PSC Moves to Fine Troubled Holly Springs Utility District $12,500 Per Day
HOLLY SPRINGS, Miss. — In a dramatic hearing held on September 4, 2025, the Mississippi Public Service Commission (PSC) delivered a scathing rebuke of the Holly Springs Utility District (HSUD) — finding it has “wholly failed to render reasonably adequate service” and setting the stage for major intervention.
At the Show-Cause Hearing in New Albany, PSC Chairman Chris Brown and Commissioners Wayne Carr and De’Keither Stamps unanimously approved three key motions:
- That HSUD is failing to provide reasonable and adequate utility service in violation of state regulations.
- That the Commission reserves the right to assess penalties.
- That the Commission proceed with recommending court-ordered receivership. (DeSoto County News)
In addition, the PSC announced a fine of $12,500 per day against the City of Holly Springs for continued failure to deliver basic electric utility service. (DeSoto County News)
Long-standing Failures
This action follows a damning July report by Silverpoint Consulting, contracted by the PSC, which found HSUD “incapable” of running the utility. The study cataloged deficiencies including:
- Remote metering systems out of service, forcing manual meter reads and billing delays.
- A backlog of nearly 2,000 unresolved work orders and antiquated system maps (16 years old).
- No emergency-response or vegetation-management plans in place.
- An aged superintendent (well into his 80s) and a general manager with no utility or engineering experience.
- Chronic misuse of utility funds through excessive “payments in lieu of taxes” (PILOTs), draining resources meant for system operations. (Mississippi Today)
Silverpoint warned that granting HSUD more time without major changes would “be fruitless as well as disrespectful to the utility’s long-suffering customers.” (Mississippi Today)
Residents at the Brink
During the hearing, residents voiced anguish over years of unreliable service:
- Monica Wright described her retirement as a nightmare: “We’ve replaced every electronic device… it has financially broke us. We’re living on prayers and promises.” (Mississippi Today)
- Roscoe Sitgger reported monthly bills between $500 and $600, despite frequent, inaccurate billing. (Mississippi Today)
Many customers still suffer the long tail of the debilitating 2023 ice storm, which left some without power for nearly two weeks and triggered damaging power surges — issues that persist. (Mississippi Today)
Debts and Infrastructure Crisis
HSUD serves roughly 12,000 customers, most residing outside the city limits. It purchases power through a contract with the Tennessee Valley Authority (TVA), in place since 1935. (Mississippi Today)
TVPPA, the TVA’s utility partners nonprofit, estimated HSUD needs over $10 million to restore rights-of-way and up to $15 million for substation repairs. On top of that, the utility is burdened with at least $10 million in debt — including money owed to TVA and contractors. PSC Chairman Brown described the city as “holding back the growth of the county.” (Mississippi Today)
State Senator Neil Whaley accused local leaders of “holding people hostage” and failing communities in their utility stewardship. (Mississippi Today)
What Comes Next?
With the PSC’s recommendation, a Chancery Court judge will now decide whether to place HSUD under receivership — meaning an independent manager could be appointed to stabilize operations, rebuild infrastructure, and restore public trust. (DeSoto County News)
Silverpoint noted receivership might be difficult to execute and offered alternatives such as: selling the utility to another city or co-op, converting it into a cooperative for better financing, or even condemnation/eminent domain. (Mississippi Today)
Summary Table
| Issue | Details |
|---|---|
| Service Failures | Frequent outages, billing errors, long-term infrastructure neglect |
| Investigative Findings | Silverpoint report deeming HSUD “incapable” and management deficient |
| Financial Burden | $20–$30 million estimated total cost, including repairs & debts |
| PSC Response | Daily fines imposed, legal path toward receivership, possible penalties |
| Next Steps | Awaiting court decision; potential appointed receiver or other structural changes |
This pivotal PSC move marks a dramatic escalation in efforts to address years of chronic mismanagement at the Holly Springs Utility District. The court’s coming decision could reshape the district’s future — and offer relief to customers long let down by their utility provider.
