Judge defers JXN Water plan to notify residents of rate hike
A request from JXN Water interim third-party manager Ted Henifin to notify customers of a rate increase has been delayed.JXN Water officials said they need to increase water rates to stay afloat financially, but the city of Jackson says a rate increase is unfair to paying customers.U.S. District Judge Henry Wingate held a second hearing Nov. 13 on the issue. Henifin had asked to notify JXN Water customers of the rate increase on Nov. 15. Wingate deferred that and scheduled a third hearing for Nov. 19, when a decision will be made on whether JXN Water can gradually raise water rates for customers through 2029. JXN Water’s goal is to raise the current rate by 25 percent by 2029, beginning with 12 percent in the first year. Henifin’s team said 30 days are needed before a new rate system can be applied. JXN Water would like to get it in place before Jan. 1. Officials with the city of Jackson are opposed to the JXN Water rate increase plan. There is also a dispute about how much money the city of Jackson owes JXN Water for repairs to water leaks at the zoo. JXN Water says the city owes $6.9 million, while the city says $6.3 million is owed for sanitation fees. The city of Jackson wants to look at JXN Water’s financial documents before agreeing to pay the $6.9 million debt. Henifin has refused because he doesn’t want the documents to be shared with the public for fear of the documents being misrepresented.Wingate appointed Henifin, after failures at the city’s main water plant led to a water crisis and a federal takeover. Henifin formed JXN Water in 2022, which has been working since then to repair issues with the system and revamping billing.
A request from JXN Water interim third-party manager Ted Henifin to notify customers of a rate increase has been delayed.
JXN Water officials said they need to increase water rates to stay afloat financially, but the city of Jackson says a rate increase is unfair to paying customers.
U.S. District Judge Henry Wingate held a second hearing Nov. 13 on the issue. Henifin had asked to notify JXN Water customers of the rate increase on Nov. 15. Wingate deferred that and scheduled a third hearing for Nov. 19, when a decision will be made on whether JXN Water can gradually raise water rates for customers through 2029.
JXN Water’s goal is to raise the current rate by 25 percent by 2029, beginning with 12 percent in the first year. Henifin’s team said 30 days are needed before a new rate system can be applied. JXN Water would like to get it in place before Jan. 1. Officials with the city of Jackson are opposed to the JXN Water rate increase plan.
There is also a dispute about how much money the city of Jackson owes JXN Water for repairs to water leaks at the zoo. JXN Water says the city owes $6.9 million, while the city says $6.3 million is owed for sanitation fees.
The city of Jackson wants to look at JXN Water’s financial documents before agreeing to pay the $6.9 million debt. Henifin has refused because he doesn’t want the documents to be shared with the public for fear of the documents being misrepresented.
Wingate appointed Henifin, after failures at the city’s main water plant led to a water crisis and a federal takeover. Henifin formed JXN Water in 2022, which has been working since then to repair issues with the system and revamping billing.