PSC to send HSUD issue to Chancery Court
The Mississippi Public Service Commissioners, in a show-cause hearing in New Albany Thursday, Sept. 4, unanimously passed motions that will send the Holly Springs Utility Department issue to Chancery Court.
The PSC said Holly Springs Utility Department failed to provide reasonably adequate service to its customers.
HSUD serves about 12,000 electricity customers primarily in Marshall, Benton, Lafayette, Hardeman and Fayette counties.
The system has been in crisis for several years, unable to provide reliable electricity to its customers. HSUD is also underwater financially, owing millions to the Tennessee Valley Authority for wholesale power, and for failure to provide realtime utility billing to many of it’s customers due to the failure of the Automated Metering Infrastructure.
“We the people have spoke,” said Commissioner Wayne Carr, of the Southern District, In statements prior to passing four motions in connection with the show-cause hearing. I’ve heard you all all the way down to the Coast. I can’t imagine what y’all have been through.”
He thanked Silverpoint Consulting for conducting the investigation in the assessment of the HSUD electric system.
“It’s been an eye-opener,” Carr said. “I just can’t understand how we got to this point. But here we are.”
Commissioner Chris Brown of the Northern District made profound statements prior to calling for motions.
“Today’s meeting made one thing very clear,” he said. “Based on facts before us, this Commission has no other choice but to move.”
He said the problems with HSUD electric power service has been building for decades.
“But, I want to assure you, the end is in sight,” he said. “This commission is committed to seeing this process through. And we will not stop until the citizens within the HSUD service area have the reliable sustainable power that you deserve.
“That means a better quality of life for your families, new job opportunities, stronger property values and economic growth and activity. This Commission will see this through. We are in the final stages of securing a lasting solution and we will not stop until it is in place. With your persistence and your voices together, we will achieve the reliable and sustainable power that this community deserves.”
Brown said the Commission will push the limits of what it can do to make sure everyone in the HSUD system has the reasonably adequate service they deserve.
“It’s time to turn the corner and start fixing the problem,” Brown said. “We can’t kick the can down the road anymore. You are suffering, our state is suffering. We heard your cries and we are here with you. We are going to stay the course. We are going to work with everybody that works with us to make sure that we get this system triaged, repaired, fixed as quickly as humanly possible.”
Brown followed with four motions:
• that the Commission find, based on proof in the record, that the City of Holly Springs has wholly failed to render reasonably adequate service in violation of Mississippi Code Section 77 333 and rules from the rules and regulations governing the Public Utility Service. Commissioners passed the motion by unanimous vote.
• that we reserve the ruling of assessments and penalties for those violations. The motion passed by unanimous vote.
• that, based upon prior documentation, the commission proceed with the initiation of receivership proceedings in Chancery Court enlarging a separate order specifying what particulars HSUD has failed to render adequate service. The motion passed by unanimous vote.
“HSUD has been on notice for more than two years of it’s inadequacies, having been audited by the Tennessee Valley Authority and the Tennessee Valley Public Power Association,” Brown elaborated. “Based on the testimony today, all inadequacies largely remain, made apparent again by the Silverpoint (Consulting LLC) report that we heard today.
• that the city has testified its best efforts have been made, the Commission sees no need to allow additional time for redress. The Commission voted unanimously for the fourth motion.
“Our goal is to come and help fix it and we’ll work with everybody that will work with us to make sure that you, the people, get the reliable, adequate service you deserve,” Brown said. “We’ve heard you and we’re answering the call. It’s not going to happen overnight.
“But I think if all of us will work hand-in-glove to stay the course, we will make sure that HSUD is no longer one of the 153 (TVA power distributors) that is not providing the services that they should.”
The video of the Commission’s proceedings were live-streamed over the Public Service Commission’s Facebook page, but the system became overloaded, slowed to a trickle and eventually locked up during the first hour. However, the full four-hour proceedings are now available on the Commission’s Facebook page, Mississippi Public Service Commission, live streamed September 4 from the Municipal Courtroom in New Albany.
The commission announced at the September 9 regular docket meeting in Jackson it will levy a fine of $12,500 a day against the City of Holly Springs for failure to provide adequate service to its electric utility customers.
Viewers who were not able to follow the proceedings in real time due to failure of the live stream were upset as were some attending the meeting in person.
Two comments in the chat are examples:
• “I hope the commissioners know that the streaming service completely s---ked for those of us unable to attend the meeting in person.”
• “It s--ked as bad being there in person. No sound system and a courtroom full of people. Very, very hard to hear anyone talk. For such an important meeting, it was bad planning.”