02-05-2025
TVA files lawsuit against Holly Springs for contract breach
MEMPHIS, Tenn. — The Tennessee Valley Authority filed a lawsuit against the city of Holly Springs and its utility department for breach of contract.
A lawsuit was filed against City Mayor Sharon Gipson, the Board of Aldermen, and Wayne Jones, General Manager of the Holly Springs Utility Department, on Thursday in federal court, claiming the utility has not paid TVA for energy and power usage on time.
The 72-page document was filed on Thursday in federal court in Oxford and maintains that the defendants have not complied with the terms of the 'Wholesale Power Contract' signed in 1975 between the City of Holly Springs and TVA.
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'In addition to ongoing compliance issues for over two years, HSUD has failed to use electric system revenue in the prioritized order outlined in the Wholesale Power Contract,' said a TVA spokesperson. 'HSUD has failed to provide timely and accurate financial information and failed to provide TVA with copies of annual external audits of the electric department since FY 2020. HSUD's financial condition has continued to decline.'
According to TVA, HSUD currently has an outstanding and past-due balance with TVA for February 2025 of over $1.5 million.
Complaints against HSUD have long been the focus of the Mississippi Public Service Commission.
'The Public Service Commission is committed to working with TVA to resolve this crisis. The people of HSUD deserve our full support, and we will continue to push forward with our investigation in order to ensure that the people within the Holly Springs Utility District receive the reliable utilities that they deserve,' said Chairman Chris Brown.
WREG reached out to the defendants named in the lawsuit for a response as well as the attorney representing the city of Holly Springs, but we have not heard back from them.
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