Section 77-3-NEW - [Newly enacted section not yet numbered](1) For purposes of this section, the following terms have the meanings ascribed herein unless otherwise plainly indicated: (a) "Commission" means the Public Service Commission.(b) "Customer" means a retail electric customer with a project as defined in Section 57-75-5(f)(xxxiii).(c) "Facility" or "facilities" means an electric generation, transmission or distribution facility constructed, acquired, owned, operated, maintained or improved by a public utility or purchased energy or capacity costs in order to directly or indirectly provide electric service to a customer in connection with a project as defined in Section 57-75-5(f)(xxxiii).(d) "Large customer supply and service agreement" or "agreement" means a contract between a public utility and a customer in connection with a project as defined in Section 57-75-5(f)(xxxiii).(e) "Public utility" has the definition provided in Section 77-3-3.(f) "Staff" means the Public Utilities Staff.(2) While regulation of public utilities is essential to the public interest, timely electrical infrastructure expansion in connection with economic expansion or resiliency has greater priority given the size, nature, and estimated economic impact of a project defined in Section 57-75-5(f)(xxxiii). Accordingly, the public convenience and necessity and the public interest require a public utility to construct, acquire, own, operate, maintain or improve the electric generation, transmission and distribution facilities, along with related property and rights-of-way, necessary to directly or indirectly provide electric service on an exclusive basis, including procuring the energy and capacity to meet the electrical service needs of the project as defined in Section 57-75-5(f)(xxxiii). The requirements of this section shall apply solely to facilities of a public utility for which a public utility has executed a large customer supply and service agreement.(3) A public utility may enter into a large customer supply and service agreement with a customer, which may include terms and pricing for electric service without reference to the rates or other conditions that may be established or fixed under Title 77, Chapter 3, Article 1, Mississippi Code of 1972. No approval by the commission of such agreement shall be required. With respect to such an agreement:(a) The terms of the agreement shall be designed to provide other customers of the public utility with an economic benefit resulting from the customer's added electrical service needs;(b) The agreement, including any pricing or charges for electric service, shall not be subject to alteration or any other modification or cancelation by the commission, for the entire term of the agreement;(c) The commission shall not assign or impute a revenue requirement to the customer or the public utility in connection with a general retail rate proceeding, including a formula rate plan review, another cost recovery mechanism, or any proceeding associated therewith, in a manner that assigns or imputes a revenue requirement in an amount and allocation different than addressed by or realized pursuant to the terms and conditions of the agreement;(d) Any agreement, including any amendments or renewals, and its terms, including all charges for electrical service, shall constitute a trade secret and confidential commercial and financial information as referenced in Section 79-23-1(2), and shall be exempt from public disclosure under the Mississippi Public Records Act of 1983;(e) Any electric generating facility or energy or capacity source subject to this act that is added by a public utility shall meet at least two (2) of the following three (3) criteria:(i) Promoting grid resiliency;(ii) Enhancing fuel diversity; and/or(iii) Implementing, currently or in the future, processes for the reduction or minimization of risk related to regulated air emissions, including reducing production of or capturing and sequestering such emissions.(4) Notwithstanding any provision in Title 77, Mississippi Code of 1972, or any related rules of the commission, no action shall be required by a public utility prior to constructing, acquiring, owning, operating, maintaining or improving the electric generation, transmission and distribution facilities, or otherwise acquiring energy or capacity, necessary to directly or indirectly provide electric service to a customer. However, with respect to any such facilities or contracts, the public utility shall provide to the commission and staff, for informational purposes only, the following prior to project completion:(a) How such generation, transmission or distribution facilities, or other means for acquisition of energy or capacity, are necessary to directly or indirectly serve the customer pursuant to the terms of a large customer supply and service agreement;(b) An outline map of the utility's existing certificated area showing the location of the proposed new facilities;(c) A detailed description of the facilities proposed;(d) An estimate of construction or purchase costs;(e) How any such generation facility technology or energy or capacity source meets at least two (2) of the three (3) criteria in subsection (3)(e) of this section; and(f) If applicable, a copy of any contract for the acquisition or purchase of energy or capacity, which contracts shall be exempt from public disclosure under the Mississippi Public Records Act of 1983.(5) For any facility, the public utility is authorized to begin land acquisition, including rights-of-way, or construction activities as expeditiously as practical, including prior to the receipt by the public utility of all required permits and governmental or regulatory approvals or satisfaction of regional transmission organization tariff requirements.(6) The costs of any long-lead time equipment, preconstruction or construction activity, property right acquisition or infrastructure necessary to provide, directly or indirectly, timely service to the customer, and which is ordered, undertaken or incurred prior to receipt of required permits, governmental and regulatory approvals, and/or compliance with regional transmission organization tariff requirements shall be deemed used and useful under Section 77-3-44, irrespective of whether said permits or requests are granted or approved or actions are found compliant with applicable tariff requirements. Any such costs shall be subject to a prudence review by the commission as described in subsection (8)(d) of this section.(7) Notwithstanding any provision in Title 77, Mississippi Code of 1972, any contracts of a public utility for construction, extension and/or repair of facilities, capture or sequestration of emissions, or purchase of energy or capacity shall not be subject to competitive bidding requirements.(8) Notwithstanding any provision in Title 77, Mississippi Code of 1972, or any related rules of the commission regarding general retail rate proceedings, this subsection (8) shall prescribe cost recovery procedures for facilities. For any facilities or related costs, the public utility shall hire an independent public accounting firm to audit construction or purchase costs associated therewith. For any facilities or related costs, the staff shall be authorized to hire an independent consultant to assist in review of the prudence of costs related to the facilities. Such independent consultant shall be paid for by the public utility. Payment of any such audit or independent consultant by the public utility shall be considered as preconstruction, construction, operating or related costs and recoverable pursuant to the public utility's applicable rate schedules. Computation of time limitations prescribed herein shall be consistent with the rules of state courts of Mississippi. In addition: (a) The public utility shall be allowed to annually forecast its revenue requirement, including costs described in paragraph (f) of this subsection (8), on a forward-looking basis, subject to look-back or true-up from the audit referenced in paragraph (b) of this subsection (8), for all construction or purchased capacity or energy costs, and to begin cost recovery based on such forecast within thirty (30) days of providing the commission with rate factors implementing its proposed cost recovery through interim capacity rate adjustments to the public utility's formula rate plan or through a separate rate rider schedule for this sole purpose;(b) The public accounting firm shall audit any such costs subject to this section to determine that such costs are properly identified and recorded, with each annual audit covering the twelve (12) months ending November 30th of each year. The annual audit shall be submitted to the Staff Executive Director by January 31 of each year. The public utility may file cost factors as described in paragraph (a) of this subsection (8) within thirty (30) days following submission of the annual audit to the Staff Executive Director. All costs, including those described in paragraph (f) of this subsection (8), that are verified in each audit to be properly identified and recorded shall be presumed to be prudently incurred, unless a serious doubt is raised with respect to specific costs;(c) The Staff Executive Director shall submit a report summarizing the review of the prudence of costs to the commission within ninety (90) days after each facility being placed in service. The public utility also shall provide the commission with revised rate factors implementing its proposed cost recovery. The commission shall rule within sixty (60) days of submission on the prudence of the costs submitted by the staff. In any case where costs are found to be imprudent or otherwise disallowed, the commission must grant any request for reconsideration by a public utility and hold a hearing, if requested, and issue an order within ninety (90) days;(d) Upon a commission finding that all such costs were prudently incurred by the public utility, the commission shall allow recovery of all such prudently incurred costs through interim capacity rate adjustments to the public utility's formula rate plan or through a separate rate rider schedule for this sole purpose, which shall become effective within thirty (30) days after issuance of such commission prudence finding;(e) Notwithstanding the foregoing, the public utility may reflect in its rates, subject to refund or credit to customer bills, all such costs incurred by it or an affiliate on its behalf in connection with this section during the pendency of any appeal of a commission order disallowing costs from recovery in rates, without any requirement to post a bond. Any such appeals shall be governed by Section 77-3-72;(f) The commission shall allow in rate base, through interim capacity rate adjustments to the public utility's formula rate plan or other rate rider schedule, the original costs of any facilities expected to be used and useful within five (5) years of initially being reflected in rates;(g) For any contracts for energy or capacity, the commission shall allow the public utility to begin recovery of all costs described by Section 77-3-93(1) to begin as promptly as feasible, but in no case longer than thirty (30) days after the public utility begins to purchase the applicable energy or capacity, through any existing applicable cost recovery mechanism on file with the commission, or through a separate rate rider schedule if requested by the public utility. The expenses associated, incurred or connected with processes for the reduction or minimization of risk related to air emissions, including reducing production of or capturing, transporting and sequestering such emissions, shall be considered as actual cost of fuel burned or consumed in generating facilities; and(h) The recovery of any such costs shall not be subject to any cost caps applicable to or provided within the public utility's formula rate plan.(9) Any application by a public utility for a state, county, local or other required permit associated with any facilities shall be prioritized in the permitting process. Any public notice and preapproval requirements related to the approval of signage, land use or zoning which apply to any county or municipality are hereby waived to permit any necessary approvals to occur so as to be approved within thirty (30) days of application. Any permits or approvals granted on an expedited basis under this section shall be valid and shall not be voided for reasons related to notice, failure to satisfy preapproval requirements or speed of approval.Added by Laws, 2024EX2, ch. TBD, SB 2001,§ 22, eff. 1/30/2024.