City of Tchula v. Mississippi Public Service Comm'n
Annotate this CaseThis consolidated appeal stemmed from the Mississippi Public Service Commission’s grant of a rate increase to Mississippi River Gas, LLC (MRG). The cities of Tchula and Port Gibson challenged the Commission’s authority to regulate municipally owned systems which had not expanded service beyond the area originally certificated prior to passage of the Public Utilities Act. The Commission determined the relevant statutory language exempting municipally “owned or operated” public utilities was ambiguous and that the Legislature intended to exempt only municipally “owned and operated” public utilities. The Commission also determined the relevant statutory language “extension of utilities,” which was an exception to the exemption, ambiguous, meaning “the total range [of coverage]” rather than an “enlargement in scope.” The Commission granted MRG’s requested rate increase. The cities appealed. After review, the Supreme Court reversed and remanded. The Court found that the Commission’s reading of two key components of the applicable statute was in error; the Commission erred in assuming rate-setting jurisdiction over Tchula’s and Port Gibson’s municipally owned, but not operated, public-utility systems. Further, the Commission erred in assuming jurisdiction over rates charged to customers beyond one mile of the cities’ limits when these cities had not extended their gas-distribution services beyond one mile of their city limits since passage of the Public Utilities Act. The Court reversed the Commission’s order on this narrow, specific basis and remanded this case back to the Commission for entry of an order consistent with this opinion.
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