PSC to push for receivership of HSUD
Public Service Commissioner for the Northern District Chris Brown announced the commission continues to push for putting the Holly Springs Utility District’s electric department in receivership.
He said after a third party investigation by the PSC, a final order finding the city of Holly Springs failed to properly maintain its utility system was filed.
That order included fines ($12,500 per day) and directed the Mississippi Attorney General’s Office to begin the process to place the utility’s electric service in receivership.
The PSC is seeking a judge’s order to remove the utility from the City of Holly Springs control and place it under new management.
Holly Springs was given 30 days to appeal the PSC’s order and the City filed a lawsuit in Federal Court in an attempt to block the PSC’s order.
Brown said in a Facebook post, the AG’s office continues to prepare to follow the process to put the utility in receivership and appoint a court appointed receiver.
He said the receiver will be responsible for stabilizing the utility, address billing issues and restore reliable electric power service to its customers.
“This will not be a quick or simple fix,” Brown said. “Legal steps take time, and there are very specific due process requirements we must follow to ensure the results hold up in court. But action is happening, and this process is moving forward.
“For many years, the PSC didn’t have the authority when it came to municipal utilities. That changed last year when the Legislature gave us new tools to act. We’re using those tools now. We know trust will only be restored when people see real results, and that’s our goal. Reliable service and fair billing aren’t privileges; they’re necessities. We remain fully committed to seeing this through for the people of the Holly Springs Utility District.”
In the city’s complaint filed by attorney John Keith Perry Jr. October 30, the city of Holly Springs asked for declaratory and injunctive relief, alleging MPSC’s actions against the city are contrary to and preempted by federal law under the Fourteenth Amendment of the United States Constitution which places the jurisdiction under 28 U.S.C. Section 1391 (b)(2).
In the complaint, the City said it was not given adequate time for new counsel to review or correct the alleged deficiencies cited in the PSC report.
The complaint alleges the City was forced into defending itself against an order that is unlawful and dangerous to the stability of municipal self-governance and that the PSC order exceeds the PSC’s lawful powers and intrudes on the City’s prerogatives under its contract with the Tennessee Valley Authority to provide wholesale power to the utility and TVA’s regulatory authority of HSUD’s facilities, operations, rates and services.
The City presented five causes of action:
• TVA is a corporation created by Congress, which places jurisdiction under the Federal statutes and regulatory authority is provided under federal law. The MPSC’s actions intrude upon the the city’s contractural relationship with TVA.
• PSC deprived the City of an opportunity to cure alleged negligence, as the city transitioned in leadership under a new mayor (Charles Terry).
• Holly Springs seeks injunctive relief against enforcement of the $12,500 daily fine and receivership because the PSC acts without lawful authority.
• the PSC’s order exceeds the scope of its statutory authority.
• the PSC lacks authority to grant relief. The PSC’s conduct constitutes an ongoing deprivation of rights.
In summary, the City of Holly Springs asked the court to declare the actions of the commission unlawful, declare the PSC violated the City’s Fourteenth Amendment Rights to due process, to enjoin the PSC from enforcement of its $12,500 fine and receivership, and to declare the MPSC’s actions unconstitutional.