Dive Brief:

• A law aimed at giving utilities greater freedom to expand their economic activities sailed through Mississippi's legislature and was signed by the governor two weeks ago, but now has some consumer advocates crying foul.
• The bill gives utilities broad authority to undertake investments, but critics fear improper expenses could wind up on ratepayer's bills.
• The law, observers note, is similar to Mississippi's Baseload Act, which authorized utilities to bill ratepayers for projects even before they were put into service, like Southern Co.'s Kemper IGCC plant. 

Dive Insight:

The Mississippi Business Journal reports that a law which passed the state's legislature unanimously in both houses now has many advocates concerned it gives utilities too much authority to spend without oversight. 

The Journal also points out the law is similar to Mississippi's Baseload Act of 2008, which set the stage for Mississippi Power’s Kemper County facility by allowing changes to base rates before projects began generating power. The Public Service Commission signed off on hundreds of millions of dollars in rate increases to cover rising costs. But last month the state's Supreme Court ruled 5-4 regulators had overstepped in approving the costs and customers would need to be refunded.

Now, some are concerned Mississippi's new law goes even further, allowing investment in a range of business development that may not be proper. 

The bill allows regulated utilities to take on economic development activities that could include "providing capital, or investment in or acquisition and development of business or business or industrial sites."

But regulators say rates still need to be approved  by the commission, and the fear is overblown.

PSC Commissioner Brandon Presley told the Journal the commission will "make sure that we are very careful to protect ratepayer interests.”