JACKSON (AP) — Utility companies are one step closer to getting a change in how they set rates for Mississippi customers.

The state Senate passed a pay-as-you go plan Tuesday. The bill must pass the House before it can go to Gov. Haley Barbour.

It would allow Entergy, Mississippi Power and other utilities to seek permission to increase rates as they build new power-generating plants. Companies now have to wait until new plants are operating before they can seek a rate increase.

Permission for rate increases has to come from the three-member state Public Service Commission, now and under the new proposal.