On Thursday, September 4, 2025, the Mississippi Public Service Commission (MPSC) held a Show-Cause Hearing on the Holly Springs Utility District (HSUD) in New Albany, MS. This was comprised of an evidentiary hearing where the Commission’s Third Party Investigator, Silverpoint Consulting, laid out the findings of its report on HSUD’s provision of electric utility services and gave the City of Holly Springs (the City) the opportunity to answer to the findings, cross examine witnesses, and answer questions from Chairman Chris Brown and Commissioners De’Keither Stamps and Wayne Carr. Following the evidentiary hearing, the floor was open to public comments.

During the evidentiary hearing, Chairman Brown asked the City if they believe they are providing reasonable and adequate service, to which they responded no. Given the incontrovertible findings of the Silverpoint report and the response from the City, Chairman Brown made three motions which passed unanimously:

1. That the Commission find, based on proof in the record, that the City and HSUD has wholly failed to render reasonably adequate service in violation of Miss. Code Ann. § 77-3-33 and Rule 4 of the Rules and Regulations Governing Public Utility Service.

2. To reserve the ruling of assessments and penalties for those violations.

3. That the Commission proceed with the initiation of receivership proceedings in Chancery Court.

Chairman Brown noted that, “HSUD has been on notice for more than two years of its inadequacies, having been audited by TVA and TVPPA” and that, “Based on the testimony today, all inadequacies largely remain, made apparent again by the Silverpoint report that we heard today.”

In accordance with these findings, at their regularly scheduled Docket Meeting today, the Commission announced that it is levying a fine of $12,500 against the City for its failure to provide reasonable and adequate service to its electric utility customers. The City will be fined each day that they are in violation.