Legislation that gives Mississippi’s public service commission the power to hold municipalities accountable when it comes to providing quality utility services has been signed into law by Governor Tate Reeves.
Senate Bill 2453, which was drafted following outcries from customers of the Holly Springs Utility Department that they had experienced lengthy and recurring power outages for around five years, is now in effect.
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The legislation gives the public service commission authority to investigate municipal utility providers to ensure that they are supplying adequate services to residents and hold a hearing to determine what services have not been supplied sufficiently. If the commission finds that sufficient services have not been provided, the utility department will be given a “reasonable” amount of time to rectify the issue.
Failure by the municipality to remedy problems the commission brought to its attention within the designated timeframe could result in the utility provider having its certificate to service customers further than one mile beyond the municipality’s corporate boundaries revoked.
The commission will also be able to take findings that utility providers, both public and private, did not sufficiently meet the needs of customers to the chancery court in the district of the provider’s service area. A judge will then be able to validate the commission’s findings and place that utility provider under the leadership of a receiver — similar to what the city of Jackson has with interim third-party water and sewer manager Ted Henifin.
That receiver would have all authority to serve the customers until the court determines that it is in the best interest of the residents for the municipality or private operator to be reinstated to their former post.
Previously, the commission could only use its influence to draw attention to issues harming ratepayers in Mississippi and work with the legislature to enforce a change. Enactment of this bill now affords the commission, which is currently made up of three newly elected members, to essentially bypass the legislative process and enforce regulations on its own accord.
