MississippiSB 32292026 Regular SessionSenateWALLET

Bonds; authorize revenue bonds to be issued to pay for damage to electric utilities caused by the 2026 winter storm.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 0 costs, 4 mixed.

Utilities exclude storm charges from taxes

System restoration charges are not counted in a utility’s gross income for state sales tax or in gross revenues for franchise fees, including city franchise agreements. Utilities pay those taxes and fees on a smaller base. State and local revenue from those charges is lower.

New storm repair charge on power bills

The law lets the state sell bonds after a Public Service Commission financing order to pay 2026 storm repair costs. For affected utilities, all retail customers pay a separate, nonbypassable system restoration charge on every bill, including special‑contract and alternative supplier customers. The charge pays bond principal, interest, and any financing or issuance costs the order allows. The PSC must find securitization lowers overall costs or eases rate impacts, and it allocates costs by customer class the same way base rates are split. Approved restoration costs that can be securitized are capped at $275 million (not counting issuance costs). Once bonds are issued, the order and charge cannot be changed until everything is paid.

How the storm bonds are secured

The State Treasurer sets up a separate sinking fund for each utility’s bonds and deposits restoration‑charge receipts at least monthly. Money in the fund pays principal, interest, and financing costs and does not lapse. Bonds are nonrecourse to the utility; bondholders rely only on the system restoration property and charges. Transfers of that property are treated as a true sale with first‑priority, continuously perfected liens. Bonds must mature within 25 years and meet state interest‑rate limits, and bond money can be used only for storm recovery costs authorized in a financing order.

State tax break for bond buyers

Interest and income from these system restoration bonds are exempt from Mississippi state taxes. The tax break applies only to bonds issued under this law.

Faster approvals and court review

An affected utility must file for a financing order within 180 days after the law takes effect. The Public Service Commission must approve or deny within 60 days. After a final order, the utility has 60 days to request bond issuance, or the order is repealed. Any party may appeal directly to the Mississippi Supreme Court within 7 days after reconsideration is refused or after a final order on reconsideration. The Court must hear these cases quickly.

Sponsors & Cosponsors

Sponsor

Josh Harkins
Republican • Senate

Cosponsors

Sarita Simmons
Senate
Sarita Simmons
Senate

Roll Call Votes

All Roll Calls

Yes: 337 • No: 0

House vote • 3/29/2026

Conference Report Adopted

Yes: 121 • No: 0

Senate vote • 3/29/2026

Conference Report Adopted

Yes: 50 • No: 0

House vote • 3/17/2026

Passed As Amended

Yes: 116 • No: 0

Senate vote • 2/25/2026

Passed