Court denies Holly Springs Appeal

The scheduled Public Service Commission hearing Jan. 7 into the adequacy of service by the Holly Springs Electric Department was blocked by a restraining order filed in Hinds County by the City of Holly Springs, Tuesday. The City’s action followed the denial of a Supreme Court petition by the City to stop the hearing.

The Show-Cause hearing was ordered by the PSC Nov. 4, 2024, to allow the City of Holly Springs an opportunity to fully cooperate with the independent investigation into why the City should not be found in violation for obstructing of the PSC investigation.

The PSC is holding the hearing to find a resolution of this long-standing issue.

The resolution of the issue will continue to be a top priority for the Commission.

Chairman Chris Brown, of the PSC, said in a Jan. 6 press release that “the Mississippi Supreme Court’s decision allows us to proceed and we are fully committed to ensuring that the ratepayers of the Holly Springs Utility District, who have endured unacceptable hardships, receive the reliable service they are entitled to.

“This hearing represents another crucial step in our ongoing efforts to bring relief to the ratepayers and address a system that has been neglected far too long,” Brown said.

The city of Holly Springs, through its counsel, asked the Mississippi Supreme Court for a writ of mandamus and stay in the Jan. 7, 2025, hearing until the 2025 Legislative Session is over.

The PSC summoned the City of Holly Springs to the Jan. 7 hearing to show cause why the commission should not find the City of obstructing the investigation into the adequacy of service being provided by the HSUD.

The PSC was to conduct a hearing immediately Tuesday after the public hearing in order to make findings supported by proof as to whether the City is rendering adequate electric service.

The PSC denied a request by the City to extend the time to respond to the PSC investigations into the adequacy of service Dec. 20, 2024.

The City’s response to the ligation through its counsel said the PSC’s action “constitutes blatant violations of the Constitutions of the United States and the state of Mississippi.”

In a petition to the Mississippi Supreme Court, the City said:

• the statutes mandates continuances when counsel is in legislative session. Sen. Bradford J. Blackmon serves in the Mississippi Senate.

The statue was enacted by the Legislature to ensure that attorneys can fulfill their legislative duties without interference.

• the PSC asserted that the public hearing Jan. 7 is procedural and will not result in a final determination.

• legislators must not be forced to choose between their constitutional duties and professional obligations.

• the City said the PSC described the Jan. 7 hearing as procedural to address jurisdictional issues and for information gathering. The city said the commission’s investigation could influence future proceedings including potential receivership actions.

• the PSC’s assertion that other attorneys can represent the City disregards the principle of continuity of representation, the City said in its petition. The City designated Mississippi Sen. Bradford J. Blackmon as its lead counsel.

• the PSC’s allegations that the City has not cooperated with the investigation cannot be used to deny the City’s statutory rights, the petition said.

• the Jan. 7 Hearing imposes a direct conflict between counsel’s legislative duties and professional responsibilities, creating substantial prejudice to the City, the petition said.

With that the City asked the court for a writ of Mandamus and stay of the PSC hearing until after the 2025 legislation session is complete.

In announcing the investigation into the utility services of the City of Holly Springs, Nov. 7, 2024, the PSC has alleged that the City of Holly Springs has refused to provide access to the utilities facilities, personnel and denied the PSC’s jurisdiction as granted by the legislature.

The PSC’s investigation alleges the city is not delivering reasonably adequate electric service which includes lack of utility management and system maintenance, lack of technical and engineering expertise, inadequate storm response and lack of vegetation management plans.

Commissioners said the PSC is taking a crucial step to ensure that residents of the HSUD receive reliable and fair utility services they deserve. They thanked the Mississippi Legislature for granting the PSC jurisdiction over the HSUD and gives the PSC authority to take actions to determine the root causes of the reported issues and to hold the City of Holly Springs accountable for their service obligations as a utility provider.

On Nov. 4, 2024, the PSC gave the City 45 days to provide responses to the Commission’s request.