Seeing a $450 to $600 electricity bill no longer fazes Patricia Young of Itta Bena, Miss., a city of about 1,800 people in the Mississippi Delta.

Some months, the bill for Ms. Young’s home and the day care center she owns can total almost $1,000.

“It’s just got to the point where light bills are more than your mortgage,” she said.

Despite concerns by Ms. Young and other residents about their costly bills, the city was threatened with the potential loss of power after accumulating hundreds of thousands of dollars in debt with its electrical provider over more than a decade.

The city —…



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