Judge holds off decision for proposed Jackson water rate increase. When will ruling come?

Yahoo

15-07-2025

U.S. District Court Judge Henry Wingate and JXN Water's Interim Third-Party Manager Ted Henifin continued to hear the public's concerns about a proposed water rate hike during a Tuesday, June 17, status conference.
The first day of the public hearing happened Monday, June 16, inside the Thad Cochran United States Courthouse, and resumed for a second day on Tuesday, June 17.
The new rate increase would raise the average residential water bill from approximately $76 per month to $85 per month — up $9 a month, or roughly 12% higher than current rates. That also represents an increase of about $0.30 per day for average customers.
In April, all six members present on the Jackson City Council voted to oppose the proposed water rate increase. Jackson Mayor Chokwe Antar Lumumba has previously stated he is not in favor of the hike as well.
The council's vote carries little real weight as a 2022 federal order allows Henifin to implement a rate increase with only Wingate's approval.
Henifin has warned that without the increase, JXN Water would exhaust the federal funding allocated to the city's water system in 2022. Henifin stated the utility is operating at a financial deficit of $3 million per month. That could slow the pace of repairs to the water system, Henifin has said.
JXN Water stated a rate increase is needed to cover debt incurred by the City of Jackson for its water and sewer system from 1993 to 2013, that the utility was required to assume by the federal court.
On Tuesday, Wingate did not make a ruling on the rate increase. Wingate said his decision will be a bench opinion, a decision made by a judge inside the courtroom.
"As I stated before, we did this because we wanted to have input," Wingate said. "And now, I'm going to put together all of the information I've heard and make some final determination.
"We do have a new administration about to come in Jackson. Now, that administration had asked that I do not make a decision too quickly before they have a chance to learn something about this matter. I want them to know as much as possible, but unfortunately, we can't wait forever for them to be brought up to speed. No decision will be made this week, but I can't speak for next week because my pen is itching to move on this matter."
If approved, it would mark the second water rate hike for Jackson residents in under two years. All city council members abstained from voting on increasing the city's water rates in March 2024.
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The hearing on Tuesday ran from 1 to 3 p.m., seeing minimal turnout and no council members present. Attendees were mostly media and legal personnel. The court heard from one community member who opposed the rate hike and from Henifin who reiterated the need to increase the rate.
Jackson resident Oliver O'Quinn argued in the courtroom for the utility to "force payments or shut off the water" for non-paying customers, saying the issue would "keep going on and on" without consequences. O'Quinn questioned why the debt burden must fall on paying customers.
"To me, it's not fair to charge the people that don't owe the water company anything, and charge them because people haven't paid," O'Quinn said. "I would suggest that you go after the people that owe you the money. Don't just take it from people that don't owe you nothing."
In response, Henifin said, "I would like to reemphasize a driving point here, over the last two days. Even if 100% of the people pay their bills, we fall short of meeting our obligations."
The city's worst debt offenders appear to be tied to apartment complexes.
During Tuesday's hearing, Henifin revealed that approximately 138 apartment complexes owe $7.5 million to JXN Water. The top 15 owe $5.7 million, alone. The outstanding balance was accrued over a 2-and-a-half-year period, as stated by Henifin.
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Henifin said apartment complexes cite various "excuses" for not paying their debts, such as never receiving bills and needing a "bigger adjustment" on leaks, with reasons that "go on and on."
Shutting off the water at those complexes has been a matter of discussion, Henifin said.
"We've posted signs, at the top 15, to notify the residents to be prepared for water shut off, as a courtesy for the people who are living there because they're the ones that are going to be impacted," Henifin told the Court.
According to Henifin, nearly 2,500 accounts — mostly families under one account — could lose water at the top 15 complexes.
"The average family size in Jackson is around 2.7 people per family. So, round it to three because I've yet to meet the .7 person," Henifin said. "Three people for those 2,500 units. You're really talking about 7,500 people impacted."
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Henifin said the utility plans to sue the owners to recover unpaid balances before tenants face any water shutoffs. No litigation costs have been factored, according to Henifin.
Wingate asked Henifin, "What other avenue can you think of at this juncture, short of litigation route, to get these folks to pay?"
"We haven't come up with anything other than that," Henifin told the Court.
Shortly after, Wingate then posed a question to O'Quinn asking, "What should we do?"
"I think you should go to the governor," O'Quinn said. "Let the state take on this problem and pay the bill. They have money. Let them pay the bill, and they fight the people that owe money. Y'all, lawyers and judge, you know what to do. Don't just grind the citizens of Jackson down."
In response, Wingate said, "What you mean, go to the government and let them do it? What's your theory as to how we do that?"
"Get the money?" O'Quinn said.
"Yes," Wingate answered.
"I couldn't tell you. If I could tell you that, then I'd be up there where you at," O'Quinn said.
A few laughs rung out across the courtroom at O'Quinn and Wingate's interaction.
Pam Dankins is the breaking news reporter for the Clarion Ledger. Have a tip? Email her at [e-mail].
This article originally appeared on Mississippi Clarion Ledger: Jackson water proposed rate increase discussed at public court hearing