U.S. District Judge Henry Wingate smiles on Aug. 19, 2022, in Jackson, Miss. Wingate ruled Thursday, June 1, 2023, that the Mississippi chief justice cannot be a defendant in a lawsuit that challenges a state law dealing with appointed judges. (AP Photo/Rogelio V. Solis, File)
- U.S. District Judge Henry Wingate is allowing time for a city representative to examine the utility’s finances.
There is no timeline for when a federal judge will rule on JXN Water’s request to increase water rates.
On Wednesday, U.S. District Judge Henry Wingate held off on deciding the rate increase request by the utility to grant the city of Jackson more time to investigate JXN Water’s ledger. Wingate is allowing a city representative until December 14 to complete the investigation and to suggest where budget cuts can occur.
JXN Water and the city reached an agreement to allow Michael Thomas to share his findings after examining the utility’s finances. In return, the city cannot share the findings with Jackson taxpayers without Interim Third-Party Manager Ted Henifin’s approval.
“[Mr. Thomas] can share that information with city officials as appropriate. The main restriction is the city has agreed not to disseminate the information Mr. Thomas obtains to the public without first notifying JXN Water and giving them a 48-hour window to designate that information as confidential,” said Drew Martin, the city’s attorney.
Henifin made the rate increase request in October, telling the Jackson City Council the water system needs additional funding to pay for operation and maintenance.
“Every month of delay means we’re losing about $1.2 million. And we talk about two weeks, a month, it’s real money we’re going to have to make up on the back end by being insolvent longer or increasing the initial rate ask,” JXN Water attorney Charles McGuffey told Wingate Wednesday afternoon.
Increase notices were set to go out to customers on November 15, with higher rates going into effect in December. JXN Water said it needs to increase rates by nearly 25 percent over the next five years, starting by increasing bills by 12 percent through 2026, followed by an increase of 5 percent in 2027 and 2028, and a final 2.5 percent increase in 2029.
Yet, Judge Wingate allowed his injunction from last week to remain in place, ordering JXN Water not to mail out the rate increase notices.
“If we push into 2026 and are not able to make any kind of inflationary adjustment until later in 2027, everything pushes out,” said McGuffey. “Financial solvency, being able to address current sewer overruns, all that gets pushed out.”
Daniel Tyson
