HSUD report to city board

In a report to the Holly Springs Mayor and Board of Aldermen at the December 16 meeting, consultant Michael Watson outlined progress the city is making in getting the utility put back together.

He said on a call with TVA (Tennessee Valley Authority) which included city attorney John Keith Perry Jr., a discussion pointed to getting the city pointed in the right direction regarding litigation.

He said a wholesale power bill coming in January 1 from TVA is estimated to run about $16.1 million.

Watson said HSUD will be able to begin paying TVA back what is owed. Revenue bottomed out compared to last year at about $5.1 million because of billing problems associated with the automated meter reading infrastructure, he said.

HSUD is now caught up on its billing cycle.

As additional revenue has been coming in several months ago, we will be able to begin to repay TVA, he said. Revenue is being monitored daily.

“We are making progress and it is also possible the last week in January we will be able to pay TVA between $.5 million to $1 million,” Watson said.

Watson said the utility began working on a financial forecast with TVA last week.

Replacing inoperable meters is in full swing. The meters are now being read on time and meters with faded displays are being replaced the same day or the next day of the reading so there will be no questions about which meter was read.

He said TVA is supporting meter testing and over 700 meters on the system will be tested and repaired.

Crews were versed in preparation for the cold snap to make sure trucks and linemen were ready for any problems associated with the weather. Only a few problems came up during the freeze of the weekend of December 14.

Service order backlogs and closeouts were reported at the request of Mayor Charles Terry.

Watson said the backlog of work orders for service on new construction is caught up. A crew is now working on replacing street lights both in town and out of town.

“We are making progress,” Watson said.

The utility is working on outdoor lighting repairs and new installs.

Alderman-at-large Dexter Shipp said lighting at many 4- way stops are out.

Watson said poles are being marked that do not have working lights and crews will be repairing those over the coming several weeks.

DeSoto Electric is tasked with getting the lights on at the I-20 intersection with Highway 7 in the city. HSUD cannot fix those lights, Watson said.

In other HSUD matters, the board of aldermen:

• approved a motion to authorize a professional services engagement letter with CSA (Central Service Association) to make adjustments for billing errors in May due to incorrect rates.

• authorized interim accounting manager Chawanna Harris to attend a Tennessee Valley Public Power Association certified utility accountant program in Brentwood, Tenn. The certification involves eight courses to be spread over a period of six months extending from February 2026 to September. HSUD consultant Michael Watson said accounting is unique to utilities and these well-designed courses help accountants to better understand the particulars of utility accounting.

“Utility accounting is very unique because you have to make dollars go where they are supposed to go,” Mayor Charles Terry said.

• approved a mutual aid agreement with the American Public Power Association.

• approved 20 hours of programming time from CSA. “We are trying to make datadriven decisions and CSA is a day in, day out type of business,” Watson said. “By asking them to generate reports, we can make better decisions and move more quickly.”

CSA will generate a report on each customer’s consumption of energy and billing and open service orders at a rate of $125 an hour.

• approved a motion to authorize a Customer Service Training agreement with Sharonda Barksdale and the HSUD.