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PSC imposes maximum daily fines on Holly Springs over ‘unreasonable’ electric service; penalties to accrue if failures continue
Summary
Following a show-cause hearing that found willful and knowing violations, the commission voted to impose fines up to $12,500 per day on the city of Holly Springs for failing to provide reasonably adequate electric service; commissioners said fines would accrue daily after entry of a final order and could be revisited if the city shows progress.
The Public Service Commission voted unanimously to impose penalties totaling up to $12,500 per day against the city of Holly Springs for failing to provide reasonably adequate electric service, the commission said at a Sept. 11 meeting.
The commission added an administrative agenda item to consider docket 2024-8037, the investigation into electric service provided by Holly Springs Utility District (HSUD). The item followed a Sept. 4 show-cause hearing in which the commission found the city had willfully and knowingly violated Mississippi Code section 77-3-33 and Rule 4 of the rules and regulations governing public utility service.
At the meeting the presiding commissioner moved to impose the maximum penalties authorized by statute. “Based upon the nature, duration, and extent of these violations… it is necessary and appropriate to impose upon the city the maximum penalties allowable under the law,” the presiding commissioner said on the record.
Commission staff and counsel explained that statutory authority allows assessments up to $12,500 per day for continued violations after entry of a final order. The commission directed that civil penalties would continue to accrue each day after the order if HSUD continued to provide service that the commission considers not reasonably adequate.
Commissioner Stamps asked how long it might take the city to reach compliance; staff noted the utility had requested two years in the hearing record. Kyle, a staff member who provided a math estimate, said two years at $12,500 per day would equal a little over $9,000,000. Commissioners discussed that fines, if collected, would go into the state general fund and could not be included in the utility’s rate base or passed through to electricity customers.
Commissioners said they would retain discretion to adjust, waive or revisit penalties if HSUD demonstrates corrective progress, or in a sale/transfer of the system. The motion to impose fines and continue the investigation passed by voice vote.
