187 So. 3d 597
Miss.2016Background
- Cities of Tchula and Port Gibson own municipal gas-distribution systems installed before March 29, 1956; they have not expanded those systems since that date.
- Private companies (currently Mississippi River Gas, LLC — MRG) have always operated the systems under leases; the cities retain ownership but do not operate the systems.
- MRG sought a rate increase applicable to customers located more than one mile outside each city’s limits. The Mississippi Public Service Commission (PSC) granted the increase.
- The cities intervened and moved to dismiss, arguing PSC lacked jurisdiction under Miss. Code § 77-3-1, which exempts municipally “owned or operated” utilities in existence before March 29, 1956, except for extensions beyond one mile after that date.
- The PSC interpreted “owned or operated” as ambiguous and read it as “owned and operated,” and read “extension” to mean broad range rather than additions; the PSC therefore asserted jurisdiction and approved MRG’s rates. The cities appealed.
Issues
| Issue | Plaintiff's Argument (Cities) | Defendant's Argument (PSC/MRG) | Held |
|---|---|---|---|
| Whether PSC has jurisdiction over rates charged on municipally owned but privately operated systems under § 77-3-1 | § 77-3-1 exempts any public utility "owned or operated" by a municipality; cities own the systems so PSC lacks jurisdiction | Reading “or” conjunctively would allow privately owned operators to avoid oversight; PSC should regulate rates charged to customers on municipal systems operated by private companies | The statute is plain: "owned or operated" is disjunctive; PSC lacks rate-setting jurisdiction over municipally owned (but privately operated) systems in this case |
| Whether the PSC may regulate services beyond one mile when those services existed prior to March 29, 1956 | The one-mile exception applies only to extensions made after March 29, 1956; these systems existed beyond one mile before that date so PSC lacks jurisdiction | "Extension" is ambiguous and should be read broadly to permit PSC jurisdiction over the current service areas beyond one mile | "Extension" means additions/enlargements after the Act; because cities made no post-1956 extensions, PSC lacks jurisdiction over those customers |
Key Cases Cited
- Buffington v. Mississippi State Tax Commission, 43 So.3d 450 (Miss. 2010) (agencies’ statutory interpretations entitled to deference unless contrary to unambiguous statute)
- Lewis v. Hinds County Circuit Court, 158 So.3d 1117 (Miss. 2015) (plain statutory language must be applied as written; courts must not add to clear statutes)
- First National Bank of Memphis v. State Tax Commission, 49 So.2d 410 (Miss. 1950) (courts apply plain statutory meaning when language is clear)
- Mississippi Public Service Commission v. City of Jackson, 328 So.2d 656 (Miss. 1976) (PSC acquired jurisdiction where city purchased/added new facilities outside one mile after the Act)
- Kerr-McGee Chemical Corp. v. Buelow, 670 So.2d 12 (Miss. 1995) (when statute lacks a legislative definition, courts may consult dictionaries)
Result: Reversed and remanded — PSC erred by claiming rate-setting jurisdiction over Tchula’s and Port Gibson’s municipally owned (but privately operated) gas systems and over areas beyond one mile that were in service before March 29, 1956.