Mississippi PSC fines Holly Springs $12,500 daily for utility failures

The Mississippi Public Service Commission (MPSC) has unanimously voted to fine the Holly Springs Utility District (HSUD) up to $12,500 daily for failing to provide adequate electric utility service to about 12,000 customers, many of whom live outside the city limits. This decision follows a damning July 2025 report by Silverpoint Consulting, which highlighted severe deficiencies including outdated and nonfunctional metering systems, a backlog of unresolved work orders, lack of emergency and vegetation management plans, and alleged misuse of utility funds. The MPSC also announced plans to petition a chancery judge to place the utility into receivership, allowing for court-ordered intervention to address the long-standing issues. Holly Springs city officials admitted to failing to provide reasonable service, and regulators noted the utility owes $10 million to the Tennessee Valley Authority and contractors, while also needing an estimated $10 million for vegetation management. The fines collected will go to the state’s general fund, with the possibility of being redirected to whoever manages the utility moving forward. Residents expressed frustration over years of unreliable service, emphasizing the urgent need for effective solutions beyond bureaucratic delays.