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PSC files complaint and order to show cause against Holly Springs Utility Department after independent audit
Summary
The commission filed a complaint and order to show cause against the City of Holly Springs Utility Department after an independent Silverpoint Consulting audit found the municipal utility’s system in critical condition.
The Mississippi Public Service Commission voted to issue a complaint and an order to show cause against the City of Holly Springs’ municipal utility after an independent consulting audit identified systemic failures and inadequate service.
Miss Taylor, presenting for commission staff, said the complaint (docket number recorded as 2024AD37) alleges violations of Mississippi Code Annotated §77-3-33 and Service Rule 4.100, which set the duty of public utilities to provide reasonably adequate service. The complaint, she said, is largely based on a report prepared by Silverpoint Consulting that the commission hired in August 2024 and filed in the docket on July 28. Staff said the complaint alleges Holly Springs Utility Department failed to provide efficient, reasonable and adequate service to approximately 12,000 customers.
The PSC filed an order to show cause requiring the city to appear Sept. 4 at 9 a.m. in the New Albany Municipal Courtroom to explain why the commission should not find it in violation of the cited statute and rule. Staff said Silverpoint Consulting will appear at that hearing to present its report and be available for cross-examination.
Commissioner Brown described the report as "pretty grim" and said the problem is decades in the making, including underinvestment in the system. Brown said the utility owes TVA more than $6 million in unpaid invoices and owes contractors more than $3 million. He said recent fiscal audits showed the utility was losing money — paying more for wholesale power than it receives in receipts — and stressed the commission’s goal to work with the city, TVA, and other stakeholders to find a path out of the crisis.
Commissioners discussed location and accessibility for the show-cause hearing; the commission said the New Albany venue was chosen to ensure continuity and venue security and noted it is near Holly Springs.
A motion to approve the proposed order to file the complaint and issue the order to show cause was seconded and adopted by voice vote.
