U.S. District Judge Henry Wingate ruled Monday that JXN Water can raise its rates by 12%, citing the utility’s financial crisis and the need for immediate action. The decision follows a year-long legal battle with the City of Jackson.
Wingate described the situation as a crossroads where judicial oversight must confront the stark realities of municipal survival. The average water bill for customers is expected to increase by about $9 per month. The judge expressed criticism of Jackson’s handling of the issue but outlined strict guidelines for JXN Water’s future operations.
In his ruling, Wingate emphasized that the rate increase is a necessary survival measure but requires the utility to pursue structural reforms. These include identifying unmetered properties, establishing an in-person customer service site, and creating an educational billing sample explaining the rate hike in plain language. The court also mandated an efficiency audit of tiered billing to explore more equitable consumption models.
The judge ordered JXN Water to improve debt collection efforts, particularly targeting large commercial delinquencies, to recover an estimated $74 million in arrears. He stressed that financial stability must be paired with ongoing infrastructure repairs, as mandated by existing consent decrees.
Wingate criticized Jackson leaders for failing to provide a viable immediate solution to cover a $20.4 million shortfall. He noted that the city’s independent financial review was inadequate and that the city did not direct its expert to perform the necessary analysis of water revenue requirements. The judge also pointed out Jackson’s failure to collaborate effectively with JXN Water on resolving the utility’s deficits.
Following the ruling, Jackson Mayor John Horhn issued a statement opposing the rate hike. He said, “Jackson families are already carrying a heavy load, and I opposed this 12 percent rate increase.” Horhn added that the city aims to meet its legal obligations while seeking alternative solutions such as better collections and honest billing before raising rates further.
Wingate’s full ruling is available for review, and messages to JXN Water were not immediately returned Monday morning.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
