JACKSON, Miss.—After another JXN Water court hearing, Jackson residents still do not know whether they will pay more on their water bills starting next year.
JXN Water Interim Third-Party Manager Ted Henifin, his attorneys, attorneys with the U.S. Department of Justice and City of Jackson officials, including Mayor John Horhn, all appeared in front of a federal judge again on Thursday.
It was the latest court hearing over the ongoing federal receivership of the capital city’s water and sewer systems.
Mississippi House Rep. Fabian Nelson spoke briefly during the hearing, saying that although he appreciated the agency’s work “reviving our (water) system from the dead,” he opposes JXN Water’s proposed 12% rate increase.
“Before we talk about rate increases, we need to make sure people are getting fair bills,” Nelson told U.S. District Court for the Southern District of Mississippi Judge Henry T. Wingate on Nov. 13.
Lori Sherman, an attorney representing Jackson residents, told the judge that “Jackson residents deserve transparency about how the rates are being calculated.”
But Wingate’s decision over whether to allow JXN Water to implement the rate increase remained unknown on Thursday, as much of the conversation surrounded the City of Jackson’s desire to view the water utility’s financial records.
Although Horhn has previously said that he does not support a rate increase, City of Jackson Attorney Drew Martin told the judge on Thursday that city officials need a deeper look at JXN Water’s financial records before deciding whether the rate increase is justified.
“We still don’t have access to the books,” he told the court.
Henifin originally agreed to the City of Jackson’s request to allow an accountant contracted with the City to review the agency’s finances, but said Thursday he is concerned with the City of Jackson having “unfettered access” and information about the agency’s financial records.
“You can easily take things out of context,” he told the court, adding that he fears the information might be leaked to the public.
Wingate urged both parties to come to a compromise over the records by next Monday, which spurred JXN Water’s attorneys to propose nondisclosure agreements, or NDAs, for all individuals either given access to the records or debriefed about the information in the records.
Before the end of the hearing, Wingate blocked the third-party manager from issuing notices to customers advertising his proposed 12% rate increase. The agency’s latest quarterly report outlined its plan to start letting customers know about the increase no later than Nov. 15.
Heneifin hopes to start implementing a new rate increase at the start of 2026.
Per the federal stipulated order, JXN Water must inform customers of the rate increase at least 30 days before it is set to go into effect, he told the judge.
“You are hereby enjoined from going further on that,” Wingate said.
The next hearing is scheduled for Wednesday, Nov. 19, at 9:30 a.m.