Probe reveals major flaws in Holly Springs utility systems

MEMPHIS, Tenn. — An independent investigator has submitted a final report on the Holly Springs Utility District to the Mississippi Public Service Commission, Commissioner Chris Brown announced in a statement on Tuesday morning.

This comes after the MS PSC hired Silverpoint Consulting to conduct a third-party investigation into HSUD due to several complaints from HSUD customers. Silverpoint was asked to evaluate system operations, maintenance practices, emergency preparedness, and metering and billing.

Commissioner Brown says the report outlined significant concerns, including a “death spiral” in the utility’s metering infrastructure, brought on by chronic mismanagement, lack of maintenance, and poor planning.

“It further details an overstressed operations group, dangerous overgrowth around the distribution system, and long-neglected substations that continue to threaten system reliability,” the statement said. “HSUD and the City of Holly Springs have demonstrated an inability and unwillingness to adequately serve their customers by citing longstanding failures to act on practical, previously issued recommendations.”

Commissioner Brown says the issue did not happen overnight and that it’s a result of decades of neglect and mismanagement. He added that the system is in a severe state of despair.

“TVA, along with federal, state, and local partners, must come together to confront this crisis and ensure reliable service for the people of the HSUD service area,” Commissioner Brown said.

On August 5, during the next docket meeting, there will be an announcement on the next steps to take regarding the matter.