the date of the balance sheet applicable to the utility filing the notice of intent;
   5. A pro forma operating statement in the same form as the actual operating statement showing estimate of revenue and expenses for the twelve-month period beginning with the effective date of the changed rates (i) without giving effect to the changed rates and (ii) giving effect to the changed rates;
   6. A pro forma operating statement in the same form as the actual operating statement for the same period giving effect to the proposed changes in rates and adjusted for known changes in the cost of operations;
   7. A statement showing the number of stations or customers by classes affected by the proposed changes in rates, the actual revenue under the old rates arising from each class and the annual amount of the proposed increase or decrease applicable to each class;
   8. A description of the utility’s property, including a statement of the original cost of the property and the cost to the utility;
   9. A statement in full of the reasons why the change in rates is desired so that the commission may clearly see the justification therefor;
   10. The amount and kinds of stock authorized;
   11. The amount and kinds of stock issued and outstanding;
   12. The number and amount of bonds authorized and the number and amount issued;
   13. The rate and amount of dividends paid during the five (5) previous fiscal years, and the amount of capital stock on which dividends were paid each year;
   14. An analysis of surplus covering the period from the close of the last calendar year for which an annual report has been filed with the commission to the date of the balance sheet attached to the notice.
3. The commission may, by rule and regulation, require the utility filing a notice of intent to change rates to supplement the above data with such other information as the commission or the public utilities staff may reasonably request.
4. Unless the commission, upon application by a utility and for good cause shown, shall enter an order waiving one or more of the following requirements, then whenever a public utility files a notice of intent wherein an increase in the level of annual revenues in the amount of at least Fifteen Million Dollars ($15,000,000.00) is sought, the standard requirement list of documentation shall include:
   1. Guidelines or directives as to the public utility’s presentation provided by a controlling affiliate, parent or holding company;
   2. Marginal cost data;
   3. Alternate rate design;
   4. Conservation effectiveness;
   5. A properly prepared, complete, detailed lead-lag study for the test year for the total company, Mississippi retail, other retail jurisdictions and Federal Energy Regulatory Commission wholesale rates in support of the public utility’s total working capital requirement contained therein, including all working papers in support thereof;
   6. Direct testimony proposed to be offered at a hearing.
5. The notice of intent for major changes in rates as defined in subsection (8) of this section shall state the test period adopted by the public utility in support of its proposed rate changes, which may be a twelve-month period beginning with the proposed effective date of the rates proposed in the notice. For the purpose of expediting the regulatory process, all public utilities shall keep the commission advised of their plans or needs for future requests for major rate changes.
6. Within five (5) days after the notice of intent has been filed, the utility shall serve a copy of the notice of intent without documentation on all parties of record in its last proceeding in which a major change in rates was sought, and shall file a certificate of service with the commission. Thereafter, a copy of all material filed by the utility shall be furnished by the utility to those persons as may be provided for by the commission’s rules and regulations.
7. 1. When the rates in a notice of intent are suspended by commission order, the commission may issue a scheduling order which establishes deadlines for submitting data requests, responding to data requests, conducting prehearing conferences and hearings and disposing of other matters necessary for the orderly disposition of the case.
   2. The public utilities staff and all intervenors or protestants shall file all direct testimony, exhibits and other information which is to be relied upon regarding the proposed changes within eighty (80) days from the filing of such notice of intent. At the time of filing direct testimony, exhibits and other information, each party filing such documents shall serve copies of the documentation on all other parties of record and shall file a certificate of service with the commission.
8. The commission, for good cause shown, may, except in the case of major changes, allow changes in rates to take effect at the end of thirty (30) days from the date of the filing and the notice of intent, or on the effective date set out in the notice, without requiring any further proceedings, under such conditions as it may prescribe. All such changes shall be immediately indicated by such public utility upon its schedules. “Major changes” means (a) an increase in rates which would increase the annual revenues of such public utility more than the greater of One Hundred Thousand Dollars ($100,000.00) or two percent (2%), but shall not include changes in rates allowed to go into effect by the commission or made by the public utility pursuant to an order of the commission after hearings held upon notice to the public, or (b) a change in the rate design which has a significant impact on a class or classes of ratepayers.
9. For all major changes in rates and schedules as defined in subsection (8) of this section, a public utility as defined in Section 77-3-3(d)(iv) shall provide, not later than twenty (20) days after filing the notice of intent to change rates, notice of such proposed change within each affected customer’s bill or invoice and in a newspaper having general circulation in the area where service is being provided by the public utility. The notice shall state the date on which the notice of intent was filed with the commission and shall include a financial impact statement showing the average amount of increase to customers by class and usage. The filing public utility shall file a copy of the notice, along with a certificate with the executive secretary of the commission, verifying that notice to each of the utility’s affected customers was provided in a timely manner.

HISTORY: Codes, 1942, § 7716-10; Laws, 1956, ch. 372, § 10; Laws, 1983, ch. 467, § 15; Laws, 1985, ch. 302, § 1; Laws, 1988, ch. 310, § 2; Laws, 1990, ch. 530, § 39; Laws, 1992, ch. 417, § 4; Laws, 1997, ch. 540, § 1, eff from and after July 1, 1997.

§ 77-3-39. Hearing on rate change; suspension of proposed rates.

1. Whenever there is filed with the commission by any public utility any notice of intent to change rates pursuant to the provisions of Section 77-3-37, the commission, if it so orders within thirty (30) days after the date such notice of intent is filed, shall hold a hearing to determine the reasonableness and lawfulness of such rate change. The commission shall hold such hearing in every case in which the change in rates constitutes a major change in rates, as defined in Section 77-3-37(8). An abbreviated proceeding may satisfy this requirement if the commission’s order is supported by the data, documentation and exhibits on file in the proceeding.
2. Pending such hearing and the decision thereon, the commission may, at any time before they become effective, suspend the operation of such rate or rates, but not for a period longer than one hundred twenty (120) days beyond the date of the filing of the notice of intent, except as provided in subsections (15) and (16) of this section.
3. Prior to the hearing specifically provided for herein, the commission shall direct all parties of record to appear before a hearing examiner or member of the commission staff designated by it, for a prehearing conference.
4. Such prehearing conference shall be held at least twenty (20) days before the date such rate case is set for hearing. The commission shall establish a procedure for conducting such prehearing conference, which procedure shall include: (a) setting forth issues upon which no evidence shall be taken, except upon offer of proof; (b) designation of specific issues upon which evidence will be taken; and (c) specific areas of agreement to be placed on the record, together with the original position of the utility, the public utilities staff and the interested parties of record.
5. At such prehearing conference the commission, or its designee, and the parties shall consider: (a) the simplification of the issues; (b) the necessity or desirability of providing additional information to the commission; (c) the possibility of obtaining admissions or stipulations that will avoid unnecessary proof; and (d) such other matters as may aid in the disposition of the case.
6. The commission may accept and adopt as its own, the agreements between any or all interested parties of record, or any portion thereof, resulting from the prehearing conference and allow such changes in rates, without requiring any further proceedings, to become effective immediately.
7. The commission may enter its order reciting the action taken at the prehearing conference, the agreements made by the parties as to any matters considered and the limitation of the issues for hearing to those not disposed of by admissions or stipulations of counsel. If practicable, such order shall specify the facts that appear without substantial controversy, including the extent to which the rate change is not in controversy, and shall also direct such further proceedings in the case as are just.
8. After the prehearing conference and no later than ten (10) days prior to the date set by the commission for a hearing:
   1. The public utilities staff shall submit to the commission all final exhibits, prepared testimony and evidence, and shall serve copies on all interested parties of record, which documents shall reflect the agreements made at the prehearing conference;
   2. The utility shall provide an exhibit indicating which portion, if any, of the public utilities staff’s presentation and that of other parties it is prepared to accept and be free of future litigation, showing thereon the effect of such acceptance on the applicant’s request for such changes, and shall serve copies on all parties of record;
   3. Parties other than the public utilities staff and the utility shall submit their amended exhibits, prepared direct testimony and evidence, reflecting the agreements made at the prehearing conference, and shall serve copies on all parties of record.
9. If, after such hearing or abbreviated proceeding, the commission shall find any such rate or rates to be unjust, unreasonable or unreasonably discriminatory, or in anywise in violation of the law, the same shall be set aside, and the commission shall determine and fix by order such rate or rates as will yield a fair rate of return to the public utility for furnishing service to the public and shall make and file its conclusions and findings of facts supporting such order. A copy of such order shall be served upon the utility in the manner provided in this chapter, and the rates fixed by the commission shall be the legal rates until changed as prescribed by this chapter.
10. Notwithstanding anything to the contrary contained in this chapter, the commission shall hold the hearing, render its decision and enter its order not more than one hundred twenty (120) days after the date of the filing of the said notice of intent. If the commission does not make a final determination concerning any schedule of rates within a period of one hundred twenty 120) days after the date of the filing of the notice of intent, and notwithstanding any order of suspension, except as provided in subsections (15) and (16) of this section, the public utility may put such suspended rate or rates into effect as temporary rates by filing with the commission a bond in a reasonable amount approved by the commission, with sureties approved by the commission, conditioned upon the refund, in a manner and to the parties to be prescribed by order of the commission, of the amount of the excess, with lawful interest thereon, if the rate or rates so put into effect are finally determined to be excessive. There may be substituted for such bond other arrangements satisfactory to the commission for the protection of the parties interested. During any such period when suspended rates are in effect under bond or other arrangement the commission may, in its discretion, require that the public utility involved shall keep an accurate account of payments made under the rate or rates which the public utility has put into operation in excess of the rate or rates in effect immediately prior thereto.
11. In addition to the other remedies provided by law, should there be an appeal of the commission’s final order, the commission shall allow the utility to place such portion of the schedule of rates that is approved by the commission in such final order into effect under refunding bond or other arrangements satisfactory to the commission for the protection of parties interested.
12. Should the final judicial determination of an appeal of a commission’s final order rendered pursuant to subsection (9) hereof result in a schedule of rates less than what the commission allowed, the commission shall by order require the refund to customers of any amounts collected by a utility under bond, or other arrangements, during the appellate process which the courts found to be in excess of the amounts that should have been allowed by the commission in its final order. Such refunds shall be made in full, including interest at the lawful rate and shall be made within ninety (90) days after such final judicial determination. In lieu of payment, the utility may credit the service account with the amount due under this subsection if the consumer entitled to the refund is, at that time, a consumer of the utility.
13. Any bond, or other arrangements, approved by the commission pursuant to subsection (11) of this section shall be in such amount and with sufficient sureties to insure the prompt payment of any refunds if the rates so put into effect are finally determined by the commission or the courts to be excessive.
14. For purposes of subsections (9), (11) and (12) of this section, the term “final order” means an order of the commission promulgated pursuant to subsection (9) of this section or, in the event of a rehearing conducted pursuant to Section 77-3-65, means an order of the commission promulgated subsequent to such rehearing.
15. No public utility may have more than one (1) major change in rates in effect under refunding bond at the same time. When a case is pending before the commission or before any court which involves a major change in rates which are in effect under refunding bond, and when the commission shall find that the pending case involves an issue or issues necessary to be resolved before the commission can effectively proceed with the hearing, decision or order, the 120-day period provided for in subsections (2) and (10) of this section may be enlarged by the commission, in order to postpone the hearing on the notice of intent, decision or final order in any subsequent rate case filed by the same utility, until a final order has been rendered with respect to the prior pending change in rates.
16. When a notice of intent to change rates is filed with the commission, said notice shall be assigned a docket number and the commission shall examine the filing to determine if it contains the standard requirement list of documentation set out in Section 77-3-37(2) and (4), if applicable, and in any rules and regulations adopted by the commission under Section 77-3-37(2). Within five (5) days from the date said notice is filed, the commission shall notify the filing utility in writing of its failure to include with its notice any items included in such standard requirement list of documentation. Such notification shall specify the item or items not filed with said notice. The filing utility shall have ten (10) days from the date it receives said notification to file the omitted item or items with the commission. Provided, however, upon request by the filing utility made within said ten-day period, the commission shall grant, by order, such additional time as the filing utility may request, not to exceed thirty (30) additional days, within which to file the omitted item or items. If the filing utility fails to file the omitted item or items within said ten (10) days or within such extended period of time as the commission by order shall allow, the commission may refuse to consider any evidence in support of said item or items in making the commission’s final determination concerning the schedule of rates filed with the notice. Notwithstanding the 120-day time period imposed on the commission to render its decision and enter its order under subsections (2) and (10) of this section and the 80-day time period imposed on the public utilities staff, intervenors or protestants for the filing of all direct testimony, exhibits and other information under Section 77-3-37(7)(b), if the filing utility is granted additional time within which to file the omitted item or items, said 120-day and the 80-day time periods shall be extended by the number of days between the date of the commission’s order granting the extension and the date such omitted items are filed with the commission, but such extension of said 120-day and 80-day time periods shall not exceed thirty (30) days.

HISTORY: Codes, 1942, § 7716-10; Laws, 1956, ch. 372, § 10; Laws, 1983, ch. 467, § 16; Laws, 1985, ch. 302, § 2; Laws, 1988, ch. 310, § 3; Laws, 1992, ch. 417, § 5, eff from and after passage (approved April 29, 1992).

§ 77-3-40. Hearing examiners; powers and duties; reports, recommended decisions and orders of examiners; procedures.

1. The commission is authorized and empowered to employ not more than three (3) hearing examiners to whom the commission may refer such matters as the commission may deem advisable in order to expedite the work of the commission.
2. The commission may refer any matter requiring a hearing to a hearing examiner for hearing, report and recommendation of an appropriate order or decision thereon by the commission. Subject to the limitations prescribed in this chapter, a hearing examiner to whom a hearing has been referred by order of the commission shall have all the rights, duties, powers and jurisdiction conferred by this chapter upon the commission. The commission may direct any hearing by the hearing examiner to be held in such place or places within the state as may be determined to be in the public interest and as will best serve the convenience of interested parties. Before any hearing examiner enters upon the performance of duties as an examiner, he shall first take, subscribe to and file with the commission an oath similar to the oath required of members of the commission.
3. In all cases in which a pending proceeding shall be assigned to a hearing examiner, such examiner shall hear and determine the proceedings and submit his recommended order, but, in the event of a petition to the commission to review such recommended order, the hearing examiner shall take no part in such review.
4. Any report, order or decision recommended by a hearing examiner with respect to any matter referred for hearing shall be in writing and shall set forth separately findings of fact and conclusions of law and shall be filed with the commission. A copy of such recommended order, report and findings shall be served upon the parties who have appeared in the proceeding.
5. 1. Prior to any recommended decision or order of an examiner, the parties shall be afforded an opportunity to submit, within the time prescribed by order entered in the cause, unless further extended by order of the commission, for the consideration of the examiner, as the case may be, proposed findings of fact and conclusions of law and briefs or, in its discretion, oral arguments in lieu thereof.
   2. Within the time prescribed by the examiner, the parties shall be afforded an opportunity to file exceptions to the recommended decision or order, provided the time so fixed shall be not less than fifteen (15) days from the date of such recommended decision or order. If exceptions are filed, a complete record of the proceedings before the hearing examiner shall be prepared and shall include the ruling upon each requested finding and conclusion or exception.
   3. When no exceptions are filed within the time specified to a recommended decision or order, such recommended decision or order shall become the order of the commission and shall immediately become effective unless the order is stayed or postponed by the commission; provided, the commission may, on its own motion, review any such matter and take action thereon as if exceptions thereto had been filed.
   4. When exceptions are filed, as herein provided, it shall be the duty of the commission to consider the same and, if sufficient reason appears therefor, to grant such review or make such order or hold or authorize such further hearing or proceeding as may be necessary or proper to carry out the purposes of this chapter. The commission, after review, upon the whole record, or as supplemented by a further hearing, shall decide the matter in controversy and make appropriate order or decision thereon. Briefs and oral argument before the commission shall be permitted if requested by any party of record.
6. The commission may also refer such matters as the commission may deem advisable in order to expedite the work of the commission to any member of the commission for hearing, report and recommendation in accordance with the procedures provided in this section, except that the commission member hearing the matter may participate in any review of his recommended order by the commission.

HISTORY: Laws, 1983, ch. 467, § 17; Laws, 1991, ch. 370, § 1; Laws, 1992, ch. 417, § 6, eff from and after passage (approved April 29, 1992).

§ 77-3-41. Rates fixed by commission.

Whenever the commission, after hearing had on reasonable notice, finds that the existing rates in effect and collected by any public utility are unjust, unreasonable, materially excessive or insufficient or unreasonably discriminatory, or in anywise in violation of any provision of law, the commission shall determine, and fix by order, the just and reasonable rates which will yield a fair rate of return to the utility for furnishing service, which rates will thereafter be observed and in force. Said rates shall thereupon become the legal rates to be charged and paid until changed.

The commission shall have power, when deemed by it necessary to prevent injury to the business or interest of the people or any public utility of this state in case of any emergency, to permit any public utility to alter, amend or suspend temporarily any existing rates, schedules and orders relating to or affecting any public utility or part of any public utility in this state except as provided in Section 77-3-42.

HISTORY: Codes, 1942, § 7716-11; Laws, 1956, ch. 372, § 11; Laws, 1978, ch. 507, § 1(1), (2); Laws, 1983, ch. 467, § 18; Laws, 1989, ch. 304, § 2; Laws, 1992, ch. 417, § 7, eff from and after passage (approved April 29, 1992).

§ 77-3-42. Rate increase resulting from fuel adjustment clauses or riders; audits of fuel purchases.

1. 1. No public utility, the rates of which are subject to regulation under the provisions of this chapter, shall increase its rate or rate schedule in addition to its base rate as a result of what is commonly referred to as “fuel adjustment clauses” increase or “fuel adjustment riders” if the application of such clause or rider shall result in ultimate cost recovery exceeding the actual cost of fuel burned or consumed in its generating facilities and the cost of purchased energy.
   2. For the purpose of such fuel adjustment clause or rider, the cost of fuel as used herein shall include only the actual cost of the fuel and its transportation and may include such other cost items which are as of the effective date of this section allowed by the federal energy regulatory commission for inclusion in wholesale fuel adjustment clauses under its jurisdiction. In addition thereto fuel cost may include direct costs associated with burning the fuel at the generating plant such as fuel handling expenses and the cost of fuel sampling and analysis.
2. 1. The commission is hereby directed to cause a continuous monitoring by the public utilities staff and a complete audit, as necessary but not less than annually, of all fuel purchases for which fuel adjustment clauses or riders have been placed in effect prior to and after the effective date of this section, which shall totally verify fuel costs as might be consumed in generating plants and all purchased energy of such electric utilities in Mississippi with said audit being based upon generally accepted auditing standards which would accurately provide detailed information as to the actual monthly utility fuel costs. Such audit shall be completely independent of any audit performed on behalf of such utility.
   2. The commission is hereby directed to promulgate rules and regulations, not inconsistent with the laws, (i) to define allowable costs for inclusion in fuel adjustments, (ii) to establish guidelines for defining what elements constitute a just and reasonable fuel adjustment clause or rider, (iii) to establish guidelines for defining what elements constitute efficient and economical procurement and use of energy and fuel, and (iv) to establish general guidelines for making the required review of fuel adjustment clauses or riders as required by this section. Such rules and regulations shall be spread upon the minutes of the commission.
   3. Such audits shall include (i) a determination if fuel and associated costs are properly identified and recorded in the appropriate uniform system of accounts, (ii) a determination if purchased energy and associated costs are properly identified, (iii) an assessment of a utility’s practices for economical purchase and use of fuel and electric energy, and (iv) an assessment of the relevant contract terms and conditions and any variations from contract terms.
3. The audits required by this section shall extend to the fuel acquisition activities of any corporation which is owned in whole or in part by any such public utility under the jurisdiction of the commission or owned in whole or in part by a public utility holding company which is the parent company of any public utility under the jurisdiction of the commission. Public utilities under the jurisdiction of this commission, the rates of which are subject to regulation under the provisions of this chapter, shall not purchase fuel and/or energy from a company or corporation which is owned in whole or in part by that public utility or by the parent company of that public utility unless the selling company or corporation assents to audits as provided for under this section.
4. Upon receipt of each audit report, the certified public accountant of the public utilities staff shall review the report and furnish the commissioners with a written summary of, and his comments on, the report. The commission shall meet within one (1) week after receipt of the accountant’s summary, and shall spread upon the minutes of the commission that it has reviewed said summary and further shall describe any action which it takes regarding the audit report or the fact that no action was required. Any costs included in a fuel adjustment clause or rider by a public utility under the jurisdiction of the commission found in violation of this section shall, by order of the commission, be refunded to the appropriate person or persons. In lieu of payment, the utility may credit the service account with the amount due under this subsection if the consumer entitled to the refund is, at that time, a consumer of the utility.
5. Periodically, and not less frequently than annually, the commission shall review the audit reports, the reports of the certified public accountant of the public utilities staff, any reports of the public utilities staff relating to its monitoring of fuel purchases, and all other relevant information relating to fuel purchases, fuel adjustment clauses or riders, and purchased energy for the purpose of determining (a) whether or not the utility is properly and correctly employing the use of the fuel adjustment clause or rider applicable to its operations and billing procedures, (b) whether or not the utility has engaged in practices in the acquisition of fuel or purchased energy which are efficient and economical, and (c) whether or not there is reason to question the practices, contracts, operations or procedures of the utility in the purchase or acquisition of fuel or purchased energy relative to efficiency, economy and the public interest.

   If the commission, after following the procedures described above, has reasonable cause to believe that inefficient or uneconomical procurement or use of fuel or purchased energy has resulted in unreasonable or unjust charges or costs to the consumers, then the commission shall initiate a procedure for hearing as provided for in Section 77-3-47 for the purpose of determining whether or not any of the costs or charges included in the fuel adjustment charges to the consumers were unreasonable or unjust. If the commission upon hearing shall find that any charges for the purchase or procurement of fuel or purchased energy were unreasonable or unjust, then the commission shall order that such costs or charges be refunded to the appropriate person or persons together with interest at the same rate prescribed in Section 77-3-39, Section 77-3-69 and Section 77-3-71. In lieu of payment, the utility may credit the service account with the amount due under this subsection if the consumer entitled to the refund is, at that time, a consumer of the utility.

6. 1. The commission shall maintain at all times complete and current data relating to sales and purchases of electric capacity of all utilities, including copies of contracts and agreements for the purchase of electric capacity, amendments to such contracts, records of purchases and sales of electric capacity, and all other relevant information and data deemed appropriate by the commission for carrying out the provisions of this section.
   2. The commission is hereby directed to review, not less frequently than annually, the information and data described above. If, from said review the commission has reasonable cause to believe that inefficient or uneconomical sales or purchases of electric capacity by a utility, the rates of which are subject to regulation by the commission, have resulted in unreasonable or unjust charges or costs to the consumers, then the commission shall initiate a procedure for hearing as provided for in Section 77-3-47 for the purpose of determining whether or not any of the costs or charges for sales or purchases of electric capacity included in the charges to consumers were unreasonable or unjust. If the commission, upon hearing, shall find that any such charges for the sale or purchase of electric capacity were unreasonable or unjust, then the commission shall order that such costs or charges be refunded to the appropriate person or persons, together with interest thereon at the same rate prescribed in Section 77-3-39, Section 77-3-69 and Section 77-3-71. In lieu of payment, the utility may credit the service account with the amount due under this subsection if the consumer entitled to the refund is, at that time, a consumer of the utility.
7. The commission shall provide a full and complete report of said audits to the legislature on or before January 15 of each year. The report shall include certification by the commission that the information is true and correct as well as other clarifications of the audit information and any recommendations for correcting imperfections in statutes relative to existing fuel or purchased gas adjustments.
8. Nothing in this section shall prohibit the commission from entering an order in a declared emergency allowing public utilities under such emergency circumstances to adjust their rates for a period not to exceed sixty (60) days upon declaration of said emergency. There shall be a full hearing and a complete and total accounting as to total costs of said commission order to public utilities customers, with detailed accounting of such emergency fuel adjustment clause order being made available to the public.
9. This section shall not apply to a municipality, including a joint agency organized pursuant to Sections 77-5-701 et seq., as amended.

HISTORY: Laws, 1978, ch. 507, § 1(3); Laws, 1983, ch. 467, § 19, eff from and after passage (approved April 6, 1983).

§ 77-3-43. Determination of rate base.

1. In regulating the rates of any public utility subject to the provisions of this chapter, the commission shall, on hearing after reasonable notice, ascertain and fix the rate base of the property of the public utility in such manner as to be fair both to the public utility and to the consumer when the same is relevant or material to the exercise of the jurisdiction of the commission. The commission shall make readjustments from time to time, and ascertain the cost of all new construction, extensions and additions to the property of every public utility. In arriving at such rate base, the commission shall give due consideration to: (a) the reasonable original costs of the property used and useful, or to be used and useful within a reasonable time after the test period; (b) the portion of the cost which has been consumed by previous use recovered by depreciation expense; (c) the allowance for funds used during construction, not to exceed on borrowed funds the true net interest cost of such funds, computed according to the actuarial method, and, on the equity component thereof, a rate of return granted on common equity in the last rate proceedings before the commission, or if such rate has not been established within the preceding three (3) years, then the average rate of return actually earned on equity during the preceding three (3) years; (d) any other elements deemed by the commission to be material in determining the rate base for rate-making purposes.
2. Valuations of property of such a public utility for rate-making purposes shall not include property purchased, labor supplied or services rendered by any firm or corporation owned or controlled in whole or in part, directly or indirectly, by such public utility, or which owns or controls in whole or in part, directly or indirectly, such public utility, unless such firm or corporation permits the commission to have access to such of the books and records of such firm or corporation as may be necessary in the opinion of the commission to enable the commission to determine whether such labor, materials, property or services rendered were supplied at reasonable prices. The rate base shall not include property donated to such utility without any consideration nor shall operating expenses include depreciation of such donated property.
3. Whenever the commission is required in administering this chapter to find the value of gas in the field where produced, such value shall be determined as the amount paid therefor by the public utility in the field pursuant to arm’s length contract; and in the absence of such arm’s length contract, the fair market value of such gas as a commodity in the field.
4. The commission, in its discretion, when requested by petition of a rate-jurisdictional public utility providing water service as defined in Section 77-3-3(d) (iv), may allow to be recovered in rates the reasonable costs of used and useful facilities deemed necessary for fire protection. Such facilities include fire hydrants, transmission and distribution mains, storage facilities, pumping equipment or other facilities associated with the provision of adequate water production, storage and distribution for fire protection.

HISTORY: Codes, 1942, § 7716-12; Laws, 1956, ch. 372, § 12; Laws, 1983; ch. 467, § 20; Laws, 2002, ch. 455, § 1, eff from and after July 1, 2002.

§ 77-3-44. Rate-regulated electric public utilities authorized to undertake economic development activities.

Any rate-regulated electric or natural gas public utility with certificated service area in Mississippi may undertake economic development activities, whether directly or indirectly, including activities such as providing capital, or investment in or acquisition and development of business or industrial sites and the necessary infrastructure or services needed to attract new or existing businesses or industry, to create or maintain employment opportunities, or otherwise to positively impact or in some manner promote the sale of electric energy or natural gas within its certificated service area. Any facilities developed, constructed or acquired in support of the activities described in this section for which a certificate of public convenience and necessity or other commission approval has been granted after July 1, 2015, as well as any capital investment in natural gas reserves made directly or indirectly by an electric or natural gas public utility to foster long-term stability in the cost of fuel, may be deemed used and useful in the provision of electric or natural gas service regardless of whether or not any end-use customers are taking service from said facilities or investment and otherwise recoverable through the utility’s rates.

HISTORY: Laws, 2015, ch. 360, § 3; Laws, 2017, ch. 322, § 1, eff from and after passage (approved Mar. 10, 2017).

§ 77-3-45. Promulgation of rules and regulations.

The commission shall prescribe, issue, amend and rescind such reasonable rules and regulations as may be reasonably necessary or appropriate to carry out the provisions of this chapter. No rule or regulation shall be effective until thirty (30) days after a notice setting forth either the terms or substance thereof or a description of the subjects and issues involved and the time and place of a hearing thereon shall have been published in a newspaper of general circulation in the state. The commission shall file the notice with the Secretary of State pursuant to the Mississippi Administrative Procedures Law and mail a copy of it to all affected public utilities. The commission shall mail a copy of the proposed rule or regulation to any public utility that requests a copy. The hearing may be held at any time twenty (20) days after date of publication of the notice, but the rules or regulations shall not become effective until a hearing thereon. A proceeding to contest any rule or regulation due to noncompliance with the procedural requirements of this section must be commenced within one (1) year from the effective date of the rule or regulation. All rules and regulations of the commission shall be filed with its executive secretary and shall be readily available for public inspection and examination during reasonable business hours. Any interested person shall have the right to petition the commission for issuance, amendment or repeal of a rule or regulation.

The commission shall, in the exercise of its power to promulgate rules and regulations, adopt standard practices and procedures:

To specify what costs may be used for determining a public utility’s rate base, which balance the interests of consumers and investors;

To prescribe the time period for measuring a public utility’s rate base;

To specify allowable operating expenses, provided, however, that the commission shall exclude from a public utility’s allowable operating expenses any interest such utility paid, or credited, to its consumers in connection with refunds in a rate proceeding in which its rates were finally determined to be excessive;

To determine accurately the capital costs of a public utility;

To define specific costs which may be included by a public utility in its monthly fuel adjustment clause retail billings;

To define specific costs which may be included by a public utility distributing gas in its monthly purchased gas adjustments retail billings;

To prescribe minimal uniform standards of service for various classes of public utilities; and

To provide for any other rules and regulations deemed by the commission to be appropriate for carrying out the provisions of this chapter.

HISTORY: Codes, 1942, § 7716-13; Laws, 1956, ch. 372, § 13; Laws, 1983, ch. 467, § 21; Laws, 1993, ch. 420, § 1, eff from and after July 1, 1993.

§ 77-3-46. Management reviews of public utility companies.

Notwithstanding any other provisions of this chapter, the commission may, in its discretion, initiate a management review of any public utility company, the rates of which are subject to regulation under the provisions of this chapter and which has in excess of twenty-five thousand (25,000) customers, once every five (5) years, and at such other times deemed necessary by the commission as determined by it during a hearing, by a competent, qualified and independent firm, such review to examine thoroughly the efficiency and effectiveness of management decisions among other factors as directed by the commission. Such public utility shall render to the commission for such purpose books, records and other items prescribed by the commission. The cost of such review is to be borne by the particular public utility subject to the review; provided, however, that carriers subject to regulation by and auditing of the interstate commerce commission shall not be required to bear the expense of additional management review required hereunder.

Whenever the commission is of the opinion that it is in the public interest to do so, the commission may in its discretion initiate a management review of any other public utility company, the rates of which are subject to regulation under the provisions of this chapter, in accordance with the procedures set forth above in this section.

The commission shall not contract for such management review with any firm that has within three (3) years prior thereto performed a financial audit on behalf of such public utility nor on behalf of any affiliate, subsidiary, holding or parent company.

HISTORY: Laws, 1983, ch 467, § 22, eff from and after passage (approved April 6, 1983).

§ 77-3-47. Hearings by commission.

The commission may, in addition to the hearings specifically provided for by this chapter, conduct such other hearings as may be deemed necessary in the administration of the powers and duties conferred upon it by this title.

The commission shall fix the time and place of hearings and shall serve notice thereof, not less than twenty (20) days before the time set for such hearings, unless the commission shall find that public convenience or necessity requires that such hearings be held at an earlier date. The commission may dismiss any complaint without a hearing if in its opinion a hearing is not necessary in the public interest or for the protection of substantial rights. Notice of all such hearings shall be given the persons interested therein by mailing such notice to each public utility which may be affected by any order resulting therefrom and by publication in a newspaper of general circulation published in Jackson, Mississippi, and, in a proceeding for a facility certificate or an area certificate, by publication in a newspaper of general circulation in the county or counties where the facility or area is located. In addition to any other notice requirements prescribed in this section, notice of a hearing regarding a major change in rates and schedules, as defined in Section 77-3-37(8), by a public utility of the type defined in Section 77-3-3(d)(iv) shall be published in a newspaper having general circulation in an area where service is being provided by the public utility.

At the time fixed for any hearing before the commission, or the time to which the same may have been continued, the complainant and the person complained of shall be entitled in person or by attorney to be heard and to introduce evidence.

HISTORY: Codes, 1942, § 7716-14; Laws, 1956, ch. 372, § 14; Laws, 1978, ch. 448, § 1; Laws, 1983, ch. 467, § 23; Laws, 1990, ch. 530, § 40; Laws, 1992, ch. 417, § 8; Laws, 1997, ch. 540, § 2, eff from and after July 1, 1997.

§ 77-3-49. Issuance of process by commission; witnesses.

The commission may issue subpoenas, subpoenas duces tecum and all necessary process in proceedings pending before it. Such process shall extend to all parts of the state and may be served by any person authorized to serve process of courts of record. All process issued by the commission shall be signed by the chairman or secretary of the commission, and the seal of the commission shall be affixed thereto.

The commission and each of the commissioners, for the purpose mentioned in this article, may administer oaths, examine witnesses and certify official acts.

In case of failure on the part of any person or persons to comply with any lawful order of the commission, or with any subpoena or subpoenas duces tecum, or in the case of the refusal of any witness to testify concerning any matter on which he may be interrogated lawfully, any court of record of general jurisdiction or a judge thereof, may on application of the commission compel obedience by proceedings for contempt as in the case of disobedience of the requirements of a subpoena issued from such court or a refusal to testify therein.

HISTORY: Codes, 1942, §§ 7716-15, 7716-16; Laws, 1956, ch. 372, §§ 15, 16.

§ 77-3-51. Depositions by agreement.

Upon agreement of the parties in any proceeding, depositions of any witnesses may be taken and used in evidence pursuant to procedure for taking depositions which may be prescribed by rules and regulations of the commission.

HISTORY: Codes, 1942, § 7716-17; Laws, 1956, ch. 372, § 17.

§ 77-3-53. Certified copies of documents and orders as evidence.

Copies of official documents and orders filed or deposited according to law in the office of the commission, certified by a commissioner or by the secretary under the official seal of the commission to be true copies of the original shall be evidence in like manner as the originals, in all matters before the commission and in the courts of this state, or any other state or jurisdiction.

HISTORY: Codes, 1942, § 7716-18; Laws, 1956, ch. 372, § 18.

§ 77-3-55. Orders, findings, authorizations and certificates to be in writing and entered in minutes.

Every order, finding, authorization or certificate issued or approved by the commission under any provisions of this article shall be in writing and entered on the minutes of the commission. A certificate under the seal of the commission that any such order, finding, authorization or certificate has not been modified, stayed, suspended or revoked, shall be received as evidence in any proceeding as to the facts therein stated.

HISTORY: Codes, 1942, § 7716-19; Laws, 1956, ch. 372, § 19.

§ 77-3-57. Service on parties.

Service in all hearings, investigations and proceedings pending before the commission shall be made personally in the manner in which process is required by law to be served or by registered or certified mail, as the commission may direct.

HISTORY: Codes, 1942, § 7716-21; Laws, 1956, ch. 372, § 21.

§ 77-3-59. Decisions; compliance with orders.

The commission shall make and file its findings and order, and its opinion, if any. All findings shall be supported by substantial evidence presented and shall be in sufficient detail to enable the court on appeal to determine the controverted questions presented, and the basis of the commission’s conclusion. A copy of such order certified under the seal of the commission, shall be served upon the person against whom it runs, or his attorney, and notice thereof shall be given to the other parties to the proceedings or their attorneys. Said order shall take effect twenty (20) days after the service thereof, unless otherwise provided, and shall continue in force, either for a period which may be designated therein or until changed or revoked by the commission. If an order cannot, in the judgment of the commission, be complied with within twenty (20) days, the commission may grant and prescribe such additional time as in its judgment is reasonably necessary to comply with the order, and may, on application and for good cause shown, extend the time for compliance fixed in its order.

HISTORY: Codes, 1942, § 7716-22; Laws, 1956, ch. 372, § 22; Laws, 1992, ch. 417, § 9, eff from and after passage (approved April 29, 1992).

§ 77-3-61. Alteration of orders.

The commission may at any time, after notice, and after opportunity to be heard as provided in Section 77-3-47, rescind or amend any order or decision made by it. Any order rescinding or amending a prior order or decision shall, when served upon the utility affected and after notice thereof is given to the other parties to the proceedings, have the same effect as original orders or decisions. However, no such order shall affect the legality or validity of any acts done by said utility before service upon it of the notice of such change.

HISTORY: Codes, 1942, § 7716-23; Laws, 1956, ch. 372, § 23.

§ 77-3-63. Record of proceedings; reporter.

A full and complete record shall be kept of all proceedings had before the commission or any commissioner or any formal hearing. All testimony shall be taken down by a reporter appointed by the commission, whose qualifications and compensations shall be the same as now provided by law for the circuit and chancery court reporters.

HISTORY: Codes, 1942, § 7716-24; Laws, 1956, ch. 372, § 24.

§ 77-3-65. Rehearing; stay of order.

After an order or decision has been made by the commission, any party to the proceedings may, within thirty (30) days after the entry of the order or decision, apply for a rehearing in respect of any matters determined in said proceedings and specified in the application for rehearing, and the commission may grant and hold such rehearings on such matters.

The filing of an application for rehearing shall not stay or suspend the effective date of any commission order or the obligation of any person to comply in all respects with such order unless the commission shall, in the exercise of its discretion, stay, suspend or modify such order. Any party to the proceedings shall be entitled to a stay of the order, other than an order resulting from a proceeding under Section 77-3-39, as a matter of right, upon filing with the commission a bond payable to the State of Mississippi in such amount and with sufficient surety, both as determined by the commission, to insure the prompt payment of any damages or refunds to the party or persons entitled thereto, if the order shall, at the conclusion of any subsequent proceedings, become effective. Such damages or refunds shall be paid in full, including interest at the same rate prescribed in Section 77-3-39, Section 77-3-69 and Section 77-3-71. In lieu of payment, the utility may credit the service account with the amount due under this section if the consumer entitled to the damages or refund is, at that time, a consumer of the utility.

The commission shall either grant or refuse an application for rehearing within twenty (20) days after the date of application therefor. A failure by the commission to act upon such application within that period shall be deemed refusal thereof. If the application is granted, the commission shall conduct and conclude a rehearing within thirty (30) days of the entry of the order for rehearing and shall enter a new order after the rehearing shall have been concluded, which shall become effective ten (10) days after such order is entered, unless otherwise provided by the commission for reasonable cause.

HISTORY: Codes, 1942, § 7716-25; Laws, 1956, ch. 372, § 25; Laws, 1983, ch. 467, § 24; Laws, 1987, ch. 312, eff from and after July 1, 1987.

§ 77-3-67. Appeals to chancery court.

1. In addition to other remedies now available at law or in equity, any party aggrieved by any final finding, order or judgment of the commission, except those final findings, orders or judgments specified in Section 77-3-72, shall have the right, regardless of the amount involved, of appeal to the chancery court of the judicial district in which the principal place of business of the utility in the state of Mississippi is located. If the court shall find that the appeal has been to the improper venue then the cause shall not be dismissed for such reason but shall be transferred to such proper venue. If an application for rehearing has been filed, an appeal must be filed within thirty (30) days after the application for rehearing has been refused or deemed refused because of the commission’s failure to act thereon within the time specified in Section 77-3-65 or, if the application is granted, within thirty (30) days after the rendition of the decision on rehearing. If an application for rehearing has not been filed, an appeal must be filed within thirty (30) days after the entry of the commission’s order. Every appeal shall state briefly the nature of the proceedings before the commission, and shall specify the order complained of. Any person whose rights may be directly affected by said appeal may appear and become a party, or the court may upon proper notice order any person to be joined as a party.
2. Upon the filing of an appeal the clerk of the chancery court shall serve notice thereof upon the commission, whereupon the commission shall, within sixty (60) days (or within such additional time as the court may for cause allow) from the service of such notice, certify to the chancery court the record in the case, which record shall include a transcript of all testimony, together with all exhibits or copies thereof, all pleadings, proceedings, orders, findings and opinions entered in the case. However, the parties and the commission may stipulate that a specified portion only of the record shall be certified to the court as the record on appeal.
3. No new or additional evidence shall be introduced in the chancery court but the case shall be determined upon the record and evidence transferred.
4. The court may hear and dispose of the appeal in termtime or vacation and the court may sustain or dismiss the appeal, modify or vacate the order complained of in whole or in part, as the case may be. In case the order is wholly or partly vacated the court may also, in its discretion, remand the matter to the commission for such further proceedings, not inconsistent with the court’s order as, in the opinion of the court, justice may require. The order shall not be vacated or set aside either in whole or in part, except for errors of law, unless the court finds that the order of the commission is not supported by substantial evidence, is contrary to the manifest weight of the evidence, is in excess of the statutory authority or jurisdiction of the commission, or violates constitutional rights.

HISTORY: Codes, 1942, § 7716-26; Laws, 1956, ch. 372, § 26; Laws, 1978, ch. 507, § 2; Laws, 1983, ch. 467, § 25, eff from and after January 3, 1984. [See Editor’s Note, below].

§ 77-3-69. Stay of orders pending appeal.

1. The pendency of proceedings to review shall not of itself stay or suspend the operation of the order of the commission. However, any party may, as a matter of right, secure from the court in which a review of or an appeal from the order of the commission not related to changing rates or rate design is sought, an order suspending or staying the operation of the order of the commission pending a review of such order, by adequately securing the other parties against loss due to the delay in the enforcement of the order in case the order under review is affirmed, the security to be in such form and amount as shall be directed by the court granting the stay or suspension.
2. If an appeal to the chancery court be taken from an order of the commission reducing existing rates or refusing to approve rates proposed by a utility, the utility, if it is not then collecting under refunding bond rates in excess of rates which have been ordered by the commission, may request upon motion filed in the chancery court an order allowing the utility to place into effect forthwith interim rates which may be charged and collected, subject to refund as hereinafter provided, pending final determination of the rate proceeding. The court may, in its discretion, upon a finding that undue hardship or irreparable injury to the utility or the public interest would probably result otherwise, allow the utility to place into effect such interim rates at a revenue level up to, but not exceeding, the proposed rates. The court may allow the utility to collect all or part of a proposed rate increase. However, before such increased rates can take effect, the utility shall file with the court a bond in a reasonable amount approved by the court, with sureties approved by the court, conditioned upon the refund, with interest at the same rate prescribed in Section 77-3-39, Section 77-3-69 and Section 77-3-71, to the parties entitled thereto, of the amount of the excess if the existing rate or rates or the rate or rates so put into effect are finally determined to be excessive. In lieu of payment, the utility may credit the service account with the amount due under this subsection if the consumer entitled to the refund is, at that time, a consumer of the utility. If the court does not dispose of the motion for interim rates as contemplated herein within thirty (30) days of the filing of such motion, then the public utility, as a matter of right, may place into effect forthwith fifty percent (50%) of that portion of the proposed rate schedule not allowed by the commission’s order, pending final determination of the appeal, upon filing with the court a surety bond in the same manner as previously provided for herein.
3. If the court does not make a final determination and adjudication of the rate proceeding within one hundred eighty (180) days after the record has been certified and filed, or if the court remands the matter to the commission for further proceedings and the commission has not entered its order allowing rates within forty-five (45) days from the time of receipt of the mandate of the court, or if the commission has at any time entered its order after remand and an appeal therefrom has been taken, then, in any such case, the public utility may, as a matter of right, place into effect the entire proposed rate schedule, under refunding bond, as provided for in this section or in Section 77-3-39, whichever is applicable. Interim rates under refunding bond charged by the utility under this subsection shall terminate upon final disposition of the rate proceeding without timely appeal.

HISTORY: Codes, 1942, § 7716-27; Laws, 1956, ch. 372, § 27; Laws, 1983, ch. 467, § 26, eff from and after passage (approved April 6, 1983).

§ 77-3-71. Appeals to supreme court.

Appeals in accordance with law may be had to the Supreme Court of the State of Mississippi from any final judgment of the chancery court.

If the party taking the appeal has theretofore furnished security as provided in Sections 77-3-39 and 77-3-69, and has filed a bond conditioned as provided in Sections 77-3-39 and 77-3-69, the taking of an appeal to the supreme court shall operate as a supersedeas without the furnishing of further security or bond. In such cases the supreme court may, upon application to it, require such additional security, or such additional bond conditioned as provided in Sections 77-3-39 and 77-3-69, as in its opinion will adequately secure the other party to the appeal, or parties who may become entitled to refunds, against loss in the event the judgment under review is affirmed.

If an appeal to the supreme court be taken from a final judgment of the chancery court which alters an order of the commission by approving a level of revenue in excess of that allowed by the commission’s order, the public utility may, as a matter of right, place such level of revenue which has been so approved by the chancery court in such final judgment into effect, pending final determination of the appeal to the supreme court, upon filing with the supreme court a bond in a reasonable amount approved by such court, with sureties approved by such court, conditioned upon the refund with interest at the lawful rate to the parties entitled thereto, of the amount of the excess if the rates so put into effect are finally determined to be excessive. In lieu of payment, the utility may credit the service account with the amount due under this section if the consumer entitled to the refund, is at that time, a consumer of the utility.

In addition to the foregoing, if an appeal to the supreme court be taken from a final judgment of the chancery court with respect to a proceeding for determination of rates, and the public utility is not then collecting under refunding bond rates in excess of rates which have been ordered by the commission, such utility may request upon motion filed in the supreme court an order allowing the utility to place into effect forthwith interim rates which may be charged and collected, subject to refund as hereinafter provided, pending final determination of the rate proceeding. The court may, in its discretion, upon a hearing by not fewer than three (3) justices and upon a finding that undue hardship or irreparable injury to the utility or the public interest would probably result otherwise, allow the utility to place into effect such interim rates at a revenue level up to, but not exceeding, the proposed rates. The court may allow the utility to collect all or part of a proposed rate increase. However, before such increased rates can take effect, the utility shall file with the court a bond in a reasonable amount approved by the court, with sureties approved by the court, conditioned upon the refund, with interest at the lawful rate, to the parties entitled thereto, of the amount of the excess after the existing rate or rates or the rate or rates so put into effect are finally determined to be excessive. In lieu of payment, the utility may credit the service account with the amount due under this section if the consumer entitled to the refund is, at that time, a consumer of the utility.

If the court does not dispose of the motion for interim rates as contemplated herein within thirty (30) days of the filing of such motion, then the public utility, as a matter of right, may place into effect forthwith fifty percent (50%) of that portion of the proposed rate schedule not allowed by the commission’s order, pending final determination of the appeal, upon filing with the court a surety bond in the same manner as previously provided for herein. If the court does not make a final determination and adjudication of the rate proceeding within one hundred eighty (180) days after the record has been certified and filed, or if the court remands the matter to the commission for further proceedings and the commission has not entered its order allowing rates within forty-five (45) days from the time of receipt of the mandate of the court, or if the commission has at any time entered its order after remand and an appeal therefrom has been taken, then, in any such case, the public utility may, as a matter of right, place into effect the entire proposed rate schedule, under refunding bond, as provided for in this section or in Section 77-3-39, whichever is applicable. Interim rates under refunding bond charged by the utility under this subsection shall terminate upon final disposition of the rate proceeding without timely appeal.

HISTORY: Codes, 1942, § 7716-28; Laws, 1956, ch. 372, § 28; Laws, 1983, ch. 467, § 27, eff from and after passage (approved April 6, 1983).

§ 77-3-72. Direct appeals to supreme court from decisions of public service commission involving filings for rate changes.

1. Any party aggrieved by any final finding, order or judgment of the commission in any utility rate proceedings involving a filing for a rate change of any public utility as described in Section 77-3-3(d)(i), (d)(ii), or (d)(iii), shall have the right, regardless of the amount involved, of direct appeal to the Mississippi Supreme Court. If an application for rehearing has been filed, an appeal must be filed within thirty (30) days after the application for rehearing has been refused or deemed refused because of the commission’s failure to act thereon within the time specified in Section 77-3-65 or, if the application is granted, within thirty (30) days after the rendition of the decision on rehearing. If an application for rehearing has not been filed, an appeal must be filed within thirty (30) days after the entry of the commission’s order. Every appeal shall state briefly the nature of the proceedings before the commission, and shall specify the order complained of. Any person whose rights may be directly affected by said appeal may appear and become a party or the court may, upon proper notice, order any person to be joined as a party.
2. Upon the filing of an appeal the clerk of the supreme court shall serve notice thereof upon the commission, whereupon the commission shall, within sixty (60) days (or within such additional time as the court may for cause allow) from the service of such notice, certify to the court the record in the case, which record shall include a transcript of all testimony, together with all exhibits or copies thereof, all pleadings, proceedings, orders, findings and opinions entered in the case. However, the parties and the commission may stipulate that a specified portion only of the record shall be certified to the court as the record on appeal.
3. 1. Any utility aggrieved by an order of the public service commission with respect to a proceeding before the commission for determination of rates, and which has filed in the supreme court an appeal therefrom pursuant to this chapter, and which is not then collecting under refunding bond rates in excess of rates which have been ordered by the commission, may request upon motion filed in the supreme court an order allowing the utility to place into effect forthwith interim rates which may be charged and collected, subject to refund as hereinafter provided, pending final determination of the rate proceeding. The court may in its discretion, upon a hearing by not fewer than three (3) justices and upon a finding that undue hardship or irreparable injury to the utility or the public interest would probably result otherwise, allow the utility to place into effect such interim rates at a revenue level up to, but not exceeding, the proposed rates. The court may allow the utility to collect all or part of a proposed rate increase. However, before such increased rates can take effect, the utility shall file with the court a bond in a reasonable amount approved by the court, with sureties approved by the court, conditioned upon the refund, with interest at the same rate prescribed in Section 77-3-39, Section 77-3-69 and Section 77-3-71, to the parties entitled thereto, of the amount of the excess if the existing rate or rates or the rate or rates so put into effect are finally determined to be excessive. In lieu of payment, the utility may credit the service account with the amount due under this subsection if the consumer entitled to the refund is, at that time, a consumer of the utility.
   2. If the court does not dispose of the motion for interim rates as contemplated in paragraph (a) of this subsection within thirty (30) days of the filing of such motion, then the public utility, as a matter of right, may place into effect forthwith fifty percent (50%) of that portion of the proposed rate schedule not allowed by the commission’s order, pending final determination of the appeal, upon filing with the court a surety bond in the same manner as provided for in paragraph (a) of this subsection.
4. If the court does not make a final determination and adjudication of the rate proceeding within one hundred eighty (180) days after the record has been certified and filed, or if the court remands the matter to the commission for further proceedings and the commission has not entered its order allowing rates within forty-five (45) days from the time of receipt of the mandate of the court, or if the commission has at any time entered its order after remand and an appeal therefrom has been taken, then, in any such case, the public utility may, as a matter of right, place into effect the entire proposed rate schedule, under refunding bond, as provided for in this section or in Section 77-3-39, whichever is applicable. Interim rates under refunding bond charged by the utility under this subsection shall terminate upon final disposition of the rate proceeding without timely appeal. The court may hear and dispose of the appeal in termtime or vacation and the court may sustain or dismiss the appeal, modify or vacate the order complained of in whole or in part, as the case may be. In case the order is wholly or partly vacated the court may also, in its discretion, remand the matter to the commission for such further proceedings, not inconsistent with the court’s order as, in the opinion of the court, justice may require. The order shall not be vacated or set aside either in whole or in part, except for errors of law, unless the court finds that the order of the commission is not supported by substantial evidence, is contrary to the manifest weight of the evidence, is in excess of the statutory authority or jurisdiction of the commission, or violates constitutional rights.

HISTORY: Laws, 1983, ch. 467, § 28, eff from and after January 3, 1984. [See Editor’s Note, below].

§ 77-3-73. Appealed commission matters to take preference in all courts.

All commission matters appealed to any court shall take preference over other cases as a matter affecting the public interest, and all courts shall docket and dispose of such causes at the earliest moment compatible with the ends of justice.

HISTORY: Codes, 1942, § 7716-29; Laws, 1956, ch. 372, § 29.

§ 77-3-75. Enforcement of commission orders.

The commission may apply to the chancery court, First Judicial District of Hinds County, Mississippi, for enforcement, by mandamus, injunction or other appropriate remedy, of any order of the commission.

HISTORY: Codes, 1942, § 7716-30; Laws, 1956, ch. 372, § 30.

§ 77-3-77. Burden of proof on party seeking to vacate commission order.

In all actions and proceedings arising under the provisions of this article or growing out of the exercise of the authority and powers herein granted to the commission, the burden of proof shall be on the party seeking to vacate an order of said commission.

HISTORY: Codes, 1942, § 7716-31; Laws, 1956, ch. 372, § 31.

§ 77-3-79. Reports by utilities; inspection of records; filing deadlines; penalties.

The commission may require, by order served on any public utility in the manner provided in this chapter for the service of orders, the filing of such relevant reports, information or data at such time and place as it may reasonably designate.

The commission shall at all reasonable times have access to and the right to inspect and examine all accounts, records, memoranda and property of the public utilities, and it shall be the duty of such public utilities to furnish to the commission, within such reasonable time as the commission may order, any information with respect thereto which the commission may by order require, including copies of maps, contracts, reports of engineers, and other data, records and papers, and to grant to all agents of the commission free access to its property and accounts, records and memoranda when requested so to do. It shall be unlawful for any member, officer, agent or employee of the commission knowingly and willingly to divulge any fact or information which may come to his knowledge during the course of any examination or inspection made under authority of this chapter, except as he may be directed by the commission or by a court or a judge thereof.

The commission shall require an annual reporting from each public utility, the rates of which are subject to regulation under the provisions of this chapter, of all its expenditures for business gifts and entertainment, and institutional, consumption-inducing and other advertising or public relations expenses which the utility claims should be allowed for rate-making purposes. The commission shall not allow as costs or expenses for rate-making purposes any of these expenditures which the commission determines not to be in the public interest. The cost of legislative-advocacy expenses shall not in any case be allowed as costs or expenses for rate-making purposes. Reasonable charitable or civic contributions shall be allowed as cost of service not to exceed amounts established by regulations adopted by the commission.

The commission shall establish filing deadlines for any required periodical reports but in no event shall the filing of such reports exceed sixty (60) days from the due date established by the commission. The commission shall have the authority to extend by order the time of compliance upon a finding that a matter of great urgency exists which would make compliance inequitable. The order extending the time for compliance shall fully set forth the facts justifying such extension. Any public utility which does not furnish such reports, information or other data by the deadlines established by the commission or within the extended time authorized by the commission shall be fined not more than One Thousand Dollars ($1,000.00) per day for each day in violation of the requirements herein that such reports, information or other data are not furnished to the commission.

HISTORY: Codes, 1942, § 7716-20; Laws, 1956, ch. 372, § 20; Laws, 1983, ch. 467, § 29; Laws, 1990, ch. 513, § 1, eff from and after passage (approved April 2, 1990).

§ 77-3-81. Violations of article or orders of commission; furnishing to commission of false testimony, reports, records, etc.

1. 1. Any person or corporation which willfully and knowingly violates any provision of this article or which fails, omits or neglects to obey, observe or comply with any lawful order, or any part or provision thereof, of the commission shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to a fine of not more than Two Thousand Five Hundred Dollars ($2,500.00), which shall be deposited in the State General Fund.
   2. Every violation of the provisions of this article or of any lawful order of the commission, or any part or portion thereof by any corporation or person is a separate and distinct offense, and in case of a continuing violation after a first conviction, each day’s continuance thereof shall be deemed to be a separate and distinct offense.
2. Any person who knowingly or intentionally gives false testimony at any hearing held by the commission, a commissioner or a hearing examiner, or who knowingly or intentionally makes false reports to the commission, when the testimony and reports are required by this article or any lawful order or rule of the commission, or who knowingly or intentionally makes any false entries upon the books or records of any public utility subject to review by the commission, or who knowingly or intentionally makes or preserves any false or misleading vouchers, memoranda or records showing the nature of, or purpose for, the disbursement of funds of such public utilities, shall be deemed guilty of a felony and, upon conviction, shall be committed to the custody of the State Department of Corrections for a period of not less than one (1) year nor more than ten (10) years for every offense.

HISTORY: Codes, 1942, §§ 7716-32, 7716-33; Laws, 1956, ch. 372, §§ 32, 33; Laws, 1991, ch. 562, § 2, eff from and after passage (approved April 2, 1991).

§ 77-3-83. Penalties are cumulative.

All penalties accruing under this article shall be cumulative, and a suit for the recovery of one penalty shall not be a bar to or affect the recovery of any other penalty or forfeiture or be a bar to any criminal prosecution against any public utility or any officer, director, agent or employee thereof or any other corporation or person.

HISTORY: Codes, 1942, § 7716-34; Laws, 1956, ch. 372, § 34.

§ 77-3-85. Jurisdiction of actions to recover penalties and criminal prosecutions; limitation of actions.

Actions to recover penalties under this article, and criminal prosecutions under subsection (2) of Section 77-3-81, shall be brought in the name of the State of Mississippi in any court of competent jurisdiction. No action for penalty under subsection (1) of Section 77-3-81 may be maintained after the expiration of one (1) year from the date of the act of which complaint is made.

HISTORY: Codes, 1942, § 7716-35; Laws, 1956, ch. 372, § 35; Laws, 1991, ch. 562, § 3, eff from and after passage (approved April 12, 1991).

§ 77-3-87. Utilities taxed for expense of regulation by commission; collection of tax; adjustment of tax rate; funding of agency expenses; deposit of monies into State General Fund.

All reasonable and necessary expenses of the administration of the duties imposed on the public utilities staff and on the commission by Title 77, Mississippi Code of 1972, excluding the reasonable and necessary expenses of the administration and enforcement by the commission of the laws of this state pursuant to Chapters 7 and 9, Title 77, Mississippi Code of 1972, shall be provided as follows: There is hereby levied a tax upon (a) all utilities, the rates of which are subject to regulation by the provisions of this chapter and upon (b) all utilities not subject to such rate regulation which furnish to the ultimate consumer utility services of the type described by subparagraph (i) of paragraph (d) of Section 77-3-3 and otherwise subject to regulation by the provisions of this chapter, such levy to be effective on the first day of each year and to be calculated as follows: The rate of the tax shall be one hundred sixty-four thousandths of one percent (164/1000 of 1%) per year, of the gross revenues from the intrastate operations of the utilities taxed under this section. The rate of the tax for electric power associations and rural electrification authorities shall be ninety thousandths of one percent (90/1000 of 1%) per year of the gross revenues from the intrastate operations of electric power associations and rural electrification authorities taxed under this section. Effective July 1, 2017, the sum of all taxes levied by this section shall not exceed the total legislative appropriation of monies for the Public Utilities staff and the Public Service Commission for the ensuing fiscal year. The commission and the executive director of the public utilities staff shall certify to the Department of Revenue the amount of legislative appropriations of monies for the regulation of utilities. The Department of Revenue shall adjust the tax rates on a pro rata basis to generate the necessary revenues established by such legislative appropriations. Each utility which is subject to the tax levied by this section shall file a statement of its gross revenue by April 1 of each year showing the gross revenue for the preceding year’s operation. These statements of gross revenue shall be filed with the Department of Revenue on forms prescribed and furnished by the Department of Revenue. The Department of Revenue shall file a copy of these statements of gross revenue with the public utilities staff and the commission. The Department of Revenue shall calculate the amount of tax to be paid by each of the utilities and shall submit a statement thereof to the respective utilities, and the amount shown due in the statements to the utilities shall be paid by them within thirty (30) days thereafter to the Department of Revenue. The Department of Revenue shall furnish the public utilities staff and the commission with an itemized list showing gross and net revenues, assessments, tax collections and other related information for the respective utilities. The Department of Revenue shall deposit these funds into the General Fund if the State Treasury on the same day collected.

All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes and for noncompliance with the provisions of such chapter, and all other duties and requirements imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this chapter, and the Commissioner of Revenue shall exercise all the power and authority and perform all the duties with respect to taxpayers under this chapter as are provided in the Mississippi Sales Tax Law except where there is a conflict, then the provisions of this chapter shall control. The term “gross revenue ” as used in this section is the total amount of all revenue derived by each of the utilities from its intrastate operations, which are subject to rate regulation under the provisions of this chapter or which constitute utility services of the type described by subparagraph (i) of paragraph (d) of Section 77-3-3 and which are regulated by this chapter and furnished to ultimate consumers. The Department of Revenue is hereby authorized to use all tax returns of any utilities available to it and to make audits as may be deemed necessary of all records of utilities in order to correctly determine the amount of such gross revenue.

All proceeds of the above-mentioned tax are hereby allocated to the public utilities staff and to the commission in the manner provided in this section for the purpose of this chapter.

Each utility subject to the provisions of this section shall be allowed to recover, through the use of a rate adjustment clause or rider, the total amount of taxes paid by the utility pursuant to this section for the reasonable and necessary expenses of the commission and the public utilities staff.

From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.

From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Codes, 1942, § 7716-36; Laws, 1956, ch. 372, § 36; Laws, 1966, ch. 626, § 1; Laws, 1968, ch. 505, § 1; Laws, 1970, ch. 427, § 1; Laws, 1973, ch. 443, § 1; Laws, 1974, ch. 369; Laws, 1977, ch. 436; Laws, 1980, ch. 559, § 1; Laws, 1983, ch. 467, § 30; Laws, 1984, ch. 478, § 31; Laws, 1987, ch. 343, § 6; Laws, 1991, ch. 525, § 1; Laws, 1992, ch. 517, § 1; reenacted and amended, Laws, 1993, ch. 537, § 1; Laws, 1998, ch. 458, § 4; Laws, 2000, ch. 613, § 1; Laws, 2016, ch. 459, § 48; Laws, 2017, 1st Ex Sess, ch. 7, § 38, eff from and after passage (approved June 23, 2017).

§ 77-3-89. Payment of expenses; audit of books and accounts; Public Utilities Staff Regulation Fund; funding of agency expenses; deposit of monies into State General Fund.

It shall be the duty of the State Auditor to advise the commission of the amount of money on hand in the “Public Service Commission Regulation Fund” from time to time. All expenses of the commission authorized by this article, or any other act of the Legislature, shall be paid by the State Treasurer upon warrants issued by the State Fiscal Officer, which warrants shall be issued upon requisition signed by the chairman of the commission and countersigned by one (1) of the commissioners. Said requisition shall show upon its face the purpose for which the payment is being made by reference to the minute book in which such payment was authorized. It shall be unlawful for any person to withdraw any money from said fund other than by requisition issued as herein provided. A record of all requisitions issued by the commission showing to whom, for what purpose, and date issued, shall be placed upon the minute books of the commission and shall become a part of the official record of the commission.

The books and accounts of the commission shall be audited at the end of each fiscal year, and at any other time deemed necessary, by the State Auditor and a copy of such audits shall be furnished to the Governor and the commission. The State Auditor may prescribe such further accounting procedure as he deems necessary for the withdrawal of funds by the commission from said special fund. All requisitions drawn in compliance with this article shall be honored by the State Auditor and the funds disbursed in accordance therewith. The commission shall file a report at each regular session of the Legislature showing the expenditure of all funds by the commission.

The “Public Utilities Staff Regulation Fund” shall be administered in accordance with Section 77-2-19.

From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.

From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Codes, 1942, § 7716-36; Laws, 1956, ch. 372, § 36; Laws, 1966, ch. 626, § 1; Laws, 1968, ch. 505, § 1; Laws, 1970, ch. 427, § 1; Laws, 1987, ch. 343, § 7; Laws, 1991, ch. 525, § 6; Laws, 2016, ch. 459, § 54, eff from and after July 1, 2016.

§ 77-3-90. Annual reports of commission.

It shall be the duty of the commission to make and publish annual reports to the governor and the legislature as provided in Section 27-101-1, et seq., of commission activities, including copies of its general orders and regulations, comparative statistical data on the operation of the various public utilities in the state, comparison of rates in Mississippi with rates elsewhere, a detailed report of its investigative division, a detailed report of the public utilities staff, a review of significant developments in the fields of utility law, economics and planning, a report of pending matters before the commission and a digest of the principal decisions of the commission and the Mississippi courts affecting public utilities.

HISTORY: Laws, 1983, ch. 467, § 31, eff from and after passage (approved April 6, 1983).

§ 77-3-91. Definitions applicable to §§ 77-3-91 through 77-3-95.

The following terms when used in Sections 77-3-91 through 77-3-95 shall have the following meaning:

“Utility” means an entity as defined in Section 77-3-3(d)(i), Mississippi Code of 1972, and whose rates for retail electric service are subject to regulation in this state.

“Commission” means the Mississippi Public Service Commission.

“Return” means before-tax return on common equity capital of the utility.

“Non-utility generator” means an entity selling electric capacity or energy at wholesale and which is not itself a utility as defined in paragraph (a) of this section. Non-utility generator shall not include any entity that is making the sale to the purchasing utility pursuant to a holding company system pooling agreement or a wholesale power sales agreement between or among affiliates where the allocation of power is mandated by the Federal Energy Regulatory Commission.

“Non-associated source” means an entity which is not an affiliate or a subsidiary of the utility.

“Capacity” means that portion of a wholesale purchase which represents the availability of the generating unit to produce the energy to be transmitted to the purchasing utility.

“Energy” means the electricity, as opposed to the availability, received by the purchasing utility pursuant to the sale.

HISTORY: Laws, 1994, ch. 316, § 1, eff from and after passage (approved March 10, 1994).

§ 77-3-93. Cost of purchasing electricity from non-utility generator for period in excess of 30 days included as expense item for purpose of calculating rates.

1. Whenever a utility purchases at wholesale from a non-utility generator or some non-associated source all or a portion of its electric capacity and/or energy requirements for a period in excess of thirty (30) days, such utility shall be entitled to include as expense items in its revenue requirements, for the purpose of the calculation of its rates for retail service, the cost of such capacity and energy so purchased, and in addition to such cost, an amount representing a return on the capacity purchased over the period of the test year which is being used to calculate the revenue requirements. This amount shall be calculated using the return allowed by the commission as provided in Section 77-3-95.
2. Nothing in Sections 77-3-91 through 77-3-95 shall be interpreted to allow a return on the energy purchased by a utility pursuant to its obligation to purchase energy under the federal Public Utilities Regulatory Policy Act of 1978.

HISTORY: Laws, 1994, ch. 316, § 2, eff from and after passage (approved March 10, 1994).

§ 77-3-95. Utilities to report to public utility staff and public service commission purchases of electricity from non-utility generator for period in excess of 30 days; public comment on report; hearings.

1. Before a utility may receive the return on the cost of such capacity purchase, the utility shall report the purchase to the Public Utilities Staff and the Public Service Commission. The utility shall also send notice of the purchase to persons who have requested same and are on the list maintained for that purpose by the Secretary of the Public Service Commission. The Public Utilities Staff shall investigate the purchase to determine:
   1. Whether the purchase is in the best interest of the utility and of the retail customers of the utility;
   2. Whether the portion of the purchase designated as capacity or energy requirements, or both, is appropriate; and
   3. Whether the return filed by the utility in the report of purchase is just and reasonable to the utility and to the retail customers of the utility.
2. Any third person may comment as deemed appropriate on the report, but if any third person desires a hearing, a written petition must be filed along with all supporting documentation, including all proposed testimony and exhibits supporting the contention that a hearing is needed and supporting the issues that should be considered. These issues may include any of the matters set forth in this section. The Public Utilities Staff shall fully review the information contained in the utility’s report and the material submitted by the third party and shall report in writing to the commission.
3. If upon recommendation of the Public Utilities Staff or at the request of the third party petitioner, or on its own initiative, the commission determines that a hearing should be held, then the commission will set a time for a hearing, determine the issues to be heard and set a schedule for such preliminary matters as it deems necessary for such hearing. If the commission determines that a hearing is not necessary on any or all of the issues set forth in this section, it may determine such issue or issues based upon the record before it and file its final order thereon which shall then be subject to appeal as provided in Sections 77-3-67 through 77-3-73.

HISTORY: Laws, 1994, ch. 316, § 3, eff from and after passage (approved March 10, 1994).

§ 77-3-97. Water conservation; submetering in multiunit dwellings.

1. The Legislature finds that the conservation of water resources is vitally important to the future of our state, and that in order to enhance the conservation of water resources, it is necessary to grant specific authority for the provision of submetering of water and wastewater disposal service.
2. As used in this section, the following words and phrases have the meanings ascribed in this subsection, unless the context clearly indicates otherwise:
   1. “Apartment house” means one or more buildings containing four (4) or more dwelling units that are occupied primarily for nontransient use, including a residential condominium whether rented or owner occupied, and if a dwelling unit is rented, having rental paid at intervals of one (1) month or longer.
   2. “Dwelling unit” means one or more rooms in an apartment house or condominium, suitable for occupancy as a residence, and containing kitchen and bathroom facilities, or a manufactured home in a manufactured home community.
   3. “Customer” means the individual, firm or corporation in whose name a master meter has been connected by a public utility.
   4. “Owner” means the legal titleholder of an apartment house or manufactured home community and any individual, firm or corporation that purports to be the landlord of tenants in the apartment house or manufactured home community.
   5. “Tenant” means a person who is entitled to occupy a dwelling unit to the exclusion of others and who is obligated to pay for the occupancy under a written or oral rental agreement.
   6. “Manufactured home community” means a property on which spaces are rented for the occupancy of: (i) manufactured homes for nontransient residential use and for which rental is paid at intervals of one (1) month or longer; or (ii) recreational vehicles for nontransient residential use for a time period of three (3) months or longer.
   7. “Submetering” means the use of a metering device by a customer who receives water and wastewater service from a public utility, which metering device measures water supplied to a tenant for the purpose of the customer’s charging the tenant of a dwelling unit separately for water and wastewater usage.
3. 1. An apartment house owner, manufactured home community owner or condominium manager may provide for submetering of each dwelling unit or rental unit for the measurement of the quantity of water consumed by the occupants of the unit. If submetering is utilized, tenants may be charged separately for water and wastewater services on a pass through allocated basis for charges incurred by the customer. The charges for a tenant may not exceed the tenant’s pro rata share of all water and wastewater services used by all of the tenants in that apartment house, manufactured home community or condominium.
   2. Any apartment house owner, manufactured home community owner or condominium manager utilizing submetering pursuant to this section shall disclose the submetering to each tenant and obtain from the tenant an acknowledgment of the submetering in a written document.
   3. Submeters installed pursuant to this section must meet the American Water Works Association standards for accuracy.
   4. In rendering charges to tenants pursuant to this section, the customer shall provide:
      1. Beginning and ending meter reads;
      2. A statement that the bill is not from the public utility; and
      3. A telephone number for tenant inquiries on the bill.
   5. Water and wastewater services utilized by the tenant may not be disconnected for nonpayment of submetered bills.

HISTORY: Laws, 2002, ch. 513, § 1, eff from and after July 1, 2002.

§ 77-3-101. Legislative determinations and declarations of policy.

The Legislature finds, determines and declares the following to be in the public interest and the policy of the State of Mississippi:

To promote and foster the prudent, timely expansion and construction of, and long-term availability of, adequate and appropriate levels of electric generation by electric public utilities, as described in Section 77-3-3(d) (i), with diversity as to the means of such generation and as to the sources of fuel for such generation, including nuclear fuel, coal and other reliable fuel sources;

That such availability is essential to the orderly and effective operation of a reliable electric system in this state and will be vital to economic stability and growth within the State of Mississippi and to the public interest, and that the generation and related operations of electric public utilities are affected with the public interest;

That new base load electric generating technologies are and will continue to be important in the planning and development of public utility electric generation, and that the State should take advantage of advances in nuclear, coal and other technologies, including technologies that reduce or minimize, or that facilitate the future reduction or minimization of, regulated air emissions;

To take advantage of financial and other incentives afforded and provided by the federal Energy Policy Act of 2005 for the construction of certain electric generating facilities and any federal or state legislative or other incentives that may from time to time become available and to require that all such incentives be utilized for the benefit of such generating facilities;

To promote and foster economic development; and

To promote and foster the State of Mississippi’s energy independence by encouraging the development and utilization of fuel sources derived from the State of Mississippi’s natural resources.

HISTORY: Laws, 2008, ch. 531, § 1, eff from and after passage (approved May 9, 2008).

§ 77-3-103. Definitions.

As used in this article:

The term “generating facility” means a new electric public utility base load generating facility located in the State of Mississippi having, or potentially having, base load-serving characteristics and incorporating such generating technologies or fuel sources as may be approved by the commission, including equipment or facilities relating thereto such as related, connected or necessary electric transmission facilities, and:

Having, or planned or projected to have, an aggregate design capability, based upon manufacturer name plate rating or other appropriate rating as the commission may approve, of generating three hundred (300) megawatts or greater of electric power for a coal gasification or clean coal facility and eight hundred (800) megawatts or greater of electric power for a nuclear facility;

That, in whole or in part, is owned or controlled, or is planned or projected to be owned or controlled, by, or under common control with, an electric public utility certificated to operate as such by the commission with a certificated electric service area located within the State of Mississippi;

That is intended, in whole or in part, to serve retail customers of an electric public utility in Mississippi;

That utilizes technology to reduce or minimize, or to facilitate the future implementation of processes for the reduction or minimization of regulated air emissions; and

That may, but shall not be required to, be located at an existing generating facility site.

The term “pre-construction” means any and all activities or costs relating to planning, evaluation, screening, licensing, siting, design, development or other similar activities prior to the construction of a generating facility.

HISTORY: Laws, 2008, ch. 531, § 2, eff from and after passage (approved May 9, 2008).

§ 77-3-105. Inclusion of certain expenditures in electric public utility rate base and rates; accrual of reasonable rate of return; cancellation or abandonment of construction; prudence reviews; appeal of final order of commission.

1. 1. The commission is fully empowered and authorized to include in an electric public utility’s rate base and rates, as used and useful components of furnishing electric service, all expenditures determined to be prudently-incurred pre-construction, construction, operating and related costs that the utility incurs in connection with a generating facility (including but not limited to all such costs contained in the utility’s “Construction Work in Progress” or “CWIP” accounts), whether or not the construction of any generating facility is ever commenced or completed, or the generating facility is placed into commercial operation. However, all costs incurred before May 9, 2008, may be reflected in rates only upon an order of the Public Service Commission after a finding of prudency.
   2. The commission is further empowered and authorized to allow a public utility to accrue a just and reasonable rate of return to be determined by the commission on the unrecovered balance of any pre-construction or construction costs which shall include all costs incurred before May 9, 2008, and such costs may be reflected in rates only upon an order of the Public Service Commission after a finding of prudency.
   3. The commission may order that pre-construction, construction, operating and related costs be reflected in rates either as a part of base rates or through the operation of a rider schedule or other similar rate mechanism, or through a combination thereof, as the commission deems appropriate and in the public interest, and such costs incurred before May 9, 2008, may be reflected in rates only upon an order of the Public Service Commission after a finding of prudency.
   4. Notwithstanding other provisions of this section, recovery of any construction costs incurred in excess of the amount estimated by the public utility in a certificate proceeding will be addressed by the commission in a proceeding after the generating facility is completed and commences commercial operation, upon petition by the public utility.
   5. Once the commission grants a facilities certificate, no public utility shall abandon or cancel construction of a generating facility without approval from the commission based on a finding that the construction is no longer in the public interest. Notwithstanding any provisions of this article to the contrary, if the generating facility is abandoned or cancelled without the approval of the commission, the commission shall determine whether the public interest will be served to allow (i) the recovery of all or part of the prudently incurred pre-construction, construction and related costs in connection with the generating facility and related facilities, (ii) the recovery of a return on the unrecovered balance of the utility’s prudently-incurred costs at a just and reasonable rate of return to be determined by the commission, or (iii) the implementation of credits, refunds or rebates to ratepayers to defray costs incurred for the generating facility.
2. 1. The commission is authorized to conduct prudence reviews on a periodic or ongoing basis with regard to any pre-construction, construction, operating and related costs associated with a generating facility, to hold hearings thereon, and to reflect the outcome of such commission reviews, including commission prudence determinations, in the public utility’s rates. The commission is authorized to make and issue such prudence determinations as frequently as each calendar quarter. The commission is authorized to set a procedural schedule for such commission determinations. Any such prudence determinations shall be binding in all future regulatory proceedings affecting such generating facility, unless the generating facility is imprudently abandoned or cancelled.
   2. The Executive Director of the Public Utilities Staff and the commission may enter into professional services contracts with one or more consultants to audit pre-construction, construction and related costs incurred for a generating facility and to make such reports and provide testimony thereon as may be required by the executive director or the commission, as applicable. Such contracts shall be considered to be for auditor or utility rate expert services under Section 25-9-120. Costs associated with such professional service contracts shall not exceed Three Hundred Fifty Thousand Dollars ($350,000.00) for work performed on any given nuclear generating facility and Two Hundred Thousand Dollars ($200,000.00) on any given non-nuclear generating facility, in any twelve-month period; provided, however, the Public Utilities Staff and the commission may by rule, after notice and hearing, modify these amounts. The consultants shall submit periodically to the executive director or the commission, as applicable, for approval of payment, itemized bills detailing the work performed. The executive director or the chairman of the commission, as applicable, shall requisition the audited public utility to make the requisite payments to such consultants. Payments by the audited public utility shall be considered as pre-construction, construction, operating or related costs and recoverable pursuant to paragraph (c) of subsection (1).
   3. The provisions of Sections 77-3-37(7) (b) and 77-3-39(10) and (15) shall not apply to any proceeding for the change in rates by the commission in connection with a generating facility.
3. Any party aggrieved by any final order of the commission relating to any generating facility shall have a right of direct appeal to the Mississippi Supreme Court. The procedures set out in Section 77-3-72 for direct appeal, including those provisions relating to periods of time in which filings are to be made, shall apply to any commission final order promulgated, in whole or in part, pursuant to this article.

HISTORY: Laws, 2008, ch. 531, § 3, eff from and after passage (approved May 9, 2008).

§ 77-3-106. Rate mitigation plan; proposal, scope, approval, implementation.

1. As used in this section:
   1. The term “rate mitigation plan” means a rate plan designed to mitigate the initial rate impacts of collecting the revenue requirements associated with the inclusion of a newly constructed generating facility in rate base and rates by establishing a plan for collecting or phasing in the revenue requirements over a period that is not to exceed ten (10) years.
   2. The term “generating facility” shall have the same meaning as defined in Section 77-3-103.
2. A rate mitigation plan may be approved by the commission in connection with a generating facility that is owned, in whole or in part, by an electric public utility whose rates are subject to the jurisdiction of the commission in accordance with the procedures contained in this section. The rate mitigation plan:
   1. Shall be proposed by an electric public utility through a separate petition or by an electric public utility in connection with any other rate proceeding pending before the commission related to a generating facility;
   2. Shall be implemented through rate schedules, rate riders, methods, formulas or other mechanisms, which have previously been proposed by the electric public utility or, if amended, are subsequently agreed to by the electric public utility;
   3. Shall not be requested or filed earlier than twelve (12) months prior to the beginning of the calendar year in which a generating facility is scheduled to be placed into commercial operation; and
   4. Shall be limited in scope to only the investment, expenses, revenues and rates of return associated with the construction, ownership and operation of a generating facility and all related assets, facilities and equipment incurred or to be incurred through the end of the rate mitigation period. The commission’s review of a rate mitigation plan shall be conducted and all existing and applicable statutes and rules related thereto shall be enforced in a manner consistent with the limitations prescribed in this subsection (2)(d).
3. Subject to the limitation contained in subsection (2)(d) above any filing by an electric public utility requesting a rate mitigation plan shall:
   1. Present a rate mitigation plan by providing the information required in Section 77-3-37(2)(e), (f) and (g) for each year of the proposed rate mitigation period; and
   2. Present a conventional rate recovery proposal without a rate mitigation plan by complying with Section 77-3-37(2).
4. Subject to the limitation contained in subsection (2)(d) of this section, the commission’s consideration of any rate mitigation plan shall be governed by all of the provisions of Article 1 and 2 of this Chapter 3, Title 77, except Sections 77-3-37(4) and 77-3-105(2)(c) and any rules promulgated and related thereto.
5. In approving any rate mitigation plan, the commission:
   1. Shall include a finding establishing the initially approved rate base;
   2. Shall consider and evaluate the revenues, costs, rate base and returns applicable over the entire rate mitigation period; and
   3. Shall, for the rate mitigation period, allow recovery of a return, not to exceed the weighted cost of capital rate of return approved in the rate mitigation plan, on the balance of any unrecovered or deferred amounts accrued pursuant to the rate mitigation plan for the account of either the electric public utility or the electric public utility’s retail customers during the rate mitigation period.
6. Following the implementation of any rate mitigation approved by the commission, revenue adjustments made during and in accordance with the rate mitigation plan shall not constitute changes in rates pursuant to Sections 77-3-37 or 77-3-39. The revenues, investment, expenses and rate of return applicable to a commission-approved rate mitigation plan shall, during the rate mitigation period, be excluded from the calculation of rates for the subject electric public utility in any other rate proceeding before the commission.
7. The authority granted to the commission herein to implement a rate mitigation plan shall not be deemed to be in conflict of the requirements of Sections 77-3-33 and 77-3-43.
8. Notwithstanding Section 77-3-41, Section 77-3-61, or any other provision of Title 77, any order implementing a rate mitigation plan under this article shall be irrevocable once there is a final order for which the time for all appeals has expired. A final order implementing a rate mitigation plan shall, during the rate mitigation period, be binding in all future regulatory proceedings affecting such generating facility or rates or charges associated with such generating facility. Neither the commission nor any other governmental authority established by Mississippi law may amend, modify, or terminate the rate mitigation plan by any subsequent action or reduce, impair, postpone, terminate or otherwise adjust the charges established by the rate mitigation plan order until after the rate mitigation period has elapsed and such rate mitigation plan may then only be revised in accordance with Article 1 of this Chapter 3, Title 77. Notwithstanding anything contained herein to the contrary, nothing in this section shall diminish, or be construed to diminish, the power and authority of the commission in the event the generating facility is abandoned, cancelled or otherwise fails to become used and useful in the provision of electric service.
9. The rates and charges in effect at the end of the rate mitigation period shall remain in effect after the rate mitigation plan unless and until modified in accordance with Article 1 of this Chapter 3, Title 77.

HISTORY: Laws, 2013, ch. 306, § 1, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-107. Rules and regulations; preference for ownership of generating facilities by certain electric public utilities.

The commission is fully empowered and authorized to promulgate rules and regulations as may be necessary to effectuate the provisions of this article, which may include a preference for ownership, in whole or in part, of a generating facility by an investor-owned electric public utility operating in the State of Mississippi or by an electric public utility owning and operating generation and transmission facilities in the State of Mississippi that, prior to January 1, 2008, was organized under Chapter 184, Laws of 1936 [See Editor’s Note below], and was comprised of corporate members each of which is an electric power association under Chapter 184.

HISTORY: Laws, 2008, ch. 531, § 4, eff from and after passage (approved May 9, 2008).

§ 77-3-109. Legislative Advisory Board on Alternate Method of Cost Recovery on Base Load Generation; purpose; composition.

There is hereby created the Legislative Advisory Board on Alternate Method of Cost Recovery on Base Load Generation for the purpose of advising the Public Service Commission in the performance of its duties and to require the commission to make a written report to the advisory board every six (6) months regarding any activities pertaining to base load generation. The advisory board shall be composed of the following:

The Chairman and Vice Chairman of the House Public Utilities Committee, or their designees;

The Chairman and Vice Chairman of the Senate Public Utilities Committee, or their designees;

The Chairman of the House of Representatives Appropriations Committee, or his designee;

The Chairman of the Senate Appropriations Committee, or his designee;

The Chairman of the House of Representatives Ways and Means Committee, or his designee; and

The Chairman of the Senate Finance Committee, or his designee.

Members of the advisory board shall receive per diem and expenses which shall be paid from the contingent expense funds of their respective houses in the same amounts as provided for committee meetings when the Legislature is not in session; however, no per diem and expenses for attending meetings of the advisory board shall be paid to legislative members while the Legislature is in session.

HISTORY: Laws, 2008, ch. 531, § 5, eff from and after passage (approved May 9, 2008).

§ 77-3-111. Definitions.

As used in Sections 77-3-111 through 77-3-127:

“Assignee” means any person or legal entity to which an interest in security property is sold, assigned, transferred or conveyed (other than as security) and any successor to or subsequent assignee of such a person or legal entity.

“Bondholder” means any holder or owner of a rate reduction bond.

“Commission” means the Mississippi Public Service Commission.

“Financing costs” means:

Any payment made on or before issuance of rate reduction bonds and any amount required to fund any reserves or other accounts established pursuant to the terms of any financing order, indenture or other financing documents pertaining to rate reduction bonds;

Principal, interest and acquisition, defeasance or redemption premiums and all other amounts that are payable on rate reduction bonds;

Any amount required to be paid under any financing document;

Any amount required to fund or replenish any reserves or other accounts established pursuant to the terms of any financing order, indenture, financing document or other financing document pertaining to rate reduction bonds;

Any taxes, fees, franchise, transfer, profits, license, excise, severance, customs, duties, assessments or other charges imposed by any governmental or taxing authority on the rate reduction bond charge revenue whether paid, payable or accrued;

Any other cost related to issuing, supporting, repaying, servicing, retiring, refinancing or refunding rate reduction bonds and all other required amounts payable in connection therewith, including, but not limited to, servicing fees and expenses, accounting and auditing fees and expenses, legal fees and expenses, consulting fees and expenses, security registration fees, trustee fees and expenses, insurance premiums, administrative fees, placement and underwriting fees, rating agency fees, stock exchange listing fees, compliance fees, costs to create or amend financing documents, and costs to obtain waivers, consents or approvals;

Any costs and expenses associated with the creation, operation, management and winding up of any special purpose entity created by the electric public utility in connection with the issuance of rate reduction bonds; and

Any other costs deemed appropriate by the commission.

“Financing document” or “financing documents” means any bond, insurance policy, letter of credit, reserve account, surety bond, swap agreement, hedging arrangement, liquidity or credit support arrangement, trust indenture, security agreement, pledge agreement, financing agreement, transfer or assignment document, or other document or financial arrangement entered into in connection with the issuance of rate reduction bonds.

“Financing party” shall include any and all of the following:

Any trustee, collateral agent, or other person acting on behalf or for the benefit of any bondholder under any financing document; or

Any party to a financing document, the rights and obligations of which relate to or depend upon the existence of security property, the enforcement and priority of a security interest in security property, the timely collection and payment of rate reduction bond charge revenues, or a combination of any of the foregoing.

“Financing statement” shall have the same meaning as that provided in Article 9 of the Uniform Commercial Code, as same may be amended from time to time.

“Issuing entity” means any person or legal entity, including, but not limited to, any corporation, limited liability company, partnership, limited partnership, public authority or trust, that issues rate reduction bonds pursuant to a financing order issued pursuant to Sections 77-3-111 through 77-3-127.

“Non-bypassable” means, with respect to rate reduction bond charges, that, so long as rate reduction bonds are outstanding and the related financing costs have not been recovered in full, such charges cannot be avoided by any retail customer of the electric public utility, including special contract customers, or any other person located within the electric public utility’s certificated area that is directly or indirectly connected to electric facilities of the electric public utility or its successors or assignees and receiving retail electric service pursuant to a commission approved rate, even if such retail customer or other person elects to purchase electricity from an alternative electricity supplier following a fundamental change in regulation of electric public utilities in this state.

“Qualifying facility” shall mean a generating facility as the term is defined in Section 77-3-103:

That uses coal gasification or clean coal technology with a coal fuel stock derived, in whole or in part, from the State of Mississippi; and

That is placed into commercial operation on or before December 31, 2020.

“Qualifying facility cost” means any cost incurred or expected to be incurred by an electric public utility related to a qualifying facility, including, but not limited to, pre-construction costs, construction costs, capitalized cost relating to a regulatory asset, any amounts accrued as allowance for funds used during construction and construction work in progress.

“Rate reduction bonds” or “bonds” means those debentures, notes, certificates of participation, certificates of beneficial interest, certificates of ownership or other evidences of indebtedness or ownership that are issued by an issuing entity under a financing order, the proceeds of which are used directly or indirectly to recover, finance or refinance generation facility costs and financing costs, and that are secured by or payable from security property and which shall have a maturity date of no more than twenty (20) years after the date of issuance.

“Rate reduction bond charge” means the nonbypassable tariff, rate, charge, formula or mechanism established in a financing order to fully recover financing costs, which is to be imposed on, and as a part of, all retail customer bills, including special contract customer bills, and collected by an electric public utility or its successors or assignees, or a collection agent, separate and apart from the base rates of the electric public utility.

“Rate reduction bond charge revenue” means any and all revenues, receipts, collections, claims, rights to payments, payments, monies or other proceeds arising from the security property and collected by an electric public utility or other collection agent that is attributable to a rate reduction bond charge.

“Secured party” means a financing party to which an electric public utility, issuing entity or their respective successors or assignees mortgages, negotiates, hypothecates, grants, pledges, or creates a security interest or lien on all or any portion of the rights in or to the security property.

“Security property” means all rights and interests of an electric public utility established upon the issuance of a financing order under Sections 77-3-111 through 77-3-127, including, but not limited to:

The right to bill and to obtain periodic true-up adjustments to the rate reduction bond charge as provided in the financing order and Sections 77-3-111 through 77-3-127;

The right to receive rate reduction bond charge revenue, as periodically adjusted, imposed, billed, collected and transferred; and

All revenues, receipts, collections, claims, rights to payments, payments, money or other proceeds arising from the rights and interests described in subparagraphs (i) and (ii) of this subsection, regardless of whether such collections, claims, rights to payment, payments, money or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other revenues, receipts, collections, rights to payment, payments, money or other proceeds of an electric public utility or collection agent.

“Uniform Commercial Code” shall have the same meaning as provided in Title 75 of the Mississippi Code of 1972.

HISTORY: Laws, 2013, ch. 305, § 3, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-113. Contents of petition.

1. Subject to the agreement by the affected electric public utility, the commission shall cause to be financed, consistent with the procedures set forth in Sections 77-3-111 through 77-3-127, all qualifying facility costs found to be prudent by the commission that are incurred over the estimate of such costs presented by the electric public utility in the certificate proceeding for the qualifying facility, up to a maximum of One Billion Dollars ($1,000,000,000.00). To accomplish the goals contained herein, the commission shall enter a financing order authorizing the issuance of rate reduction bonds by an electric public utility and to make such other findings and determinations as are provided for in Sections 77-3-111 through 77-3-127. The commission shall utilize a competitive Requests for Proposals process to select any bond attorney or counsel and may not accept any proposal in excess of Five Hundred Thousand Dollars ($500,000.00).
2. Upon request by the commission in accordance with the requirements of subsection (1) of this section, the electric public utility owning a qualifying facility, in whole or in part, and whose rates are subject to the jurisdiction of the commission, shall submit a petition presenting the following information:
   1. Describe the qualifying facility and related qualifying facility costs in rate base or to be included in rate base;
   2. Indicate the total amount of qualifying facility cost required to be financed by the electric public utility using proceeds from rate reduction bonds;
   3. Estimate the financing costs related to the rate reduction bonds;
   4. Describe and estimate the rate reduction bond charge necessary to recover the financing costs as they become due and the proposed period for recovery of such costs;
   5. Estimate the projected cost savings to customers based upon then current market conditions resulting from financing the qualifying facility cost with rate reduction bonds as opposed to including the amount of such cost in rate base and recovering the revenue requirements associated with such cost over the depreciable life of the qualifying facility;
   6. File with the commission direct testimony supporting the application; and
   7. Timely provide the commission or the public utilities staff, as applicable, such additional information and documentation as either may reasonably request.

HISTORY: Laws, 2013, ch. 305, § 4, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-115. Petition procedure.

1. Proceedings on a petition submitted pursuant to Section 77-3-113 shall be disposed of in accordance with the provisions of Section 77-3-47 and applicable commission procedural rules, except that the provisions of this Section 77-3-115, to the extent applicable, shall control.
2. Within seven (7) days after the filing of a petition, the commission shall issue a scheduling order, which sets a hearing date and provides for a decision on the issuance of a financing order not more than one hundred twenty (120) days after the date the petition is filed.
3. When deemed necessary by the Executive Director of the Public Utilities Staff, the staff shall conduct an independent investigation as to the electric public utility’s petition for a financing order subject to and within the time limitations prescribed in Sections 77-3-111 through 77-3-127.
4. Not more than one hundred twenty (120) days after the date the petition is filed, the commission shall issue a financing order or an order denying the petition.
5. Any party to the commission proceeding may petition the commission for reconsideration of an order granting or denying a petition for the issuance of a financing order not more than seven (7) days after the date the order is issued. The commission shall rule on the petition for reconsideration not more than fourteen (14) days after the filing of such petition. A failure by the commission to act upon such petition for reconsideration within the specified time period shall be deemed a denial of the petition for reconsideration, and the order of the commission granting or denying a petition for the issuance of a financing order shall be deemed final.
6. Any judicial review shall be as provided in Section 77-3-72; provided, however, that any person, other than the electric public utility that is the subject of the financing order, seeking to appeal a financing order issued pursuant to Sections 77-3-111 through 77-3-127, or any prudence determination related thereto, shall not perfect its appeal unless and until a bond of sufficient amount to protect the customer savings projected to be realized through the issuance of rate reduction bonds as determined by the commission in the financing order pursuant to Section 77-3-117(b) is filed with the commission prior to expiration of time provided under Section 77-3-72 for the filing of a notice of appeal. If an appeal of an order granting or denying a petition for the issuance of a financing order is perfected pursuant to the procedure provided above, the electric public utility shall be authorized to establish a regulatory asset for the purpose of deferring a return on the qualifying facility cost intended to be financed by the rte reduction bond proceeds equal to the utility’s weighted average cost of capital until such time as there is a final financing order for which the time for all appeals has expired. A financing order shall provide that any and all deferred return of the electric public utility during the pendency of an appeal may be financed as qualifying costs pursuant to the provisions of Sections 77-3-111 through 77-3-127.
7. The filing of a petition by an electric public utility, the issuance of a financing order, the issuance of rate reduction bonds and the implementation or adjustment of a rate reduction bond charge under Sections 77-3-111 through 77-3-127 shall not constitute a change in rates pursuant to Section 77-3-37 or 77-3-39.

HISTORY: Laws, 2013, ch. 305, § 5, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-117. Commission’s responsibility in issuing a finance order; establishment of a special purpose entity to act as issuing entity.

1. In a financing order issued on behalf of an electric public utility, the commission shall:
   1. Specify the maximum amount of qualifying facility cost to be financed through the issuance of rate reduction bonds.
   2. Determine that the financing method proposed pursuant to Sections 77-3-111 through 77-3-127 is reasonably expected to result in lower overall costs to customers associated with the qualifying facility compared to including the qualifying facility cost amount specified in paragraph (a) of this subsection (1) in rate base and recovering the revenue requirements over the depreciable life of the qualifying facility.
   3. Provide that, until the rate reduction bonds are paid in full and all related financing costs are fully recovered, the imposition and collection of the rate reduction bond charge shall be nonbypassable as such term is defined in Sections 77-3-111 through 77-3-127.
   4. Establish and employ a formula-based true-up mechanism for making expeditious periodic adjustments in the rate reduction bond charge that customers are required to pay under the financing order and for making any adjustments to the rate reduction bond charge that are necessary to correct for any overcollection or undercollection of the rate reduction bond charge or to otherwise ensure the timely payment of financing costs.
   5. Specify the security property to be created in favor of the electric public utility upon the issuance of a financing order to secure prompt payment of the rate reduction bonds and all associated financing costs.
   6. Specify, to the extent reasonably practicable, the terms and conditions of the rate reduction bonds, including, but not limited to, repayment schedules, expected interest rates and financing costs; provided, however, the commission shall afford the issuing entity flexibility in establishing the terms and conditions for the rate reduction bonds to accommodate changes in market conditions, including, but not limited to, repayment schedules, interest rates, financing costs, collateral requirements, required debt service and other reserves, and the ability of the issuing entity, at its option, to effect a series of issuances of rate reduction bonds and correlated assignments, sales, pledges or other transfers of security property.
   7. Provide that the rate reduction bond charge be allocated to the customer rate classes or rate schedules in the same manner that each such class or rate schedule is allocated its portion of the revenue requirements associated with the qualifying facility included in the electric public utilities rate base and rates.
   8. Provide that upon the issuance of rate reduction bonds, the electric public utility shall institute the resulting initial rate reduction bond charge in accordance with the financing order and such initial rate reduction bond charge shall be final and effective upon the issuance of such rate reduction bonds without further action of the commission.
   9. Include any other conditions that the commission considers appropriate and that are not otherwise inconsistent with Sections 77-3-111 through 77-3-127.
   10. Unless otherwise specified in the financing order, any rate reduction bond charge revenue remaining after all financing costs have been paid in full shall be credited to the retail customers of the electric public utility in a manner to be determined by the commission.
2. Following issuance of a financing order, the electric public utility may establish a special purpose entity for the purpose of acting as the issuing entity and such issuing entity may issue rate reduction bonds as provided in the financing order. The electric public utility retains sole discretion to establish a special purpose entity and cause it to issue rate reduction bonds. An issuing entity established by an electric public utility pursuant to Sections 77-3-111 through 77-3-127 shall not constitute a public utility pursuant to Section 77-3-3.
3. If an electric public utility subject to a financing order creates a special purpose entity for the purpose of acting as the issuing entity, rate reduction bonds shall not be considered a debt of the electric public utility for regulatory or ratemaking purposes; but, the electric public utility shall have only a duty to collect and remit to the issuing entity all rate reduction bond charge revenue with respect to the rate reduction bonds. Similarly, the special purpose entity or any other assignee of security property shall have no ownership interest in the qualifying facility or any related facilities, property and assets of the electric public utility whether fully or partially financed with proceeds from rate reduction bonds.
4. A financing order shall remain in full effect and unabated notwithstanding the reorganization, bankruptcy, or other insolvency proceedings of the electric public utility or its successors or assigns. Subsequent to the issuance of rate reduction bonds authorized by a financing order, the financing order shall be irrevocable, and the commission may not:
   1. Amend, modify or terminate the financing order by any subsequent action; or
   2. Reduce, impair, postpone, terminate or otherwise adjust the rate reduction bond charge and security property approved and established in the financing order except as provided in Section 77-3-119.
5. At the request of an electric public utility, the commission may commence a proceeding and issue a subsequent financing order that authorizes the refinancing or refunding of rate reduction bonds issued pursuant to the original financing order if the commission finds that the subsequent financing order satisfies all of the criteria specified in Sections 77-3-111 through 77-3-127. Effective on retirement of the rate reduction bonds and the issuance of new rate reduction bonds, the commission shall adjust the related rate reduction bond charge accordingly.

HISTORY: Laws, 2013, ch. 305, § 6, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-119. Filing of true-up report by issuing entity; review by commission.

1. If the commission issues a financing order and rate reduction bonds are issued, the issuing entity shall, as frequently as quarterly but no less frequently than annually, file with the commission a true-up report requesting the commission to review the rate reduction bond charge established in the financing order and authorize the true-up adjustments described herein. A copy of such report shall promptly be served upon the electric public utility collecting the rate reduction bond charge. The report shall present the amount of any overcollection or undercollection of the rate reduction bond charge and shall include a schedule applying the approved true-up adjustment mechanism authorized in the financing order and the resulting amount of any true-up adjustment required to ensure the recovery of revenues sufficient to provide for the timely payment of all financing costs when due.
2. The commission’s review of the true-up report shall be limited to a determination of the existence and amount of any mathematical errors in the report concerning the application of the approved true-up adjustment mechanism. Within thirty (30) days after receiving a true-up report pursuant to this section, the commission shall, if necessary, revise the rate reduction bond charge and notify the electric public utility of such revision, or, if no revision to the rate reduction bond charge is required, the commission shall so notify the electric public utility. A true-up report requesting to revise the rate reduction bond charge shall be deemed approved if the requested revision is neither approved nor denied by the commission within thirty (30) days after the request is submitted.
3. Any true-up report requesting a true-up adjustment of a rate reduction bond charge shall not constitute a change in rates and shall not be subject to the requirements of Section 77-3-37 or 77-3-39.
4. Upon the adjustment of a rate reduction bond charge pursuant to this section and notification to the electric public utility, the electric public utility shall promptly adjust the rate reduction bond charge to become effective the next practicable billing cycle.

HISTORY: Laws, 2013, ch. 305, § 7, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-121. Rate reduction bond charge as nonbypassable charge; legal remedy for failure of electric public utility to remit payment of rate reduction bond charge revenues.

1. The rate reduction bond charge is a nonbypassable charge, and in the event an electric public utility subject to a financing order, as a result of insolvency, sale, a fundamental change in regulation of electric public utilities in this State, or other reason, ceases to serve customers within all or a portion of its certificated area, the commission shall have the obligation to ensure that the rate reduction bond charge is collected and transmitted to the issuing entity by any subsequent electric public utility providing service in such certificated area, or portion thereof, no longer being served by the electric public utility that originally petitioned for the financing order.
2. If an electric public utility fails to remit any required payment of rate reduction bond charge revenues to an assignee, issuing entity, financing party or bondholder, as applicable, such assignee, issuing entity, financing party or bondholder shall have no legal remedy either at law or equity against the electric public utility or its assets, except as specifically provided below:
   1. A court, upon application by an assignee, issuing entity, financing party or bondholder, shall order the sequestration and payment of the rate reduction bond charge revenues for the benefit of any bondholder, assignee, financing party and/or issuing entity.
   2. The court’s order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the electric public utility or any affiliate thereof.

HISTORY: Laws, 2013, ch. 305, § 8, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-123. Security property.

1. The security property shall constitute an existing, present and legally protectable property right that shall exist regardless of whether the rate reduction bond charges have been billed, have accrued, or have been collected, and notwithstanding any requirement that the value or amount of the property is dependent on the future provision of service to customers by the electric public utility.
2. Security property authorized and established by a financing order shall continue to exist until the rate reduction bonds issued pursuant to such financing order are paid in full and all financing costs have been recovered in full.
3. The security property authorized and established by a financing order and the interests of an assignee, bondholder, financing party or issuing entity in the security property are not subject to setoff, recoupment, counterclaim, surcharge, or defense by the electric public utility subject to the financing order or by any other person or entity, including as a result of the electric public utility’s failure to provide past, present, or future services, or in connection with the bankruptcy, reorganization, or other insolvency proceeding of the electric public utility, any affiliate, or any other person or legal entity.
4. All or any portion of security property created by a financing order may be sold, assigned, transferred or conveyed to an assignee for the purpose of acquiring, owning or administering the security property, issuing rate reduction bonds or a combination of these purposes. Any sale, assignment, transfer or conveyance of security property shall be governed by Sections 77-3-111 through 77-3-127.
5. Any sale, assignment, transfer or conveyance of security property to an assignee shall constitute an absolute transfer and true sale of, and not a pledge of or secured transaction relating to, the seller’s right, title and interest in, to and under the security property if the documents governing the transaction expressly state that the transaction is a sale or other absolute transfer. A sale, assignment, transfer or conveyance shall be effective only when all of the following have occurred:
   1. The financing order has been issued and has become final;
   2. The sale agreement, purchase agreement or other documents evidencing the sale, assignment, transfer or conveyance of the security property have been executed and delivered to the assignee; and
   3. Value has been given for the security property.
6. The characterization of the sale, assignment, transfer or conveyance of the security property as an absolute transfer and true sale and the corresponding characterization of the property interest of the assignee, shall not be affected or impaired by, among other things, the occurrence of any of the following factors:
   1. Commingling of rate reduction bond charge revenues with other revenues of the electric public utility or any assignor;
   2. The retention by the electric public utility or assignor of (i) a partial or residual interest, including an equity interest, in the security property, whether direct or indirect, or whether subordinate or otherwise, or (ii) the right to recover costs associated with taxes, franchise fees or other fees imposed on the collection of rate reduction bond charge revenue;
   3. Any recourse that the assignee may have against the electric public utility or any assignor;
   4. Any indemnification rights, obligations or repurchase rights made or provided by the electric public utility or any assignor;
   5. The obligation of the assignor to collect and remit rate reduction bond charge revenue to or on behalf of an assignee;
   6. The regulatory or accounting treatment of the sale, assignment or transfer for tax, financial reporting or other purposes;
   7. Any application of the true-up mechanism as provided in Section 77-3-119;
   8. Granting or providing the bondholders a preferred right to the security property or credit enhancement by the electric public utility or its affiliates with respect to the rate reduction bonds; or
   9. Any rights or interests of the electric public utility in any remaining rate reduction bond charge revenue which may vest upon full payment of the rate reduction bonds as provided for in Section 77-3-117(1)(j).
7. Once sold, transferred, assigned or conveyed to an assignee as provided in Sections 77-3-111 through 77-3-127, security property shall not be an asset of the electric public utility; but, the electric public utility shall have only a duty to collect and remit to the issuing entity all rate reduction bond charge revenue with respect to the rate reduction bonds.

HISTORY: Laws, 2013, ch. 305, § 9, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-125. Security property as collateral to secure payment of financing costs; relation to Uniform Commercial Code.

1. All or any portion of the security property may be pledged or otherwise used by the issuing entity as collateral or other security to secure the payment of financing costs. Except as specifically provided in Sections 77-3-111 through 77-3-127 or in any of the financing documents, only Sections 77-3-111 through 77-3-127 and not the Uniform Commercial Code shall govern:
   1. Security property and any right, title or interest of an electric public utility, an assignee or an issuing entity, whether before or after the issuance of a financing order, in such security property;
   2. The validity, creation, attachment, grant, perfection, priority and enforcement of liens and security interests in security property to secure payment of financing costs;
   3. The validity, attachment, perfection and priority with respect to the transfer of an interest or right or the pledge or creation of a security interest in any security property.

      In the eventof any conflict between Sections 77-3-111 through 77-3-127 and any other lawregarding the provisions of Section 77-3-125, Sections 77-3-111 through 77-3-127 shall govern tothe extent of the conflict.

2. A valid, enforceable and attached lien and security interest in security property shall be created upon the occurrence of all of the following and in no other manner:
   1. The issuance of a financing order contemplating a security interest in the security property;
   2. The execution and delivery of a security agreement by the issuing entity in connection with the issuance of rate reduction bonds which grants a security interest in the security property; and
   3. The giving of value for the rate reduction bonds.
3. A valid, enforceable and attached security interest may be created in the security property without any physical delivery of collateral or other act, and shall be perfected against all parties upon the filing of a financing statement in the Office of the Secretary of State of Mississippi and shall thereafter be a continuously perfected lien, and such security interest in security property shall have priority over any other lien, created by contract, operation of law or otherwise, which may subsequently be perfected in the security property unless the holder of any such prior lien has agreed in writing otherwise.
4. Any sale, assignment, transfer or conveyance of an interest in security property shall not affect the priority of a security interest previously perfected in such security property against all parties having claims of any kind, including any judicial lien or other lien creditors or any claims of the assignor or creditors of the assignor, other than creditors holding a prior security interest, ownership interest or assignment in the security property previously perfected in accordance with Sections 77-3-111 through 77-3-127.
5. The filing of a financing statement with the Office of the Secretary of State of Mississippi in accordance with this section shall be the only method of perfecting a lien on or security interest in security property. The Office of the Secretary of State of Mississippi shall maintain any financing statement filed pursuant to this section in the same manner that the Office of the Secretary of State of Mississippi maintains financing statements filed against transmitting utilities under Section 75-9-501(b). The filing of any financing statement pursuant to this section shall be governed by the provisions regarding the filing of financing statements in Part 5 of Chapter 9, Title 75 of the Mississippi Code of 1972, codified at Miss. Code Ann. Section 75-9-501 et seq.; provided, however, no continuation statement need be filed to maintain a perfected, valid, enforceable and attached security interest in security property.
6. The priority of a sale, assignment, transfer, conveyance, lien or security interest perfected in security property pursuant to Sections 77-3-111 through 77-3-127 is not impaired by any later modification of the financing order or security property, any application of the true-up adjustment mechanism, or by the commingling of funds arising from the security property with other funds of an electric public utility or collection agent, and any other right, title, lien or security interest that may apply to those funds shall be terminated as to all funds transferred to an issuing entity, assignee, or financing party directly or transferred to a segregated account for the benefit of an issuing entity, assignee, or financing party.
7. The description of security property being sold, assigned, transferred or conveyed to an assignee in any sale agreement, purchase agreement, or other transfer agreement, granted or pledged to a secured party in any security agreement, pledge agreement, or other security document, or indicated in any financing statement, shall be sufficient if it describes the financing order that created the security property and states that such agreement or financing statement covers all or part of the security property described in such financing order. This subsection applies to all purported sales, assignments, transfers or conveyances of, and all purported grants or liens or security interests in, security property, regardless of whether the related agreements were entered into or financing statements were filed, before or after the original effective date of this subsection.
8. Any right, title or interest pertaining to a financing order, including, but not limited to, the associated security property and rate reduction bond charge revenues shall not be deemed proceeds of any right or interest other than in the financing order and the security property arising from the financing order.

HISTORY: Laws, 2013, ch. 305, § 10, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-127. Liability on rate reduction bonds issued under a financing order.

1. Rate reduction bonds issued under a financing order shall not constitute a debt or a pledge of the faith and credit or taxing power of the State of Mississippi or of any county, municipality, or any other political subdivision of this state. The issuing entity, assignee, bondholders and financing parties shall have no right to have taxes levied by this state or the taxing authority of any county, municipality, or any other political subdivision of this state for the payment of the principal of, interest on or other financing costs related to rate reduction bonds. The issuance of rate reduction bonds does not, directly, indirectly, or contingently, obligate this state or any county, municipal corporation, or political subdivision of this state to levy any tax or make any appropriation for payment of the principal of, interest on or other financing costs related to the rate reduction bonds.
2. The state pledges to and agrees with the bondholders, any issuing entity, and any other party under a financing order that the state will not take or permit any action that impairs the value of the security property under the financing order or, except as allowed under Section 77-3-119, reduce, alter or impair rate reduction bond charges that are imposed, charged, collected or remitted for the benefit of the bondholders, any assignee, and any issuing entity, until all principal, interest and redemption premium in respect of rate reduction bonds, all financing costs, all issuing costs and all amounts to be paid to an issuing entity are paid or performed in full. Any attempt by resolution, bill, motion, order, referendum, amendment, judgment, decision, opinion or other act made contrary to the above pledge by the legislative branch, executive branch, judicial branch, commission or citizenry which impairs or attempts to impair the security property shall require just compensation to the security property owner or owners prior to taking effect.
3. An issuing entity may include the pledge specified in subsection (2) of this section in the rate reduction bonds, financing documents, and documentation related to the issuance and marketing of the rate reduction bonds.

HISTORY: Laws, 2013, ch. 305, § 11, eff from and after passage (approved Feb. 26, 2013).

§ 77-3-129. Sections 77-3-111 through 77-3-127 deemed full and complete authority for exercise of powers granted therein.

The provisions of Sections 77-3-111 through 77-3-127 shall be deemed to be full and complete authority for the exercise of the powers therein granted. It is the intent of the Legislature that the authority provided under Sections 77-3-111 through 77-3-127 be limited to the implementation of alternate financing arrangements that may be contemplated by any agreement entered into by the Public Service Commission and the affected electric public utility relating to any qualifying facility as defined in Section 77-3-111.

HISTORY: Laws, 2013, ch. 305, § 12, eff from and after passage (approved Feb. 26, 2013).

Article 3. General Provisions.

§ 77-3-301. Optional rate schedules and minimum charges to be provided in lieu of service charges.

Any person, firm, copartnership or corporation doing business in the State of Mississippi and engaged in the sale or distribution of electricity, gas or water, whose rates or tariffs for such service contain any form of so-called “service charge,” shall be required to have fair and reasonable optional rate schedules and minimum charges that do not contain any form of such so-called “service charge,” so that the consumer may exercise his option as to the form of rate schedule under which said consumer will be billed for service used. Such optional rate schedules shall not require the payment for each unit of electricity, gas, or water consumed, at a rate in excess of the rates per unit prescribed for use which were in effect prior to the establishment of a “service charge” by such person, firm or corporation affected hereby.

HISTORY: Codes, 1942, § 5551; Laws, 1934, ch. 318.

§ 77-3-303. Itemized bills required.

All bills rendered to consumers by any public service utility affected by this article shall be itemized so as to show in detail the amount of electricity, gas or water consumed and the rate per unit charged.

HISTORY: Codes, 1942, § 5551; Laws, 1934, ch. 318.

§ 77-3-305. Violations.

Any amount of money collected by any public utility in wilful violation of Section 77-3-303 may be recovered by an action at law by the consumer from whom it was collected. In addition thereto, any person, firm, copartnership or corporation violating the provisions of this article, shall be guilty of a misdemeanor and upon conviction shall be fined not more than $50.00 for each offense.

HISTORY: Codes, 1942, § 5551; Laws, 1934, ch. 318.

§ 77-3-307. Exemptions.

The provisions of this article shall not apply:

to municipally or privately owned plants where a flat charge only is made, and no meters are in operation;

to any municipally owned and/or operated public service utility, the net income of which said utility is used solely for governmental purposes and/or for the discharge of governmental obligations and not for private gain;

to the Tennessee Valley Authority or any municipality that purchases gas, water or electric lights and power from the Tennessee Valley Authority; or

to any state corporation chartered by the State of Mississippi, or any corporation doing business in the State of Mississippi, which buys electric current and/or power from the Tennessee Valley Authority for distribution for domestic and/or commercial purposes.

HISTORY: Codes, 1942, § 5551; Laws, 1934, ch. 318.

§ 77-3-401. Determination of adequacy of service initiated by petition of attorney general.

Upon the petition therefor by the attorney general, the Mississippi public service commission shall have jurisdiction to determine, after reasonable notice and hearing, whether any domestic telephone or telegraph public service corporation operating under the jurisdiction of the commission, is rendering in a reasonably adequate manner the public service authorized by its charter of incorporation.

HISTORY: Codes, 1942, § 7704; Laws, 1940, ch. 132.

§ 77-3-403. Notice to corporation to appear before commission.

Upon the filing of a petition therefor by the attorney general with the public service commission, notice shall be given any such corporation requiring the corporation to appear before the commission at a day certain, not less than thirty (30) days, and to show cause why it should not be required within a reasonable time, not less than sixty days after such hearing, to obey the order of the commission made on such hearing. A copy of the petition shall be attached to such notice. Such notice shall be served by mailing it by registered United States mail to any executive officer of such corporation at his usual post office address.

HISTORY: Codes, 1942, § 7705; Laws, 1940, ch. 132.

§ 77-3-405. Distinct findings of fact to be made by commission.

Upon the hearing, the testimony shall be taken by the official stenographer of the commission. The commission shall make distinct findings of fact as to: (1) whether the corporation is or is not rendering in a reasonably adequate manner the public service authorized by the corporate charter of such corporation; (2) if not, what would be reasonably necessary to be done to make such service reasonably adequate; (3) whether by reason of its financial condition, such corporation may be reasonably expected to make such changes as would be reasonably necessary to make such service reasonably adequate; (4) what would be a reasonable time, not less than sixty (60) days, within which such changes should be made.

The findings of fact by the commission if supported by substantial evidence, shall be conclusive, and shall not be reversed by any court.

HISTORY: Codes, 1942, § 7706; Laws, 1940, ch. 132.

§ 77-3-407. Issuance of order requiring changes in service.

If the commission shall find that the corporation may reasonably be expected to make changes in its service, which will render such service reasonably adequate, and shall specify such reasonable changes, and shall fix a time within which changes may be made, then the order of the commission shall be to such extent. If such changes are not made within the time fixed by the commission, the commission shall have authority to forfeit the charter of such corporation, upon five (5) days notice, and a hearing accorded upon the forfeiture. If the commission shall find that the corporation cannot reasonably be expected to make the necessary changes in its service which will render such service reasonably adequate, for reasons stated in the order, then the commission shall have the authority at such time to enter an order forfeiting the corporate charter of such corporation.

HISTORY: Codes, 1942, § 7707; Laws, 1940, ch. 132.

§ 77-3-409. Removal of proceedings to circuit court.

The attorney general, or the corporation, may by certiorari out of the circuit court of the First Judicial District of Hinds County, Mississippi, within ten (10) days from the date of the order in the hearing provided in Section 77-3-403, remove the entire proceeding to such court, which removal shall not operate as a supersedeas. No supersedeas shall be allowed, but the circuit court or the circuit judge in vacation shall examine the record for errors of law. If the said court shall find no errors of law, the order shall be affirmed. If errors of law appear, it shall be reversed, and such reversal shall operate as a stay of such order, and no subsequent action on the charter forfeiture shall be taken by the commission on such order, but the cause shall be remanded to the commission with directions for a new hearing, or dismissed, as the circuit court finds appropriate by reason of errors of law appearing on the face of the record.

HISTORY: Codes, 1942, § 7708; Laws, 1940, ch. 132.

§ 77-3-411. Forfeiture of charter for failure to make changes.

If no proceedings are taken under Section 77-3-409, then at the expiration of ten (10) days from the date of such order, such order shall become final, from which no appeal shall lie, and the findings set out in such order shall be conclusively presumed to be correct. Unless the commission is satisfied the changes required by such order have been made within the time prescribed in such order, the commission shall give the notice of five (5) days, as provided in Section 77-3-407, and upon the hearing the commission shall determine whether such changes have or have not been made, as required. If the commission find that such changes have not been made as required, then it shall enter an order incorporating such finding, and forfeiting the charter of such corporation.

HISTORY: Codes, 1942, § 7709; Laws, 1940, ch. 132.

§ 77-3-413. Certiorari to circuit court.

At any time within ten (10) days of the entry of the order forfeiting or refusing to forfeit such charter, the attorney general or the corporation may apply to the circuit court of the First Judicial District of Hinds County, for a writ of certiorari, which, if granted, shall have the effect of transferring the record of the last proceeding to the circuit court. The circuit court, or the circuit judge in vacation, shall examine such record for errors of law. If the said court shall find no errors of law, the order shall be affirmed. If errors of law appear, the order shall be reversed and such reversal shall operate as a stay of such order, and the cause shall be remanded to the commission with directions for a new hearing, or dismissal, as the circuit court finds proper from the examination of the record.

HISTORY: Codes, 1942, § 7710; Laws, 1940, ch. 132.

§ 77-3-415. Appeal from judgment of circuit court.

Appeals from the order of the circuit court affirming or reviewing such order may be taken as other appeals are taken to the supreme court.

HISTORY: Codes, 1942, § 7711; Laws, 1940, ch. 132.

§ 77-3-417. Effect of receivership proceedings.

Receivership proceedings at any stage in any court shall not affect any proceedings under the terms of this article. When a petition is filed under the terms of this article, exclusive jurisdiction shall be vested in the public service commission, and any pending receivership shall immediately be terminated, and the trustees shall be appointed by the commission under the terms of Section 77-3-419.

HISTORY: Codes, 1942, § 7712; Laws, 1940, ch. 132.

§ 77-3-419. Liquidation of business.

All of the provisions of Chapter 35 of Title 11 of the Mississippi Code of 1972 relative to the liquidation of corporations after forfeiture of charter shall apply to the liquidation of any such corporation if the charter thereof is forfeited under the terms of this article, except that the trustees shall be appointed by the public service commission.

HISTORY: Codes, 1942, § 7713; Laws, 1940, ch. 132.

§ 77-3-421. Operations within same territory by second company following forfeiture of first company’s charter.

After the entry of an order forfeiting the charter of incorporation of any telephone or telegraph company, no telephone or telegraph company, whether operated by a person, co-partnership or corporation, shall have the authority to enter the same territory, or any part of it, served by the corporation whose charter has been forfeited, until a certificate of public convenience and necessity is granted by the public service commission, which certificate shall not be granted unless the commission affirmatively finds that the applicant therein is financially able to render telephone or telegraph service within such territory in a reasonably adequate manner. The application for a certificate of public convenience and necessity shall be in such form as the commission may require.

HISTORY: Codes, 1942, § 7714; Laws, 1940, ch. 132.

§ 77-3-423. Necessity that sales, leases or transfers be made to company capable of providing adequate service.

No sale, lease or transfer of any franchises or properties within Mississippi, or any part thereof, of any domestic telephone or telegraph company, whether operated by a person, firm or corporation, shall be valid unless, upon a hearing after reasonable notice, the commission shall find that the person, firm or corporation to whom such sale, lease or transfer is proposed to be made is financially and otherwise capable of rendering telephone or telegraph service in a reasonably adequate manner.

HISTORY: Codes, 1942, § 7714; Laws, 1940, ch. 132.

§ 77-3-425. Continuation of service in event of sale of business.

In the event any domestic telephone or telegraph company has, within eighteen months prior to May 7, 1940, sold, leased or transferred any of its franchises or properties within the State of Mississippi, then that person, firm or corporation to whom such properties were sold, leased or transferred, or any successor in title thereto, shall be under the obligation to render such telephone or telegraph service in a reasonably adequate manner, and the commission shall have the authority, upon petition of the attorney general, to proceed to investigate the operation of the telephone or telegraph business of the vendee, lessee or transferee, or any successor in title, in the same manner as is provided for in this article as to the domestic corporations. If the commission shall find, after such hearing as provided for domestic corporations, that such vendee, lessee or transferee, or any successor in title, is not rendering such service in a reasonably adequate manner, then the commission shall have the authority to require such changes to be made as it could in the case of domestic corporations, and if such changes are not made as required by the commission, then the commission shall have the authority to forfeit the right of such vendee, lessee, transferee, or any successor in title thereto, to operate a telephone or telegraph business. If the commission shall find that such vendee, lessee, transferee, or any successor in title, cannot be reasonably expected to render such service in a reasonably adequate manner, then the commission shall have the authority to forfeit the right of such vendee, lessee or transferee, or any successor in title, to operate a telephone or telegraph business within Mississippi, and shall appoint trustees for such business, as provided for in Section 77-3-419.

HISTORY: Codes, 1942, § 7715; Laws, 1940, ch. 132.

§ 77-3-451. Definitions.

As used in this article, “automatic dialing-announcing device” means any automatic equipment which incorporates a storage capability of telephone numbers to be called or a random or sequential number generator capable of producing numbers to be called and the capability, working alone or in conjunction with other equipment, to disseminate a prerecorded message to the telephone number called.

HISTORY: Laws, 1989, ch. 436, § 1, eff from and after July 1, 1989.

§ 77-3-453. Public Service Commission to regulate; application of article; hours of operation; use for purpose of inducing purchase of goods or services prohibited; exceptions.

1. The connection of automatic dialing-announcing devices to a telephone line is subject to this article and to the jurisdiction, control and regulation of the Public Service Commission.
2. No person shall operate an automatic dialing-announcing device except in accordance with this article. The use of such device by any person, either individually or acting as an officer, agent or employee of a person or corporation operating automatic dialing-announcing devices, is subject to this article.
3. No person shall operate an automatic dialing-announcing device to place a call which is received by a telephone in this state during the hours between 9 p.m. and 9 a.m. Central time zone.
4. No person shall operate an automatic dialing-announcing device to place a call which is received by a telephone in this state for the purpose of persuading, inducing or encouraging the person called to purchase any type of product or service.
5. This article does not apply to any automatic dialing-answering device which is not used to randomly or sequentially dial telephone numbers but which is used solely to transmit a message to an established business associate, customer or other person having an established relationship with the person using the automatic dialing-answering device to transmit the message, or to any call generated at the request of the recipient.
6. The Public Service Commission may determine any question of fact arising under this section.

HISTORY: Laws, 1989, ch. 436, § 2, eff from and after July 1, 1989.

§ 77-3-455. Requirements for placing calls using automatic dialing-announcing devices.

1. Automatic dialing-announcing devices may be used to place calls over telephone lines only pursuant to a prior agreement between the persons involved, by which the person called has agreed that he or she consents to receive such calls from the person calling, or as specified in subsection (2) of this section.
2. Whenever telephone calls are placed through the use of an automatic dialing-announcing device, such device shall be operated by a person who shall do all of the following:
   1. State the nature of the call and the name, address and telephone number of the business or organization being represented, if any.
   2. Inquire whether the person called consents to hear the prerecorded message of the person calling.
   3. Disconnect the automatic dialing-announcing device from the telephone line upon the termination of the call by either the person calling or the person called.

HISTORY: Laws, 1989, ch. 436, § 3, eff from and after July 1, 1989.

§ 77-3-457. Application to connect automatic dialing-announcing device; penalties.

No person shall connect any automatic dialing-announcing device to any telephone line without first making written application to the telephone corporation within whose service area telephone calls through the use of such device are proposed to be placed. In such application, the person shall provide information as to the type of automatic dialing-announcing device proposed to be connected, the time of day such telephone calls are proposed to be placed using such device, the anticipated number of calls proposed to be placed during the specified calling period, the average length of a completed call and such additional information as the corporation or the commission may require. Upon receiving such an application for service, the corporation shall review the furnished information and, if it appears that calling patterns would create a traffic overload condition or the service would be detrimental to the services of other customers of the corporation, it may deny the application or modify the application and grant the application as so modified.

Any person violating this article is guilty of a civil offense and is subject to either or both of the following penalties:

A fine not to exceed Five Hundred Dollars ($500.00) for each violation, levied and enforced by the Public Service Commission, on complaint or on its own motion. For purposes of this article “violation” means each call placed by an automatic dialing-announcing device connected contrary to the provisions of this article.

Disconnection of telephone service to the automatic dialing-announcing device for a period of time which shall be specified by the Public Service Commission.

HISTORY: Laws, 1989, ch. 436, § 4, eff from and after July 1, 1989.

§ 77-3-459. Legislative intent; retroactive effect of article.

It is the intent of the Legislature that this article shall apply to any automatic dialing-announcing devices connected to any telephone line both prior and subsequent to July 1, 1989.

HISTORY: Laws, 1989, ch. 436, § 5, eff from and after July 1, 1989.

§ 77-3-501. Legislative findings.

The Legislature of the State of Mississippi finds:

That telephone service provides a rapid and essential communications link among the general public and with essential offices and organizations such as police, fire and medical facilities;

That all persons should have basic telephone service available to them at a fair and equitable cost;

That a significant portion of Mississippi’s hearing and speech impaired population have profound disabilities which render normal telephone equipment useless without additional specialized devices; and

That there exists a need for a program whereby access to basic telephone service for hearing and speech impaired persons is equal in cost to the amount paid by other telephone customers.

HISTORY: Laws, 1990, ch. 321, § 1, eff from and after passage (approved March 12, 1990).

§ 77-3-503. Definitions; funding of agency expenses; deposit of monies into State General Fund.

The following terms and phrases when used in this article shall have the following meaning ascribed to them, except where the context clearly indicates a different meaning:

“Deaf person” means an individual who is unable to hear and understand oral communication, with or without the assistance of amplification devices.

“Dual party relay system” means a procedure whereby a deaf, hearing or speech impaired TDD user can communicate with an intermediary party, who then orally relays the first party’s message or request to a third party, or vice versa.

“Exchange access facility” means the access from a particular telephone subscriber’s premise to the telephone system of a local exchange telephone company. Exchange access facilities include local exchange company provided access lines, private branch exchange trunks and centrex network access registers, all as defined by tariffs of telephone companies as approved by the commission.

“Hard of hearing person” means an individual who has suffered a permanent hearing loss which is severe enough to necessitate the use of amplification devices to hear oral communication.

“Hearing impaired person” means a person who is deaf or hard of hearing.

“Ring signaling device” means a mechanism such as a flashing light which visually indicates that a communication is being received through a telephone line. This phrase also means a mechanism such as adjustable volume ringers and buzzers which audibly and loudly indicate an incoming telephone communication.

“Speech impaired person” means an individual who has suffered a loss of oral communication ability which prohibits normal usage of a standard telephone handset.

“Telecommunications device” or “telecommunications device for the deaf, hearing or speech impaired” or “TDD” means a keyboard mechanism attached to or in place of a standard telephone by some coupling device used to transmit or receive signals through telephone lines.

“Telephone company” means every corporation, company, association, joint stock association, partnership, and person and their lessees, trustees or receivers appointed by any court whatsoever, and every city or town owning, operating or managing any telephone line or part of a telephone line used in the conduct of the business of affording telephonic communication service for hire within this state.

“Telephone line” includes conduits, ducts, poles, wires, cables, crossarms, receivers, transmitters, instruments, machines, appliances, instrumentalities and all devices, including radio and other advancements of the art of telephony, real estate, easements, apparatus, property and routes used and operated to facilitate the business of affording telephonic communication services to the public for hire within this state.

“Trust fund” means the Dual Party Relay Service Trust Fund which is a specific trust to be created by the Public Service Commission and to be established, invested, managed and maintained for the exclusive purpose of fulfilling the provisions of this article according to Public Service Commission rules and regulations.

From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.

From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Laws, 1990, ch. 321, § 2; Laws, 2016, ch. 459, § 55, eff from and after July 1, 2016.

§ 77-3-505. Statewide program to provide telephone access to speech or hearing impaired persons; commission not liable for claims, actions, etc. arising out of program.

1. The Mississippi Public Service Commission shall establish, implement, administer, regulate and promote a statewide program to provide telephone access to persons who are speech or hearing impaired.
2. The program shall include but not be limited to:
   1. A statewide dual party relay service;
   2. The establishment of characteristics and performance standards for TDD ring signaling devices and volume control handsets;
   3. A single supplier statewide relay system to handle all intrastate TDD calls; and
   4. The promulgation of procedures, regulations, rules, guidelines and criteria to establish, implement, administer, regulate and promote all aspects of the dual party relay service and this article where not prohibited by law.
3. The commission may use assistance from public agencies of the state and federal government or from private organizations and industry to accomplish the purposes of this article.
4. The commission shall not be liable for any claims, actions, damages or causes of action, civil or criminal, arising out of or resulting from the establishment, participation in or operation of the dual party relay system service.
5. The provider of the dual party relay system service, and the employees of the provider, shall not be liable for any claims, actions, damages or causes of action, civil or criminal, for:
   1. Maintaining the confidentiality of each relayed conversation;
   2. Relaying any message from one party to another in a relayed conversation; or
   3. Any error made in the transcription, transmission or transliteration of any message from one party to another in a relayed conversation, except for errors resulting from gross negligence, intentional acts or willful misconduct.

HISTORY: Laws, 1990, ch. 321, § 3; Laws, 1991, ch. 485, § 1, eff from and after July 1, 1991.

§ 77-3-507. Maintenance surcharge on local exchange access facilities; Dual Party Relay Service Trust Fund; source of funds; use of funds; charges for use of relay service; funding of agency expenses; deposit of monies into State General Fund.

1. The Public Service Commission may impose upon all local exchange telephone companies operating in the State of Mississippi a monthly relay service fee in an amount to be determined by the commission based upon the amount of funding necessary to accomplish the purposes of this article and to provide dual party telephone relay services on a continuous basis. Such fees shall be paid by the local exchange companies to the credit of the Dual Party Relay Service Trust Fund. The commission may authorize local exchange companies to recover relay service fees through a surcharge on their customers in the manner prescribed by the commission. The relay service fees remitted by the local exchange companies shall not be subject to any tax, fee or assessment, nor shall it be considered revenue of the local exchange companies. The Dual Party Relay Service Trust Fund shall be credited with all interest income and earnings of the fund. The fund shall be established, invested and managed for the exclusive purpose of fulfilling the provisions of this article according to rules and regulations established by the Public Service Commission.
2. Monies in the fund shall also include any appropriations authorized by the Legislature, any available funds authorized by the Public Service Commission, grants from other governmental or private entities, and any contributions or donations received by the Public Service Commission for the dual party relay service. All monies in the Dual Party Relay Service Trust Fund shall be used solely for the administration and operation of a statewide program to provide telecommunications access to persons who are speech and hearing impaired or similarly impaired.
3. The users of the relay service shall be charged for telephone services, without additional charges for the use of the relay service other than any surcharge which may be imposed upon them under this section. The calling or called party shall bear an expense for making intrastate nonlocal calls considered and approved by the Public Service Commission as being equitable in comparison with non-TDD or DPR service customers.
4. From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.
5. From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Laws, 1990, ch. 321, § 4; Laws, 1991, ch. 386, § 1; Laws, 1992, ch. 331, § 1; Laws, 2016, ch. 459, § 56, eff from and after July 1, 2016.

§ 77-3-509. Advisory committee on telecommunications services for hearing or speech impaired persons; members; terms; compensation; funding of agency expenses; deposit of monies into State General Fund.

1. On or before August 1, 1990, the Public Service Commission shall appoint an advisory committee to monitor the statewide telecommunications relay access service and advise and make recommendations to the Public Service Commission in pursuing services which meet the needs of the hearing or speech impaired and others similarly impaired in communicating with other users of telecommunications services.
2. The advisory committee shall be composed of:
   1. One (1) deaf person recommended by the Mississippi Association of the Deaf;
   2. One (1) speech or hearing impaired person recommended by the Mississippi Association for Retired Persons;
   3. One (1) person recommended by the Coalition of Citizens with Disabilities;
   4. One (1) representative of telecommunications utilities chosen from a list of candidates provided by the Mississippi/Alabama Telephone Association;
   5. One (1) representative of the Mississippi Speech and Hearing Association;
   6. One (1) representative of the Veterans Administration;
   7. One (1) representative from Vocational Rehabilitation Deaf Services;
   8. One (1) hearing impaired representative of the Mississippi School for the Deaf;
   9. Two (2) representatives chosen from the Public Service Commission’s staff and employees;
   10. One (1) person appointed by the Speaker of the House of Representatives;
   11. One (1) person appointed by the Lieutenant Governor of the Senate;
   12. One (1) representative from the provider of the DPR service; and
   13. Three (3) “at-large” individuals who have particular skills, knowledge, experience or ability but who are not necessarily speech or hearing impaired or otherwise affiliated with an organization serving the speech or hearing impaired.

       The commission, in its discretion, may name a successor or similar organization to be represented on the committee if an organization or agency named in this subsection ceases to exist.

3. The committee shall be appointed based on candidate names submitted by the recommending agency or organization. Each member of the advisory committee shall serve for a term of two (2) years. A member whose term has expired shall continue to serve until a qualified replacement is appointed. The members of the advisory committee shall serve without compensation but shall be entitled to reimbursement for travel and expenses incurred in the performance of their official duties and per diem, which shall be paid out of the trust fund on the same basis established for state employees.
4. From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law.
5. From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section.

HISTORY: Laws, 1990, ch. 321, § 5; Laws, 2000, ch. 520, § 1; Laws, 2016, ch. 459, § 57, eff from and after July 1, 2016.

§ 77-3-511. Commission to implement relay service within one year; report to Legislature.

1. The Public Service Commission shall commit all acts necessary to implement a dual party relay service in as expeditious a manner as possible not exceeding one (1) year from March 12, 1990.
2. The Public Service Commission shall report to the Legislature on or before January 1, 1991, the status and conditions of the dual party relay service and other aspects of the programs specified in this article.

HISTORY: Laws, 1990, ch. 321, § 6, eff from and after passage (approved March 12, 1990).

§ 77-3-601. Definitions.

As used in this article:

“Telephonic sales call” means a call made by a telephone solicitor to a consumer for the purpose of soliciting a sale of any consumer goods or services, or for the purpose of soliciting an extension of credit for consumer goods or services, or for the purpose of obtaining information or an extension of credit for these purposes.

“Consumer goods or services” means any real property or any tangible or intangible personal property which is normally used for personal, family or household purposes, including, without limitation, any property intended to be attached to or installed in any real property regardless of whether it is attached or installed, as well as cemetery lots and time-share estates, and any services related to the property.

“Unsolicited telephonic sales call” means a telephonic sales call other than a call made:

In response to an express request of the person called;

In connection with an existing debt or contract, payment or performance which has not been completed at the time of the call; or

To any person with whom the telephone solicitor has an established business relationship.

“Consumer” means an actual or prospective purchaser, lessee or recipient of consumer goods or services.

“Merchant” means a person who, directly or indirectly, offers or makes available to consumers any consumer goods or services.

“Telephone solicitor” means any natural person, firm, organization, partnership, association, corporation, or a subsidiary or affiliate thereof, doing business in this state, who makes or causes to be made a telephonic sales call.

“Doing business in this state” refers to businesses who conduct telephonic sales calls from a location in Mississippi or from other states or nations to consumers located in Mississippi.

“Established business relationship” means a prior or existing relationship formed by a voluntary two-way communication between a person or entity and a consumer with or without an exchange of consideration, on the basis of an inquiry, application, purchase or transaction by such person or entity, which relationship has not been previously terminated by either party.

HISTORY: Laws, 1993, ch. 538, § 1, eff from and after July 1, 1993.

§ 77-3-603. Conduct of telephone solicitors regulated.

Any telephone solicitor who makes an unsolicited telephonic sales call to a residential telephone number shall:

Make calls between the hours of 8:00 a.m. and 9:00 p.m., Central Standard Time, Monday through Friday, and between the hours of 8:00 a.m. and 9:00 p.m. on Saturdays (no calls shall be made on Sundays);

Identify himself or herself by his or her true first and last names and the business on whose behalf he or she is soliciting immediately upon making contact by telephone with the person who is the object of the telephone solicitation; and

Discontinue the call immediately if at any time during the conversation the person being solicited expresses disinterest in continuing the call or sales presentation.

HISTORY: Laws, 1993, ch. 538, § 2, eff from and after July 1, 1993.

§ 77-3-605. Registration of telephone solicitors with Attorney General; surety bond.

Any telephone solicitor shall apply for a certificate of registration from the Office of the Attorney General as a condition for doing business in this state. The certificate of registration shall be in a form as prescribed by the Attorney General.

The application for a certificate of registration shall be accompanied by a surety bond in the penal sum of Seventy-five Thousand Dollars ($75,000.00) with conditions and in a form prescribed by the Attorney General. The bond shall provide for the indemnification of any person suffering loss as the result of any fraud, misrepresentation or violation of Sections 77-3-601 through 77-3-619 by the principal. The term of the bond shall be continuous, but it shall be subject to cancellation by the surety in the manner described in this section. The surety may terminate the bond upon giving a sixty-day written notice to the principal and to the Attorney General, but the liability of the surety for acts of the principal and its agents shall continue during the sixty (60) days of cancellation notice. The notice does not absolve the surety from liability which accrues before the cancellation becomes final but which is discovered after that date and which may have arisen at any time during the term of the bond. Unless the bond is replaced by that of another surety before the expiration of the sixty (60) days’ notice of cancellation, the certificate of registration shall be suspended. Any person required pursuant to this section to file a bond with an application for a certificate of registration may file, in lieu thereof, cash, a certificate of deposit, or government bonds in the amount of Seventy-five Thousand Dollars ($75,000.00). Such deposit is subject to the same terms and conditions as are provided for in the surety bond required herein. Any interest or earnings on such deposits are payable to the depositor.

HISTORY: Laws, 1993, ch. 538, § 3, eff from and after July 1, 1993.

§ 77-3-607. Requisites of enforceable contract; certain exceptions; merchant not to charge consumer’s account before receipt of copy of contract.

1. A contract made pursuant to a telephonic sales call is not valid and enforceable against a consumer unless made in compliance with this section.
2. A contract made pursuant to a telephonic sales call shall:
   1. Be reduced to writing and signed by the consumer.
   2. Comply with all other applicable laws and rules.
   3. Match the description of goods or services as principally used in the telephone solicitations.
   4. Contain the name, address, and telephone number of the seller, the total price of the contract and a detailed description of the goods or services being sold.
   5. Contain, in bold, conspicuous type, immediately preceding the signature, the following statement:

      “YOU ARE NOT OBLIGATED TO PAY ANY MONEY UNLESS YOU SIGN THIS CONTRACT AND RETURN IT TO THE SELLER.”

   6. Include in its terms any oral or written representations made by the telephone solicitor to the consumer in connection with the transaction.
3. The provisions of this section do not apply to contractual sales regulated under other sections of the Mississippi statutes and to contractual sales of companies which provide telecommunication services and reach binding agreements by telephone for these services.
4. A merchant who engages a telephone solicitor to make or cause to be made a telephonic sales call shall not make or submit any charge to the consumer’s credit card account until after the merchant receives from the consumer a copy of the contract which complies with this section.
5. The provisions of this section do not apply to a transaction:
   1. Made in accordance with prior negotiations in the course of a visit by the consumer to a merchant operating a retail business establishment which has a fixed permanent location and where consumer goods are displayed or offered for sale on a continuing basis;
   2. In which the consumer may obtain a full refund for the return of undamaged and unused goods or a cancellation of services notice to the seller within seven (7) days after receipt by the consumer, and the seller will process the refund within thirty (30) days after receipt of the returned merchandise by the consumer;
   3. In which the consumer purchases goods or services after an examination of a television, radio, or print advertisement or a sample, brochure, or catalog of the merchant that contains the name, address and telephone number of the merchant; a description of the goods or services being sold; and any limitations or restrictions that apply to the offer; or
   4. In which the merchant is a bona fide charitable organization ruled tax-exempt by the Internal Revenue Service.

HISTORY: Laws, 1993, ch. 538, § 4, eff from and after July 1, 1993.

§ 77-3-609. Exempt parties and transactions.

The provisions of Sections 77-3-601 through 77-3-619 shall not apply to:

A person engaging in commercial telephone solicitation where the solicitation is an isolated transaction and not done in the course of a pattern of repeated transactions of like nature.

A person making calls for religious, charitable, political, education or other noncommercial purposes, or a person soliciting for a nonprofit corporation if that corporation is properly registered as such with the Secretary of State and is included within the exemption of Section 501(c)(3) or Section 501(c)(6) of the Internal Revenue Code.

A person soliciting:

Without the intent to complete or obtain provisional acceptance of a sale during the telephone solicitation;

Who does not make the major sales presentation during the telephone solicitation; or

Without the intent to complete, and who does not complete, the sales presentation during the telephone solicitation, but who completes the sales presentation at a later face-to-face meeting between the seller and the prospective purchaser. However, if a seller, directly following a telephone solicitation, causes an individual whose primary purpose it is to go to the prospective purchaser to collect the payment or deliver any item purchased, this exemption does not apply.

Any licensed securities, commodities, or investments broker, dealer or investment advisor, when soliciting within the scope of his license. As used in this section, “licensed securities, commodities, or investments broker, dealer or investment advisor” means a person subject to license or registration as such by the Securities and Exchange Commission, by the National Association of Securities Dealers or other self-regulatory organization as defined by the Securities Exchange Act of 1934 (15 U.S.C. Sec. 781), or by an official or agency of this state or of any state of the United States.

Any licensed associated person of a securities, commodities, or investments broker, dealer or investment advisor, when soliciting within the scope of his license. As used in this section, “licensed associated person of a securities, commodities, or investment broker, dealer or investment advisor” means any associated person registered or licensed by the National Association of Securities Dealers or other self-regulatory organization as defined by the Securities Exchange Act of 1934 (15 U.S.C. Sec. 781) or by an official or agency of this state or of any state of the United States.

A person primarily soliciting the sale of a newspaper, magazine or periodical of general circulation by its publisher, or by the publisher’s agent through written agreement.

A book, video or record club or contractual plan or arrangement:

Under which the seller provides the consumer with a form which the consumer may use to instruct the seller not to ship the offered merchandise;

Which is regulated by the Federal Trade Commission trade regulation concerning “use of negative option plans by sellers in commerce”; or

Which provides for the sale of books, records or videos which are not covered under paragraphs (i) or (ii), including continuity plans, subscription arrangements, standing order arrangements, supplements and series arrangements under which the seller periodically ships merchandise to a consumer who has consented in advance to receive such merchandise on a periodic basis.

Any supervised financial institution or parent, subsidiary or affiliate thereof. As used in this section, “supervised financial institution” means any commercial bank, trust company, savings and loan association, mutual savings bank, credit union, industrial loan company, consumer finance lender, commercial finance lender or insurer, provided that the institution is subject to supervision by an official or agency of this state, of any state or of the United States.

Any licensed insurance or real estate broker, agent, customer representative or solicitor when soliciting within the scope of his license. As used in this section, “licensed insurance or real estate broker, agent, customer representative or solicitor” means any insurance or real estate broker, agent, customer representative or solicitor licensed by an official or agency of this state or of any state of the United States.

A person soliciting the sale of services provided by a cable television system operating under authority of a franchise or permit.

A person who solicits sales by periodically publishing and delivering a catalog of the seller’s merchandise to prospective purchasers, if the catalog:

Contains a written description or illustration of each item offered for sale;

Includes the business address or home office address of the seller;

Includes at least twenty-four (24) pages of written material and illustrations and is distributed in more than one (1) state; or

Has an annual circulation by mailing of not less than two hundred fifty thousand (250,000).

A person who solicits contracts for the maintenance or repair of goods previously purchased from the person making the solicitation or on whose behalf the solicitation is made.

A telephone company, or its subsidiary or agents, or a business which is regulated by the Mississippi Public Service Commission, or a Federal Communications Commission licensed cellular telephone company or other bona fide radio telecommunication services provider.

Any publicly traded corporation which has securities registered with the Securities and Exchange Commission which are a reported security within the meaning of subparagraph (4) of Regulation Section 240.11a3-1,(a), under the Securities Exchange Act of 1934, or which is exempt from registration under subparagraph (A), (B), (C), (E), (F), (G) or (H) of paragraph (2) of subsection (g) of Section 12 of the Securities Exchange Act of 1934 (15 U.S.C. Section 781), or any subsidiary of such a corporation.

A business soliciting exclusively the sale of telephone answering services, provided that the telephone answering services will be supplied by the solicitor.

A person soliciting a transaction regulated by the Commodity Futures Trading Commission if the person is registered or temporarily licensed for this activity with the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. Section 1 et seq.) and the registration or license has not expired or been suspended or revoked.

A person soliciting the sale of food or produce if the solicitation neither intends to result in, or actually results in, a sale which costs the purchaser in excess of One Hundred Dollars ($100.00).

A person soliciting business from prospective consumers who have an established business relationship with, or who have previously purchased from, the business enterprise for which the solicitor is calling, if the solicitor is operating under the same exact business name.

A person who has been operating, for at least one (1) year, a retail business establishment under the same name as that used in connection with telemarketing, and both of the following occur on a continuing basis:

Either products are displayed and offered for sale, or services are offered for sale and provided at the business establishment; and

A majority of the seller’s business involves the buyer obtaining such products or services at the seller’s location.

Any telephone marketing service company which provides telemarketing sales services under contract to sellers and has been operating continuously for at least five (5) years under the same business name and seventy-five percent (75%) of its contracts are performed on behalf of persons exempted from Sections 77-3-601 through 77-3-619.

HISTORY: Laws, 1993, ch. 538, § 5, eff from and after July 1, 1993.

§ 77-3-611. Attorney General to investigate violations; actions for civil penalties, injunction, and other relief; stipulated penalties; waiver of penalty upon restitution, reimbursement or payment of damages.

The Attorney General shall investigate any complaints received concerning violations of Sections 77-3-601 through 77-3-619. If, after investigating any complaint, the Attorney General finds that there has been a violation of Sections 77-3-601 through 77-3-619, the Attorney General may bring an action to impose a civil penalty and to seek other relief, including injunctive relief, as the court deems appropriate against the telephone solicitor. The civil penalty shall not exceed Ten Thousand Dollars ($10,000.00) per violation and shall be deposited in the State General Fund, unallocated. This civil penalty may be recovered in any action brought under Sections 77-3-601 through 77-3-619 by the Attorney General. Alternatively, the Attorney General may terminate any investigation or action upon agreement by the person to pay a stipulated civil penalty. The Attorney General or the court may waive any civil penalty if the person has previously made full restitution or reimbursement or has paid actual damages to the consumers who have been injured by the violation.

HISTORY: Laws, 1993, ch. 538, § 6, eff from and after July 1, 1993.

§ 77-3-613. Burden of proving exemption or exemption from definition.

In any civil proceeding alleging a violation of Sections 77-3-601 through 77-3-619, the burden of proving an exemption or an exemption from a definition is upon the person claiming it.

HISTORY: Laws, 1993, ch. 538, § 7, eff from and after July 1, 1993.

§ 77-3-615. Attorney’s fees; costs.

1. In any civil litigation resulting from a transaction involving a violation of Sections 77-3-601 through 77-3-619, the prevailing party, after judgment in the trial court and exhaustion of all appeals, if any, shall receive his reasonable attorney’s fees and costs from the nonprevailing party.
2. The attorney for the prevailing party shall submit a sworn affidavit of his time spent on the case and his costs incurred for all the motions, hearings, and appeals to the trial judge who presided over the civil case.
3. The trial judge shall award the prevailing party the sum of reasonable costs incurred in the action plus a reasonable legal fee for the hours actually spent on the case as sworn to in an affidavit.
4. Any award of attorney’s fees or costs shall become a part of the judgment and subject to execution as the law allows.
5. In any civil litigation initiated by the Attorney General, the court may award to the prevailing party reasonable attorney’s fees and costs if the court finds that there was a complete absence of a justiciable issue of either law or fact raised by the losing party, or if the court finds bad faith on the part of the losing party.

HISTORY: Laws, 1993, ch. 538, § 8, eff from and after July 1, 1993.

§ 77-3-617. Telecommunications companies to inform customers of provisions of law.

The Attorney General shall by rule ensure that telecommunications companies inform their customers of the provisions of Sections 77-3-601 through 77-3-619. The notification may be made by:

Annual inserts in the billing statements mailed to customers; and

Conspicuous publication of the notice in the consumer information pages of the local telephone directories.

HISTORY: Laws, 1993, ch. 538, § 9, eff from and after July 1, 1993.

§ 77-3-619. Attorney General may issue rules and regulations to carry out provisions of law.

The Attorney General is authorized to issue any necessary rules and regulations in order to carry out the provisions of Sections 77-3-601 through 77-3-619.

HISTORY: Laws, 1993, ch. 538, § 10, eff from and after July 1, 1993.

§ 77-3-701. Short title

This article shall be known and may be cited as the “Mississippi Telephone Solicitation Act.”

HISTORY: Laws, 2003, ch. 478, § 1; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 1; reenacted without change, Laws, 2006, ch. 367, § 1; reenacted without change, Laws, 2010, ch. 324, § 1; reenacted without change, Laws, 2013, ch. 322, § 1; reenacted without change, Laws, 2017, ch. 312, § 1, eff from and after July 1, 2017.

§ 77-3-703. Legislative findings

1. The use of the telephone to make all types of solicitations to consumers is pervasive. This article gives consumers a tool by which to object to telemarketing calls and text messages, as these communications can amount to a nuisance, an invasion of privacy, and can create a health and safety risk for certain consumers who maintain their phone service primarily for emergency medical situations.
2. Any calls made for political purposes shall be governed by Section 23-15-875.

HISTORY: Laws, 2003, ch. 478, § 2; reenacted and amended, Laws, 2005, 2nd Ex Sess, ch. 62, § 2; reenacted without change, Laws, 2006, ch. 367, § 2; reenacted without change, Laws, 2010, ch. 324, § 2; reenacted without change, Laws, 2013, ch. 322, § 2; Laws, 2016, ch. 322, § 1; reenacted without change, Laws, 2017, ch. 312, § 2, eff from and after July 1, 2017.

§ 77-3-705. Definitions.

For the purposes of this article, the following words and terms shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

“Consumer” means a person or business that receives a telephone call or text message from a telephone solicitor.

“Caller identification service” means a type of telephone service which permits a telephone subscriber to view the telephone number and name of the person or entity making an incoming telephone call or text message.

“Telephone solicitor” means any person, firm, entity, organization, partnership, association, corporation, charitable entity, or a subsidiary or affiliate thereof, who engages in any type of telephone solicitation on his or her own behalf or through representatives, independent contractors, salespersons, agents, automated dialing systems, text messaging systems, or any other machines or other individuals or systems.

“Telephone solicitation” means any voice or text message communication over the telephone line or cellular network of a consumer for the purpose of:

Encouraging the purchase or rental of, or investment in, property;

Soliciting a sale of any consumer goods or services, or an extension of credit for consumer goods or services;

Soliciting any other item of value, pecuniary or otherwise, regardless of whether a sales presentation is made; or

Soliciting a charitable contribution of money or property.

“Commission” means the Mississippi Public Service Commission.

“Doing business in this state” refers to businesses which conduct telephone solicitations from any location to consumers located in this state.

“Consumer goods or services” means any real property or any tangible or intangible personal property which is normally used for personal, family or household purposes, including, without limitation, any property intended to be attached to, or installed in, any real property, and any services related to the property.

“Established business relationship” means a prior or existing relationship formed by a voluntary two-way communication between a person or entity and a consumer, with or without an exchange of consideration, on the basis of an inquiry, application, purchase or transaction by the consumer, which relationship is currently existing or was terminated within six (6) months of the telephone solicitation; however, the act of purchasing consumer goods or services under an extension of credit does not create an existing business relationship between the consumer and the entity extending credit to the consumer for such purchase. The term does not include the situation wherein the consumer has merely been subject to a telephone solicitation by or at the behest of the telephone solicitor within the six (6) months immediately preceding the contemplated telephone solicitation.

“Charitable organization” means any person or entity holding itself out to be established for any benevolent, educational, philanthropic, humane, scientific, patriotic, social welfare or advocacy, public health, environmental or conservation, civic or other eleemosynary purpose or for the benefit of law enforcement personnel, firefighters, or any other persons who protect the public safety, or for any other purpose where a charitable appeal is the basis of the solicitation.

“Sales presentation” means attempting to obtain something of value, pecuniary or otherwise, regardless of whether consideration is or is expected to be exchanged.

HISTORY: Laws, 2003, ch. 478, § 3; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 3; reenacted without change, Laws, 2006, ch. 367, § 3; reenacted without change, Laws, 2010, ch. 324, § 3; reenacted without change, Laws, 2013, ch. 322, § 3; Laws, 2016, ch. 322, § 2; reenacted without change, Laws, 2017, ch. 312, § 3, eff from and after July 1, 2017; Laws, 2019, ch. 471, § 1, eff from and after July 1, 2019.

§ 77-3-707. Use of the “no-calls” database by telephone solicitors mandatory.

1. Except as otherwise provided pursuant to Section 77-3-709 or 77-3-711, a telephone solicitor may not make or cause to be made any telephone solicitation to any consumer in this state unless the telephone solicitor has purchased the “no-calls” database from the commission or the entity under contract with the commission.
2. Except as otherwise provided pursuant to Section 77-3-709 or 77-3-711, a telephone solicitor may not make or cause to be made any telephone solicitation to any consumer in this state who has given notice to the commission, or the entity under contract with the commission, of his or her objection to receiving telephone solicitations.
3. The commission, or an entity under contract with the commission, shall establish and operate a “no-calls” database composed of a list of telephone numbers of consumers who have given notice of their objection to receiving telephone solicitations. The “no-calls” database may be operated by the commission or by another entity under contract with the commission.
4. Each local exchange company and each competing local exchange carrier shall provide written notification on a semiannual basis to each of its consumers of the opportunity to provide notification to the commission, or the entity under contract with the commission, that the consumer objects to receiving telephone solicitations. The notification must be disseminated at the option of the carrier, by television, radio or newspaper advertisements, written correspondence, bill inserts or messages, a publication in the consumer information pages of the local telephone directory, or any other method not expressly prohibited by the commission.
5. A telephone solicitor may not violate the Caller ID Anti-Spoofing Act in Section 77-3-801 et seq., and if in violation of such act, he shall also be in violation of this article. In addition to any remedies or penalties otherwise provided by law, such telephone solicitor shall be subject to any remedies or penalties available for a violation of this article.

HISTORY: Laws, 2003, ch. 478, § 4; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 4; reenacted without change, Laws, 2006, ch. 367, § 4; reenacted without change, Laws, 2010, ch. 324, § 4; reenacted without change, Laws, 2013, ch. 322, § 4; reenacted without change, Laws, 2017, ch. 312, § 4, eff from and after July 1, 2017; Laws, 2019, ch. 487, § 3, eff from and after July 1, 2019.

§ 77-3-709. Commission’s discretion to exempt some telephone solicitors from purchase and use of no-calls database.

The commission, in its discretion, may allow telephone solicitors to make telephone solicitations without requiring them to purchase the “no-calls” database, and regardless of whether a telephone solicitation may be made to a consumer who has given notice of his objection to receiving such solicitations, provided that it adopts a written policy incorporating the following criteria:

The telephone solicitor must demonstrate to the commission that its proposed telephone solicitation is reasonably related to an established business relationship as defined in Section 77-3-705(h), or is being made in response to an invitation or notice from a consumer which clearly signifies that he is open to a contact being initiated;

The telephone solicitation is to be made by a person or entity for the purpose of soliciting a contribution or donation to a bona fide nonprofit corporation, regardless of whether consumer goods or services will be provided to the consumer in return for the contribution or donation; or

The consumer will not be telephoned for a telephone solicitation as defined in Section 77-3-705(d), but he will be telephoned for a bona fide religious or charitable purpose, including an invitation to attend an event or a request for a contribution or donation.

In all cases, the telephone solicitor must demonstrate that it will not use an automated dialing system or a method that will block or otherwise circumvent the consumer’s use of a caller identification service.

In making its determination of whether to allow a telephone solicitation to be made under the policy which will include the limitations set forth in this section, the commission shall exercise due care in investigating previous conduct of the telephone solicitor seeking such authority. The commission may deny any telephone solicitor the privilege of making telephone solicitations under this section, notwithstanding that any of the criteria set forth in this section have been met.

HISTORY: Laws, 2003, ch. 478, § 5; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 5; reenacted without change, Laws, 2006, ch. 367, § 5; reenacted without change, Laws, 2010, ch. 324, § 5; reenacted without change, Laws, 2013, ch. 322, § 5; reenacted without change, Laws, 2017, ch. 312, § 5, eff from and after July 1, 2017.

§ 77-3-711. Exempt categories.

The provisions of this article shall not apply to:

A person soliciting:

Who does not make the major sales presentation during the telephone solicitation;

Without the intent to complete or obtain provisional acceptance of a sale, a charitable contribution, or the payment of some other item of value, pecuniary or otherwise, during the telephone solicitation; or

Without the intent to complete, and who does not complete, the sales presentation during the telephone solicitation, but who completes the sales presentation at a later face-to-face meeting between the person soliciting and the prospective purchaser or consumer.

A person who is a licensee under Chapter 35, Title 73, Mississippi Code of 1972, who is a resident of the State of Mississippi, and whose telephone solicitation is for the sole purpose of selling, exchanging, purchasing, renting, listing for sale or rent or leasing real estate in connection with his real estate license and not in conjunction with any other offer.

A motor vehicle dealer as that term is defined in Section 63-17-55, who is a resident of the State of Mississippi and who maintains a current motor vehicle dealer’s license issued by the Mississippi Motor Vehicle Commission, whose telephone solicitation is for the sole purpose of selling, offering to sell, soliciting or advertising the sale of motor vehicles in connection with his motor vehicle dealer’s license and not in conjunction with any other offer.

An agent as that term is defined in Section 83-17-1 whose telephone solicitation is for the sole purpose of soliciting, consulting, advising, or adjusting in the business of insurance.

A broker-dealer, agent, or investment advisor registered under Chapter 71, Title 75, Mississippi Code of 1972, whose telephone solicitation is for the sole purpose of effecting or attempting to effect the purchase or sale of securities or has the purpose of providing or seeking to provide investment or financial advice.

A person calling on behalf of a charitable organization which is registered under Chapter 11, Title 79, Mississippi Code of 1972, whose telephone solicitation is for the sole purpose of soliciting for the charitable organization and who receives no compensation for his activities on behalf of the organization.

A person calling on behalf of a newspaper of general circulation, whose telephone solicitation is for the sole purpose of soliciting a subscription to the newspaper from, or soliciting the purchase of advertising by, the consumer.

A person calling on behalf of any supervised financial institution or parent, subsidiary or affiliate thereof. As used in this section, “supervised financial institution” means any commercial bank, trust company, savings and loan association, mutual savings bank, credit union, industrial loan company, small loan company, consumer finance lender, commercial finance lender or insurer, provided that the institution has a physical office located in the State of Mississippi and is subject to supervision by an official or agency of the State of Mississippi or of the United States.

A person calling on behalf of a funeral establishment licensed under Section 73-11-41, cemetery or monument dealer, if the sole purpose of the telephone solicitation relates to services provided by the funeral or death related establishments in the course of its ordinary business.

Any telephone solicitor who solicits a consumer with whom he has an established business relationship.

HISTORY: Laws, 2003, ch. 478, § 6; reenacted and amended, Laws, 2005, 2nd Ex Sess, ch. 62, § 6; reenacted without change, Laws, 2006, ch. 367, § 6; reenacted without change, Laws, 2010, ch. 324, § 6; reenacted without change, Laws, 2013, ch. 322, § 6; reenacted without change, Laws, 2017, ch. 312, § 6, eff from and after July 1, 2017; Laws, 2019, ch. 471, § 2, eff from and after July 1, 2019.

§ 77-3-713. Registration of telephone solicitors mandatory.

All telephone solicitors must register with the commission before conducting any telephone solicitations in the State of Mississippi.

HISTORY: Laws, 2003, ch. 478, § 7; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 7; reenacted without change, Laws, 2006, ch. 367, § 7; reenacted without change, Laws, 2010, ch. 324, § 7; reenacted without change, Laws, 2013, ch. 322, § 7; reenacted without change, Laws, 2017, ch. 312, § 7, eff from and after July 1, 2017.

§ 77-3-715. Regulatory powers of Public Service Commission.

The commission may promulgate rules and regulations necessary to effectuate this article, including, but not limited to, the following:

The methods by which consumers may give notice to the commission or its contractor of their objection to receive solicitations or revocation of the notice;

The methods by which a notice of objection becomes effective and the effect of a change of telephone number on the notice;

The methods by which objections and revocations are collected and added to the database;

The methods by which a person or entity desiring to make telephone solicitations may obtain access to the database as required to avoid calling the telephone number of consumers included in the database;

The process by which the database is updated, and the frequency of updates;

The process by which telephone solicitors must register with the commission for the purpose of conducting telephonic solicitations in the state;

The establishment of fees to be charged by the commission or its contractor to telephone solicitors for access to or for paper or electronic copies of the database on an annual basis;

The establishment of a written policy which clearly articulates the circumstances under which the commission, in its discretion, may allow exceptions to the provisions of this article pursuant to Section 77-3-703; and

All other matters relating to the database that the commission deems necessary.

HISTORY: Laws, 2003, ch. 478, § 8; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 8; reenacted without change, Laws, 2006, ch. 367, § 8; reenacted without change, Laws, 2010, ch. 324, § 8; reenacted without change, Laws, 2013, ch. 322, § 8; reenacted without change, Laws, 2017, ch. 312, § 8, eff from and after July 1, 2017.

§ 77-3-717. Inclusion in no-calls database of Mississippi part of any Federal Trade Commission national database.

If the Federal Trade Commission establishes a single national database of telephone numbers of consumers who object to receiving telephone solicitations, the commission must include the portion of the single national database that relates to the State of Mississippi in the database established under this article. Likewise, the commission shall make available the state’s database to the Federal Trade Commission for inclusion in the national database.

HISTORY: Laws, 2003, ch. 478, § 9; reenacted and amended, Laws, 2005, 2nd Ex Sess, ch. 62, § 9; reenacted without change, Laws, 2006, ch. 367, § 9; reenacted without change, Laws, 2010, ch. 324, § 9; reenacted without change, Laws, 2013, ch. 322, § 9; reenacted without change, Laws, 2017, ch. 312, § 9, eff from and after July 1, 2017.

§ 77-3-719. Nondisclosure of database.

Information contained in the database established under this article may be used and accessed only for the purpose of compliance with this article and shall not be otherwise subject to public inspection or disclosure.

HISTORY: Laws, 2003, ch. 478, § 10; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 10; reenacted without change, Laws, 2006, ch. 367, § 10; reenacted without change, Laws, 2010, ch. 324, § 10; reenacted without change, Laws, 2013, ch. 322, § 10; reenacted without change, Laws, 2017, ch. 312, § 10, eff from and after July 1, 2017.

§ 77-3-721. Fees; funding of expenses of agency; deposit of user charges and fees authorized under this section into State General Fund .

All fees collected under the provisions of this article shall be deposited into a special fund which is created in the State Treasury to be expended by the commission for the implementation and administration of this article. From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law and as determined by the State Fiscal Officer.

This section shall stand repealed July 1, 2020.

HISTORY: Laws, 2003, ch. 478, § 11; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 11; reenacted without change, Laws, 2006, ch. 367, § 11; reenacted without change, Laws, 2010, ch. 324, § 11; reenacted without change, Laws, 2013, ch. 322, § 11; reenacted without change, Laws, 2017, ch. 312, § 11; Laws, 2017, 1st Ex Sess, ch. 7, § 39, eff from and after passage (approved June 23, 2017).

§ 77-3-723. Rules for authorized calls.

1. Any person or entity who makes an authorized telephone solicitation to a consumer in this state shall announce clearly, at the beginning of each call, his or her name, the company he or she represents and the purpose of the call. Such calls may only be made between the hours of 8:00 a.m. and 8:00 p.m. Central Standard Time. No telephone solicitations may be made on a Sunday. For purposes of this provision, an “authorized telephone solicitation” means a solicitation that is made: (a) to a consumer who is not listed on the most current “no-calls” database; (b) by a telephone solicitor who has been authorized to make such solicitations under the provisions of Section 77-3-709; or (c) by a telephone solicitor who is exempt from this article under the provisions of Section 77-3-711.
2. A person or entity who makes a telephone solicitation to a consumer in this state may not utilize knowingly any method that blocks or otherwise circumvents the consumer’s use of a caller identification service, nor may the person or entity use an automated dialing system or any like system that uses a recorded voice message to communicate with the consumer unless the person or entity has an established business relationship with the consumer and uses the recorded voice message to inform the consumer about a new product or service.

HISTORY: Laws, 2003, ch. 478, § 12; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 12; reenacted without change, Laws, 2006, ch. 367, § 12; reenacted without change, Laws, 2010, ch. 324, § 12; reenacted without change, Laws, 2013, ch. 322, § 12; reenacted without change, Laws, 2017, ch. 312, § 12, eff from and after July 1, 2017.

§ 77-3-725. Violations; hearings; penalties.

The commission may investigate alleged violations and initiate proceedings relative to a violation of this article or any rules and regulations promulgated pursuant to this article. Such proceedings include, without limitation, proceedings to issue a cease and desist order, and to issue an order imposing a civil penalty not to exceed Ten Thousand Dollars ($10,000.00) for each violation. The commission shall afford an opportunity for a fair hearing to the alleged violator(s) after giving written notice of the time and place for said hearing. Failure to appear at any such hearing may result in the commission finding the alleged violator(s) liable by default. Any telephone solicitor found to have violated this article, pursuant to a hearing or by default, may be subject to a civil penalty not to exceed Ten Thousand Dollars ($10,000.00) for each violation to be assessed and collected by the commission. Each telephonic communication shall constitute a separate violation.

All penalties collected by the commission shall be deposited in the special fund created under Section 77-3-721 for the administration of this article.

The commission may issue subpoenas, require the production of relevant documents, administer oaths, conduct hearings, and do all things necessary in the course of investigating, determining and adjudicating an alleged violation.

The remedies, duties, prohibitions and penalties set forth under this article shall not be exclusive and shall be in addition to all other causes of action, remedies and penalties provided by law, including, but not limited to, the penalties provided by Section 77-1-53.

HISTORY: Laws, 2003, ch. 478, § 13; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 13; reenacted without change, Laws, 2006, ch. 367, § 13; reenacted without change, Laws, 2010, ch. 324, § 13; reenacted without change, Laws, 2013, ch. 322, § 13; reenacted without change, Laws, 2017, ch. 312, § 13, eff from and after July 1, 2017; Laws, 2019, ch. 471, § 3, eff from and after July 1, 2019.

§ 77-3-727. Consumer complaints.

Any person who has received a telephone solicitation in violation of this article, or any rules and regulations promulgated pursuant to this article, may file a complaint with the commission. The complaint will be processed pursuant to complaint procedures established by the commission.

HISTORY: Laws, 2003, ch. 478, § 14; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 14; reenacted without change, Laws, 2006, ch. 367, § 14; reenacted without change, Laws, 2010, ch. 324, § 14; reenacted without change, Laws, 2013, ch. 322, § 14; reenacted without change, Laws, 2017, ch. 312, § 14, eff from and after July 1, 2017.

§ 77-3-729. Defenses.

It shall be a defense in any action or proceeding brought under Section 77-3-725 or 77-3-727 that the defendant has established and implemented, with due care, reasonable practices and procedures to effectively prevent telephone solicitations in violation of this article.

HISTORY: Laws, 2003, ch. 478, § 15; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 15; reenacted without change, Laws, 2006, ch. 367, § 15; reenacted without change, Laws, 2010, ch. 324, § 15; reenacted without change, Laws, 2013, ch. 322, § 15; reenacted without change, Laws, 2017, ch. 312, § 15, eff from and after July 1, 2017.

§ 77-3-731. Commission granted personal jurisdiction over resident and nonresident telephone solicitors.

The commission is granted personal jurisdiction over any telephone solicitor, whether a resident or a nonresident, notwithstanding that telephone solicitors are not deemed to be a public utility, for the purpose of administering this article. The commission is granted personal jurisdiction over any nonresident telephone solicitor, its executor, administrator, receiver, trustee or any other appointed representative of such nonresident as to an action or proceeding authorized by this article or any rules and regulations promulgated pursuant to this article as authorized by Section 13-3-57, and also upon any nonresident, his or her executor, administrator, receiver, trustee or any other appointed representative of such nonresident who has qualified under the laws of this state to do business herein. Service of summons and process upon the alleged violator of this article shall be had or made as is provided by the Mississippi Rules of Civil Procedure.

HISTORY: Laws, 2003, ch. 478, § 16; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 16; reenacted without change, Laws, 2006, ch. 367, § 16; reenacted without change, Laws, 2010, ch. 324, § 16; reenacted without change, Laws, 2013, ch. 322, § 16; reenacted without change, Laws, 2017, ch. 312, § 16, eff from and after July 1, 2017.

§ 77-3-733. Right of appeal.

Any party aggrieved by any final order of the commission pursuant to this article, or any rules and regulations promulgated pursuant to this article, shall have the right of appeal to the Chancery Court of Hinds County, Mississippi, First Judicial District.

HISTORY: Laws, 2003, ch. 478, § 17; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 17; reenacted without change, Laws, 2006, ch. 367, § 17; reenacted without change, Laws, 2010, ch. 324, § 17; reenacted without change, Laws, 2013, ch. 322, § 17; reenacted without change, Laws, 2017, ch. 312, § 17, eff from and after July 1, 2017.

§ 77-3-735. Service providers certificated by commission not liable for violations of others.

No provider of telephonic caller identification service, local exchange telephone company or long distance company certificated by the commission may be held liable for violations of this article committed by other persons or entities.

HISTORY: Laws, 2003, ch. 478, § 18; reenacted without change, Laws, 2005, 2nd Ex Sess, ch. 62, § 18; reenacted without change, Laws, 2006, ch. 367, § 18; reenacted without change, Laws, 2010, ch. 324, § 18; reenacted without change, Laws, 2013, ch. 322, § 18; reenacted without change, Laws, 2017, ch. 312, § 18, eff from and after July 1, 2017.

§ 77-3-737. Repealed.

Repealed by Laws, 2019, ch. 471, § 4, eff from and after July 1, 2019.

§77-3-737. [Laws, 2003, ch. 478, § 19; Laws, 2005, 2nd Ex Sess, ch. 62, § 19; reenacted without change, Laws, 2006, ch. 367, § 19; Laws, 2010, ch. 324, § 19; Laws, 2013, ch. 322, § 19; reenacted and amended, Laws, 2017, ch. 312, § 19, eff from and after July 1, 2017.]

§ 77-3-801. Short title.

This article may be cited as the “Caller ID Anti-Spoofing Act.”

HISTORY: Laws, 2010, ch. 326, § 1, eff from and after July 1, 2010.

§ 77-3-803. Definitions.

As used in this article:

“Automatic number identification” means a system that identifies the billing account for a call and includes an enhanced 911 service capability that enables the automatic display of the ten-digit number used to place a 911 call from a wire line, wireless, interconnected VoIP or nontraditional telephone service.

“Caller identification information” means information provided by a caller identification service regarding the telephone number, or other origination information, of a call or facsimile transmission made using a telecommunications service or an interconnected VoIP service, or of a text message sent using a text-messaging service.

“Caller identification service” means any service or device designed to provide the user of the service or device with the telephone number of, or other information regarding the origination of, a call made using a telecommunications service or interconnected VoIP service. The term includes automatic number identification services.

“Interconnected VoIP service” means an interconnected Voice over Internet Protocol service that:

Enables real-time, two-way voice communications;

Requires a broadband internet connection from the user’s location;

Requires internet protocol-compatible customer premises equipment; and

Permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

“Place of primary use” means the street address where a subscriber’s use of a telecommunications service or interconnected VoIP service primarily occurs, which shall be:

The residential street address or the primary business street address of the subscriber or, in the case of a subscriber of interconnected VoIP service, the subscriber’s registered location; and

Within the licensed service area of the provider.

“Provider” means a person or entity that offers telecommunications service or interconnected VoIP service.

“Registered location” means the most recent information obtained by an interconnected VoIP service provider that identifies the physical location of an end user.

“Subscriber” means a person:

Who subscribes to a caller identification service in connection with a telecommunications service or an interconnected VoIP service; and

Whose place of primary use for the service described in paragraph (h)(i) is located in Mississippi.

“Telecommunications service” means the offering of telecommunications for a fee directly to the public, or to classes of users so as to be effectively available directly to the public, regardless of the facilities used.

HISTORY: Laws, 2010, ch. 326, § 2, eff from and after July 1, 2010; Laws, 2019, ch. 487, § 1, eff from and after July 1, 2019.

§ 77-3-805. Causing caller identification service to transmit misleading or inaccurate caller identification information to subscriber prohibited.

Except as provided in Section 77-3-807, a person shall not, in connection with any telecommunications service or interconnected VOIP service, knowingly and with the intent to defraud or cause harm to another person or to wrongfully obtain anything of value, cause any caller identification service to transmit misleading or inaccurate caller identification information to a subscriber.

HISTORY: Laws, 2010, ch. 326, § 3, eff from and after July 1, 2010; Laws, 2019, ch. 487, § 2, eff from and after July 1, 2019.

§ 77-3-807. Exceptions.

This article does not apply to:

The blocking of caller identification information.

Any law enforcement agency of the federal, state, county or municipal government.

Any intelligence or security agency of the federal government.

A telecommunications, broadband or voice-over-Internet service provider that is acting solely as an intermediary for the transmission of telephone service between the caller and the recipient.

HISTORY: Laws, 2010, ch. 326, § 4, eff from and after July 1, 2010.

§ 77-3-809. Penalties.

1. Any person who violates this article shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to a fine of not more than One Thousand Dollars ($1,000.00) or shall be imprisoned in the county jail not exceeding one (1) year, or both.
2. Any violation of this article constitutes an unlawful trade practice under Section 75-24-5 and, in addition to any remedies or penalties set forth in this article, shall be subject to any remedies or penalties available for a violation of that statute.
3. Any violation of this article constitutes a violation of the Mississippi Telephone Solicitation Act, Section 77-3-701 et seq., and in addition to any remedies or penalties provided in this article, shall be subject to any remedies or penalties available for a violation of that act.

HISTORY: Laws, 2010, ch. 326, § 5, eff from and after July 1, 2010; Laws, 2019, ch. 487, § 4, eff from and after July 1, 2019.

§ 77-5-1. Short title.

This article may be cited as the “State Rural Electrification Authority Law.”

HISTORY: Codes, 1942, § 5500; Laws, 1936, ch. 183.

§ 77-5-3. Definitions.

The following terms, whenever used in this article, shall have the following meanings, unless a different meaning clearly appears from the context:

“Authority” shall mean the corporation created by this article.

“Board” shall mean the board of directors of the authority.

“Bonds” shall mean and include negotiable bonds, interim certificates or receipts, notes, debentures and all other evidences of indebtedness either issued or the payment thereof assumed by the authority.

“Acquire” shall mean and include construct, acquire by purchase, lease, devise, gift or the exercise of the power of eminent domain, or other mode of acquisition.

“Person” or “inhabitant” shall mean and include natural persons, firms, associations, corporations, business trusts, partnerships and bodies politic.

“Energy” shall mean and include any and all electric energy, no matter how or where generated or produced.

“System” shall mean and include any plant, works, system facilities, or properties, or parts thereof, together with all appurtenances thereto, used or useful in connection with the generation, production, transmission or distribution of energy.

“State” shall mean the State of Mississippi.

“Municipality” shall mean any incorporated city, town or village of the state.

“Federal agency” shall mean and include the United States of America, the President of the United States of America, Tennessee Valley Authority, the Federal Emergency Administrator of Public Works, the Administrator of the Rural Electrification Administration, and any and all other authorities, agencies, and instrumentalities of the United States of America, heretofore or hereafter created.

“Improve” shall mean and include construct, reconstruct, improve, repair, extend, enlarge or alter.

“Service” shall mean and include the sale or other disposition of energy at the lowest cost consistent with sound economy, public advantage and the prudent conduct of the business of the authority.

HISTORY: Codes, 1942, § 5501; Laws, 1936, ch. 183.

§ 77-5-5. Mississippi Rural Electrification Authority created.

A corporation, to be known as the “Mississippi Rural Electrification Authority,” is hereby created as an agency of the state. Said authority shall be a public corporation in perpetuity under its corporate name, and shall under that name be a body politic and corporate.

HISTORY: Codes, 1942, § 5502; Laws, 1936, ch. 183.

§ 77-5-7. Board of directors of authority.

The authority shall have a board of directors. The powers of the authority shall be vested in and exercised by a majority of the members of the board then in office.

HISTORY: Codes, 1942, § 5503; Laws, 1936, ch. 183.

§ 77-5-9. Number, appointment, removal and terms of board of directors.

The board shall consist of three members who shall be appointed by the governor of the state, one (1) each from the three (3) supreme court districts of the state. The first appointment of members of the board shall be made by the governor by April 10, 1936. The term of office of the members of the board first appointed shall be one (1), two (2) and three (3) years, respectively, dating from the first day of the month in which the last of such appointments is made, and thereafter the term of office of the directors shall be three years. Directors shall hold office until their successors are appointed and qualify, and directors shall be eligible for reappointment. An appointment to fill a vacancy shall be for the unexpired term. The governor may remove any member of the board within the term for which such member shall have been appointed, giving to such member a copy of the charges against him and an opportunity to be heard in his defense.

HISTORY: Codes, 1942, § 5504; Laws, 1936, ch. 183.

§ 77-5-11. Organization of board; officers.

Promptly after appointment the board shall meet to organize. At such meeting and at the first meeting in each year thereafter, the members shall choose from their number a president and a secretary.

HISTORY: Codes, 1942, § 5505; Laws, 1936, ch. 183.

§ 77-5-13. Compensation of members of board.

The members of the board shall not be entitled to compensation for their services but they shall be entitled to reimbursement for all expenses incurred in connection with the performance of their duties, and to an honorarium of not more than six hundred dollars ($ 600.00) per year as the governor may decide, payable monthly.

HISTORY: Codes, 1942, § 5506; Laws, 1936, ch. 183.

§ 77-5-15. Members of board shall not hold full time state office.

The members of the board shall not hold any full time salaried public office under the state.

HISTORY: Codes, 1942, § 5507; Laws, 1936, ch. 183.

§ 77-5-17. Powers of board.

The board shall have power to do all things necessary or convenient in conducting the business of the authority, including, but not limited to:

1. The power to adopt and amend by-laws for the management and regulation of its affairs and the business in which it is engaged;
2. To use, with the consent of a municipality, the agents, employees or facilities of such municipality and to provide for payment of the agreed proportion of the costs therefor;
3. To appoint officers, agents and employees and to fix their compensation;
4. To inquire into any matter relating to the affairs of the authority, to compel by subpoena the attendance of witnesses and the production of books and papers material to any such inquiry, to administer oaths to witnesses and to examine witnesses and such books and papers;
5. To appoint an advisory board to assist in the formation of proper policies in respect to the business of the authority;
6. To execute instruments;
7. To delegate to one or more of its members, or to its agents and employees, such powers and duties as it may deem proper.

HISTORY: Codes, 1942, § 5508; Laws, 1936, ch. 183.

§ 77-5-19. Corporate purpose of the authority.

The corporate purpose of the authority is to encourage and promote the fullest possible use of energy by all of the inhabitants of the state by rendering service to said inhabitants, to whom energy is not available or, in the opinion of the board, is not available at reasonable rates.

HISTORY: Codes, 1942, § 5509; Laws, 1936, ch. 183.

§ 77-5-21. General grant of powers to authority.

The authority is hereby vested with all powers necessary or requisite for the accomplishment of its corporate purpose and capable of being delegated by the legislature of this state. No enumeration of particular powers granted shall be construed to impair any general grant of power herein contained, or to limit any such grant to a power or powers of the same class or classes as those so enumerated.

HISTORY: Codes, 1942, § 5510; Laws, 1936, ch. 183.

§ 77-5-23. Grant of specific powers to authority.

The authority shall have power:

To sue and be sued.

To have a seal and alter the same at pleasure.

To render service to the inhabitants of the state and, by contract or contracts with any person, federal agency or municipality or by its own employees, to acquire, own, operate, maintain and improve a system or systems.

To acquire, hold and dispose of property, real and personal, tangible and intangible, or interests therein, in its own name, subject to mortgages or other liens or otherwise and to pay therefor in cash or on credit, and to secure and procure payment of all or any part of the purchase price thereof on such terms and conditions as the board shall determine.

To cause surveys to be made of areas throughout the state for the purpose of determining the economic soundness of the acquisition of a system or systems therein, to make plans and estimates of the cost of such system or systems and in connection therewith to enter on any lands, waters and premises for the purpose of making such surveys, soundings and examinations.

To have complete control and supervision of the system or systems and to make such rules and regulations governing the rendering of service thereby as, in the judgment of the board, may be just and equitable.

To fix, maintain and collect rates and charges for service.

To use any right of way, easement or other similar property right necessary or convenient in connection with the acquisition, improvement, operation or maintenance of a system or systems, held by the state or any political subdivision thereof, provided, that the governing body of such political subdivision shall consent to such use.

To execute all instruments necessary or convenient including, but not limited to, indentures of trust, leases, and bonds.

To borrow money and issue bonds and to provide for the rights of the holders thereof.

To accept gifts or grants of money or property, real or personal, and voluntary and uncompensated services from any person, federal agency or municipality.

To condemn any land, easements, or rights of way, either on, under, or above the ground as the board may deem necessary for any of the purposes mentioned in this article, and such property or interest in such property may be so acquired whether or not the same is owned or held for public use by corporations, associations or persons having the power of eminent domain or otherwise held or used for public purposes. Such power of condemnation may be exercised in the mode or method of procedure prescribed by Chapter 27, Title 11, of the Mississippi Code of 1972, or in the mode or method of procedure prescribed by any other applicable statutory provisions now in force or hereafter enacted for the exercise of the power of eminent domain. Where condemnation proceedings become necessary the judge of the circuit court in which such proceedings are filed shall upon application of the authority and upon the deposit in the court, to the use of the person or persons lawfully entitled thereto, of such an amount as the judge may deem necessary to assure just compensation, order that the right of possession shall issue immediately or as soon and upon such terms as the judge, in his discretion, may deem proper and just. Upon application of the parties in interest, the judge may order that the money deposited in the court, or any part thereof, be paid forthwith for or on account of the just compensation to be awarded in said proceedings.

To make any and all contracts necessary or convenient for the full exercise of the powers herein granted, including, but not limited to, contracts with any person, federal agency, or municipality (a) for the purchase or sale of energy, (b) for the management and conduct of the business of the authority or any part thereof, and (c) for the acquisition of all or part of any system or systems. In connection with any such contract the authority shall have the power to stipulate and agree to such covenants, terms and conditions as the board may deem appropriate, including, but without limitations, covenants, terms and conditions with respect to the resale rates, financial and accounting methods, services, operation and maintenance practices, and the manner of disposing of the revenues of the system or systems conducted and operated by the authority.

To do any and all acts and things herein authorized or necessary or convenient to carry out the powers expressly given in this article under, through or by means of its own officers, agents and employees, or by contracts with any person, federal agency or municipality.

To pledge all or any part of its revenues and to mortgage or otherwise incumber all or any part of its property for the purpose of securing the payment of the principal and interest on any of its bonds or other obligations.

HISTORY: Codes, 1942, § 5511; Laws, 1936, ch. 183.

§ 77-5-25. Operations outside of state authorized.

To the extent necessary in the judgment of the board to make effective the powers conferred by this article, the authority shall have the power to acquire, own, operate, maintain and/or improve a generating and/or transmission system or systems outside the State of Mississippi.

HISTORY: Codes, 1942, § 5512; Laws, 1936, ch. 183.

§ 77-5-27. Issuance of bonds by authority.

The authority shall have power and is hereby authorized from time to time to issue its bonds in anticipation of its revenues, for any corporate purpose. Said bonds may be authorized by resolution or resolutions of the board, and may be issued in one or more series, may bear such date or dates, mature at such time to times not exceeding twenty-five (25) years from their respective dates, bear interest at such rate or rates, not exceeding that allowed in Section 75-17-103, Mississippi Code of 1972, payable semiannually, be in such denominations, be in such form, either coupon or registered, be executed in such manner, be payable in such medium of payment, at such place or places, be subject to such terms of redemption, with or without premium, and be declared or become due before the maturity date thereof, as such resolution or resolutions may provide. Said bonds may be issued for money or property, at public or private sale for such price or prices, as the board shall determine. The interest cost to maturity of the money or property (at its value as determined by the board, the determination of which shall be conclusive) received for any issue of said bonds, shall not exceed the rate allowed in Section 75-17-103, Mississippi Code of 1972. Said bonds may be repurchased by the authority out of any available funds at a price not to exceed the principal amount thereof and accrued interest, and all bonds so repurchased shall be canceled. Pending the preparation or execution of definitive bonds, interim receipts or certificates, or temporary bonds may be delivered to the purchaser or purchasers of said bonds. Any provision of law to the contrary notwithstanding, any bonds and the interest coupons appertaining thereto, if any, issued pursuant to this article shall possess all of the qualities of negotiable instruments.

HISTORY: Codes, 1942, § 5513; Laws, 1936, ch. 183; Laws, 1982, ch. 434, § 35; Laws, 1983, ch. 541, § 43, eff from and after passage (approved April 25, 1983).

§ 77-5-29. Validity of bonds.

Said bonds bearing the signature of officers in office on the date of the signing thereof shall be valid and binding obligations notwithstanding that before the delivery thereof and payment therefor any or all the persons whose signatures appear thereon shall have ceased to be officers. The validity of said bonds shall not be dependent on nor be affected by the validity or regularity of any proceedings relating to the acquisition or improvement of the system or systems for which said bonds are issued. The resolution or resolutions authorizing said bonds may provide that the bonds shall contain a recital that they are issued pursuant to this article, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.

HISTORY: Codes, 1942, § 5514; Laws, 1936, ch. 183.

§ 77-5-31. Bonds of authority not debts of state.

No holder or holders of any bonds issued under this article shall ever have the right to compel any exercise of the taxing power of the state or of any political subdivision thereof to pay said bonds or the interest thereon. Each bond issued under this article shall recite in substance that said bond, including the interest thereon, is payable from the revenues pledged to the payment thereof, and that said bond does not constitute a debt of the state.

HISTORY: Codes, 1942, § 5515; Laws, 1936, ch. 183.

§ 77-5-33. Rates, fees and charges; application thereof.

The authority shall not be operated for gain or profit or primarily as a source of revenue to the state. The authority shall, however, prescribe and collect reasonable rates, fees or charges for the services, facilities and commodities made available by it, and shall revise such rates, fees or charges from time to time whenever necessary so that the authority shall be and always remain self-supporting, and shall not require appropriations by the state to enable it to carry out its purpose. The rates, fees, or charges prescribed shall be such as will produce revenue at least sufficient (a) to pay when due all bonds and interest thereon, for the payment of which such revenue is or shall have been pledged, charged or otherwise incumbered, including reserves therefor, and (b) to provide for all expenses of operation, maintenance or improvement of the system or systems acquired by the authority, including reserves therefor. Any surplus thereafter remaining shall be devoted solely to the reduction of rates.

HISTORY: Codes, 1942, § 5516; Laws, 1936, ch. 183.

§ 77-5-35. Pledge of state to bondholders that it will not impair rate-making power of authority.

The state does pledge to and agree with the holders of bonds issued by the authority that the state will not limit or alter the rights and powers vested in the authority to fix and collect such rates, fees and charges as may be necessary or advisable in order to produce sufficient revenue to meet all expenses of maintenance and operation of its system or systems and to fulfill the terms of any agreements made with the holders of such bonds, or in any way impair the rights and remedies of the holders of such bonds, until such bonds together with interest thereon, and interest on any unpaid installments of interest, and all costs and expenses in connection with any suits, actions or proceedings by or on behalf of such bondholders are fully paid and discharged.

HISTORY: Codes, 1942, § 5517; Laws, 1936, ch. 183.

§ 77-5-37. Security for bonds.

In connection with the issuance of bonds or in order to secure the payment of its bonds, the authority incorporated under this article shall have power:

To pledge all or any part of its revenues.

To vest in a trustee or trustees the right to enforce any covenant made to secure, to pay, or in relation to its bonds, to provide for the powers and duties of such trustee or trustees, to limit the liabilities thereof, and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any amount or proportion of them may enforce any such covenant.

To make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds or which, in the absolute discretion of the board, tend to make the bonds more marketable notwithstanding that such covenants, acts and things may restrict or interfere with the exercise of the powers granted in this article, it being the intention hereof to give the authority power to do all things in the issuance of bonds, and for their security, that a private business corporation can do under the general laws of the state.

HISTORY: Codes, 1942, § 5518; Laws, 1936, ch. 183.

§ 77-5-39. Rights and remedies of bondholders.

In addition to all other rights and all other remedies, any holders of bonds of the authority, including a trustee for bondholders, shall have the right by mandamus or other suit, action or proceeding, at law or in equity, to enforce their rights against the authority and the board of the authority, including the right to require the authority and such board to fix and collect rates and charges adequate to carry out any agreement as to, or pledge of, the revenues produced by such rate or charges, and to require the authority and such board to carry out any other covenants and agreements with such bondholders and to perform its and their duties under this article.

HISTORY: Codes, 1942, § 5519; Laws, 1936, ch. 183.

§ 77-5-41. Moneys of the authority.

All moneys of the authority, from whatever source derived, shall be deposited in one or more banks or trust companies and, if the authority shall so require, each of such accounts shall be continuously secured by a pledge of direct obligations of the United States of America or of the State of Mississippi having an aggregate market value, exclusive of accrued interest, at all times at least equal to the balance on deposit in such account or accounts. Such securities shall either be deposited with the authority or held by a trustee or agent satisfactory to the authority. In lieu of any such pledge of such securities, said deposits may be secured by a surety bond or bonds which shall be in form, sufficiency and substance satisfactory to the authority.

HISTORY: Codes, 1942, § 5520; Laws, 1936, ch. 183.

§ 77-5-43. Assets of authority shall pass to state upon cessation of authority’s existence.

In the event that the authority shall cease to exist, all of its assets remaining after all of its obligations and liabilities have been satisfied or discharged shall pass to and become the property of the state.

HISTORY: Codes, 1942, § 5521; Laws, 1936, ch. 183.

§ 77-5-45. Authority and its property subject to taxation.

The authority and its property shall be liable for taxes and shall be taxed and assessed in the same manner and to the same extent as a privately owned utility.

HISTORY: Codes, 1942, § 5522; Laws, 1936, ch. 183.

§ 77-5-47. Right of way over certain state lands granted to associations and corporations operating under this article.

All associations or corporations formed and operating under this article are hereby authorized and empowered to construct electric lines on and over all of those lands matured in the State of Mississippi through tax sale, and also on and over unimproved sixteenth sections, and lands granted in lieu of sixteenth sections.

The right and power to construct and maintain said lines shall be during the existence of said corporation or association, and without payment to the state for said easement.

HISTORY: Codes, 1942, § 5525; Laws, 1938, ch. 249.

§ 77-5-49. Article complete in itself.

This article is complete in itself and shall be controlling. The provisions of any other law, general, special, or local, except as provided in this article, shall not limit or restrict the powers granted by this article.

HISTORY: Codes, 1942, § 5523; Laws, 1936, ch. 183.

§ 77-5-101. Short title.

This article may be cited as “The Power District Law.”

HISTORY: Codes, 1942, § 5439; Laws, 1936, ch. 187.

§ 77-5-103. Definitions.

Unless the context otherwise requires:

“Power district” or “district” means a power district organized under this article, either as originally organized or as the same may be from time to time altered or amended.

“Municipality” means any incorporated city, incorporated town or incorporated village.

“Governing body,” whenever used in relation to any municipality or county, means the body or board, by whatsoever name known, having charge of the governing of such municipality or county and shall be held to include the mayor or other chief executive officer of such municipality or county in any case wherein the concurrence or approval of such officer is required by the law governing such municipality or county for the adoption of any municipal or county ordinance or resolution or other municipal or county act provided for in this article.

“Board of directors,” “directors” or “board” means the board of directors of a power district selected as provided in this article, duly constituted, organized and acting as a board.

“Election unit” means an election district as provided for by Chapter 5 of Title 23, Mississippi Code of 1972.

“Bonds” shall mean and include negotiable bonds, interim certificates or receipts, notes, debentures and all other evidences of indebtedness either issued or the payment thereof assumed by the authority.

“Public utility” or “utility” means the plant, works, system, facilities or properties together with all parts thereof and appurtenances thereto, including contract rights, used and useful primarily for the production, transmission or distribution of electric energy to or for the public for any purpose.

HISTORY: Codes, 1942, § 5440; Laws, 1936, ch. 187.

§ 77-5-105. Boundaries of power districts.

Power districts, the boundaries of which shall be coterminous with the boundaries of one or more election units, which need not be contiguous, but which shall not be more distant from one another than twenty miles, may be created as hereafter provided in this article, and when so created shall be considered bodies politic and corporate and shall possess and may exercise the powers granted in this article. However, no municipality shall be divided in the creation of a district.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-107. Resolution seeking election authorizing creation of power district.

The governing bodies of one-half or more of the municipalities, if any, proposed to be included in the district [or, (a) if the proposed district includes only territory not within the corporate limits of any municipality, then the governing body or bodies of the county or counties containing such territory, or (b) if the proposed district includes a municipality or municipalities and territory not within the corporate limits of any municipality, then the governing bodies of the municipality, or if more than one, the governing bodies of one-half or more of the total number of municipalities proposed to be included in the district and of the county or counties containing such territory] shall first pass resolutions, declaring the public convenience and necessity demand the creation and maintenance of the power district to be known as the “(giving the name) power district.” Such resolution shall name the municipalities and describe the unincorporated territory, if any, which it is proposed to include in such district. Any such resolutions so passed shall be presented to the clerk of the board of supervisors of each county containing a part of the proposed district. Such resolutions shall request that an election be called without delay for determining whether such district shall be created.

Each such resolution shall divide the proposed district into five subdistricts, as provided in Section 77-5-123, giving each a number. In the event that the boundaries of the district as originally proposed are changed at the election, the boundaries of the subdistricts shall be changed as hereinafter provided.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-109. Petition seeking election authorizing creation of power district.

In lieu of the resolutions, or any of them, provided for in the preceding section, a petition or petitions may be presented to the clerk of the board of supervisors of each county in which any part of the proposed district is situated, signed by at least ten percent (10%) of the qualified voters in any election unit or units to be included in the proposed district. Said petition shall declare that in the opinion of the petitioners, public convenience and necessity demand the creation and maintenance of a power district, and shall contain the information required by this article of the resolutions referred to in the preceding section. The petition may be on separate sheets of paper, but each sheet shall contain the affidavit of the person who circulated the same, certifying that each name signed thereto is the true signature of the person whose name it purports to be.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-111. Calling of election.

Upon receipt of the certified copies of the resolutions and/or petitions mentioned in the preceding sections, each such board of supervisors shall without delay call an election in each election unit of such county proposed to be included in the district, for the purpose of determining whether the proposed district shall be created, and shall give notice of such election. Such notice shall state the name of the proposed district and describe its boundaries, and shall state the time when such election shall be held and the location of the polling places. The same shall be published at least once a week for at least three (3) consecutive weeks before the date of said election in some newspaper or newspapers having a general circulation within the proposed district. In case the proposed power district includes election units located in two (2) or more counties, then the board of supervisors of the county in which the largest portion of the territory of the proposed power district is located shall fix the date of such election.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-113. Conduct of election.

The ballots for said election shall be in such form, shall contain such instructions and shall be of such size and color as are required by Chapter 5 of Title 23, Mississippi Code of 1972, except that there shall appear thereon the following: “Shall the ‘(giving the name thereof) power district’ be created and established?

( ) Yes ( ) No”

Such election and all matters pertaining thereto not otherwise provided for herein shall be held and conducted and the results thereof ascertained, determined and declared in accordance with Chapter 5 of Title 23, Mississippi Code of 1972. No person shall be entitled to vote in such election unless he or she be a qualified elector of an election unit in which such election is held. Such election may be held on the same day as any other state, county, or city election and may be consolidated therewith.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-115. Canvassing results of election; declaration of creation of district.

Each county board of election commissioners, if more than one (1), shall canvass the returns as required by Section 23-5-169, and shall ascertain and declare the result of such election in each election unit separately and shall further ascertain and determine the total number of qualified electors in each such election unit separately as of the date of such election. Each county board of election commissioners, if more than one (1), shall, within ten (10) days from the date of such election, file with the clerk of the board of supervisors of their county a statement of the result of said election in each such election district separately and of the number of qualified electors in each such election unit as of the date of the election. In the event the proposed power district includes territory located in two or more counties such statement shall also, within the same period of time, be filed with the clerk of the board of supervisors of the county in which the largest portion of the territory of the proposed power district is located. The board of supervisors of the county in which such proposed power district is located, or in the event such proposed power district includes territory located in two (2) or more counties, the board of supervisors of the county in which the largest portion of such territory is located, shall promptly canvass all such statements and shall order and declare the district created and composed of the election units in which a majority of those voting on the proposition voted in favor of the creation of the district. The election unit or units so approving the organization of said district shall contain not less than two-thirds (2/3) of the number of qualified voters within the district as first proposed.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-117. Filing of order declaring creation of district.

Such board of supervisors shall thereupon promptly cause a certified copy of the order declaring such power district created to be filed in the office of the secretary of state. A certified copy of such order shall also be filed with the clerk of each municipality included in the proposed district, and with the clerk of the board of supervisors of each county, any unincorporated part of which is included in the proposed district. From and after the filing of such copy of the order with the secretary of state, the creation and incorporation of such district shall be deemed complete.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-119. Payment of costs incurred in creation of district.

All costs properly incurred by the boards of supervisors and the boards of election commissioners of the respective counties in publishing notice of the election, in employing persons to conduct the same, or in performing other duties imposed by the provisions of this article, shall be paid as other similar expenses of such boards are paid and shall be and become a charge in favor of such boards against the district, to be repaid upon the presentation of proper vouchers therefor to such district, when and as such district has funds available for that purpose.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-121. Proceedings contesting creation of district.

No informality in any proceedings or in the conduct of said election, not substantially affecting adversely the legal rights of any citizen, shall be held to invalidate the creation of any district. Any proceedings wherein the validity of such creation is denied shall be commenced within thirty (30) days from the date of filing the order creating the district with the secretary of state, otherwise such creation and the legal existence of said district shall be held to be valid and in every respect legal and incontestable.

HISTORY: Codes, 1942, § 5441; Laws, 1936, ch. 187.

§ 77-5-123. Subdistricts.

The boundaries of the subdistricts shall be drawn in such a manner that each shall contain approximately an equal number of voters, except that no municipality shall contain more than two (2) subdistricts, nor shall any municipality be divided unless it shall comprise more than one (1) subdistrict. Should the district as finally constituted comprise a smaller area than originally proposed because of the failure of one or more election units or municipalities to approve the district at the election, then at the first meeting of the board of directors the boundaries of the subdistricts shall be redetermined so as to conform to the terms hereof.

HISTORY: Codes, 1942, § 5442; Laws, 1936, ch. 187.

§ 77-5-125. Alteration of districts.

Whenever a district shall, by resolution of its board, determine that it is in the public interest and in the interest of efficient and economical operation of a utility to alter the territorial limits of a district, it shall so order and certified copies of such order shall be filed with the secretary of state, the clerk of each municipality in the district and the clerk of the board of supervisors of each county in which any portion of the district is located. Thereupon the territorial limits of a district shall be considered altered in accordance with such order. However, any territory added to a district must be coterminous with an election unit or units. No additional territory may be added to a district except upon the petition of not less than one-third (1/3) of the qualified voters residing therein, certified as provided in Section 77-5-109. The order of the board hereinabove referred to shall contain a statement of the number and percentage of such petitioners, if any. In the event the boundaries of any election unit or units are changed subsequent to the creation of a district, then the whole of any election unit, any part of which was theretofore within the district, shall automatically become a part of said district.

HISTORY: Codes, 1942, § 5444; Laws, 1936, ch. 187.

§ 77-5-127. Consolidation of districts.

Two (2) or more districts may be consolidated by a determination of the board of each district, fixing the terms and conditions of such consolidation. Certified copies of such determination shall be filed with the secretary of state, the clerk of each municipality in the district and the clerk of the board of supervisors of each county in which any portion of the district is located. Thereupon the consolidation shall be effective to create a single district.

Preexisting rights and liabilities shall not be affected by such consolidation.

HISTORY: Codes, 1942, § 5445; Laws, 1936, ch. 187.

§ 77-5-129. Dissolution of districts.

1. A district shall be considered dissolved:
   1. Where, within two (2) years after its creation, it has not become the owner or operator, or commenced construction, of a public utility. Any time consumed in any proceeding or contest before any judicial or other tribunal shall not be included as part of said two-year period.
   2. Where a district has disposed of all of its utility property and for one (1) year thereafter shall not have owned or operated a public utility.
   3. Where the board has by resolution determined that the continued existence of the district is not in the public interest, and shall have made an order to such effect and filed a certified copy of such order with the secretary of state. However, no district shall be dissolved under this subsection until after an election held in the manner set forth in this article to be called and held by the respective county boards of election commissioners upon the request of the board, except that in lieu of the question prescribed by section 77-5-113 for inclusion on the ballot there shall appear thereon the following: “Shall the ‘(giving the name thereof) power district’ be dissolved?

      ( )Yes ( ) No”

      A majority of those voting in the entire district shall govern.

2. Any district dissolved in accordance with the provisions of this section shall cease to continue as a body corporate for the purpose of doing business but shall continue as such for such period as may be necessary to settle the business of the district, wind up its affairs, dispose of its assets and settle its obligations, and for no other purpose. Under such circumstances the board shall have the powers of receivers in equity to determine what is in the best interest of creditors and users of the service of the district. In the event of dissolution the assets of the district and the proceeds thereof shall be used first to pay the expenses of settling the affairs of the district, then for the payment of creditors in the order of their priority, and any surplus remaining shall become the property of the State of Mississippi.

HISTORY: Codes, 1942, § 5446; Laws, 1936, ch. 187.

§ 77-5-131. Government of districts; selection of directors.

1. The government of each district shall be vested in a board of five (5) directors. There shall be a director for each subdistrict who shall be appointed by the chief executive or executives of the municipality or municipalities (or municipalities and counties if any unincorporated territory is included within said subdistrict) included within said subdistrict. For the purpose of this article the president of the board of supervisors shall be considered as the chief executive of the county.
2. Within ten (10) days after the creation and incorporation of such district shall have been completed the chief executives (if there be more than one) in each subdistrict shall meet for the selection of a director for said subdistrict, the time and place of such meeting to be designated by the chief executive of the county. If there be only one (1) chief executive in such subdistrict, he shall select the director thereof.
3. Where a municipality or unincorporated territory contains two subdistricts, the chief executive of such municipality or county shall select a director for each subdistrict, and shall file forthwith certified copies thereof as provided by subsection (4) of this section.
4. In the selection of a director, each chief executive (if there be more than one ) shall have one (1) vote for each one hundred (100) voters or major portion thereof within his municipality or unincorporated county territory, as the case may be, or such part thereof as is located in said subdistrict. A majority vote shall be necessary for the selection of a director. The result of said selection shall be certified to by the chairman of said meeting (or by the chief executive, if there be only one) and forthwith filed with the secretary of state and the clerk of each municipality and the clerk of the board of supervisors of each county any unincorporated part of which is included in said district. Such meeting may be adjourned from time to time.
5. The meeting of the chief executives for the selection of directors subsequent to the initial selection of directors shall be held within the district on the second Tuesday in April in even numbered years prior to the expiration of the term of any director. The secretary of the district shall designate the time and place of each such meeting. Except as otherwise provided in this subsection, every selection of a director subsequent to the intitial selection of directors shall be made in the manner provided by this article for the initial selection of directors.
6. The secretary of the district, appointed pursuant to Section 77-5-143, shall obtain, compile and file in his office, for the information of the public, thirty days prior to the date of the election of any director as provided herein, a statement showing the total number of qualified electors in each election unit included in the district. The county boards of election commissioners shall furnish such information so far as obtainable from their records, duly certified, to the secretary of the district upon his request therefor.

HISTORY: Codes, 1942, § 5443; Laws, 1936, ch. 187.

§ 77-5-133. Term and oath of directors.

Directors selected from odd numbered subdistricts shall for the first term serve for a period which shall end two (2) years after the first Monday of May of the next even numbered year. Directors selected from even numbered subdistricts shall for the first term serve for a period which shall end four (4) years after the first Monday of May of the next even numbered year.

The regular term of directors of the district after the first term shall be for four (4) years. Each director shall hold office until his successor is selected and qualifies.

Each director shall, before entering upon the discharge of his duties, take and subscribe to the oath of office prescribed by Section 268 of the Constitution of 1890. Such oath shall be filed in the office of the clerk of the district.

HISTORY: Codes, 1942, § 5443; Laws, 1936, ch. 187.

§ 77-5-135. Vacancies in director’s office.

The death of a director, his resignation, his removal for cause by the appointing power, his disability to continue for any cause to act as director, or his change of residence from the district, shall vacate the office. Within twenty (20) days after a determination of the vacancy by the appointing power, a successor for the unexpired term shall be selected by such appointing power.

HISTORY: Codes, 1942, § 5449; Laws, 1936, ch. 187.

§ 77-5-137. Compensation and expenses of directors.

Each director of the district shall receive compensation from the district for his services as such at the rate of not more than ten dollars ($10.00) for each day he shall attend meetings of the board or when he is engaged upon the business of the board, not to exceed the sum of two hundred fifty dollars ($250.00) in any one year. He shall also be entitled to be reimbursed for actual and necessary expenses incurred by him in the performance of his duties required of him by law or by resolution or vote of the board.

HISTORY: Codes, 1942, § 5450; Laws, 1936, ch. 187.

§ 77-5-139. Board of directors to function as legislative body of district.

The board of directors shall constitute the legislative body of such district and determine all questions of policy.

HISTORY: Codes, 1942, § 5451; Laws, 1936, ch. 187.

§ 77-5-141. Powers of the district board.

The board of directors of any district shall have power and authority:

To exercise by vote, ordinance or resolution all of the general powers of the district.

To make all needful rules, regulations and by-laws for the management and the conduct of the affairs of the district and of the board.

To adopt a seal for the district, prescribe the style thereof, and alter the same at pleasure.

To lease, purchase, sell, convey and mortgage the property of the district and to execute all instruments, contracts, mortgages, deeds or bonds on behalf of the district in such manner as the board shall direct.

To appoint and fix the salaries and duties of such experts and attorneys as it deems necessary, to hold office during the pleasure of the board and upon such terms and conditions as the board may require.

To make any and all contracts necessary or convenient for the full exercise of the powers in this article granted, including, but not limited to, contracts with any municipality, the United States of America, the President of the United States of America, Tennessee Valley Authority, the Federal Emergency Administrator of Public Works and any and all other authorities, agencies, and instrumentalities of the United States of America, for the purchase or sale of electric energy, and for the acquisition of all or any part of any utility or utilities. In connection with any such contract, the board may stipulate and agree to such covenants, terms and conditions as the board may deem appropriate including, but without limitation, covenants, terms and conditions with respect to the resale rates, financial and accounting methods, services, operation and maintenance practices, and the manner of disposing of the revenues of the utility operated and maintained by the district.

To do all things necessary or convenient to carry out its functions.

HISTORY: Codes, 1942, § 5452; Laws, 1936, ch. 187.

§ 77-5-143. Appointment of officers.

The board shall appoint a general manager, a secretary and a treasurer, and the board may appoint and fix the duties of such other officers as it deems necessary. Such appointees shall hold office during the pleasure of the board, and such appointees shall give such bonds and in such amounts as the board may require. The general manager shall not be, and the clerk and treasurer need not be, members of the board. The secretary and treasurer may be the same person.

HISTORY: Codes, 1942, § 5451; Laws, 1936, ch. 187.

§ 77-5-145. Qualifications, powers and duties of general manager.

1. The general manager shall be the chief executive officer of the district. He shall be chosen by the board of directors solely on the basis of his executive and administrative qualifications and need not, when appointed, be a resident of the state. All other things being equal, the board of directors shall appoint as general manager a person with experience in the construction, operation or management of public utilities. In case of the absence or disability of the manager, the board may designate some qualified person to perform the duties of the office during such absence or disability.
2. The general manager shall have full charge and control of the construction of the works of said district and of their maintenance and operation, and of the administration of the business affairs of said district. The powers and duties of the general manager shall be:
   1. To see that all resolutions, rules and regulations of the district are enforced;
   2. To appoint or hire, except as otherwise provided in this article, all heads of departments, subordinate officials and employees necessary for the administration of the affairs of said district, and to remove the same;
   3. To attend to all meetings of the board of directors (but not to vote) and submit a general report of the affairs of the district, and to participate in the discussion of all matters coming before the board;
   4. To keep the directors advised as to the financial condition and future needs of the district, and to prepare and submit an annual budget;
   5. To prepare or cause to be prepared, all plans and specifications for the construction of the works of said district;
   6. To perform such other and additional duties as the board of directors may require.
3. The general manager shall within sixty (60) days from the end of each fiscal year cause to be published a financial report showing the result of operations for the preceding fiscal year and the financial status of the district on the last day thereof. Said publication shall be made at least three (3) times in newspapers of general circulation printed and published in the district, or, if there be no such newspaper in the district, then in some newspaper of general circulation within the district. So far as practical said publications shall be in different newspapers.

HISTORY: Codes, 1942, § 5453; Laws, 1936, ch. 187.

§ 77-5-147. Duties of secretary.

The principal duties of the secretary of the district shall be to act as secretary of the board and to record and sign all minutes of meetings of the board, including all resolutions and ordinances adopted by the board; to safely and systematically keep all records, files and papers of the board; to safely keep the corporate seal of the district and to affix the same on behalf of the board, and to all certificates by him made as secretary of the district; to sign, execute or acknowledge with the chairman of the board all contracts, deeds, leases or other instruments authorized by the board to be executed by or on behalf of the district, and, if authorized, to deliver the same; and to perform such other duties as may be imposed upon him by law or by vote, resolution or ordinance adopted by the board.

HISTORY: Codes, 1942, § 5453; Laws, 1936, ch. 187.

§ 77-5-149. Duties of treasurer.

The principal duties of the treasurer of the district shall be to demand, receive, keep and account for all moneys and credits of the district; to pay to the persons entitled thereto the amounts called for in the orders or warrants drawn upon him by the secretary of the district and to take and keep receipts, vouchers or other suitable evidences of payment therefor; to keep accurate account of all moneys received and disbursed by him and to render such accounts, statements and inventories of moneys and credits received and disbursed and on hand and generally of all matters pertaining to his office as the board of directors may require; and to perform such other duties as may be imposed upon him by law or by vote, resolution or ordinance adopted by the board.

HISTORY: Codes, 1942, § 5453; Laws, 1936, ch. 187.

§ 77-5-151. Corporate purpose of district.

A district shall be created for the purpose of conducting and operating a utility, and to carry out such purpose it shall have power and authority to acquire, construct, reconstruct, operate, maintain, extend or improve any utility within or without the district, and to furnish, deliver and sell to the public, to any municipality, to the state and to any public institution heat, light and power service and any other service, commodity or facility which may be produced or furnished in connection therewith.

HISTORY: Codes, 1942, § 5447; Laws, 1936, ch. 187.

§ 77-5-153. General powers of district.

Any district created pursuant to the provisions of this article shall be vested with all the powers necessary and requisite for the accomplishment of the purpose for which such district is created, capable of being delegated by the legislature. No enumeration of particular powers created in Section 77-5-155 shall be construed to impair or limit any general grant of power herein contained or to limit any such grant to a power or powers of the same class or classes as those enumerated. The district is empowered to do all acts necessary, proper or convenient in the exercise of the powers granted under this article.

HISTORY: Codes, 1942, § 5447; Laws, 1936, ch. 187.

§ 77-5-155. Specific powers of district.

Any district created pursuant to this article shall have the power:

To sue and be sued

To have a seal

To acquire by purchase, gift, devise, lease or exercise of the power of eminent domain or other mode of acquisition and to hold and dispose of real and personal property of every kind within or without the district, subject to mortgages or any other liens.

To make and enter into contracts, conveyances, mortgages, deeds of trust, bonds or leases.

To incur debts, to borrow money, to issue negotiable bonds and other evidences of indebtedness and to provide for the rights of holders thereof.

To fix, maintain and collect rates and charges for any service.

To pledge all or any part of its revenues.

To make such covenants in connection with the issuance of bonds, or to secure the payment of bonds, that a private business corporation can make under the general laws of the state, notwithstanding that such covenants may operate as limitations on the exercise of any power granted by this article.

To use any right of way, easement or other similar property right necessary or convenient in connection with the acquisition, improvement, operation or maintenance of a utility, held by the state or any political subdivision thereof, provided that the governing body of such political subdivision shall consent to such use.

HISTORY: Codes, 1942, § 5447; Laws, 1936, ch. 187.

§ 77-5-157. Exercise of eminent domain by district.

Any district shall have the power to condemn any land, easements, or rights of way either on, under or above the ground as the board may deem necessary for any of the purposes mentioned in this article, and such property or interest in such property may be so acquired whether or not the same is owned or held for public use by corporations, associations or persons having the power of eminent domain, or otherwise held or used for public purposes. Such power of condemnation may be exercised in the mode or method of procedure prescribed by Chapter 27 of Title 11, Mississippi Code of 1972, or in the mode or method or procedure prescribed by any other applicable statutory provisions now in force or hereafter enacted for the exercise of the power of eminent domain. Where condemnation proceedings become necessary the judge of the circuit court in which such proceedings are filed shall upon application of the district and upon the deposit in the court, to the use of the person or persons lawfully entitled thereto, of such an amount as the judge may deem necessary to assure just compensation, order that the right of possession shall issue immediately or as soon and upon such terms as the judge in his discretion, may deem proper and just. Upon application of the parties in interest, the judge may order that the money deposited in the court, or any part thereof, be paid forthwith for or on account of the just compensation to be awarded in said proceedings.

HISTORY: Codes, 1942, § 5461; Laws, 1936, ch. 187.

§ 77-5-159. Operations outside of state authorized.

To the extent necessary in the judgment of the board to make effective the powers conferred by this article, the district shall have the power to acquire, own, operate, maintain and/or improve a generating and/or transmission system or systems outside the State of Mississippi.

HISTORY: Codes, 1942, § 5448; Laws, 1936, ch. 187.

§ 77-5-161. Issuance of bonds by district.

Each district shall have power and is hereby authorized from time to time to issue its bonds in anticipation of its revenues. Said bonds may be issued for any corporate purpose or purposes of such district. Said bonds shall be authorized by resolution of the board of such district and may be issued in one or more series, may bear such date or dates, mature at such time or times not exceeding forty years from their respective dates, be in such denominations, be in such form, either coupon or registered, be executed in such manner, be payable in such medium of payment, at such place or places, be subject to such terms of redemption, with or without premium, and be declared or become due before the maturity date thereof, as such resolution or resolutions may provide. Said bonds may be issued for money or property, at public or private sale for such price or prices, as the board shall determine, provided that the interest cost to maturity of the money or property (at its value as determined by such board, the determination of which shall be conclusive), received for any issue of said bonds, shall not exceed six (6) per centum per annum, payable semiannually. Said bonds may be repurchased by the district out of any funds available for such purpose at a price of not more than the principal amount thereof and accrued interest, and all bonds so repurchased shall be canceled. Pending the preparation or execution of definitive bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser of said bonds. Any provision of law to the contrary notwithstanding, any bonds and the interest coupons appertaining thereto, if any, issued pursuant to this article shall possess all of the qualities of negotiable instruments.

HISTORY: Codes, 1942, § 5454; Laws, 1936, ch. 187.

§ 77-5-163. Rights and remedies of bondholders.

In addition to all other remedies, any holder of a bond of any district incorporated under this article, including a trustee for bondholders, shall have the right, subject to any contractual limitations binding upon such bondholders or trustee, and subject to the prior or superior rights of others:

By mandamus or other suit, action or proceeding, at law or in equity, to enforce his rights against such district and the board of such district, including the right to require such district and such board to fix and collect rates and charges adequate to carry out any agreement as to, or pledge of, the revenues produced by such rates or charges, and to require such district and such board to carry out any other covenants and agreements with such bondholder and to perform its and their duties under this article.

By action or suit in equity to enjoin any acts or things which may be unlawful or a violation of the rights of such bondholder.

By action or suit in equity to require such board to account as if it were the trustee of an express trust for such bondholder.

By suit, action or proceeding in court exercising equitable jurisdiction to obtain the appointment of a receiver of the utility or utilities owned or operated by the district, or any part or parts thereof, who may enter and take possession of such utility or any part or parts thereof, including all property, land, property rights, easements and other adjuncts of the utility. Such receiver may operate and maintain the same, and collect and receive all revenues thereafter arising therefrom in the same manner as such district itself might do, and shall deposit all such moneys in a separate account or accounts and apply the same in accordance with the obligations of such district as the court shall direct.

HISTORY: Codes, 1942, § 5455; Laws, 1936, ch. 187.

§ 77-5-165. Reduction of rates.

After all proper charges against the revenues of a district have been made, any surplus remaining shall be devoted solely to the reduction of rates.

HISTORY: Codes, 1942, § 5457; Laws, 1936, ch. 187.

§ 77-5-167. Moneys of districts.

All moneys of a district, from whatever source derived, shall be deposited in one or more banks or trust companies, and, if the district shall so require, each of such accounts shall be continuously secured by a pledge of direct obligations of the United States of America or of the State of Mississippi having an aggregate market value, exclusive of accrued interest, at all times at least equal to the balance on deposit in such account or accounts. Such securities shall either be deposited with the district or held by a trustee or agent satisfactory to the district. In lieu of any such pledge of such securities, said deposits may be secured by a surety bond or bonds which shall be in form, sufficiency and substance satisfactory to the district.

HISTORY: Codes, 1942, § 5458; Laws, 1936, ch. 187.

§ 77-5-169. Municipal and county aid to districts.

Any municipality situated within the territorial limits of a district and any county a part of which is so situated, may advance funds to such district to pay the preliminary organization and administration expenses thereof, on such terms of repayment as the governing body of such municipality or county shall determine. Notwithstanding the provisions of any law to the contrary, any such municipality or county is authorized and empowered to borrow money for a period not to exceed one year from the date of such borrowing, for the purpose of making such advances.

HISTORY: Codes, 1942, § 5456; Laws, 1936, ch. 187.

§ 77-5-171. Districts and their property subject to taxation.

All districts and their property shall be liable for taxes and shall be taxed and assessed in the same manner and to the same extent as privately owned utilities.

HISTORY: Codes, 1942, § 5459; Laws, 1936, ch. 187.

§ 77-5-173. Declaration of purpose; construction; article complete in itself.

This article is for the public purpose of promoting the increased use of electricity in the urban and rural areas of this state, and of enabling the residents thereof to secure the benefit of the surplus power generated or to be generated by the Tennessee Valley Authority at Wilson Dam in the State of Alabama, or the power generated at any other works or dams. The powers granted by this article shall be liberally construed to effectuate the purposes hereof, and to this end every district shall have power to do all things necessary or convenient to carry out the purposes hereof in addition to the powers expressly conferred in this article. This article is complete in itself and shall be controlling. The provisions of any other law, general, special or local, except as provided in this article, shall not limit or restrict the powers granted by this article.

HISTORY: Codes, 1942, § 5460; Laws, 1936, ch. 187.

§ 77-5-201. Short title.

This article may be cited as the “Electric Power Association Law.”

HISTORY: Codes, 1942, § 5463; Laws, 1936, ch. 184.

§ 77-5-203. Definitions.

The following terms whenever used or referred to in this article shall have the following meanings, unless a different meaning clearly appears from the context:

“Corporation” shall mean a corporation formed under this article or operating under this article pursuant to Section 77-5-213.

“Bonds” shall mean and include bonds, interim certificates or receipts, notes, debentures and all other evidences of indebtedness, either issued or the payment thereof assumed by the corporation.

“Person” shall mean and include natural persons, firms, associations, corporations, business trusts, partnerships and bodies politic.

“Energy” shall mean and include any and all electric energy no matter how or where generated or produced.

“Acquire” shall mean and include construct, acquire by purchase, lease, devise, gift, or other mode of acquisition.

“System” shall mean and include any plant, works, system, facilities, or properties, or parts thereof, together with all appurtenances thereto, used or useful in connection with the generation, production, transmission or distribution of energy.

“Law” shall mean any act or statute, general, special or local of this state.

“Federal agency” shall mean and include the United States of America, the President of the United States of America, Tennessee Valley Authority, the Federal Emergency Management Agency, the United States Department of Agriculture and its agencies, including the Rural Utilities Service, and any and all other authorities, agencies and instrumentalities of the United States of America, heretofore or hereafter created.

“Improve” shall mean and include construct, reconstruct, improve, replace, extend, enlarge, alter, better or repair.

“Board” shall mean the board of directors of a corporation formed under this article.

“Member” shall mean and include each natural person signing the certificate of incorporation of a corporation and each person admitted to and retaining membership therein pursuant to law or its bylaws, and shall include a joint membership as defined by the corporation’s bylaws.

“Services” or “service” shall mean the sale or other disposition of energy, electrical appliances, wiring and equipment at the lowest cost consistent with sound economy, public advantage and the prudent conduct of the business of a corporation.

“Certificate of incorporation” includes a certificate of incorporation or articles of incorporation.

“Rate” means and includes every compensation, charge, deposit, contribution, fee, fare, toll, rental, cost and classification, or the formula or method by which such may be determined, or any of them, demanded, observed, charged, collected, avoided, or owed by a corporation for or relating to electric energy offered or provided by the corporation to the public or received by the corporation, and any rules, regulations, practices or contracts relating to any such compensation, charge, deposit, contribution, fee, fare, toll, rental, cost, or classification, including, but not limited to, any rules, regulations, practices or contracts relating to the disconnection of service to members or nonmember customers who have failed to pay for electric energy provided by the corporation.

HISTORY: Codes, 1942, § 5465; Laws, 1936, ch. 184; Laws, 1938, ch. 252; Laws, 2016, ch. 387, § 1, eff from and after July 1, 2016.

§ 77-5-205. Formation of non-profit corporations authorized.

Three (3) or more natural persons may, by executing, filing and recording a certificate as hereafter provided in this article, form a corporation not organized for pecuniary profit for the purpose of promoting and encouraging the fullest possible use of electric energy by making electric energy available at the lowest cost consistent with sound economy and prudent management of the business of such corporations. In addition, such corporations may serve the purposes provided under the Mississippi Broadband Enabling Act.

HISTORY: Codes, 1942, § 5464; Laws, 1936, ch. 184; Laws, 2019, ch. 301, § 9, eff from and after passage (approved January 30, 2019).

§ 77-5-207. Contents of certificate of incorporation.

The certificate of incorporation shall state:

The name of the corporation, which name shall include the words “electric power association” or “electric cooperative” and shall be such as to distinguish it from any other corporation organized and existing under the laws of this state.

The location of its principal office and the post-office address thereof.

The maximum number of directors, not less than three (3).

The names and post-office addresses of the directors who are to manage the affairs of the corporation for the first year of its existence, or until their successors are chosen.

The period of the duration of the corporation, which may be perpetual.

The terms and conditions upon which persons shall be admitted to membership in the corporation.

The certificate of incorporation may also contain any provisions not contrary to law which the incorporators may choose to insert for the regulation of its business and for the conduct of the affairs of the corporation. It may also contain any provisions creating, defining, limiting or regulating the powers of the corporation, its directors and members.

HISTORY: Codes, 1942, § 5466; Laws, 1936, ch. 184; Laws, 1938, ch. 252; Laws, 2014, ch. 332, § 1; Laws, 2016, ch. 387, § 2, eff from and after July 1, 2016.

§ 77-5-209. Prohibition on use of words “electric power association” and “electric cooperative.”

The name of a corporation shall include either the words “electric power association” or “electric cooperative.” The words “electric power association” and the words “electric cooperative” shall not be used in the corporate name of any corporation other than those formed pursuant to the provisions of this article or those operating under this article pursuant to Section 77-5-213. Whenever the words “electric power association” or “electric cooperative” or “nonprofit cooperative electric power association” appear in the laws of this state, such words shall refer to a corporation formed pursuant to and/or operating under the provisions of this article, including a corporation that uses either the words “electric power association” or “electric cooperative” in its name.

HISTORY: Codes, 1942, § 5467; Laws, 1936, ch. 184; Laws, 2014, ch. 332, § 2; Laws, 2016, ch. 387, § 3, eff from and after July 1, 2016.

§ 77-5-211. Execution and filing of certificate of incorporation.

The natural persons executing the certificate of incorporation shall be residents of the territory in which the principal operations of the corporation are to be conducted, who are desirous of using electric energy to be furnished by the corporation. The certificate of incorporation shall be acknowledged by the subscribers before any officer authorized to take acknowledgments to deeds or other instruments. When so acknowledged, the certificate may be filed with the Secretary of State at any time thereafter within six (6) months of the date of the last acknowledgment. When submitted for filing, the Secretary of State shall accept and file the certificate and enter the date of filing in its records. The certificate of incorporation shall be effective as of the date on which the certificate of incorporation is filed with the Secretary of State, and the powers specified in the certificate of incorporation shall thereupon be vested in the corporation without further formalities.

HISTORY: Codes, 1942, § 5468; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 4, eff from and after July 1, 2016.

§ 77-5-213. Chartering existing corporations under this article.

Any existing corporations under the laws of the State of Mississippi organized for the same general purposes as the corporations provided for by this article may be chartered under this article by filing with the secretary of state a certificate, approved by a majority of the board of the corporation, signed by the duly authorized officer or officers thereof, and acknowledged by the subscribers before any officer authorized to take acknowledgments to deeds or other instruments. Such certificate shall set forth the information required under Section 77-5-207 for corporations organizing under this article, shall declare the intention of the corporation to operate under this article, and shall be filed in the office of the secretary of state, who shall forthwith cause this certificate to be handled in the manner prescribed in Section 77-5-211 for original certificates of incorporation. The corporation under its existing name shall thereupon have all the powers and duties set forth in this article, but shall relinquish the powers under its former charter. No debt or other obligation, of or to the corporation, incurred prior to reincorporation under this section, shall be affected thereby. Any act, contract, or covenant heretofore done, made, entered into or performed by any corporation organized under any other law but reincorporating hereunder, is hereby expressly validated if such act, contract, or covenant would have been valid if done, made, entered into or performed under the terms hereof.

HISTORY: Codes, 1942, § 5485; Laws, 1936, ch. 184.

§ 77-5-215. Amendment of certificate of incorporation.

A corporation may amend its certificate of incorporation to change its corporate name, to increase or reduce the number of its directors, or to change any other provisions therein. Notwithstanding any provisions of a corporation’s certificate of incorporation to the contrary, if a corporation’s certificate of incorporation provides that the period of duration of the corporation is a limited number of years, the corporation may amend its certificate to provide that the duration of the corporation is perpetual if such an amendment is authorized by the board of directors of the corporation pursuant to the affirmative vote of at least two-thirds (2/3) of the directors. Otherwise, and not withstanding any provisions of a corporation’s certificate of incorporation to the contrary, a corporation may amend its certificate of incorporation if (a) the amendment is authorized by the board of directors of the corporation pursuant to the affirmative vote of at least two-thirds (2/3) of the directors, and (b) the amendment authorized by the board of directors is ratified by sixty percent (60%) of the corporation’s members voting, at either the corporation’s annual meeting or at a meeting of the members called for the special purpose of considering and voting on the amendment. Written notice of any meeting at which an amendment to the corporation’s certificate of incorporation will be voted on by the members must be sent to the corporation’s members at least thirty (30) days prior to the date of the meeting. The notice shall set forth the date, time, location and purpose of the meeting, and identify and describe the purpose of the amendment authorized by the corporation’s board of directors. In the event an amendment is fully authorized in accordance with the foregoing, a certificate reflecting the amendment to the certificate of incorporation shall be prepared and executed by the president and by the secretary of the corporation who shall both affirm therein, under oath, that they have been authorized by the corporation to execute and file such certificate. Such certificate of amendment shall then be filed by the corporation in the Office of the Secretary of State, who shall forthwith cause this certificate to be handled in the manner prescribed in Section 77-5-211 for original certificates of incorporation; and the amendment of the corporation’s certificate or articles of incorporation shall be effective as of the date on which the certificate of amendment is filed with the Secretary of State, and the powers specified in the certificate of amendment shall thereupon be vested in the corporation without further formalities.

HISTORY: Codes, 1942, § 5483; Laws, 1936, ch. 184; Laws, 2014, ch. 333, § 1; Laws, 2016, ch. 387, § 5, eff from and after July 1, 2016.

§ 77-5-217. Consolidation of corporations.

Any two (2) or more corporations may enter into an agreement for the consolidation of such corporations. Such agreement, which may or may not require the dissolution of one or both of the corporations as provided in Section 77-5-219, shall set forth the terms and conditions of the consolidation, the name of the proposed consolidated corporation, the number of its directors, who shall be not less than three (3), the time of the initial meeting of the consolidated corporation and election of directors, and the name of at least three (3) persons to serve as directors until the election of directors at the initial meeting. To be effective, any such agreement must be (a) authorized by the board ofdirectors of each corporation pursuant to the affirmative vote of at least two-thirds (2/3) of the directors of each corporation, and (b) ratified by sixty percent (60%) of each corporation’s members voting, at either the corporation’s annual meeting or at a meeting of the members called for the special purpose of considering and voting on the agreement for consolidation.If the agreement is so authorized and ratified, a joint application for approval of consolidation shall be filed by the consolidating corporations with the Mississippi Public Service Commission in the manner provided by Section 77-3-23. In no event shall another party be allowed to intervene in a proceeding initiated under this section for the purpose of seeking to obtain the certificated area, or any portion thereof, of any petitioning party.Upon approval of the application by the commission, the directors named in the consolidation agreement shall subscribe and acknowledge a certificate conforming substantially to an original certificate of incorporation, except that it shall be entitled and indorsed “certificate of consolidation of_______________ ” (the blank space being filled in with the names of the corporations being consolidated) and shall state:

The names of the corporations being consolidated.

The name of the consolidated corporation.

The other items required or permitted to be stated in a corporation’s original certificate of incorporation.

Such certificate of consolidation shall be filed with the Secretary of State in the same manner as provided in Section 77-5-211. Upon such filing, the proposed consolidated corporation, under its designated name, shall be and constitute a body corporate with all the powers of a corporation as originally formed under the provisions of this article.

HISTORY: Codes, 1942, § 5480; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 6, eff from and after July 1, 2016.

§ 77-5-219. Dissolution of corporation.

Upon complying with the requirements of Section 77-5-217 or 77-5-237, a corporation may be dissolved by filing, as hereinafter provided, a certificate which shall be entitled and indorsed “certificate of dissolution of_______________” (the blank space being filled in with the name of the corporation) and shall state:

Name of the corporation.

The date of filing of the corporation’s most recent certificate of incorporation.

That the corporation elects to dissolve.

The name and post-office address of each of its directors, and the name, title and post-office address of each of its officers.

Such certificate shall be subscribed and acknowledged in the same manner as an original certificate of incorporation by the officers of the corporation, who shall make and annex an affidavit stating that the corporation has complied with the requirements of Section 77-5-217 or Section 77-5-237 and that they have been authorized to execute and file such certificate.

A certificate of dissolution and a certified copy or copies thereof shall be filed in the same place as an original certificate of incorporation and thereupon the corporation shall be deemed to be dissolved.

Such corporation shall continue for the purpose of paying, satisfying and discharging any existing liabilities or obligations and collecting or liquidating its assets, and doing all other acts required to adjust and wind up its business and affairs, and may sue and be sued in its corporate name. Any assets remaining after all liabilities or obligations of the corporation have been satisfied or discharged shall be ratably distributed to the members thereof.

HISTORY: Codes, 1942, § 5482; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 7, eff from and after July 1, 2016.

§ 77-5-221. Board of directors.

A corporation shall have a board of directors, and the powers of the corporation shall be vested in and exercised by such board of directors. The directors of the corporation, other than those named in a certificate of incorporation, shall be elected annually by the members entitled to vote. The initial directors of the corporation, including directors elected to succeed those named in a certificate of incorporation, shall be elected as follows: one-third (1/3) to be elected for a term of one (1) year, one-third (1/3) for a term of two (2) years, and one-third (1/3) for a term of three (3) years. Thereafter, all directors shall be elected for a term of three (3) years, or for such other term(s) as may be subscribed by the corporation’s certificate of incorporation. Only members of the corporation shall be entitled to vote. The directors of a corporation must be members of the corporation. In order to qualify as a candidate for director of a corporation by petition, a candidate shall obtain not less than fifty (50) signatures of members of the corporation on whose board such candidate wishes to serve; however, a corporation shall be empowered, in its discretion, to adopt, through its bylaws, provisions which allow a person to qualify as a candidate for director by petition by obtaining less than fifty (50) signatures or by other less restrictive means. The directors shall be entitled to reimbursement for expenses incurred by them in the performance of their duties. In addition to reimbursement for expenses, the board may authorize compensation and benefits to be paid to and on behalf of such directors for the performance of their duties, including for the time it takes for them to travel to and from meetings and to board functions. The board shall elect periodically from its own number officers as prescribed by the corporation’s bylaws. Directors may elect to attend the board meetings by telephone or video conference. All board meetings, unless in executive session, shall be open to any member of a corporation. Subject to the limitations below, any member or customer of a corporation shall be entitled to address the board at any regular meeting regarding any suggestions for better service, grievances or any other matter affecting the corporation. The board shall have the right to impose reasonable limitations upon the number of members or customers addressing any one (1) board meeting and the amount of time allotted to each presentation, and also to require members and customers to give the board reasonable advance notice of their desire to address the board so that the board may investigate and be able to respond to the presentation.

HISTORY: Codes, 1942, § 5469; Laws, 1936, ch. 184; Laws, 1966, Ex Sess, ch. 34, § 1; Laws, 1984, ch. 332; Laws, 1989, ch. 454, § 1; Laws, 2016, ch. 387, § 8, eff from and after July 1, 2016.

§ 77-5-223. Powers of board of directors.

The board of a corporation shall have power to do all things necessary or convenient in conducting the business of the corporation, including, but not limited to:

To adopt and amend bylaws for the management and regulation of the affairs of the corporation. The bylaws of a corporation may make provisions, not inconsistent with law or its certificate of incorporation, regulating the admission, withdrawal, suspension or expulsion of members; the transfer of membership; the fees and dues of members and the termination of memberships on nonpayment of dues or otherwise; the numbers, times and manner of choosing, qualifications, terms of office, official designations, powers, duties and compensation of its officers; defining a vacancy in the board or in any office and the manner of filling it; the number of members to constitute a quorum at meetings; the date of the annual meeting and the giving of notice thereof and the holding of special meetings and the giving of notice thereof; the terms and conditions upon which the corporation is to render service to its members; the disposition of the revenues and receipts of the corporation; regular and special meetings of the board and the giving of notice thereof; and such other matters as the board may deem appropriate or desirable.

To appoint agents and employees and to fix their compensation and benefits and the compensation and benefits of the officers of the corporation.

To execute all instruments or documents, or to delegate the execution thereof.

To delegate to one or more of the directors or to the officers, agents and employees of a corporation such powers and duties as it may deem proper.

To make its own rules and regulations as to its procedure.

To appoint such committees as the board shall in its judgment see fit, which committees may consist of members or nonmembers of either the board or the corporation.

To cause the corporation to reimburse directors for expenses incurred by them in the performance of their duties and to fix compensation and benefits to be paid to and on behalf of directors for the performance of their duties.

HISTORY: Codes, 1942, § 5470; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 9, eff from and after July 1, 2016.

§ 77-5-225. Membership in corporation.

Except as hereinafter provided, the corporate purpose of a corporation shall be to render service to its members only. Any person may become and remain a member if such person shall use energy supplied by such corporation and shall comply with the terms and conditions in respect to membership contained in the bylaws of such corporation, which terms and conditions shall be nondiscriminatory. Any person who shall agree to use energy supplied by the corporation from an existing line or from a line the construction of which has been authorized or commenced by the corporation may be admitted to membership in the corporation prior to such use upon complying with the other terms and conditions with respect to membership contained in the certificate of incorporation or in the bylaws. The membership fee of the corporation shall be fixed by the board of directors. Should the corporation acquire any electric facilities already dedicated or devoted to the public use it may, for the purpose of continuing existing service and avoiding hardship, continue to serve the persons served directly from such facilities at the times of such acquisition without requiring that such persons become members. In no event shall the number of such nonmembers served exceed forty-nine percent (49%) of the total number of persons served by the corporation. Such nonmember customers shall have the right to become members upon nondiscriminatory terms.

HISTORY: Codes, 1942, § 5472; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 10, eff from and after July 1, 2016.

§ 77-5-227. Certificate of membership; voting.

A corporation may issue to its members certificates of membership in such form as the bylaws may prescribe. Each member shall be entitled to only one (1) vote on each matter submitted to a vote at the meetings of the members of the corporation, but voting by proxy, by mail or electronically may be provided for in the bylaws.

HISTORY: Codes, 1942, § 5471; Laws, 1936, ch. 184; Laws, 1938, ch. 252; Laws, 2014, ch. 331, § 1, eff from and after passage (approved Mar. 13, 2014).

§ 77-5-229. General powers of corporation.

A corporation is hereby vested with all power necessary or requisite for the accomplishment of its corporate purpose, and no enumeration of particular powers hereby granted in this article shall be construed to impair any general grant of power herein contained, or to limit any such grant to a power or powers of the same class or classes as those so enumerated.

HISTORY: Codes, 1942, § 5473; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 11, eff from and after July 1, 2016.

§ 77-5-231. Specific powers of corporation.

1. A corporation shall have power to do any and all acts or things necessary or convenient for carrying out the purposes for which it was formed, including, but not limited to:
   1. To sue and be sued.
   2. To have a seal and alter the same at pleasure.
   3. To acquire, hold and dispose of property, real and personal, tangible and intangible, or interests therein and to pay therefor in cash or property or on credit, and to secure and procure payment of all or any part of the purchase price thereof on such terms and conditions as the board shall determine.
   4. To render service and to acquire, own, operate, maintain and improve a system or systems within the state and in counties adjacent thereto.
   5. To pledge all or any part of its revenues and to mortgage or otherwise incumber all or any part of its property for the purpose of securing the payment of the principal of and interest on any of its bonds or other obligations.
   6. To use any right-of-way, easement or other similar property right necessary or convenient in connection with the acquisition, improvement, operation or maintenance of a system, granted by the state or any political subdivision thereof, provided that the governing body of such political subdivision shall consent to such use, and to have and exercise the power of eminent domain in the manner provided by the condemnation laws of this state for acquiring private property for public use, such right to be paramount except as to the property of the state or of any political subdivision thereof.
   7. To accept gifts or grants of money, property, real or personal, from any person, municipality or federal agency and to accept voluntary and uncompensated services.
   8. To make any and all contracts necessary or convenient for the full exercise of the powers in this article granted, including, but not limited to, contracts with any person, federal agency, state agency or municipality for the purchase, transfer or sale of energy and/or the acquisition of all or any part of any system, and in connection with any such contract to stipulate and agree to such covenants, terms and conditions as the board may deem appropriate, including covenants, terms and conditions with respect to the resale rates, financial and accounting methods, services, operation and maintenance practices and the manner of disposing of the revenues of the system operated and maintained by the corporation.
   9. To sell, lease, or otherwise dispose of all or any part of its property, subject however to the provisions of Section 77-5-237.
   10. To contract debts, borrow money and to issue, assume or indorse the payment of bonds or other evidences of indebtedness.
   11. To fix, maintain and collect fees, rents, tolls and other charges for services rendered.
   12. To acquire and to sell, lease, distribute and generally to deal in electrical and plumbing appliances, apparatus, machinery and equipment for the purpose of and in connection with the promotion of the sale of electric energy to its customers; to assist its customers to purchase or otherwise obtain such appliances, apparatus, machinery and equipment; to assist its customers to wire their premises and to install therein such appliances, apparatus, machinery and equipment; to acquire and to indorse, sell, pledge, hypothecate and dispose of notes, bonds and other obligations of its customers in carrying out the purposes expressed in this paragraph.
   13. To maintain, in any reasonable manner and in its discretion, its easements and rights-of-way and adjacent property within a reasonable or necessary distance of its energy facilities free of vegetation, trees, limbs or other impediments in order to foster the integrity and reliability of the corporation’s electric energy system or the safety of the public or its members, agents or employees.
   14. To condemn any land, easements, or rights-of-way, either on, under, or above the ground, as the association may deem necessary for any purposes mentioned in this article other than the purposes described in subsection (2) of this section, and such property or interest in such property may be so acquired whether or not the same is owned or held for public use by corporations, associations or persons having the power of eminent domain, or otherwise held or used for public purposes. Such power of condemnation may be exercised in the mode or method of procedure prescribed by Chapter 27, Title 11, Mississippi Code of 1972, or in the mode or method of procedure prescribed by any other applicable statutory provisions now in force or hereafter enacted for the exercise of the power of eminent domain. Where condemnation proceedings become necessary, the judge of the circuit court or the judge of the county court in counties where the county court exists, in which such proceedings are filed, shall, upon application of the authority, and upon the deposit in court, to the use of the person or persons lawfully entitled thereto, of such amount as the judge may deem necessary to assure just compensation, order that the right of possession shall issue immediately or as soon and upon such terms as the judge, in his discretion, may deem just and proper. Upon application of the parties in interest other than the corporation, the judge may order that the money deposited in the court, or any part thereof, be paid forthwith for or on account of the just compensation to be awarded in said proceedings.
   15. To operate across state lines.
   16. To perform any and all of the foregoing acts and to do any and all of the foregoing things under, through or by means of its own officers, agents and employees, or by contracts with any person, federal agency or municipality.
   17. To perform as provided under the Mississippi Broadband Enabling Act.
2. Any generation and transmission electric corporation created under this article may undertake economic development activities, whether directly, indirectly, or in conjunction with other entities, including activities such as providing capital, or investment in or acquisition and development of business or industrial sites and the necessary infrastructure or services needed to attract new or existing businesses or industry, to create or maintain employment opportunities, or otherwise to positively impact its service territory or in some manner promote the sale of electric energy.

HISTORY: Codes, 1942, § 5474; Laws, 1936, ch. 184; Laws, 1938, chs. 251, 252; Laws, 2013, ch. 466, § 2; Laws, 2015, ch. 360, § 1; Laws, 2016, ch. 387, § 12, eff from and after July 1, 2016; Laws, 2019, ch. 301, § 10, eff from and after passage (approved January 30, 2019).

§ 77-5-233. Operations outside of state authorized.

To the extent necessary in the judgment of its board to make effective the powers conferred by this article, a corporation shall continue to have the power to acquire, construct, own, invest in, operate, maintain, and/or improve generating and/or transmission assets.

HISTORY: Codes, 1942, § 5475; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 13, eff from and after July 1, 2016.

§ 77-5-235. Rates; limitations on disconnections; attaching entities.

1. A corporation shall have the power to fix, adjust, charge, collect and pay reasonable rates for electric energy and other facilities, supplies, equipment, products, commodities, goods and services furnished by, offered by or furnished to the corporation. All rates of a corporation formed or operating under the provisions of this article shall be established by the corporation’s board and shall not be regulated by the Mississippi Public Service Commission.
2. Notwithstanding the foregoing, a corporation shall be subject to commission regulations that limit disconnections of service during freeze warnings or excessive heat warnings issued by the National Weather Service, limit disconnections of service in life-threatening situations certified by a medical doctor, or establish initial deposit requirements for certified victims of domestic violence.
3. Nothing herein shall be construed to impair the Mississippi Public Service Commission’s jurisdiction and authority, if any, to require corporations to establish, offer or participate in energy efficiency or net metering programs, but in no event shall the commission set or establish the level of expenditures, compensation or credits associated with a corporation’s energy efficiency, net metering or other programs.
4. As used in this section, “attaching entity” means a cable television system or provider of telecommunications service. Nothing in this article shall be construed to impair the Mississippi Public Service Commission’s jurisdiction and authority that existed prior to July 1, 2016, if any, with regard to a corporation’s rates, terms and conditions for attachments by an attaching entity to poles owned or controlled by the corporation. A corporation may only deny an attaching entity access to its owned or controlled poles on a nondiscriminatory basis if there is insufficient capacity or for reasons of safety and reliability and if the attaching entity will not resolve the issue. Nothing in this subsection shall be construed to prohibit a corporation from requiring an attaching entity to enter into a pole attachment agreement consistent with this section.
5. A corporation’s rates for energy furnished or offered by the corporation shall be sufficient at all times to pay all operating and maintenance expenses necessary or desirable for the prudent conduct and operation of its business and to pay the principal of and interest on such obligations as the corporation may have issued and/or assumed in the performance of the purpose for which it was formed. The revenues and receipts of a corporation shall first be devoted to such operating and maintenance expenses and to the payment of such principal and interest and thereafter to such reserves for improvement, new construction, depreciation and contingencies as the board may from time to time prescribe. Revenues and receipts not needed for these purposes shall be returned to the members by such means as the board may decide, including through the reimbursement of membership fees, the implementation of general rate reductions, the limitation or avoidance of future rate increases, or such other means as the board may determine.

HISTORY: Codes, 1942, § 5481; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 14, eff from and after July 1, 2016.

§ 77-5-237. Disposing of corporate property.

1. A corporation may sell, lease, exchange or otherwise dispose of all, or substantially all, of its property only if all of the following conditions are satisfied:
   1. The proposed purchaser shall file with the board of directors of the corporation and the Public Service Commission a disclosure statement containing the information required by Schedule 14D-1, as such schedule is described in the United States Securities Exchange Act of 1934, as amended. For purposes of this section, references in Schedule 14D-1 to “tender offer,” “bidder,” “subject company” and “securities of the subject company” shall be deemed to mean the proposed transaction, the proposed purchaser, the corporation and the property of the corporation, respectively.
   2. The proposed purchaser shall file with the board of directors and the Public Service Commission the offer to acquire all, or substantially all, of the property of the corporation, and any amendments thereto, which shall be contained in a written proposal and sets forth completely the terms and conditions of the proposed transaction. The offer shall provide: (i) for the full payment of equity and capital credits to all past and present members of the corporation, on an equitable basis; and (ii) for the payment or assumption of the total debt of the corporation by the purchaser or the payment of the total debt by the board of directors of the corporation, and an agreement to comply with the terms and conditions of any contract or other agreement, other than total debt paid out of the purchase price, to which the corporation is a party or by which the corporation is bound. Should the offer be accepted, the board of directors shall be responsible for assuring that any debts to be paid by the corporation pursuant to the offer of purchase are paid out of the purchase price, and all funds or any other forms of payment are equitably distributed within one hundred twenty (120) days to all past and present members of the corporation according to the amount of interest such members have in such corporation.
   3. 1. When the proposed purchase price is at least equal to two-thirds (2/3) of the members’ equity plus total debt the board of directors shall be obligated to submit the proposed offer to the membership for a vote, unless action is pending or injunctions issued pursuant to subsection (2). Members’ equity shall consist of the appraised value of the assets to be disposed of, less total debt.
      2. When the proposed purchase price is not at least equal to two-thirds (2/3) of the members’ equity plus total debt the board of directors shall not submit such offer of purchase unless the board of directors, by a two-thirds (2/3) affirmative vote, determines that good and sufficient reasons exist so that the submission of an offer of lesser value would be in the best interest of the membership. Members’ equity shall consist of the appraised value of the assets to be disposed of, less total debt.
   4. The board of directors of the corporation and the proposed purchaser shall mutually employ a recognized, qualified impartial firm to make an appraisal of the value of the members’ equity in the tangible and intangible assets to be disposed of and a rate study to determine the effect of the proposed transaction on the rates for electricity to be paid by members. Within fifteen (15) days after it has been determined that the purchaser and the corporation cannot mutually agree on an appraiser, the board of directors of the corporation shall submit, to the Public Service Commission, a list of five (5) independent, qualified individuals or firms recognized with experience in the appraisal of electric utility systems. The purchaser shall have ten (10) days after submission to strike up to four (4) of the appraisers submitted. If more than one (1) appraiser remains on the list, the Public Service Commission shall, within ten (10) days of receipt of such list, notify the corporation and the proposed purchaser of the name of the appraiser selected to perform the appraisal and rate study required herein. The proposed purchaser shall place into escrow the sum of Fifty Thousand Dollars ($50,000.00) at the time the offer is made. Such escrowed funds shall be released to pay the incurred costs of such studies, with any remainder being returned to the purchaser.
   5. 1. When the conditions set forth in subsections (1)(a) through (1)(d) have been satisfied, and no action is pending or injunction issued pursuant to subsection (2), the corporation shall, within one hundred twenty (120) days, but not sooner than sixty (60) days, call a meeting of the members for purposes of considering and voting on the proposed transaction, upon at least twenty (20) days’ notice of such meeting to the members given in accordance with applicable law and the charter of incorporation and bylaws of the corporation. The notice shall set forth the date, time, location and purpose of meeting, a description of the proposed transaction including the results of the studies required by subsection (1)(d), proxy material and any other information required by the bylaws of the corporation.
      2. When the conditions set forth in subsections (1)(a) and (1)(b) of this section have been satisfied, no court action is pending under the provisions of this section and the board of directors of the corporation has not submitted the offer to the members, upon the expiration of one hundred twenty (120) days but not more than two hundred forty (240) days, thirty percent (30%) of the membership of the corporation may petition the board of directors to submit the offer to the members. Upon receipt of such petition, the corporation shall, within one hundred twenty (120) days, but not sooner than sixty (60) days, call a meeting of the members for purposes of considering and voting on the proposed transaction, upon at least twenty (20) days’ notice of such meeting to the members given in accordance with applicable law and the charter of incorporation and bylaws of the corporation. The notice shall set forth the date, time, location and purpose of meeting, a description of the proposed transaction including the results of the studies required by subsection (1)(d), proxy material and any other information required by the bylaws of the corporation.
   6. The proposed transaction must be approved by the affirmative vote of three-fifths (3/5) of all the members. Voting shall be in person or by proxy. The tabulation of the member vote shall be attested to by an independent accounting firm engaged to perform that accounting function.
2. If the board of directors determines that any of the terms and conditions of the proposed transaction are unreasonable or unfair to the members and if the proposed purchaser is unwilling to amend the offer to make the terms and conditions of the offer reasonable and fair to the members, then the board of directors may institute a proceeding in the chancery court of the county where the corporation’s principal office is located to enjoin the proposed transaction. If the court determines that the terms and conditions of the proposed offer are unreasonable or unfair to the members, it shall permanently enjoin the proposed transaction, unless the offer is amended to make the terms and conditions reasonable and fair to the members. If the court determines that the terms and conditions of the offer are reasonable and fair to the members, the court shall order the corporation to submit the proposed transaction to the members for a vote. The court may appoint one or more independent experts to review the terms and conditions of the proposed transaction and make a recommendation to the court. Such independent experts shall have the powers described in the order appointing them, or in any amendment thereto. Nothing in this subsection shall be construed as prohibiting or limiting the rights of the members of the corporation from acting pursuant to subsection (1)(e)(ii) of this section.
3. Any party which, in providing the disclosure information required by subsection (1)(a) above, makes false or misleading statements concerning material facts or omits information which makes the information disclosed misleading shall be liable to the members of the corporation for actual damages.
4. Purchasers, affiliates, cooperatives or agents thereof shall conduct a diligent investigation to secure all material information reasonably available and any purchaser, affiliate, cooperative or agent thereof which, in making any communication with members of the corporation, written or oral, knowingly makes false or misleading statements concerning material facts or omits information which makes the information misleading may be liable to the injured party for damages incurred thereby.
5. It shall be deemed a breach of the fiduciary duty owed by a director of the corporation to the corporation and its members for any director of the corporation, directly or indirectly, to accept any payment, compensation, remuneration or benefit paid by, or on behalf of, any purchaser or affiliate of a purchaser except for the benefits received by all members of the corporation on a nondiscriminatory basis.
6. The board of directors may, without authorization by the members, sell, mortgage, lease or otherwise encumber or dispose of (a) any of its property which, in the judgment of the board, is neither necessary nor useful in operating and maintaining the corporation’s system and which in any one (1) year shall not exceed ten percent (10%) in value of all of the property of the corporation, or (b) merchandise. The board of directors of the corporation, without authorization by the members thereof, shall also have full power and authority upon the affirmative vote of two-thirds (2/3) of the members constituting the full board to authorize the execution and delivery of a mortgage or mortgages or a deed or deeds of trust upon, or the pledging or encumbering of, any or all of the property, assets, rights, privileges, licenses, franchises and permits of the corporation, whether acquired or to be acquired, and wherever situated, as well as the revenues and income therefrom, all upon such terms and conditions as the board of directors upon the affirmative vote of two-thirds (2/3) of the members constituting the full board shall determine, to secure any indebtedness of the corporation to the United States of America or any instrumentality or agency thereof, or to a national financing institution, organized on a cooperative plan for the purpose of financing its members’ programs, projects and undertakings, in which the corporation holds membership.
7. During the first year of the existence of a corporation its property shall not be sold or leased, wholly or in part, unless the sale or lease shall in addition to any approval required by subsections (1) and (2) of this section be approved by a majority of all persons who have signed customers’ survey forms or otherwise signified in writing their intention to become members of the corporation. All such persons shall be deemed to have a beneficial interest in the affairs of the corporation insofar as the sale or lease of the property of the corporation is concerned and the members of the board are hereby declared to be the trustees of such persons with respect thereto.

HISTORY: Codes, 1942, § 5476; Laws, 1936, ch. 184; Laws, 1938, ch. 252; Laws, 1970, ch. 423, § 1; Laws, 1989, ch. 454, § 2, eff from and after passage (approved March 24, 1989).

§ 77-5-239. Power of corporation to incur obligations and liabilities, borrow money, issue notes, bonds, etc.

A corporation shall have the power to incur obligations and liabilities, borrow money, issue notes, bonds, certificates of indebtedness and other obligations, and to enter into contracts of guaranty.

HISTORY: Codes, 1942, § 5477; Laws, 1936, ch. 184; Laws, 1970, ch. 423, § 2; Laws, 2016, ch. 387, § 15, eff from and after July 1, 2016.

§ 77-5-241. Interest rates.

Any note, bond, or other indebtedness issued by a corporation may bear such interest rate or rates as may be determined by the board of directors of the corporation.

HISTORY: Codes, 1942, § 5477.5; Laws, 1970, ch. 423, § 3; Laws, 2016, ch. 387, § 16, eff from and after July 1, 2016.

§ 77-5-243. Power to execute and deliver instruments to create security interest in corporation property.

A corporation shall have the power to execute and deliver any of one or more mortgages, deeds of trust, financing statements, or other instruments to secure debt covering, or to create by other means a security interest in, any or all of the real or personal property assets, rights, privileges, licenses, franchises, and permits of the corporation or any interest therein, as well as the revenues therefrom, whether acquired or to be acquired wherever situated, for the purpose of securing the payment or performance of any one or more contracts, notes, bonds, or other obligations of the corporation.

HISTORY: Codes, 1942, § 5478; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 17, eff from and after July 1, 2016.

§ 77-5-245. Purchase and cancellation of bonds.

A corporation shall have power out of any funds available therefor to purchase any bonds issued by it at a price not exceeding the principal amount thereof and accrued interest thereon. All bonds so purchased shall be canceled.

HISTORY: Codes, 1942, § 5479; Laws, 1936, ch. 184.

§ 77-5-247. Monies of corporations.

All monies of a corporation from whatever source derived, shall be deposited or prudently invested in one or more banks, trust companies, or financial institutions, as may be approved by the board of directors, and, if the corporation shall so require, each of such accounts shall be continuously secured by a pledge of direct obligations of the United States of America or of the State of Mississippi having an aggregate market value, exclusive of accrued interest, at all times at least equal to the balance on deposit in such account or accounts, or otherwise insured by the Federal Deposit Insurance Corporation by whatever mechanism the corporation’s board may deem appropriate.

Such securities shall either be deposited with the corporation or held by a trustee or agent satisfactory to the corporation. In lieu of any such pledge or such securities, said deposits may be secured by a surety bond or bonds which shall be in form, sufficiency and substance satisfactory to the corporation.

HISTORY: Codes, 1942, § 5484; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 18, eff from and after July 1, 2016.

§ 77-5-249. Corporations and their property subject to taxation.

A corporation and its property shall be taxed and assessed in accordance with the laws of the State of Mississippi.

HISTORY: Codes, 1942, § 5486; Laws, 1936, ch. 184; Laws, 2016, ch. 387, § 19, eff from and after July 1, 2016.

§ 77-5-251. Construction of article; article complete in itself.

This article is to be liberally construed, and the enumeration of any object, power, manner, method or thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods or things.

This article is complete in itself and shall be controlling. The provisions of any other law, general, special or local, except as provided in this article, shall not limit or restrict the powers of any corporation formed under this article.

HISTORY: Codes, 1942, §§ 5487, 5489; Laws, 1936, ch. 184.

§ 77-5-253. Annual financial and compliance audits.

All corporations created under this article shall submit annual financial and compliance audits to the Mississippi Public Service Commission and Public Utilities Staff for review and archiving.

HISTORY: Laws, 1989, ch. 454, § 3; Laws, 2009, ch. 546, § 20; Laws, 2016, ch. 387, § 20, eff from and after July 1, 2016.

§ 77-5-255. Mediation of disputes between members or customers and electric power associations.

1. Subject to the limitations herein, the Public Service Commission shall investigate, review and mediate any dispute which qualifies as specified herein between a member or customer and the corporation of which he is a member. The minimum amount of a dispute which shall qualify for mediation under this section shall be: (a) One Thousand Dollars ($1,000.00) which has accumulated over the past twelve (12) months or (b) ten percent (10%) of the cumulative previous twelve (12) months’ billing, whichever shall be the lesser. Investigation, review and mediation shall be commenced upon the filing of a petition with the Public Service Commission by a corporation or a member or customer of a corporation; provided, however, that the Public Service Commission shall not commence any proceedings nor commence any investigation, review or mediation of any such dispute until it has first been notified by both the member and the corporation of their consent to the investigation, review and mediation.The Public Service Commission also shall not commence any proceedings nor commence any investigation, review or mediation pursuant to such petition if at the time of filing the petition suit has been filed in any court of this state or of the United States with regard to the subject matter of the dispute and in which such corporation and member or customer are parties.Any such petition shall be immediately dismissed if any such suit is filed after filing of the petition with the commission.
2. In anymediation proceedings commenced under the provisions of this section, the Public Service Commission may, by order entered on its minutes and delivery of a certified copy thereof to the corporation, direct the corporation and the member or customer to provide the Public Service Commission with copies of all statements, accounts and reports concerning the dispute which the Public Service Commission may require. The Public Service Commission is further authorized to conduct and may conduct, or request the Public Utilities Staff to conduct, investigation and mediation of the dispute and may negotiate with the corporation and the member or customer for the resolution thereof.In every mediation proceeding under this section the Public Service Commission may perform only such duties relating to the dispute as it deems reasonable and likely to result in settlement of the dispute between the corporation and the member or customer.
3. Participation and continued participation in any investigation, proceeding, negotiation or mediation under the provisions of this section shall be voluntary by the corporation and the member or customer.

HISTORY: Laws, 1989, ch. 454, § 4; Laws, 2016, ch. 387, § 21, eff from and after July 1, 2016.

§ 77-5-256. Generation and transmission cooperative; definitions; amendment of certificate of incorporation; board of directors; corporate purpose; applicability of certain provisions of Chapter 3, Title 77.

1. As used herein, the phrase “generation and transmission cooperative” or “G&T cooperative” shall mean a corporation that is formed under this article for the primary purpose of providing wholesale power supply to its members as a wholesale power supply cooperative, and whose membership is comprised of a group of corporations that are formed under this article and have certificates of public convenience and necessity providing the exclusive right and authority to provide retail electric service within their respective certificated service territories.
2. The following additional provisions apply to G&T cooperatives:
   1. A G&T cooperative may amend its certificate of incorporation to change its corporate name, to increase or reduce the number of its directors, or to change any other provisions therein. Notwithstanding any provisions of a G&T cooperative’s certificate of incorporation to the contrary and notwithstanding any provisions of Section 77-5-215, a G&T cooperative may amend its certificate of incorporation if the amendment is authorized by the board of directors of the G&T cooperative pursuant to the affirmative vote of at least two-thirds (2/3) of the directors. In the event an amendment is authorized in accordance with the foregoing, a certificate reflecting the amendment to the certificate of incorporation shall be prepared and executed by the president and by the secretary of the G&T cooperative who shall both affirm therein, under oath, that they have been authorized by the G&T cooperative to execute and file such certificate. Such certificate of amendment shall then be filed by the G&T cooperative in the Office of the Secretary of State, who shall forthwith cause this certificate to be handled in the manner prescribed in Section 77-5-211 for original certificates of incorporation; and the amendment of the G&T cooperative’s certificate or articles of incorporation shall be effective as of the date on which the certificate of amendment is filed with the Secretary of State, and the powers specified in the certificate of amendment shall thereupon be vested in the G&T cooperative without further formalities.
   2. A G&T cooperative shall have a board of directors, and the powers of the G&T cooperative shall be vested in and exercised by such board of directors. The directors of the G&T cooperative, other than those named in a certificate of incorporation, shall be elected by the members of the G&T cooperative. The board of directors shall include two (2) directors from each member of the G&T cooperative, with one of those directors being the general manager or chief executive of the member and the other being a sitting director on the member’s board of directors. The bylaws of a G&T cooperative may also provide for up to three (3) at-large directors to be elected by sitting members of the board of directors, with such qualifications to be an at-large director within the discretion of the board of directors. All directors shall be elected for a term of three (3) years, or for such other term(s) as may be prescribed by the corporation’s certificate of incorporation. The directors shall be entitled to reimbursement for expenses incurred by them in the performance of their duties. In addition to causing the G&T cooperative to reimburse directors for expenses, the board may authorize compensation and benefits to be paid to and on behalf of such directors for the performance of their duties including for the time it takes for them to travel to and from meetings and to board functions. The board shall elect periodically from its own number officers as prescribed by the corporation’s bylaws. Directors may elect to attend the board meetings by telephone or video conference. The board may set procedures by which its meetings will be conducted and rule will be by majority vote except where a super majority is required by its articles of incorporation or bylaws.
   3. The corporate purpose of a G&T cooperative shall be to render service primarily to its members. After initial incorporation, any corporation formed or operating under this article may become and remain a member if such corporation is accepted into membership by a unanimous vote of the board of directors and complies with the terms and conditions in respect to membership contained in the bylaws of such G&T cooperative. The membership fee of the G&T cooperative shall be fixed by the board of directors. A G&T cooperative may provide capacity, energy, or transmission to a regional transmission market, and independent system operator, or other similar organized market, to the extent provision of such service is expected to provide a direct or indirect benefit to the G&T cooperative’s membership. A G&T cooperative has the power to operate across state lines.
   4. A G&T cooperative has the power to provide support to its members in their operations, including, but not limited to, accounting, legal, regulatory, engineering, and other areas in which its members determine it is desirable for the generation and transmission corporation to house certain expertise.
   5. These provisions are in addition to those applicable to corporations formed or operating under this article that are not G&T cooperatives and are not to be construed as limitations on the powers or authorities of G&T cooperatives in comparison to corporations that are not G&T cooperatives.
   6. It is hereby recognized that generation and transmission cooperatives are subject to rules, regulations and requirements from the Rural Utilities Service, the Federal Energy Regulatory Commission, and the North American Electric Reliability Corporation, as well as the rules and requirements of regional transmission organizations to which they belong and to competitive pressures from the wholesale market. In order to clarify the extent to which a generation and transmission cooperative is subject to regulation by the Mississippi Public Service Commission pursuant to Section 77-3-5, the Legislature declares that a generation and transmission cooperative is only subject to the provisions of Sections 77-3-11, 77-3-13, 77-3-14, 77-3-23, 77-3-25 and 77-3-27, and also subject to the provisions of Section 77-3-45, and any rules promulgated thereby to the extent such rules are necessary for the Mississippi Public Service Commission to carry out its responsibilities under such code sections. The policy objectives identified in Section 77-3-2 and the definitions provided in Section 77-3-3 shall be applicable to such code sections listed above as applied to generation and transmission cooperatives.

HISTORY: Laws, 2016, ch. 436, § 1, eff from and after July 1, 2016.

§ 77-5-257. TVA jurisdiction.

It is hereby recognized that certain corporations formed or operating under this article have entered into contracts with the Tennessee Valley Authority for the purchase of wholesale electric power and that the operations, facilities, services and rates of such corporations are thereby subject to extensive regulation by the Tennessee Valley Authority. In order to avoid the inefficiencies and confusion caused by duplicative, overlapping and conflicting jurisdiction and regulations, it is hereby declared that the Mississippi Public Service Commission and political subdivisions of the state shall not have jurisdiction over and shall not regulate those portions or aspects of a corporation’s operations, facilities, services, or rates that are regulated by the Tennessee Valley Authority. In the event of a dispute between the Mississippi Public Service Commission (commission) and the Tennessee Valley Authority (TVA) over the existence or scope of TVA’s regulatory authority, the commission shall defer to TVA’s asserted authority unless and until the commission has obtained a favorable, final, and nonappealable declaratory judgment against TVA in a court of competent jurisdiction. In any such suit, the commission shall not force a corporation(s) to incur legal fees and expenses by naming them as a party, though a corporation shall maintain the right to seek voluntary intervention under the rules of the court in which the action is pending.

HISTORY: Laws, 2016, ch. 387, § 22, eff from and after July 1, 2016.

§ 77-5-259. Limitation for billing errors.

In any action or regulatory proceeding arising from any overbilling or underbilling by a corporation, no collection, reimbursement, or other relief may be awarded for underbillings or overbillings occurring more than six (6) years prior to the commencement of the action or regulatory proceeding.

HISTORY: Laws, 2016, ch. 387, § 23, eff from and after July 1, 2016.

§ 77-5-301. Counties may engage in power development.

The counties of the State of Mississippi, acting by and through their boards of supervisors, are hereby authorized to erect, construct, purchase, and/or acquire and/or maintain and/or operate electric light plants, electric transmission lines, electric distribution system substations, and/or all electrical appurtenances and/or electric appliances and/or electric equipment necessary or useful in the operation or distribution of electric power and/or electric energy. The boards of supervisors shall have full authority to purchase, rent, lease, and/or acquire any and/or all kinds of property, real and/or personal, in order to carry out said powers and to enter into any and all contracts with the Tennessee Valley Authority and/or any similar agency of the federal government, which may be deemed necessary or expedient by such boards in exercising such powers. The boards of supervisors shall have full control over the erection, construction, maintenance, and operation of such properties, with full powers to pass rules for the control, operation, and maintenance of such properties, the rate to be charged, the manner of operation, and the employment of officials and employees of every kind.

HISTORY: Codes, 1942, § 5429; Laws, 1934, ch. 291.

§ 77-5-303. Intergovernmental cooperation.

The board of supervisors of any county is expressly authorized to combine with any other county and/or municipality and/or counties and/or municipalities in the purchase and/or construction and/or the leasing and/or the acquiring of any of the properties enumerated in the preceding section of this article. For this purpose the boards of supervisors of the counties, and/or the governing authorities of the municipalities, are authorized and empowered to arrange by contract all the details for the erection, construction, maintenance, operation, and control of such property, the sharing of the costs, and/or the distribution of power, and the selection of a governing body to control and handle said property.

HISTORY: Codes, 1942, § 5430; Laws, 1934, ch. 291.

§ 77-5-305. Ordinance of intention; notice; election.

In the event the board of supervisors of any county shall decide to exercise the powers authorized by this article, it shall adopt an ordinance expressing such intention and outlining the nature of the project and/or projects to be undertaken, and fix the maximum sum to be expended on said project for the erection, construction, improvement, and/or purchase of any of the property authorized to be acquired by this article. The board shall give notice of such intention by publication in a newspaper having a general circulation in or published in said county for at least once a week for three successive weeks. It shall only be necessary that said notice shall state that the board has declared its intention to avail itself of the powers granted by this article, and to name the maximum amount proposed to be invested in the projects proposed.

In the event that twenty percent (20%) of the qualified electors of the county do not file a written protest against any such project by or before the first regular meeting of the board of supervisors after completion of publication of notice, the board is authorized to exercise the powers and authority named in Section 77-5-301 without further notice.

In the event that twenty percent (20%) of the qualified voters shall file such written petition protesting against such proposed projects, the board must call a special election, before proceeding further, giving notice of the date of such election by publication in a newspaper published in the county or having a general circulation in said county, at least once each week for three successive weeks, the first publication of which must be at least thirty (30) days before the date of the election. The board of supervisors shall have the power to fix the date of such election, and such election shall be conducted as other special elections are conducted. If a majority of the qualified electors voting in such election shall vote in favor of such project, the board of supervisors shall have the power to put the same into effect. The board of supervisors may, in its discretion, call a special election without a petition of protest being filed, which shall be conducted in the same manner as heretofore outlined.

HISTORY: Codes, 1942, § 5431; Laws, 1934, ch. 291.

§ 77-5-307. Activities must be self-sustaining.

No board of supervisors taking advantage of the provisions of this article shall issue any notes, bonds, or other obligations against the county for the purpose of paying or securing the payment of the cost or expense of purchasing, constructing, or otherwise acquiring, extending, or improving any real or personal property to be used, operated, or controlled under the provisions of this article, and the credit of the county shall not be pledged for the obligations arising out of the exercise of the powers contained in this article. All revenue derived from the operation of any property authorized by this article shall be placed in a separate fund, out of which the expenses are authorized to be paid. The board of supervisors shall have the power to pledge, assign, or otherwise hypothecate the net earnings of said property for a period not exceeding twenty-five years for the purpose of securing the payment of the original cost of the purchase and/or construction and/or extension and/or improvement of such property and also to mortgage or otherwise give a lien on any such property in order to secure the payment of any indebtedness on such property. The board of supervisors shall have power to borrow money for the purpose of paying the expenses authorized by this section and to issue negotiable notes or other evidences of indebtedness each of which shall distinctly state on its face that it is payable solely out of the earnings of the electric power system of such county and that the full faith and credit of the county are not pledged for its payment. The board of supervisors shall have the power to mortgage or otherwise give a lien on the electric power system of the county in order to secure any money borrowed for the purposes authorized in this article. The board of supervisors is expressly authorized to enter into such contracts as may be necessary and proper to carry out the provisions of this section.

HISTORY: Codes, 1942, § 5432; Laws, 1934, ch. 291.

§ 77-5-309. Exercise of power of eminent domain.

The board of supervisors of any county is expressly authorized to exercise the power of eminent domain anywhere in the state, within or without the boundaries of such county, in order to acquire any property, real or personal, necessary or useful in the furtherance of the provisions of this article. Any property so acquired shall be paid for only out of the earnings of the electric power system of such county, or from money borrowed as authorized under the provisions of Section 77-5-307.

HISTORY: Codes, 1942, § 5433; Laws, 1934, ch. 291.

§ 77-5-311. Debt limitations are inapplicable.

No statutes fixing the maximum amount of indebtedness of the county or prohibiting the issuance of bonds, notes, or other evidences of indebtedness shall apply or operate to limit the amount of money to be borrowed under this article, and in computing the indebtedness of any county the money borrowed under the provisions of this article, and the credit obtained under the provisions of this article, shall not be included as an obligation or indebtedness of the county.

HISTORY: Codes, 1942, § 5434; Laws, 1934, ch. 291.

§ 77-5-313. Provisions of this article shall be applicable to municipalities as well as counties.

All rights, privileges, powers and duties granted or imposed in the preceding sections to counties acting through their boards of supervisors shall likewise apply and be applicable to the municipalities acting through their governing authorities, who may exercise the same conjunctively with counties acting through their boards of supervisors.

HISTORY: Codes, 1942, § 5435; Laws, 1936, ch. 187.

§ 77-5-315. Construction of article; article cumulative.

It being the purpose of this article to promote rural electrification and encourage the Tennessee Valley Authority to distribute electric power in this state, the provisions of this article shall receive a liberal interpretation and construction.

It is not the purpose of this article to repeal or alter any existing law providing for the purchase, construction, and/or operation of any electric light plant, transmission lines, distribution system, and/or other electric properties by municipalities and/or counties, but to provide an additional and/or cumulative and/or alternative method for the acquiring, purchasing, constructing, maintaining, operating, and/or controlling of such electric light plants, transmission lines, distribution systems, and/or other electric properties coming under the provisions of this article.

HISTORY: Codes, 1942, §§ 5436, 5437; Laws, 1934, ch. 291.

§ 77-5-401. Short title.

This article may be cited as “The Municipal Electric Plant Law of 1936.”

HISTORY: Codes, 1942, § 5526; Laws, 1936, ch. 185.

§ 77-5-403. Definitions.

The following terms when used in this article shall have the following meaning:

The term “municipality” shall mean any county, incorporated city, town or village in the State of Mississippi.

The term “electric plant” shall mean generating and/or transmission and/or distribution systems, together with all other facilities, equipment and appurtenances necessary or appropriate to any such system, for the furnishing of electric power and energy for lighting, heating, power or any other purpose for which electric power and energy can be used.

The term “improvement” shall mean any improvement, extension, betterment or addition to any electric plant.

The term “electric service” shall mean the furnishing of electric power and energy for lighting, heating, power or any other purpose for which electric power and energy can be used.

The term “acquire” shall mean to purchase, to lease, to construct, to reconstruct, to replace, or to acquire by gift or exercise of the right of eminent domain.

The term “dispose” shall mean to sell, to lease, or otherwise transfer any interest in property.

The term “improve” shall mean to acquire any improvement.

The term “federal agency” shall include the United States of America, the President of the United States of America, or the Federal Emergency Administrator of Public Works, Reconstruction Finance Corporation, Tennessee Valley Authority, the Administrator of the Rural Electrification Administration, or any other similar agency, instrumentality or corporation of the United States of America, which has heretofore been or may hereafter be created by or pursuant to any act or acts or joint resolution of the Congress of the United States of America.

The term “law” shall mean any act or statute, general, special or local, of the State of Mississippi, including, but without limitation, the charter of any municipality.

The term “governing body” shall mean the board of supervisors, board, body or commission having general charge of the municipality.

HISTORY: Codes, 1942, § 5527; Laws, 1936, ch. 185.

§ 77-5-405. Powers of municipalities.

Every municipality shall have power and is hereby authorized:

To acquire, improve, operate and maintain within and/or without the corporate or county limits of such municipality, without respect to the limitation of any other law, and (with the consent of such other municipality) within the corporate or county limits of any other municipality, an electric plant, and to provide electric service to any person, firm, public or private corporation, or other user or consumer of electric power and energy, and to charge therefor.

To acquire, improve or use jointly with any other municipality a transmission line or lines or generating plants together with all necessary and appropriate facilities, equipment and appurtenances, for the purpose of generating or transmitting power and energy and/or connecting their respective electric plants with a wholesale source of supply, and to this end such municipalities may provide by contract for the method of holding title, for the allocation of responsibility for operation and maintenance, and for the allocation of expenses and revenues.

To accept grants, loans, or other financial assistance from any federal agency, for or in aid of the acquisition or improvement of any electric plant.

To contract debts for the acquisition or improvement of any electric plant, to borrow money, to issue its bonds to finance such acquisition or improvement and to provide for the rights of the holders of the bonds and to secure the bonds as hereafter provided in this article, and to pledge all or any part of the revenues derived from electric service to the payment of such debts or repayment of money borrowed.

To assess, levy and collect unlimited ad valorem taxes on all property subject to taxation to pay such bonds, and the interest thereon.

To acquire, hold and, subject to the applicable provisions of any bonds or contracts, to dispose of any property, real or personal, tangible or intangible, or any right or interest in any such property in connection with any electric plant, and whether or not subject to mortgages, liens, charges, or other incumbrances; however, no municipality shall dispose of all or substantially all of its electric plant except as provided in Section 77-5-445.

To make contracts and execute instruments containing such covenants, terms, and conditions as in the discretion of the municipality may be necessary, proper or advisable for the purpose of obtaining loans from any source, or grants, loans or other financial assistance from any federal agency, including, but without limitation, covenants, terms, and conditions with respect to the acquisition and/or construction of an electric plant or any improvement thereto with money in whole or in part borrowed from or granted by any such federal agency and subject to the provisions of any acts or joint resolutions of the Congress of the United States of America heretofore or hereafter enacted to encourage public works or relieve unemployment; to make all other contracts and execute all other instruments as in the discretion of the municipality may be necessary, proper or advisable in or for the furtherance of the acquisition, improvement, operation and maintenance of any electric plant and the furnishing of electric service; and to carry out and perform the covenants, terms, and conditions of all such contracts or instruments.

To enter on any lands, waters and premises for the purpose of making surveys, soundings and examinations in connection with the acquisition, improvement, operation, or maintenance of any electric plant and the furnishing of electric service.

To do all acts and things necessary or convenient to carry out the powers expressly given in this article.

To make any and all contracts necessary or convenient for the full exercise of the powers herein granted with any natural person, firm, association, corporation, business trust, partnership, body politic, federal agency, or municipality, including, but not limited to (1) contracts for the purchase or sale of electric energy or power, and (2) contracts for the acquisition or improvement of all or any part of an electric plant or plants. In connection with any such contract the municipality may stipulate and agree to such covenants, terms and conditions as the governing body may deem appropriate, including, but without limitation, covenants, terms and conditions with respect to the resale rates, financial and accounting methods, services, operation and maintenance practices, and the manner of disposing of the revenues of the system or systems conducted and operated by the municipality.

HISTORY: Codes, 1942, § 5528; Laws, 1936, ch. 185.

§ 77-5-407. Issuance of bonds; election resolution and election procedure.

Before any bonds are issued under this article an election shall be held in the manner herein provided. The governing body of the municipality shall adopt a resolution (herein called the “election resolution”) which shall state in substance:

the amount or maximum amount of bonds to be issued;

the purpose or purposes for which such bonds are to be issued;

the rate or maximum rate of interest which such bonds are to bear;

a brief concise statement (which need not go into any detail other than the mere statement of fact) showing whether such bonds will be payable (1) exclusively from revenues, (2) exclusively from taxes, (3) primarily from revenues and, to the extent of any deficiency in such revenues, from taxes, or (4) from taxes and additionally secured by a pledge of revenues;

the date on which such election will be held; and

the place or places where votes may be cast.

Such election resolution shall be published in full at least once, not less than fifteen (15) days prior to the date fixed for such election, in a newspaper published and circulating in the municipality, or, if there be no such newspaper, then such election resolution shall be so published in a newspaper circulating in the municipality. Such election resolution shall also be posted not less than fifteen (15) days prior to the date fixed for such election in five (5) public places in the municipality.

At such election the ballot shall contain a brief statement of the maximum amount of bonds to be authorized and the purposes for which such bonds are to be issued, and shall contain the words “for the issuance of electric plant bonds” and “against the issuance of electric plant bonds,” so arranged that the voter can intelligently vote his preference by making a cross (x) mark opposite the words indicating his preference. It shall not be necessary for the ballot to be of any particular size, color or quality, nor need sample ballots be printed, posted, or distributed.

At or before the regular meeting of the governing body of the municipality next succeeding the date of such election, such governing body shall canvass the returns and determine and declare the results of the election, and it shall be the duty of the governing body of such municipality to enter upon its minutes the results and the returns in such election. Except as otherwise provided in this article, such election shall be conducted by the election authorities prescribed by the general law of the State of Mississippi and according to the provisions of the general election laws of the State of Mississippi.

HISTORY: Codes, 1942, § 5529; Laws, 1936, ch. 185.

§ 77-5-409. Effect of election.

If a majority of the qualified voters who vote in such election vote “for the issuance of electric plant bonds,” the governing body of the municipality shall proceed to issue the bonds described in the election resolution. If no such majority so assents, the proposition thus defeated shall not again be the subject of an election until three months shall have expired from the time the election relative to such bonds was held.

HISTORY: Codes, 1942, § 5530; Laws, 1936, ch. 185.

§ 77-5-411. Validation of bonds.

1. If an election on the proposition is had and such election results in favor of the proposition, the bonds so authorized may be validated in the manner prescribed in Chapter 13 of Title 31, Mississippi Code of 1972.
2. In all instances where during the year 1948 any city in Mississippi adopted proceedings for the issuance of bonds to pay all or part of the cost of making extensions and improvements to an electric system owned and operated by such city, and where such bonds were to be payable solely from the revenues to be derived by such city from the operation of such electric system, such proceedings are hereby ratified, validated and confirmed, and the bonds issued pursuant to such proceedings are hereby ratified, validated and confirmed, and the bonds constitute the legal and binding obligations of each such city, and this despite any lack of authority for the authorization of such bonds, and despite the failure of the governing body of such city to observe any pertinent statutory provisions in the authorization or issuance of such bonds. All of the covenants and agreements contained in such proceedings are hereby declared legal and binding and each such city shall be under the statutory duty of carrying out all such covenants and agreements in accordance with their terms. All such bonds shall constitute fully negotiable instruments.

HISTORY: Codes, 1942, §§ 5531, 5531.5; Laws, 1936, ch. 185; Laws, 1948, ch. 209, §§ 1, 2.

§ 77-5-413. Bond provisions.

The bonds may be issued in one or more series, may bear such date or dates, may mature at such time or times, not exceeding thirty (30) years from their respective dates, may be in such denomination or denominations, may be in such form, either coupon or registered, may carry such registration and conversion privileges, may be executed in such manner, may be payable in such medium of payment, at such place or places, may be sold or hypothecated in such blocks, may be subject to such terms of redemption, with or without premium, and may be declared or become due before the maturity date thereof, as may be provided by resolution or resolutions of the governing body of the municipality. Such bonds may be issued for money or property at public or private sale, for such price or prices, at such rate or rates of interest, and may be hypothecated in such manner as the governing body may determine, but the interest cost to maturity of the property (at the value determined by the governing body, which determination shall be conclusive) or the money received for any issue of said bonds, shall not exceed the rate of six percent (6%) per annum, payable semi-annually. Such bonds shall have all the qualities and incidents of negotiability. Such bonds shall not be subject to taxation. Pending the preparation, execution or delivery of definite bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser or purchasers of such bonds.

In case any of the officers whose signatures or countersignatures appear on such bonds shall cease to be such officers before the delivery of the bonds, such signatures and countersignatures shall nevertheless be valid and sufficient for all purposes, the same as though such officers had remained in office until the bonds had been delivered. Such bonds, when issued, shall be known as “electric plant bonds.”

HISTORY: Codes, 1942, § 5532; Laws, 1936, ch. 185.

§ 77-5-415. Securing payment of bonds.

In order to secure the payment of any of the bonds issued pursuant to this article, and interest thereon, or in connection with such bonds, the governing body of any municipality shall have power as to such bonds, to the extent not inconsistent with the mandatory provisions of this article or the provisions of the election resolution:

To pledge the full faith and credit and unlimited taxing power of the municipality to the punctual payment of the principal of and interest on such bonds.

To pledge all or any part of the revenues derived from electric service.

To provide for the terms, form, registration, exchange, execution and authentication of such bonds.

To provide for the replacement of lost, destroyed, or mutilated bonds.

To covenant as to the use and disposition of the proceeds for the sale of such bonds.

To covenant as to the rates and charges of the electric plant.

To redeem such bonds, and to covenant for their redemption and to provide the terms and conditions thereof.

To covenant and prescribe as to what happenings or occurrences shall constitute “events of default” and the terms and conditions upon which any or all of such bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.

To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation.

To vest in a trustee or trustees the right to receive all or any part of the income and revenue pledged and assigned to, or for the benefit of, the holder or holders of bonds issued under the provisions of this article, and to hold, apply and dispose of the same and the right to enforce any covenant made to secure or pay or in relation to the bonds; to execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees and limiting the liabilities thereof and describing what occurrences shall constitute “events of default” and prescribing the terms and conditions upon which such trustee or trustees or the holder or holders of bonds of any specified amount or percentage may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate.

To make covenants other than, and in addition to, the covenants herein authorized, of like or different character, necessary or advisable to effectuate the purpose of this article.

To execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties.

HISTORY: Codes, 1942, § 5533; Laws, 1936, ch. 185.

§ 77-5-417. Rights and remedies of bondholders.

Any holder or holders of bonds, including a trustee or trustees for holders of such bonds, shall have the right, in addition to all other rights:

By mandamus or other suit, action or proceedings in any court of competent jurisdiction to enforce his or their rights against the municipality, the governing body thereof, the board of public utilities hereafter provided for in this article, and any other proper officer, agent or employee of any of them, including, but without limitation, the right to require the municipality, the governing body, the said board, and any proper officer, agent or employee of any of them, to assess, levy and collect taxes, and to fix and collect rates and charges adequate to carry out any agreement as to, or pledge of taxes or electric plant revenues, and to require the municipality, the governing body thereof, the said board and any officer, agent or employee of any of them to carry out any other covenants and agreements and to perform its and their duties under this article.

By action or suit in equity to enjoin any act or things which may be unlawful or a violation of the rights of such holder of bonds.

HISTORY: Codes, 1942, § 5534; Laws, 1936, ch. 185.

§ 77-5-419. Additional rights and remedies of bondholders may be conferred by resolution.

Any municipality shall have power by resolution of its governing body to confer upon any holder or holders of a specified amount or percentage of bonds, including a trustee or trustees for such holders, the right in the event of an “event of default” as defined in such resolution or as may be defined in any agreement with the holder or holders of such bonds or the trustee or trustees therefor:

By suit, action or proceedings in any court of competent jurisdiction to obtain the appointment of a receiver of the electric plant or any part or parts thereof. If such receiver be appointed he may enter and take possession of such electric plant or any part or parts thereof and operate and maintain the same, and collect and receive all revenues thereafter arising therefrom in the same manner as the municipality itself might do and shall deposit such moneys in a separate account or accounts and apply the same in accordance with the obligations of the municipality as the court shall direct.

By suit, action or proceeding in any court of competent jurisdiction to require the governing body of the municipality and/or the board to account as if it were the trustee of an express trust.

Any such resolution shall constitute a contract between the municipality and the holders of bonds of such issue.

HISTORY: Codes, 1942, § 5535; Laws, 1936, ch. 185.

§ 77-5-421. Debt limitations are inapplicable.

Bonds may be issued under this article notwithstanding and without regard to any limits or restriction on the amount or percentage of indebtedness or of outstanding obligations of any municipality contained in any law.

HISTORY: Codes, 1942, § 5536; Laws, 1936, ch. 185.

§ 77-5-423. Payment of preliminary expenses.

All expenses actually incurred by the governing body of any municipality in the making of surveys, estimates of cost and of revenues, employment of engineers, attorneys or other employees, the giving of notices, taking of options, selling of bonds, and all other preliminary expenses of whatever nature, which such governing body deems necessary in connection with or precedent to the acquisition or improvement of any electric plant and which it deems necessary to be paid prior to the issuance and delivery of the bonds issued pursuant to the provisions of this article, may be met and paid out of the general fund of said municipality not otherwise appropriated, or from any other available fund.

All such payments from the general or other funds shall be considered as temporary loans and shall be repaid immediately upon sale and delivery of the bonds, and claim for such repayment shall have priority over all other claims against the proceeds derived from the sale of such bonds.

HISTORY: Codes, 1942, § 5537; Laws, 1936, ch. 185.

§ 77-5-425. Board of public utilities; appointment and terms of members.

Any municipality, excepting those which have a population of less than two thousand (2,000), issuing bonds under the provisions of this article for the acquisition of an electric plant shall, and any municipality now or hereafter owning or operating an electric plant under this article or any other law may, appoint a board of public utilities (hereinafter called the “board”).

The board shall be created in the following manner. At the time the governing body of a municipality issuing bonds under the provisions of this article determines that a majority of the qualified voters voting on the electric resolution have assented to the bond issue for the acquisition of an electric plant, the chief executive officer of the municipality shall, or if no such bonds are issued or if the municipality has a population of less than two thousand (2,000), then at any time he may, with the consent of the governing body of the municipality, appoint two (2) or four (4) men from among the property holders of such municipality who are residents of the municipality and have resided therein for not less than one (1) year next preceding the date of appointment to such board. No regular compensated officer or employee of a municipality shall be eligible for such appointment until at least one (1) year after the expiration of the term of his public office.

The original appointees, if two (2) be appointed, shall serve for two (2) and four (4) years respectively, or if four (4) be appointed, shall serve for one (1), two (2), three (3) and four (4) years respectively, from the first day of July next succeeding the date of appointment, as the said chief executive officer shall designate. Successors to retiring members so appointed shall be appointed for a term of four (4) years in the same manner, prior to the expiration of the term of office of the retiring members.

In addition to the members so appointed, such chief executive officer shall also, with the consent of the governing body of the municipality, designate a member of such governing body to serve as a third or fifth member of the board, as the case may be. The term of such member shall be for such time as the appointing officer may fix, but in no event shall it extend beyond such appointee’s term of office in such governing body. Appointments to complete unexpired terms of office shall be made in the same manner as original appointments.

For the purposes of this section, the president of the board of supervisors of a county shall be considered the chief executive officer of the county.

HISTORY: Codes, 1942, § 5538; Laws, 1936, ch. 185.

§ 77-5-427. Board of public utilities; bond, oath, compensation and removal of members; meetings; election of officers.

Each member of the board of public utilities shall give such bond, if any, as may be required by resolution of the governing body of the municipality and shall qualify by taking the same oath of office as required for members of such governing body.

A majority of the board shall constitute a quorum. The board shall act by vote of a majority present at any meeting attended by a quorum and vacancies in the board shall not affect its power and authority so long as a quorum remains. Within ten (10) days after appointment and qualifications of members, the board shall hold a meeting to elect a chairman. The board shall at the same time designate a secretary and treasurer, or secretary-treasurer, who need not be members or a member of the board, and shall require such secretary and treasurer, or secretary-treasurer, to give bond, with sufficient surety, to be payable, conditioned and approved as provided by law, in a penalty equal to Twenty-five Thousand Dollars ($25,000.00), and shall fix their or his compensation. The board shall hold public meetings at least once each month, at such regular time and place as the board may determine. Changes in such time and place of meeting shall be made known to the public as far in advance as practicable. Save as otherwise expressly provided, the board shall establish its own rules of procedure. All members of the board shall serve as such without compensation, but they shall be allowed necessary traveling and other expenses while engaged in the business of the board, including allowance of not to exceed Five Dollars ($5.00) per month for attendance at meetings. Such expenses as well as the salaries of the secretary and treasurer, or secretary-treasurer, shall constitute a cost of operation and maintenance of the electric plant.

Any member of the board may be removed from office for cause upon a vote of three-fourths (3/4) of the members of the governing body of the municipality, but only after preferment of formal charges by resolution of a majority of the members of such governing body at a public hearing before such governing body.

HISTORY: Codes, 1942, § 5538; Laws, 1936, ch. 185; Laws, 1986, ch. 458, § 47, eff from and after October 1, 1986.

§ 77-5-429. Supervision and control of the electric plant; supervisory body and electric plant superintendent.

The general supervision and control of the acquisition, improvement, operation and maintenance of the electric plant shall be in charge of the following agency (hereinafter referred to as the “supervisory body”): the board of public utilities, or if there be no board, then the governing body of the municipality. The supervisory body shall appoint an electric plant superintendent (hereinafter called “superintendent”), who shall be qualified by training and experience for the general superintendence of the acquisition, improvement and operation of the electric plant. The superintendent need not be a resident of the state at the time of his appointment. His salary shall be fixed by the supervisory body. The superintendent shall be removable by the supervisory body, but only upon the preferment of formal charges by such body and a public hearing upon written notice of not less than forty-eight (48) hours.

Within the limits of the funds available therefor, all powers to acquire, improve, operate and maintain, and to furnish electric service, and all powers necessary or convenient thereto, conferred by this article shall be exercised on behalf of the municipality by the supervisory body and the superintendent respectively. Subject to the provisions of applicable bonds or contracts, the supervisory body shall determine programs and make all plans for the acquisition of the electric plant, shall make all determinations as to improvements, rates and financial practices, may establish such rules and regulations as it may deem necessary or appropriate to govern the furnishing of electric service, and may disburse all moneys available in the electric plant fund for the acquisition, improvement, operation and maintenance of the electric plant and the furnishing of electric service. A copy of the schedule of the current rates and charges in effect from time to time and a copy of all rules and regulations of the supervisory body relating to electric service shall be kept on public file at the main and all branch offices of the electric plant and also in the office of the municipal clerk or recorder.

The superintendent shall have charge of all actual construction, the immediate management and operation of the electric plant and the enforcement and execution of all rules, regulations, programs, plans and decisions made or adopted by the supervisory body. The superintendent shall appoint all employees and fix their duties and compensation, excepting that the appointment of all technical consultants and advisors and legal assistants shall be subject to the approval of the supervisory body. Subject to the provisions of subsection (f) of Section 77-5-405, the superintendent, with the approval of the supervisory body, may acquire and dispose of all property, real and personal, necessary to effectuate the purposes of this article. The title of such property shall be taken in the name of the municipality. The superintendent shall let all contracts, subject to the approval of the supervisory body, but may, without such approval, obligate the electric plant on purchase orders up to an amount to be fixed by the supervisory body, but not to exceed two thousand dollars ($2,000.00). Any work or construction exceeding in cost two thousand dollars ($2,000.00) shall, before any contract is let or work done, be advertised by the superintendent for bids; the supervisory body shall have power to reject any and all bids. The superintendent shall make and keep full and proper books and records, subject to the supervision and direction of the supervisory body, and the provisions of applicable contracts.

HISTORY: Codes, 1942, § 5539; Laws, 1936, ch. 185.

§ 77-5-431. Electric plant fund.

All moneys derived from the issuance of bonds under the provisions of this article, together with any federal grant made in connection therewith, shall be paid to the proper fiscal agent of the supervisory body. Such agent shall deposit such moneys, together with all receipts from electric service or any other operation of the supervisory body as such, in a separate bank account or accounts, separate from all other municipal funds, and shall keep adequate records of all such receipts and their sources. The fiscal agent shall pay out such moneys only on voucher signed by the superintendent. No such voucher for the payment of any such moneys shall be issued except upon the resolution or order of the supervisory body, a certified copy whereof shall be filed in the office of the fiscal agent.

HISTORY: Codes, 1942, § 5540; Laws, 1936, ch. 185.

§ 77-5-433. Disposition of moneys received from the issuance of bonds.

All moneys received from the issuance of bonds shall be used solely to defray the cost of acquiring or improving an electric plant, except that such proceeds may in the discretion of the supervisory body also be used for the payment of the interest on the bonds during the first two (2) years following the date of such bonds. The cost of the electric plant shall include all costs of acquisition, or improvement, including all preliminary expenses described in Section 77-5-423, the cost of acquiring all property, franchises, easements, and rights in the judgment of the supervisory body necessary or convenient therefor, engineering and legal expenses, expenses for estimates of cost and revenues, expenses for plans, specifications and surveys, other expenses incident or necessary to determining the feasibility or practicability of the enterprise, administrative expense, and such other expense as may be incurred in the financing herein authorized, the acquisition or improvement of the electric plant, the placing of such plant in operation, including the creation of a cash working fund, and the performance of the things herein required or permitted in connection therewith.

HISTORY: Codes, 1942, § 5541; Laws, 1936, ch. 185.

§ 77-5-435. Disposition of revenues.

The supervisory body of a municipality proceeding under the terms of this article shall devote all moneys derived from any source other than the issuance of bonds to or for the payment of all operating expenses; bond interest and retirement and/or sinking fund payments; the acquisition and improvement of the electric plant; contingencies; the payment of other obligations incurred in the operation and maintenance of the electric plant and the furnishing of electric service; the redemption and purchase of electric plant bonds in which case such bonds shall be canceled; the creation and maintenance of a cash working fund; the payment of an amount to the general funds of the municipality not to exceed a cumulative return of six percent (6%) per annum of the equity or investment, if any, of the municipality; and, if the governing body of the municipality shall by resolution so request, payments to the municipality in lieu of ad valorem taxes on the property of the electric plant within the corporate or county limits of the municipality not to exceed the amount of taxes payable on privately owned property of similar nature. Any surplus thereafter remaining after establishment of proper reserves, if any, shall be devoted solely to the reduction of rates. In computing the equity or investment of the municipality, the value of the electric plant shall be taken as its historical cost, less the accrued depreciation as of the date of the first exercise by the municipality of the powers conferred by this article. The payment of bonds or the acquisition or improvement of property from the receipts derived from electric service or any other operation of the supervisory body as such shall not be considered to increase the equity or investment of the municipality.

HISTORY: Codes, 1942, § 5542; Laws, 1936, ch. 185.

§ 77-5-437. Payment for services rendered to municipalities and departments and works thereof.

The supervisory body shall charge the municipality and all departments and works thereof for any electric service furnished to them, at the rates applicable to other customers taking service under similar conditions. Revenues derived from such service shall be treated as all other revenues.

HISTORY: Codes, 1942, § 5543; Laws, 1936, ch. 185.

§ 77-5-439. Records and reports of the board of public utilities.

The board of public utilities shall keep a complete and accurate record of all meetings and actions taken, and of all receipts and disbursements, and shall make reports of the same to the governing body of the municipality at stated intervals, not to exceed one (1) year. Said reports shall be in writing and shall be filed in open meeting of the governing body of the municipality. A copy shall be filed with the municipal clerk or recorder.

HISTORY: Codes, 1942, § 5544; Laws, 1936, ch. 185.

§ 77-5-441. Exercise of power of eminent domain by municipality.

Any municipality proceeding under the provisions of this article is hereby authorized and empowered to condemn any land, easements or rights of way either on, under or above the ground, for any and all purposes necessary in connection with the construction, operation and maintenance of an electric plant or improvements thereto. Title to property so condemned shall be taken in the name of the municipality. Such condemnation proceedings shall be pursuant to and in accordance with Chapter 27, Title 11, of the Mississippi Code of 1972. Where condemnation proceedings become necessary the judge of the circuit court in which such proceedings are filed shall upon application of the municipality and upon the deposit in the court, for the use of the person or persons lawfully entitled thereto, of such amount as the judge may deem necessary to assure just compensation, order that the right of possession shall issue immediately or as soon and upon such terms as the judge in his discretion may deem proper and just. Upon application of the parties in interest, the judge may order that the money deposited in the court, or any part thereof, be paid forthwith for or on account of the just compensation to be awarded in said proceedings.

HISTORY: Codes, 1942, § 5546; Laws, 1936, ch. 185.

§ 77-5-443. Use of certain rights of way; payment of indebtedness.

Any municipality may use any right of way, easement or other similar property right necessary or convenient in connection with the acquisition, improvement, operation or maintenance of an electric plant, held by the state or any other municipality, provided that such other municipality shall consent to such use.

No incorporated city, town or village shall be included within a county, nor shall any such incorporated city, town or village be required to pay any of the bonds or other indebtedness applicable to or incurred by a county, proceeding under the terms of this article, unless a majority of the qualified voters of said incorporated city, town or village voting in the election provided for in Section 77-5-407 shall vote in favor of the issuance of such bonds or other indebtedness.

HISTORY: Codes, 1942, § 5545; Laws, 1936, ch. 185.

§ 77-5-445. Election for disposition of electric plant.

The governing body of the municipality may dispose of all or substantially all of the electric plant acquired by means of bonds issued under the provisions of this article, but only with the approval of the supervisory body and a majority of those voting in an election held as follows. The governing body of the municipality shall adopt a resolution which shall state in substance (a) that the supervisory body has approved the proposed disposition; (b) a full description of the property to be disposed of; (c) the purchaser or purchasers thereof; (d) the purchase price; (e) the terms or conditions of sale if such disposition is not for cash payable in full at the time of such disposition; (f) the date on which such election will be held; and (g) the place or places where votes may be cast. At such election the ballots shall contain the words “for the disposition of the electric plant” and “against the disposition of the electric plant.” In all other respects the election shall be called and held in the manner set forth in Section 77-5-407.

HISTORY: Codes, 1942, § 5547; Laws, 1936, ch. 185.

§ 77-5-447. Construction of article; article supplemental and additional to existing law.

This article is for the public purpose of promoting the increased use of electricity in the urban and rural areas of this state, and to enable all counties, as well as cities and towns, to secure the benefit of the surplus power generated or to be generated by the Tennessee Valley Authority at Wilson Dam in the State of Alabama and Norris Dam in the State of Tennessee, or the power generated at any other works or dams. This article is remedial in nature and the powers granted in it shall be liberally construed to effectuate the purposes hereof, and to this end every municipality shall have power to do all things necessary or convenient to carry out the purposes hereof in addition to the powers expressly conferred in this article.

The powers conferred by this article shall be in addition and supplemental to the powers conferred by any other law. Bonds may be issued under the provisions of this article for the acquisition or improvement of an electric plant notwithstanding that any other law may provide for the issuance of bonds for like purposes and without regard to the requirements, restrictions or procedural provisions contained in any other law. Any proceedings heretofore taken by any municipality relating to the subject-matter of this article, whether or not commenced under any other law, may at the option of the governing body, be discontinued and new proceedings instituted under this article.

HISTORY: Codes, 1942, §§ 5548, 5549; Laws, 1936, ch. 185.

§ 77-5-501. Competition with proposed system barred for six months after filing of maps and statement of proposed operation.

1. Whenever a corporation or association organized under the provisions of Article 5 of this chapter (hereafter referred to in this article as the “filing corporation”) or whenever a group of persons which has formed a temporary organization with the intention of forming such a corporation or association under said laws, shall file with the Mississippi Rural Electrification Authority (hereafter referred to in this article as the “authority”) a map or maps indicating the area or areas in which the operations of said filing corporation are intended to be conducted, together with a statement verified by oath or affirmation to the effect that a majority of the potential users of electric energy, not then receiving central station electric service in said area or areas, has signified in writing its willingness to take service from the proposed system of said filing corporation it shall be unlawful for an electric utility, power and light company, person or corporation, after receipt of any notice provided in this article of the filing of said map or maps and statement, to begin the construction of any electric distribution lines within said area or areas or to solicit customers for electric service therein or in any manner to conflict, interfere or compete with the proposed system of said filing corporation, until after the expiration of six (6) months from the date of said filing of said map or maps and statement.
2. The words “area” or “areas” as used herein in connection with the maps to be filed by said filing corporation shall be deemed to mean the area or areas which may be served in normal practice by secondary voltage extensions from the primary voltage lines indicated in said maps, which in any event shall not be less than fifteen hundred (1500) feet from either side of said primary lines.

HISTORY: Codes, 1942, §§ 5490, 5491; Laws, 1938, ch. 250; Laws, 1938, Ex. ch. 77.

§ 77-5-503. Competition with proposed system barred for twelve months after filing of notice of federal loan agreement.

In the event that the filing corporation within the six months period provided for in Section 77-5-501 shall enter into any loan agreement with any federal agency for the financing of its proposed electric system, and shall file a written notice thereof with the authority, together with a copy of said loan agreement, no such electric utility, power and light company, person or corporation after receipt of notice of such loan agreement shall begin the construction of any electric distribution lines within said area or areas or solicit customers for electric service therein until after the expiration of twelve (12) months from the date of filing said notice of said loan agreement.

HISTORY: Codes, 1942, § 5492; Laws, 1938, Ex. ch. 77.

§ 77-5-505. Notice to be furnished private utilities.

It shall be the duty of the authority to give notice in writing of the filing of the map or maps and statement and the loan agreement provided for in Sections 77-5-501 and 77-5-503 to each electric utility and power and light company having any electric transmission or distribution lines or system within or within ten (10) miles of any area shown in said maps where said filing corporation intends to operate its proposed system. There shall be attached to said notice blueprint copies of said maps, a copy of said statement, and a copy of the notice of said loan agreement in the event that such an agreement shall have been entered into. Sufficient copies for the purpose of such notices shall be furnished to the authority by and at the expense of the filing corporation. The filing corporation may give the notices required by said sections and such notices shall be effectual for the purposes of this article, notwithstanding any failure of the authority to give the notices herein provided for. Any notice shall be deemed to have been given within the requirements of this article when it has been deposited in the mails with postage prepaid and addressed to the principal office of any such electric utility, power and light company, person or corporation.

HISTORY: Codes, 1942, § 5493; Laws, 1938, Ex. ch. 77.

§ 77-5-507. Promulgation of rules and regulations by authority; enforcement powers of authority.

The authority is hereby authorized to make and promulgate reasonable rules and regulations to carry out the provisions of this article and to take appropriate action for the enforcement thereof, including proceedings for injunctions against violations thereof, instigated in the name of the authority and upon its own motion. These powers and remedies shall be in addition to all other remedies provided in this article or that may exist under general provisions or rules of law.

HISTORY: Codes, 1942, § 5494; Laws, 1938, Ex. ch. 77.

§ 77-5-509. Injunctions; chancery court powers.

Any filing corporation may institute proceedings to enjoin any violations of this article in the chancery court of any county where said filing corporation may have its principal place of business or where any such violations are alleged to take place or to be threatened, and such proceedings may be on the relation of the attorney-general or any district or county attorney of any district in which any portion of the proposed electric system of said filing corporation may be located. It shall be the duty of said officers to prosecute and to assist in the prosecution of said proceedings.

For the enforcement of this article, the said chancery court or the chancellor, in vacation, may exercise all the powers now or hereafter existing under the laws of this state in proceedings for injunctive relief, including temporary restraining orders. In any proceedings instituted by the authority on its own motion or by petition signed by the attorney-general or any district or county attorney, as herein provided, no bond shall be required as a condition of the issuance of any restraining order or injunction.

HISTORY: Codes, 1942, § 5495; Laws, 1938, Ex. ch. 77.

§ 77-5-511. Certified copy of statement of willingness to take service from proposed system as prima facie evidence.

In any proceeding for the enforcement of this article, a certified copy of the statement mentioned in Section 77-5-501 shall be admitted in evidence and shall be presumed to be prima facie proof of the verity and accuracy of all statements therein required by the provisions of said section. The burden of proof shall be upon any defendant in any such proceeding to rebut said presumption by a clear preponderance of the evidence.

HISTORY: Codes, 1942, § 5496; Laws, 1938, Ex. ch. 77.

§ 77-5-513. Private utilities are not liable for service during six and twelve month periods.

During the periods of six (6) and twelve (12) months, respectively, as provided in Sections 77-5-501 and 77-5-503, no person, firm, association or corporation within the area or areas indicated upon said maps within which the filing corporation proposes to operate shall have the right to require any electric utility or electric light and power company to supply electric energy. No action shall be brought or maintained in any court for damages for failure to supply such electric energy within said periods of six (6) and twelve (12) months, respectively, or within a reasonable time thereafter. The provisions of this section shall not be deemed to apply to any valid and enforceable contracts in writing for electric service subsisting at the time of receipt by any party to such contracts of any notice of filing said maps and statements provided for in Section 77-5-501.

HISTORY: Codes, 1942, § 5497; Laws, 1938, Ex. ch. 77.

§ 77-5-515. Inapplicability of article.

This article shall not apply to the furnishing of electric energy to manufacturing, processing or industrial enterprises or to buildings necessary and appropriate to the operation of said enterprises, including residences, or to the solicitation of such electric service, or to the construction of through high voltage transmission lines not intended to serve individual rural customers in the area or areas shown on said maps provided for in Section 77-5-501. However, nothing in this section shall be construed as restricting the right of the filing corporation to serve manufacturing, processing or industrial enterprises.

HISTORY: Codes, 1942, § 5498; Laws, 1938, Ex. ch. 77.

§ 77-5-601. Contracts with United States for acquisition of electrical system and purchase or sale of electricity authorized.

Any municipal corporation, county, city, town, or village, power district or improvement authority, hereinafter called “municipality,” owning and/or operating or hereafter authorized to acquire and/or operate any electric generation, transmission and/or distribution system, is hereby authorized to contract with the United States of America, any agency thereof, or with any corporation owned by the United States for the acquisition of any such system or part thereof and/or the purchase or sale of electric energy. Such municipality is authorized in any such contract to stipulate and agree to such covenants, terms, and conditions as the governing body or board of the municipality may deem appropriate, including but without limitation, covenants, terms and conditions with respect to the resale rates, financial and accounting methods, service, operation and maintenance practices, and the manner of disposing of the revenues, of any such system, and to comply therewith. Any such contract heretofore entered into and any such covenants, terms or conditions heretofore stipulated or agreed to are hereby expressly validated.

HISTORY: Codes, 1942, § 5552; Laws, 1936, ch. 271.

§ 77-5-603. Article cumulative and supplemental; construction of article.

Nothing contained in this article shall be construed as a restriction or limitation upon any authority, power or right which any municipality may have in the absence hereof. This article shall be construed as cumulative and shall be in addition and supplemental to any power, authority or right conferred by any other law.

This article is remedial in nature and any power, authority or right hereby conferred shall be liberally construed, and to this end every municipality shall have the power, authority and right, in addition to those expressly conferred hereby, to do all things necessary or convenient in carrying out the purposes hereof.

HISTORY: Codes, 1942, § 5552; Laws, 1936, ch. 271.

§ 77-5-701. Short title.

This article may be cited as the “Joint Municipal Electric Power and Energy Law.”

HISTORY: Laws, 1978, ch. 363, § 1, eff from and after passage (approved March 14, 1978).

§ 77-5-703. Declaration of purpose.

The legislature of the State of Mississippi hereby finds and determines that:

A critical situation exists with respect to the present and future supply of electric power and energy in the State of Mississippi;

The cost of energy either purchased at wholesale or generated by said electrical utilities has caused the cost of electricity to consumers to increase dramatically during the past few years;

Many municipalities in the state have for many years owned and operated systems for the generation and/or distribution of electric power and energy to customers in their respective areas and are empowered severally to engage in the generation and transmission of electric power and energy.

Such municipalities owning electric generation and/or distribution systems have an obligation to provide their inhabitants and customers the most adequate, reliable and economical source of electric power and energy in the future that may be available to them;

In order to achieve the economies and efficiencies made possible by the proper planning, acquisition, construction, financing, sizing and location of facilities for the generation and/or transmission of electric power and energy which may not be practical for any municipality acting alone, and to insure an adequate, reliable and economical supply of electric power and energy to the people of the state, it is desirable for the State of Mississippi to authorize municipal electric systems and/or joint agencies created pursuant to this article to jointly or severally plan, acquire, construct, finance, develop, own, operate and maintain electric generation and/or transmission facilities with each other, or any person, firm, association or corporation, public or private, engaged in the generation, transmission or distribution of electric power and energy within this state or any other state, all as may be appropriate to their needs in order to provide for their present and future power requirement for all uses without supplanting or displacing the service at retail of other electric suppliers operating in the state; and

The joint planning, financing, development, ownership and operation of electric generation and/or transmission facilities by municipalities which own electric generation and/or distribution systems or by joint agencies created pursuant to this article and the issuance of revenue bonds for such purposes as provided in this article is for public use and for public and municipal purposes and is a means of achieving economies, adequacy and reliability in the generation and/or transmission of electric power and energy and the meeting of future needs of the state and its inhabitants.

HISTORY: Laws, 1978, ch. 363, § 2, eff from and after passage (approved March 14, 1978).

§ 77-5-705. Definitions.

The following terms, whenever used or referred to in this article, shall have the following respective meanings, unless a different meaning clearly appears from the context:

“Bonds” shall mean electric revenue bonds, notes and other evidences of indebtedness of a joint agency or municipality issued under the provisions of this article and shall include refunding bonds.

“Cost” or “cost of a project” shall mean, but shall not be limited to, all costs of acquisition, construction, reconstruction, improvement, enlargement, betterment or extension of any project, including the cost of studies, plans, specifications, surveys and estimates of costs and revenues relating thereto; all costs of land, land rights, rights-of-way and easements, water rights, fees, permits, approvals, licenses, certificates, franchises, and the preparation of applications for and securing the same; administrative, organizational, legal, engineering and inspection expenses; financing fees, expenses and costs; working capital; initial and reload fuel costs; all machinery and equipment including construction equipment; interest on the bonds during the period of construction and for such reasonable period thereafter as may be determined by the issuing municipality or joint agency; establishment of reserves; and all other expenditures of the issuing municipality or joint agency incidental, necessary or convenient to the acquisition, construction, reconstruction, improvement, enlargement, betterment or extension of any project and the placing of the same in operation.

“Governing authorities” shall mean the legislative body, council, board of commissioners, board of aldermen, or other body charged by law with governing the municipality.

“Governing board” shall mean the legislative body, council, board of trustees, board of commissioners or other body charged by law with governing the municipality or joint agency.

“Utility commission” shall mean the legislative body, board of commissioners, utility commission or body charged by law with the control, management and operation of an electric generation, transmission or distribution system, including the board of commissioners of a joint agency organized pursuant to this article.

“Joint agency” shall mean a public body and body corporate and politic organized in accordance with the provisions of this article.

“Municipality” shall mean a city, town or other unit of municipal government created under the laws of the state, or any board, agency or commission thereof, including a joint agency organized pursuant to this article, owning a system or facilities for the generation, transmission or distribution of electric power and energy for public and private uses.

“Project” shall mean any system, facilities, land, works, real property, and/or personal property of every kind or nature now or hereafter existing, or under construction for the generation, transmission and transformation, or any of them, of electric power and energy by any means whatsoever including, but not limited to, any one or more electric generating units, transmission or transformation facilities, or any facility or any facilities for the development, production, manufacture, procurement, handling, storage, fabrication, enrichment, processing or reprocessing of fuel of any kind or any facility or rights with respect to the supply of water which may be used or useful in the acquisition, development or supply of electric power and energy, or any interest in the foregoing, whether an undivided interest as a tenant in common or otherwise.

“State” shall mean the State of Mississippi.

HISTORY: Laws, 1978, ch. 363, § 3; Laws, 1981, ch. 379, § 1, eff from and after passage (approved March 20, 1981).

§ 77-5-707. Powers of municipality; determining power and energy needs; filing of determination.

In addition and supplemental to the powers otherwise conferred on municipalities by the laws of the state, and in order to accomplish the purposes of this article and to obtain a supply of electric power and energy for the present and future needs of its inhabitants and customers, a municipality may plan, finance, develop, construct, reconstruct, acquire, improve, enlarge, better, own, operate and maintain an undivided interest as a tenant in common in a project situated within or without the state jointly with one or more other municipalities, or with a joint agency created pursuant to this article, or with municipal corporations or political subdivisions of other states (to the extent permitted by the laws of such other states), or with any other federal, state or municipal agency which owns electric generation, transmission or distribution facilities or with any person, firm, association or corporation, public or private, engaged in the generation, transmission or distribution of electric power and energy either within or without this state, and may make such plans and enter into such contracts in connection therewith, not inconsistent with the provisions of this article, as are necessary or appropriate.

Prior to acquiring any such undivided interest, the utility commission shall determine the needs of the municipality for power and energy based upon engineering studies and reports, and shall not acquire an undivided interest as a tenant in common in a project in excess of that amount of capacity and the energy associated therewith required to provide for its projected needs for power and energy from and after the date the project is estimated to be placed in normal continuous operation and for such reasonable period of time thereafter as shall be determined by the utility commission. In determining the future power requirements of a municipality, there shall be taken into account the following:

The economies and efficiencies estimated to be achieved in acquiring, constructing and operating the proposed facilities for the generation and transmission of electric power and energy;

The municipality’s estimated requirements for power and energy from the project and for reserve capacity and to meet obligations under pooling and reserve sharing agreements reasonably related to its needs for power and energy to which it is or may become a party; and

The cost of existing or alternative power supply sources.

A determination by such utility commission approved by the governing authorities as herein provided, based upon appropriate findings of the foregoing matters, shall be conclusive as to the quantity of the interest which a municipality may acquire in a project. Any determination by the utilities commission shall be filed with the governing authorities of the municipality and recorded in the official minutes of the governing authorities. Notice of the filing of such determination shall be published one (1) time in a newspaper having a general circulation in the municipality, and shall specify a date, not less than ten (10) days after the publication of such notice at which the governing authorities of such municipality shall meet to hear any objections or remonstrances that may be made. At said meeting, the governing authorities shall consider the objections or protests, if any, and shall at said meeting or at any adjourned meeting, ratify or reject the determination of the utility commission. Any person or party objecting or protesting the determination at said meeting, who is aggrieved by the ratification thereof, shall file an appeal pursuant to Section 11-51-75.

Nothing herein contained shall prevent a municipality or municipalities from undertaking studies to determine whether there is a need for a project or whether such project is feasible.

For the purposes of this section, the terms “municipality” and “utility commission” shall not include a joint agency or the board of commissioners thereof.

HISTORY: Laws, 1978, ch. 363, § 4; Laws, 1981, ch. 379, § 2, eff from and after passage (approved March 20, 1981).

§ 77-5-709. Proportionate ownership of undivided interest in projects; liability of municipality; contracts; issuance of bonds.

Each municipality shall own an undivided interest in any project in proportion to the amount of the money furnished the value of property or other consideration supplied by it for the planning, development, acquisition or construction thereof, and shall be entitled to a percentage share of the output and capacity therefrom equal to such undivided interest.

Each municipality shall be severally liable for its own acts and not jointly or severally liable for the acts, omissions or obligations of others, and no money or property or other consideration supplied by any municipality shall be credited or otherwise applied to the account of any other municipality or other tenant in common in the project, nor shall the undivided share of any municipality in a project be charged directly or indirectly with any debt or obligation of any other municipality or other tenant in common or be subject to any lien as a result thereof. The acquisition of a project shall include, but shall not be limited to, the purchase or lease of an existing, completed project and the purchase of a project under construction. A municipality participating in the joint planning, financing, construction, reconstruction, acquisition, improvement, enlargement, betterment, ownership, operation or maintenance of any project under this article may furnish money and provide property, both real and personal, services and other considerations derived solely from the proceeds of bonds or from the ownership and operation of its electric system, or both.

Any contracts entered into by municipalities with respect to joint ownership in a project shall contain such terms, conditions and provisions, not inconsistent with the provisions hereof, as the utility commission of the municipalities shall deem to be in the interests of the municipalities and shall be spread upon the minutes of said utility commission. Any such contracts shall be ratified by resolution of the governing authorities of each municipality spread upon its minutes. Any such contracts shall include, but shall not be limited to, the following:

The purpose or purposes of the contract;

The duration of the contract;

The manner of appointing or employing the personnel necessary in connection with the project;

The method of financing the project, including the apportionment of costs and revenues;

Provisions specifying the ownership interests of the parties in real property used or useful in connection with the project, and the procedures for the disposition of such property when the contract expires, is terminated or when the project, for any reason, is abandoned, decommissioned or dismantled;

Provisions relating to alienation and prohibiting partition of a municipality’s undivided interest in a project, which provisions shall not be subject to any provision of law restricting covenants against alienation or partition;

Provisions for the construction of a project, which may include the determination that one (1) municipality jointly participating or any person, firm or corporation may construct the project as agent for all the parties;

Provisions for the operation and maintenance of a project, which may include the determination that one (1) municipality jointly participating or any person, firm or corporation may operate and maintain the project as agent for all the parties;

Provisions for the creation of a committee of representatives of the parties jointly participating with such powers of supervision of the construction and operation of the project as the contract, not inconsistent with the provisions of this article, may provide;

Provisions that if one or more of the parties shall default in the performance or discharge of its or their obligations with respect to the project, the other party or one or more of the other parties may assume, pro rata, or otherwise, the obligations of such defaulting party or parties and may succeed to such rights and interests of the defaulting party or parties in the project as may be agreed upon in the contract;

Methods of amending the contract;

Methods for terminating the contract; and

Any other necessary or proper matter.

For the purpose of paying its respective share of the cost of a project or projects, a municipality may issue its bonds as provided in this article, and, notwithstanding the provisions of any other law to the contrary, may pledge to the payment of the principal of, premium, if any, and interest on such bonds, the revenues or any portion thereof derived or to be derived from the ownership and operation of its system or facilities for the generation, transmission or distribution of electric power or energy or its interest in any joint project or projects, or a combination of such revenues. Provided, that all bonds issued under the provisions of this article shall be authorized and issued by the governing authorities of a city, town or other unit of municipal government created under the laws of this state.

HISTORY: Laws, 1978, ch. 363, § 5, eff from and after passage (approved March 14, 1978).

§ 77-5-711. Sale or exchange by municipality of excess capacity or output.

Capacity or output or related services derived by a municipality from its ownership share of a project not then required by such municipality for its own use and for the use of its consumers may be sold or exchanged by such municipality, for such consideration and for such period and upon such other terms and conditions as may be determined by the parties, either within or without the state, to any state, federal or municipal or private agency or corporation, including joint agencies created pursuant to this article and to any person, firm, association or corporation, public or private, engaged in the generation, transmission or distribution of electric power and energy within this state or any other state. Provided, however, that sales of excess capacity or output of a project to electric power associations, public utilities and other persons, the interest on whose securities and other obligations is not exempt from taxation by the federal government, shall not be made in such amounts, for such periods of time, and under such terms and conditions as will cause the interest on bonds issued to finance the cost of a project to become taxable by the federal government.

HISTORY: Laws, 1978, ch. 363, § 6, eff from and after passage (approved March 14, 1978).

§ 77-5-713. Application for licenses, permits, certificates or approvals.

Municipalities proposing to jointly plan, finance, develop, own and operate a project are hereby authorized, either jointly or separately, to apply to the appropriate agencies of the state, the United States, or any state thereof, and to any other proper agency for such licenses, permits, certificates or approvals as may be necessary, and to construct, maintain and operate projects in accordance with such licenses, permits, certificates or approvals and to obtain, hold and use such licenses, permits, certificates and approvals in the same manner as any other operating unit of any other person; provided, however, nothing herein contained shall be construed to require a municipality to obtain any license, certificate, permit, or approval from the public service commission of Mississippi.

HISTORY: Laws, 1978, ch. 363, § 7, eff from and after passage (approved March 14, 1978).

§ 77-5-715. Contracts for exchange, interchange, wheeling, pooling and transmission of electric power.

Municipalities participating in a joint project or projects are hereby authorized to enter into contracts for the exchange, interchange, wheeling, pooling and transmission of electric power and energy produced by such project or projects with any municipality of this state or any other state owning electric distribution facilities, any electric power association, or any public or private utility, or any state, federal or municipal agency which owns electric generation, transmission or distribution facilities in this state or any other state.

HISTORY: Laws, 1978, ch. 363, § 8, eff from and after passage (approved March 14, 1978).

§ 77-5-717. Creation of joint agencies; application process; issuance of certificate of incorporation.

The utility commissions of two (2) or more municipalities may, by resolution or ordinance, determine that it is in the best interests of the municipalities in accomplishing the purposes of this article to create a joint agency as prescribed herein for the purpose of undertaking the planning, financing, development, acquisition, construction, reconstruction, improvement, enlargement, betterment, operation and maintenance of a project or projects to supply electric power and energy for their present or future needs as an alternative or supplemental method of obtaining the benefits and assuming the responsibilities of ownership in a project. In determining whether or not the creation of a joint agency for such purpose is in the best interests of the municipalities, the utility commissions shall take into consideration, but shall not be limited to, the following:

Whether or not a separate entity may be able to finance the cost of projects in a more efficient and economical manner;

Whether or not better financial market acceptance may result if one (1) entity is responsible for issuing all of the bonds required for a project or projects in a timely and orderly manner and with a uniform credit rating instead of multiple entities issuing separate issues of bonds;

Whether or not savings and other advantages may be obtained by providing a separate entity responsible for the acquisition, construction, ownership and operation of a project or projects; and

Whether or not the existence of such a separate entity will foster the continuation of joint planning and undertaking of projects, and the resulting economies and efficiencies to be derived from such joint planning and undertaking.

If each utility commission shall determine that it is in the best interest of the municipality to create a joint agency to provide power and energy to the municipality as provided in this article, each shall adopt a resolution so finding (which need not prescribe in detail the basis for the determination) and which shall set forth the names of the municipalities which are proposed to be initial members of the joint agency. Said resolution shall be certified to the governing authorities who shall thereupon disapprove or ratify the determination of said utility commission by resolution or ordinance spread upon its official minutes. The governing authority shall cause notice of such determination to be given to the presiding officer of the utility commission of the municipality, which utility commission shall thereupon appoint in writing one (1) commissioner of the joint agency, which commissioner may, in the discretion of the utility commission be an officer or employee of the municipality.

Any two (2) or more commissioners so named may file with the secretary of state an application signed by them setting forth (i) the names of all proposed member municipalities; (ii) the name and official residence of each of the commissioners so far as known to them; (iii) a certified copy of the appointment evidencing their right to office; (iv) a statement that each utility commission of each respective municipality appointing a commissioner has made the aforesaid determination; (v) a statement that each governing authority of each respective municipality has ratified the determination of the utility commission; (vi) the desire that a joint agency be organized as a public body and a body corporate and politic under this article; and (vii) the name which is proposed for the joint agency.

The application shall be subscribed and sworn to by such commissioners before an officer or officers authorized by the laws of the state to administer and certify oaths, and shall be accompanied by a fee in the amount of fifty dollars ($50.00) payable to the secretary of state as a filing fee.

The secretary of state shall examine the application and, if he finds that the name proposed for the joint agency is not identical with that of any other corporation of this state or of any agency or instrumentality thereof, or so nearly similar as to lead to confusion and uncertainty, he shall receive and file it and shall record it in an appropriate book of record in his office.

When the application has been made, filed and recorded as herein provided, the joint agency shall constitute a public body and a body corporate and politic under the name proposed in the application. The secretary of state shall make and issue to the commissioners executing the application a certificate of incorporation pursuant to this article under the seal of the state, and shall record the same with the application. The certificate shall set forth the names of the member municipalities.

In any suit, action or proceeding involving the validity or enforcement of, or relating to, any contract of the joint agency, the joint agency, in the absence of establishing fraud in the premises, shall be conclusively deemed to have been established in accordance with the provisions of this article upon proof of the issuance of the aforesaid certificate by the secretary of state. A copy of such certificate, duly certified by the secretary of state, shall be admissible in evidence in any such suit, action or proceeding, and shall be conclusive proof of the filing and contents thereof.

Notice of the issuance of such certificate shall be given to all of the proposed member municipalities by the secretary of state. If a commissioner of any such municipality has not signed the application to the secretary of state and such municipality does not notify the secretary of state of the appointment of a commissioner within forty (40) days after receipt of such notice, such municipality shall be deemed to have elected not to be a member of the joint agency. As soon as practicable after the expiration of such period of forty (40) days, the secretary of state shall issue a new certificate of incorporation, if necessary, setting forth the names of those municipalities which have elected to become members of the joint agency. The failure of any proposed member to become a member shall not affect the validity of the corporate existence of the joint agency.

HISTORY: Laws, 1978, ch. 363, § 9(1), eff from and after passage (approved March 14, 1978).

§ 77-5-719. Additional membership in joint agencies; withdrawal from membership.

After the creation of a joint agency, any other municipality may become a member thereof upon application to such joint agency after the adoption of a resolution by the utility commission of the municipality setting forth the determination and finding prescribed in Section 75-5-717, and the adoption by the governing authorities of the municipality of a resolution or ordinance ratifying the determination of the utility commission and authorizing said municipality to participate, and with the unanimous consent of the members of the joint agency evidenced by the resolutions of their respective utility commissions. Any municipality may withdraw from a joint agency, provided, however, that all contractual rights acquired and obligations incurred while a municipality was a member shall remain in full force and effect.

HISTORY: Laws, 1978, ch. 363, § 9(2), eff from and after passage (approved March 14, 1978).

§ 77-5-721. Board of commissioners of joint agency; officers; quorum; voting; expenses.

The joint agency shall consist of a board of commissioners appointed by the respective utility commissions of the municipalities which are members of the joint agency. Each municipality shall appoint one (1) commissioner who may, at the discretion of the municipality, be an officer or employee of the municipality, the appointment to be made by resolution. Each commissioner shall have not less than one (1) vote and may have in addition thereto such additional votes as the utility commissions of a majority of the municipalities which are members of the joint agency shall determine. After any initial determination of the number of additional votes which the commissioners may have has been made, such additional votes shall not thereafter be changed except by unanimous consent of the municipalities which are members of the joint agency. Each commissioner shall serve at the pleasure of the utility commission by which he was appointed. Each appointed commissioner before entering upon his duties shall enter into bond with a corporate surety in an amount not less than ten thousand dollars ($10,000.00), conditioned on the faithful performance of his duties, and shall take and subscribe to an oath before some person authorized by law to administer oaths to execute the duties of his office faithfully and impartially, and such bond and oath shall be filed with the governing authority of the appointing municipality and spread upon its minutes. The premiums on such bonds shall be paid by the joint agency.

The board of commissioners of the joint agency shall annually elect one (1) of the commissioners as chairman, another as vice chairman, and another person or persons, who may but need not be commissioners, as treasurer, secretary, and if desired, assistant secretary. The treasurer shall enter into bond with a corporate surety in such amount of not less than twenty-five thousand dollars ($25,000.00), as may be determined by the commissioners. The office of treasurer may be held by the secretary or assistant secretary. The board of commissioners may also appoint such additional officers as it deems necessary. The secretary or assistant secretary of the joint agency shall keep a record of the proceedings of the joint agency, and the secretary shall be the custodian of all records, books, documents and papers filed with the joint agency, the minute book or journal of the joint agency and its official seal. Either the secretary or the assistant secretary of the joint agency may cause copies to be made of all minutes and other records and documents of the joint agency and may give certificates under the official seal of the joint agency to the effect that such copies are true copies, and all persons dealing with the joint agency may rely upon such certificates.

A majority of the commissioners of a joint agency then in office shall constitute a quorum. A vacancy in the board of commissioners of the joint agency shall not impair the right of a quorum to exercise all the rights and perform all the duties of the joint agency. Any action taken by the joint agency under the provisions of this article may be authorized by resolution at any regular or special meeting, and each such resolution shall take effect immediately and need not be published or posted. A majority of the votes which the commissioners present are entitled to cast shall be necessary and sufficient to take any action or to pass any resolution, provided that such commissioners present are entitled to cast a majority of the votes of all commissioners of the board.

No commissioner of a joint agency shall receive any compensation for the performance of his duties hereunder, provided, however, that each commissioner may be paid his necessary expenses incurred while engaged in the performance of such duties.

HISTORY: Laws, 1978, ch. 363, § 9(3) to (6), eff from and after passage (approved March 14, 1978).

§ 77-5-723. Board of commissioners of joint agency; executive committee.

The board of commissioners of a joint agency may create an executive committee of the board of commissioners. The board may provide for the composition of the executive committee so as to afford, in its judgment, fair representation of the member municipalities. The executive committee shall have and exercise such of the powers and authority of the board of commissioners during intervals between the board’s meetings as may be prescribed by its rules, motions or resolutions. The terms of office of the members of the executive committee and the method of filling vacancies therein shall be fixed by the rules of the board of commissioners of the joint agency.

HISTORY: Laws, 1978, ch. 363, § 10, eff from and after passage (approved March 14, 1978).

§ 77-5-725. Rights and powers of joint agencies.

Each joint agency shall have all of the rights and powers necessary or convenient to carry out and effectuate the purposes and provisions of this article, including, but without limiting the generality of the foregoing, the rights and powers:

To adopt bylaws for the regulation of the affairs and the conduct of its business, and to prescribe rules, regulations and policies in connection with the performance of its functions and duties;

To adopt an official seal and alter the same at pleasure;

To maintain an office at such place or places as it may determine;

To sue and be sued in its own name, and to plead and be impleaded;

To receive, administer and comply with the conditions and requirements respecting any gift, grant or donation of any property or money;

To acquire by purchase, lease, gift or otherwise, or to obtain options for the acquisition of, any property, real or personal, improved or unimproved, including an interest in land less than the fee thereof;

To sell, lease, exchange, transfer or otherwise dispose of, or to grant options for any such purposes with respect to, any real or personal property or interest therein;

To pledge or assign any money, rents, charges or other revenues and any proceeds derived by the joint agency from the sales of property, insurance or condemnation awards;

To issue bonds of the joint agency for the purpose of providing funds for any of its corporate purposes;

To study, plan, finance, construct, reconstruct, acquire, improve, enlarge, extend, better, own, operate and maintain, one or more projects, either individually or jointly, with one or more municipalities in this state or any other state owning electric distribution facilities or with any political subdivision, agencies or instrumentalities of any state, or with any one or more joint agencies created pursuant to this article, or any person, firm, association or corporation, public or private, engaged in the generation, transmission or distribution of electric power and energy within this state or any other state, and to pay all or any part of the costs thereof from the proceeds of bonds of the joint agency or from any other funds made available to the joint agency;

To authorize the construction, operation or maintenance of any project or projects by any person, firm or corporation, including political subdivisions and agencies of any state, or of the United States;

To acquire by lease, purchase or otherwise an existing project or a project under construction, or any interest therein, or portion thereof;

With the unanimous consent of the member municipalities, to sell or otherwise dispose of any project or projects, or any interest therein or portion thereof. The member municipalities may enter into an agreement with the joint agency whereby certain types of property may be traded or otherwise disposed of without unanimous consent of the member municipalities;

To fix, charge and collect rents, rates, fees and charges for electric power or energy and other services, facilities and commodities sold, furnished or supplied through any project;

To generate, produce, transmit, deliver, exchange, purchase or sell for resale only, electric power or energy, and to enter into contracts for any or all such purposes;

To negotiate and enter into contracts for the purchase, sale, exchange, interchange, wheeling, pooling, transmission or use of electric power and energy with any municipality in this state or any other state owning electric distribution facilities, or with any political subdivisions, agencies or instrumentalities of any other state or with other joint agencies created pursuant to this article, any electric power association, any public or private utility, and any state, federal or municipal agency which owns electric generation, transmission or distribution facilities in this state or any other state;

To make and execute contracts and other instruments necessary or convenient in the exercise of the powers and functions of the joint agency under this article, including contracts with persons, firms, corporations and others;

To apply to the appropriate agencies of the state, the United States or any state thereof, and to any other proper agency for such permits, licenses, certificates or approvals as may be necessary, and to construct, maintain and operate projects in accordance with, and to obtain, hold and use, such licenses, permits, certificates or approvals in the same manner as any other person or operating unit of any other person; provided, however, nothing herein contained shall be construed to require the joint agency to obtain any permit, license, certificate or approval from the Public Service Commission of Mississippi;

To employ engineers, architects, attorneys, real estate counselors, appraisers, financial advisors and such other consultants and employees as may be required in the judgment of the joint agency and to fix and pay their compensation from funds available to the joint agency therefor;

To purchase all kinds of insurance including, but not limited to, insurance against business interruption, and/or risks of damage to property;

To purchase power and energy and related services from any source on behalf of its members and other customers and to sell the same to its members and other customers in such amounts, with such characteristics, for such periods of time and under such terms and conditions as the board of commissioners shall determine; and

To do all acts and things necessary, convenient or desirable to carry out the purposes, and to exercise the powers granted to the joint agency herein.

HISTORY: Laws, 1978, ch. 363, § 11(1); Laws, 1979, ch. 350; Laws, 1981, ch. 380, § 1; Laws, 1984, ch. 495, § 34; reenacted and amended, Laws, 1985, ch. 474, § 31; Laws, 1986, ch. 438, § 48; Laws, 1987, ch. 483, § 49; Laws, 1988, ch. 442, § 46; Laws, 1989, ch. 537, § 44; Laws, 1990, ch. 518, § 45; Laws, 1991, ch. 618, § 46; Laws, 1992, ch. 491, § 48, eff from and after passage (approved May 12, 1992).

§ 77-5-727. Determining appropriateness of projects to be undertaken by joint agencies; objections; appeal process.

No joint agency shall undertake any project required to be financed, in whole or in part, with the proceeds of bonds without the approval of a majority of its members. Before undertaking any project, a joint agency shall, based upon engineering studies and reports, determine that such project is required to provide for the projected needs for power and energy of its members from and after the date the project is estimated to be placed in normal and continuous operation and for a reasonable period of time thereafter. In determining the future power requirements of the members of a joint agency, there shall be taken into account the following:

The economies and efficiencies estimated to be achieved in acquiring, constructing and operating the proposed facilities for the generation and transmission of electric power and energy;

The estimated requirements for power and energy and for reserve capacity and to meet obligations under pooling and reserve sharing agreements reasonably related to its needs for power and energy to which the joint agency is or may become a party; and

The cost of such existing alternative power supply sources.

A determinationby the joint agency based upon appropriate findings of the foregoingmatters shall be conclusive as to the appropriateness of a projectto provide the needs of the members of a joint agency for power andenergy unless an interested party aggrieved by the determination ofsaid joint agency shall file an appeal therefrom as herein provided.Notice of the determination by the joint agency shall be publishedone (1) time in one or more newspapers having general circulationin each of the municipalities constituting the membership of the jointagency and shall specify a date, not less than ten (10) days afterthe publication of such notice, at which the joint agency shall meetto hear any objections or remonstrances that may be made. At saidmeeting, the commissioners of the joint agency shall consider theobjections or protests, if any, and shall at said meeting, or at anyadjourned meeting, affirm, modify or rescind the determination. Anyperson or party objecting or protesting the determination at saidmeeting who is aggrieved by the action of said joint agency may appealwithin ten (10) days from the date of adjournment at which sessionthe joint agency rendered said determination, and may embody the factsand determination in a bill of exceptions which shall be signed bythe person acting as chairman of the board of commissioners of thejoint agency. The secretary thereof shall transmit at once the billof exceptions to the circuit court of the county in which the principaloffice of the joint agency is located, and the court shall eitherin termtime or in vacation hear and determine the same on the caseas presented by the bill of exceptions as an appellate court, andshall affirm or reverse the determination of the joint agency. Ifthe determination of the joint agency be reversed, the circuit courtshall certify the same to the board of commissioners of the jointagency. Costs shall be awarded as in other cases. The joint agencymay employ counsel to defend such appeals to be paid out of the fundsof the joint agency. Any such appeal may be heard and determined invacation in the discretion of the court on motion of either partyon written notice of ten (10) days to the other party or parties orthe attorney of record, and the hearing of the same shall be heldin the county where the suit is pending unless the judge in his ordershall otherwise direct. Provided, however, no appeal to the circuitcourt shall be taken from any order or determination of the jointagency which authorizes the issuance or sale of bonds, but all objectionsto any matters relating to the issuance or sale of bonds shall beadjudicated and determined by the chancery court, in accordance withthe provisions of Sections 31-13-5 through 31-13-11.

Nothing herein contained shall prevent a joint agency from undertaking studies to determine whether there is a need for a project or whether such project is feasible.

HISTORY: Laws, 1978, ch. 363, § 11(2), eff from and after passage (approved March 14, 1978).

§ 77-5-729. Member municipalities may contract to buy power from joint agencies.

Any municipality which is a member of the joint agency may contract to buy from the joint agency power and energy required for its present or future requirements, including the capacity and output of one or more specified projects. As the creation of a joint agency is an alternative method whereby a municipality may obtain the benefits and assume the responsibilities of ownership in a project, any such contract may provide that the municipality so contracting shall be obligated to make the payments required by the contract whether or not a project is completed, operable, operating, retired or decommissioned and notwithstanding the suspension, interruption, interference, reduction, curtailment or termination of the output of a project or the power and energy contracted for, and that such payments under the contract shall not be subject to any reduction whether by offset or otherwise, and shall not be conditioned upon the performance or nonperformance of the joint agency or any other member of the joint agency under the contract or any other instrument. Any contract with respect to the sale or purchase of capacity or output of a project entered into between a joint agency and its member municipalities may also provide that if one or more of such municipalities shall default in the payment of its or their obligations, with respect to the purchase of said capacity or output, then in that event the remaining member municipalities which are purchasing capacity and output under the contract shall be required to accept and pay for and shall be entitled proportionately to and may use or otherwise dispose of the capacity or output which was to be purchased by the defaulting municipality.

Notwithstanding the provisions of any other law to the contrary, any such contracts with respect to the sale or purchase of capacity, output, power or energy from a project may extend for a period not exceeding fifty (50) years from the date a project is estimated to be placed in normal continuous operation; and the execution and effectiveness thereof shall not be subject to any authorizations or approvals by the state or any agency, commission or instrumentality or political subdivision thereof except as in this article specifically required and provided.

Payments by a municipality under any contract for the purchase of capacity and output from a joint agency shall be made solely from the revenues derived from the ownership and operation of the electric system of said municipality and any obligation under such contract shall not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of the municipality or upon any of its income, receipts or revenues, except the revenues of its electric system, and neither the faith and credit nor the taxing power of the municipality are, or may be, pledged for the payment of any obligation under any such contract. A municipality shall be obligated to fix, charge and collect rents, rates, fees and charges for electric power and energy and other services, facilities and commodities, sold, furnished or supplied through its electric system sufficient to provide revenues adequate to meet its obligations under any such contract and to pay any and all other amounts payable from or constituting a charge and lien upon such revenues, including amounts sufficient to pay the principal of and interest on bonds heretofore or hereafter issued by the municipality for purposes related to its electric system.

Any municipality which is a member of a joint agency may furnish the joint agency with money derived solely from the ownership and operation of its electric system or facilities and may make available for the use of the joint agency any personnel, equipment and property, both real and personal, which is a part of its electric system or facilities.

Any member of a joint agency may contract for, advance or contribute funds derived solely from the ownership and operation of its electric system or facilities to a joint agency as may be agreed upon by the joint agency and the member, and the joint agency shall repay such advances or contributions from proceeds of bonds, from operating revenues or from any other funds of the joint agency, together with interest thereon as may be agreed upon by the member and the joint agency.

HISTORY: Laws, 1978, ch. 363, § 12, eff from and after passage (approved March 14, 1978).

§ 77-5-731. Sale or exchange by joint agency of excess capacity or output.

A joint agency may sell or exchange the excess capacity or output of a project not then required by any of its members for such consideration and for such period and upon such other terms and conditions as may be determined by the parties to any municipality in this state or any other state owning electric distribution facilities, to any political subdivisions, agencies or instrumentalities of any other state, to other joint agencies organized pursuant to this article, to any electric power association, to any public or private utility, or to any other state, federal or municipal agency which owns electric generation, transmission or distribution facilities either within or without this state. Provided, however, that sales of excess capacity or output of a project to electric power associations, public or private utilities, and other persons the interest on whose securities and other obligations are not exempt from taxation by the federal government shall not be made in such amounts, for such periods of time, and under such terms and conditions as will cause the interest on bonds issued to finance the cost of a project to become taxable by the federal government.

HISTORY: Laws, 1978, ch. 363, § 13; Laws, 1981, ch. 280, § 2, eff from and after passage (approved March 20, 1981).

§ 77-5-733. Joint or several ownership and maintenance by municipalities and joint agencies with other public agencies.

The definitions and all other terms and provisions of this article shall be construed so as to include and authorize the joint or several ownership, operation, and/or maintenance by one or more municipalities or joint agencies of a project, or any undivided ownership interest therein, with any person, firm, association or corporation, public or private, engaged in the generation, transmission or distribution of electric power or energy either within or without this state.

HISTORY: Laws, 1978, ch. 363, § 14, eff from and after passage (approved March 14, 1978).

§ 77-5-735. Exemption from laws relating to competitive bidding.

A municipality’s or joint agency’s purchase of, contract for the acquisition of, or contract for any property, including any project or interest therein, or the construction of, or the operation and maintenance of, any project, owned or to be owned jointly by such municipality or joint agency with any person, firm or corporation engaged in the generation, transmission or distribution of electricity, either within or without this state, other than with a municipality of this state or a joint agency created pursuant to this article, may be made or entered into without meeting the requirements of any law relating to acquisitions, purchases or contracts by competitive bids where the interest to be acquired by such municipality or joint agency in such property or project is twenty-five percent (25%) or less.

If a municipality or joint agency which finds and records on its minutes that acquisition of any project, or any interest therein, or any portion thereof, or any property or any interest therein or any portion thereof, which is authorized by this article is available or can be acquired or contracted for from or with only a single source, person, firm or corporation, then such acquisition or contract may be made or entered into without meeting the requirements of any law relating to acquisitions, purchases or contracts by competitive bids. If, after advertising for competitive bids as to other proposed purchases, acquisitions or contracts, only one (1) bid is received, the municipality or joint agency, as the case may be, may reject the bid and negotiate privately any purchase, contract or acquisition for a consideration not exceeding that proposed in the bid.

HISTORY: Laws, 1978, ch. 363, § 15; Laws, 1979, ch. 391, eff from and after passage (approved March 19, 1979).

§ 77-5-737. Joint agency pledge bonds.

A joint agency may issue its bonds pledging to the payment thereof as to both principal and interest the revenues or any portion thereof, derived or to be derived from all or any of its projects, and any additions and betterments thereto or extensions thereof, or contributions or advances from its members. Bonds of a joint agency shall be authorized by a resolution adopted by its governing board and spread upon its minutes.

HISTORY: Laws, 1978, ch. 363, § 16, eff from and after passage (approved March 14, 1978).

§ 77-5-739. Issuance of bonds by municipalities and joint agencies.

1. Each municipality and joint agency is hereby authorized to issue at one (1) time or from time to time its bonds for the purpose of paying all or any part of the cost of any of the purposes authorized by this article. The principal of, premium, if any, and the interest on such bonds shall be payable solely from the respective funds herein provided for such payment. The bonds of each issue shall bear interest at such rate or rates as may be determined by the issuer, provided that the bonds of any issue shall not bear a greater overall interest rate to maturity than that allowed in Section 75-17-103. The bonds of each issue shall be dated and shall mature in such amounts and at such time or times, either as serial bonds or term bonds or a combination of serial and term bonds, not exceeding fifty (50) years from their respective date or dates, as may be determined by the governing board of the issuer, and may be made redeemable before maturity at such price or prices and under such terms and conditions as may be fixed by the governing board of the issuer prior to the issuance of the bonds. The governing board of the issuer shall determine the form and the manner of execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bond, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. The governing board of the issuer may also provide for the authentication of the bonds by a trustee or fiscal agent. The bonds may be issued in coupon or in fully registered form, or both, as the governing board of the issuer may determine, and provisions may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of registered and coupon bonds. No bond shall bear more than one (1) rate of interest. All bonds of the same maturity shall bear the same rate of interest from date to maturity. All interest accruing on such bonds so issued shall be payable semiannually or annually, except that the first interest coupon attached to any such bond may be for any period not exceeding one (1) year.

   All bonds issued pursuant to this article shall be advertised and sold on sealed bids in the manner provided under the provisions of Section 31-19-25; provided that on bond sales in excess of Fifty Million Dollars ($50,000,000.00) the joint agency may sell its bonds by negotiated sale at not less than ninety-eight percent (98%) of par, plus accrued interest, when the joint agency has employed a nationally recognized financial advisor for the proposed bond issue. The duties of the financial advisor shall include the responsibility of preparing a statement to be submitted to the Governor, the chairman of the house ways and means committee and the chairman of the senate finance committee which shall clearly set forth the reasons why the negotiated sale was considered to be in the best interest of the joint agency and member municipalities, including the estimated savings in cost by selling the bonds at a negotiated sale.

2. The proceeds of the bonds of each issue shall be used solely for the purposes for which such bonds have been issued, and shall be disbursed in such manner and under such restrictions, if any, as the governing board of the issuer may provide in the resolution authorizing the issuance of such bonds. The municipality or joint agency may issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The municipality or joint agency may also provide for the replacement of any bonds which shall have become mutilated or shall have been destroyed or lost.
3. Bonds may be issued under the provisions of this article without obtaining the consent of the state or of any political subdivision, or of any agency, commission or instrumentality of either thereof, and without any other approvals, proceedings or the happening of any conditions or things other than those approvals, proceedings, conditions or things which are specifically required by this article and the provisions of the resolution authorizing the issuance of such bonds or the trust agreement securing the same; provided, however, no joint agency created pursuant to the article shall issue any bonds pursuant to the article, unless and until the issuance of said bonds is approved by each of the governing authorities of the municipalities which are members of the joint agency.
4. All bonds issued pursuant to this article shall be fully negotiable in accordance with their terms and shall be “securities” within the meaning of Article 8 of the Uniform Commercial Code, subject only to provisions of the bonds pertaining to registration.
5. The state hereby covenants with the holders of any bonds issued pursuant to this article that so long as such bonds are outstanding and unpaid the state will not terminate the existence of nor limit or alter the rights and powers of a municipality or a joint agency under this article to conduct the activities referred to herein in any way pertinent to the interests of the bondholders, including, without limitation, the right to charge and collect rates, fees and charges and to fulfill the terms of any covenants made with bondholders, or in any way impair the rights and remedies of the bondholders, unless provision for full payment of such bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture or other security instrument securing the bonds.

HISTORY: Laws, 1978, ch. 363, § 17; Laws, 1979, ch. 496; Laws, 1981, ch. 329, § 1; Laws, 1985, ch. 477, § 19, eff from and after passage (approved April 8, 1985).

§ 77-5-741. Bonds to be secured by resolution, trust indenture or other security instrument; contents.

In the discretion of the governing board of the issuer, any bonds issued under the provisions of this article may be secured by a resolution, a trust indenture or other security instrument, and in this regard the issuer may enter into an agreement with any trust company or bank having the powers of a trust company within or without the state to act as trustee for such bonds. Such resolution, trust indenture or other security instrument providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, and may restrict the individual right of action by bondholders.

The resolution, trust indenture or other security instrument providing for the issuance of such bonds may, in the discretion of the governing board of the issuer, contain covenants including, but not limited to, the following:

The pledge of all or any part of the revenues derived or to be derived from the project or projects to be financed by the bonds or from the electric system or facilities of a municipality or a joint agency.

The rents, rates, fees and charges to be established, maintained and collected, and the use and disposal of revenues, gifts, grants and funds received or to be received by the municipality or joint agency.

The setting aside of reserves and the investment, regulation and disposition thereof.

The custody, collection, securing, investment, and payment of all moneys held for the payment of bonds.

Limitations or restrictions on the purposes to which the proceeds of sale of bonds then or thereafter to be issued may be applied.

Limitations or restrictions on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, or the refunding of outstanding or other bonds.

The procedure, if any, by which the terms of any contract with bondholders may be amended, the percentage of bonds the bondholders of which must consent thereto and the manner in which such consent may be given.

Events of default and the rights and liabilities arising thereupon, the terms and conditions upon which bonds issued under this article shall become or may be declared due before maturity, and the terms and conditions upon which such declaration and its consequences may be waived.

The preparation and maintenance of a budget.

The retention or employment of consulting engineers, independent auditors and other technical consultants.

Limitations on or the prohibition of free service to any person, firm or corporation, public or private.

The acquisition and disposal of property, provided that no project or part thereof shall be mortgaged by such resolution, trust indenture or other security instrument.

Provisions for insurance and for accounting reports and the inspection and audit thereof.

The continuing operation and maintenance of the project.

HISTORY: Laws, 1978, ch. 363, § 18; Laws, 1981, ch. 383, § 1, eff from and after passage (approved March 20, 1981).

§ 77-5-743. Fixing, charging and collecting rents, fees, rates and charges; municipalities.

A municipality is hereby authorized to fix, charge and collect rents, rates, fees and charges for electric power and energy and other services, facilities and commodities sold, furnished or supplied through the facilities of its electric system or its interest in any joint project. For so long as any bonds of a municipality are outstanding and unpaid, the rents, fees and charges shall be so fixed as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its electric system, and its interest in any joint project, and all necessary repairs, replacements or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds and other evidences of indebtedness payable from said revenues, to create and maintain reserves as may be required by any resolution authorizing and securing bonds, to pay when due the principal of, premium, if any, and interest on all bonds heretofore or hereafter issued to finance additions, improvements and betterments to its electric system, and to pay any and all amounts which the municipality may be obligated to pay from said revenues by law or contract. Nothing herein contained shall be construed to prohibit any municipality from expending any revenues in excess of that required herein in any manner otherwise permitted by law.

HISTORY: Laws, 1978, ch. 363, § 19(1), eff from and after passage (approved March 14, 1978).

§ 77-5-745. Fixing, charging and collecting rents, fees, rates and charges; joint agencies.

A joint agency is hereby authorized to fix, charge and collect rents, rates, fees and charges for electric power and energy and other services, facilities and commodities sold, furnished or supplied through the facilities of its projects. For so long as any bonds of a joint agency are outstanding and unpaid, the rents, rates, fees and charges shall be so fixed as to provide revenues sufficient to pay all costs of and charges and expenses in connection with the proper operation and maintenance of its projects, and all necessary repairs, replacements or renewals thereof, to pay when due the principal of, premium, if any, and interest on all bonds and other evidences of indebtedness payable from said revenues, to create and maintain reserves as may be required by any resolution authorizing and securing bonds, and to pay any and all amounts which the joint agency may be obligated to pay from said revenues by law or contract.

HISTORY: Laws, 1978, ch. 363, § 19(2), eff from and after passage (approved March 14, 1978).

§ 77-5-747. Pledges made by municipalities or joint agencies.

Any pledge made by a municipality or joint agency pursuant to this article shall be valid and binding from the date the pledge is made. The revenues, securities and other moneys so pledged and then held or thereafter received by the municipality or joint agency or any fiduciary shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the municipality or joint agency without regard to whether such parties have notice thereof. The resolution trust indenture or other security instrument by which a pledge is created need not be filed or recorded in any manner.

HISTORY: Laws, 1978, ch. 363, § 19(3); Laws, 1981, ch. 383, § 2, eff from and after passage (approved March 20, 1981).

§ 77-5-749. Temporary investment and reinvestment of money.

All moneys received pursuant to the authority of this article, whether as proceeds from the sale of bonds or as revenues may be temporarily invested and reinvested pending the disbursements thereof in such securities and other investments as may be permitted by law for investment of excess funds of municipalities.

HISTORY: Laws, 1978, ch. 363, § 20, eff from and after passage (approved March 14, 1978).

§ 77-5-751. Proceedings to enforce rights of holders of bonds.

Any holder of bonds issued under the provisions of this article or any of the coupons appertaining thereto, except to the extent the rights herein given may be restricted by the resolution authorizing the issuance of such bonds, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the state or granted hereunder, or, to the extent permitted by law, under such resolution authorizing the issuance of such bonds or under any agreement or other contract executed by the municipality or joint agency pursuant to this article, and may enforce and compel the performance of all duties required by this article or by such resolution to be performed by any joint agency or municipality or by any officer thereof, including the fixing, charging and collecting of rents, rates, fees and charges.

HISTORY: Laws, 1978, ch. 363, § 21, eff from and after passage (approved March 14, 1978).

§ 77-5-753. Bonds issued under this article as proper and legal investments.

Bonds issued by a municipality or joint agency under the provisions of this article are hereby made securities in which all public officers and agencies of the state and all political subdivisions, all insurance companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any officer or agency of the state or any political subdivision for any purpose for which the deposit of bonds or obligations of the state or any political subdivision is now or may hereafter be authorized by law.

HISTORY: Laws, 1978, ch. 363, § 22, eff from and after passage (approved March 14, 1978).

§ 77-5-755. Bonds issued as special obligations of municipality or joint agency issuing them.

The bonds shall be special obligations of the municipality or joint agency issuing them. The principal of, premium, if any, and interest on the bonds shall not be payable from the general funds of the municipality or joint agency, nor shall they constitute a legal or equitable pledge, charge, lien or encumbrance upon any of its property or upon any of its income, receipts or revenues, except the funds which are pledged under the resolution authorizing the bonds. Neither the faith and credit nor the taxing power of a municipality or of the state are, or may be, pledged for the payment of the principal of or interest on the bonds, and no holder of the bonds shall have the right to compel the exercise of the taxing power by the state or a municipality or the forfeiture of any of its property in connection with any default thereon. Every bond shall recite in substance that the principal of and interest on the bond is payable solely from the revenues pledged to its payment and that the municipality or joint agency is not obligated to pay the principal or interest except from such revenues.

HISTORY: Laws, 1978, ch. 363, § 23, eff from and after passage (approved March 14, 1978).

§ 77-5-757. Refunding bonds.

A municipality or joint agency is hereby authorized to provide by resolution for the issuance of refunding bonds of the municipality or joint agency for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this article, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the municipality or joint agency in respect to the same shall be governed by the provisions of this article which relate to the issuance of bonds, insofar as such provisions may be appropriate therefor.

HISTORY: Laws, 1978, ch. 363, § 24, eff from and after passage (approved March 14, 1978).

§ 77-5-759. Tax exempt status; bonds.

Bonds, their transfer and the income therefrom (including any profit made on the sale thereof), shall at all times be free from taxation by the state or any political subdivision or any agency of either thereof, excepting inheritance, estate or gift taxes.

HISTORY: Laws, 1978, ch. 363, § 25, eff from and after passage (approved March 14, 1978).

§ 77-5-761. Tax exempt status; interest in project owned by municipality or joint agency.

Any interest in a project owned by a municipality or owned by a joint agency shall be exempt from all state, county and local ad valorem or other property taxes. The purchase, exchange or interchange of capacity, transmission, or electric power and energy for resale by any municipality or joint agency under this article shall not be subject to sales, use or other tax. The sale of any electric power or energy from any project to any municipality shall not be subject to sales, use or other tax.

HISTORY: Laws, 1978, ch. 363, § 26, eff from and after passage (approved March 14, 1978).

§ 77-5-763. Rights, privileges and immunities of personnel.

Personnel employed or appointed by a municipality to work on a joint project or for a joint agency shall have the same authority, rights, privileges and immunities which the officers, agents and employees of the appointing municipality enjoy within the territory of that municipality, whether within or without the territory of the appointing municipality, when they are acting within the scope of their authority or in the course of their employment.

Personnel employed or appointed directly by a joint agency or by a participating municipality or by a nonprofit operating agency of the participating municipalities or of the joint agency, shall be eligible for participation in the Mississippi Public Employees Retirement System with the same rights, privileges, obligations and responsibilities as they would have if they were employees of a municipality.

HISTORY: Laws, 1978, ch. 363, § 27, eff from and after passage (approved March 14, 1978).

§ 77-5-765. Dissolution of joint agencies.

Whenever the board of commissioners of a joint agency and the utility commissions of its member municipalities shall by resolution or ordinance determine that the purposes for which the joint agency was formed have been substantially fulfilled and that all bonds theretofore issued and all other obligations theretofore incurred by the joint agency have been fully paid or satisfied, such board of commissioners and utility commissions may declare the joint agency to be dissolved. On the effective date of such resolution or ordinance, the title to all funds and other property owned by the joint agency at the time of such dissolution shall vest in the member municipalities of the joint agency as provided in this article and the bylaws of the joint agency.

HISTORY: Laws, 1978, ch. 363, § 28, eff from and after passage (approved March 14, 1978).

§ 77-5-767. Annual reports; joint agencies; municipalities.

Each joint agency shall, following the closing of each fiscal year, submit an annual report of its activities for the preceding year to the governing authorities and to the utility commissions of its member municipalities. Each such report shall set forth a complete operating and financial statement covering the operations of the joint agency during such year. The joint agency shall cause an audit of its books of record and accounts to be made at least once in each year by certified public accountants and the cost thereof may be treated as a part of the cost of construction of a project or projects, or otherwise as part of the expense of administration of a project covered by such audit.