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Bill

SB 2070

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

2025 Regular Session Introduced by Joseph Thomas

Allows Mississippi municipal utilities to absorb electronic payment processing fees in customer rates, enabling broader digital payment adoption while raising cost-allocation equity concerns.

Died In Committee
#energy #municipalities
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Bill Summary · SB 2070

Legislative bill overview

SB 2070 would authorize municipally-owned utility companies in Mississippi to accept electronic payments from customers and permit them to include transaction fees associated with those payments in their rate base (the costs that determine customer rates). Currently, municipal utilities may face restrictions on accepting digital payments or absorbing related processing costs.

Why is this important

This bill addresses the practical reality that electronic payment processing carries costs—typically 2-4% per transaction for credit/debit card payments. By allowing municipalities to recover these fees through rates rather than charging customers separately, the bill could simplify billing while potentially reducing barriers to digital payment adoption. However, it also raises questions about cost allocation and whether all customers should subsidize electronic payments.

Potential points of contention

  • Cost-shifting: Non-digital payers could effectively subsidize processing fees for customers who pay electronically if costs are spread across the entire rate base
  • Rate base inflation: Allowing transaction fees in the rate base increases the total costs utilities can charge customers, which regulatory advocates may view as expanding utility revenues beyond necessary operational expenses
  • Payment equity: Some argue customers choosing to pay electronically shouldn't have their fees subsidized by those using traditional payment methods (checks, in-person payments)

Compiled from official sources — confirm details with the bill’s official record.

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