Massive Failures Uncovered in Holly Springs Utility Department
Independent Report Calls for Urgent Reform
July 29, 2025 – A scathing independent report released by Silverpoint Consulting has confirmed what many Holly Springs Utility Department (HSUD) customers have long suspected: the utility is in a state of crisis, plagued by chronic mismanagement, unsafe conditions, and systemic neglect.
Commissioned by the Mississippi Public Service Commission (PSC), the investigation into HSUD’s electric service operations paints a disturbing picture of a utility in “a death spiral,” with outdated infrastructure, dangerously overgrown power lines, and a leadership structure unable or unwilling to make critical changes. The findings reinforce earlier warnings from the Tennessee Valley Authority (TVA) and the Tennessee Valley Public Power Association (TVPPA).
Key Findings: A Utility in Collapse
Silverpoint Consulting’s 100+ page report cites:
- Extensive system neglect including overgrown vegetation near power lines and outdated substations, one of which suffered an explosion over five years ago and remains partially out of service.
- No formal storm response plan, inadequate emergency preparedness, and a complete lack of up-to-date system maps or real-time outage tracking.
- Dangerously inadequate staffing, including only two operational electric crews for over 1,600 square miles and looming retirements of key personnel.
- Billing and metering chaos, with customer complaints detailing skyrocketing bills, confusing charges, and ineffective customer service.
- Financial mismanagement, with HSUD spending drastically less than peer utilities on maintenance and capital investment, while the City of Holly Springs continued to use utility revenues to prop up its general budget.
According to the report, “current management is incapable of achieving any real improvements moving forward,” and the system is in such disrepair that “turning it around will require an extraordinary, coordinated effort.”
Legal and Regulatory Backlash
The release of this report follows the passage of Senate Bill 2453 in 2024, which gave the PSC jurisdiction to investigate HSUD and other municipal utilities operating beyond city limits. Over two-thirds of HSUD’s 12,000 electric customers live outside of Holly Springs and have no voting power over city leadership—an issue that lawmakers sought to address with the new legislation.
PSC Chairman Chris Brown did not mince words: “This crisis didn’t happen overnight. It’s the result of decades of neglect and mismanagement. TVA, state, and local partners must now come together to confront this crisis and ensure reliable service for the people of the HSUD service area.”
The City of Holly Springs and its utility department reportedly resisted the investigation for months. The report details HSUD’s attempts to obstruct the process, including refusing interviews and ignoring document requests—behavior that culminated in court challenges and a temporary restraining order against the PSC.
YOU CAN READ THE FULL REPORT HERE
Recommendations and Next Steps
Silverpoint’s final recommendation is blunt: the City and HSUD have proven themselves “unable or unwilling to adequately serve their customers.” While state law permits the PSC to place failing utilities under court-ordered receivership, Silverpoint suggests temporarily holding that option while alternative paths—such as a utility sale or conversion to a cooperative model—are explored.
The PSC is expected to announce its course of action during its next public docket meeting on August 5.
TVA Lawsuit
On May 1, 2025, TVA filed a federal lawsuit against the City of Holly Springs, its mayor, aldermen, and utility leadership, alleging breach of contract. The suit accuses the city of financial mismanagement, failure to meet contractual obligations, and continued misuse of utility revenues—highlighting years of ignored rate recommendations and late payments on power bills.
The TVA’s complaint claims HSUD is financially insolvent and unable to support necessary operations or make overdue infrastructure investments.
Bottom Line for Residents
If you live in the Holly Springs Utility Department and have dealt with outages, erratic billing, or unreturned calls, this report confirms your concerns—and it signals that change, one way or another, is on the horizon.
For more information or to read the full report, contact the Mississippi Public Service Commission Communications Director Richard Stone at (601) 383-3287 or richard.stone@psc.ms.gov.
