Jackson, MS — The Interim Stipulated Orders (Water and Sewer) require that the operation and control of Jackson’s water and sewer systems transition to a permanent entity once the systems are operationally and financially sustainable. The Sewer Order specifically mandates that a transition plan be developed and submitted to the parties—EPA, DOJ, MDEQ/MSDH, and the City of Jackson—no later than October 2026.

The Interim Third-Party Manager (ITPM) has been working diligently to stabilize the water and sewer systems while also preparing for that eventual transition. Significant progress has been made in restoring and maintaining reliable operations. However, achieving financial stability remains the greatest challenge and must be resolved before any transition can occur. Otherwise, Jackson risks returning to the same conditions that led to the federal government’s intervention.

The failure of the City’s water and sewer systems can be directly tied to a lack of financial resources—largely due to the City’s past inability or unwillingness to set sustainable rates and ensure all users paid for the services they received. Without a long-term, financially sound plan, the system will inevitably deteriorate again. It is certain that the federal government will not intervene financially a second time, so maintaining the progress achieved to date is essential.

Ultimately, future control by a municipal entity—whether a new authority board or the City of Jackson itself—will likely provide the most affordable and sustainable operation for ratepayers.

The City of Jackson entered into the Interim Stipulated Orders to avoid litigation filed by the U.S. Department of Justice on behalf of the EPA and by the State of Mississippi on behalf of MDEQ and MSDH. The City negotiated and agreed to the terms of the Orders, which stayed the lawsuit. Any transition plan must be agreed upon by all parties.

If the City seeks to regain control of the water and sewer systems, it must first develop and present a clear financial and operational plan for review by state and federal partners. Passing resolutions without sharing with the public, ratepayers, and regulators how the City intends to manage the systems will only hinder progress and reduce the likelihood of agreement among the parties.

JXN Water has met with Mayor Horhn and expressed our willingness to assist in developing a responsible transition plan. However, creating such a plan will take time, and it will likely be several months before a viable proposal can be shared.

In the meantime, the water and sewer systems must meet their financial obligations to continue operations. Like any public utility, we must:

• Ensure that everyone receiving service has an active account;
• Ensure that all customers are paying for the service they receive;
• Recover unpaid service fees; and
• Adjust rates to cover the true cost of providing reliable service.

Because the City will need time to prepare its transition proposal, control will likely need to transfer—at least temporarily—to a public authority that can borrow funds and address ongoing financial shortfalls.

Finally, during the past month, the water system experienced a seasonal increase in manganese—a naturally occurring mineral—which caused discolored water in some areas of the City. Elevated manganese levels have been a recurring issue since the construction of the Ross Barnett Reservoir. The discoloration, while unpleasant, does not pose a health risk.

Historically, the City of Jackson did not adjust water bills for periods of discoloration, and JXN Water is following that long-standing practice. Adjusting customer bills for aesthetic issues would require an even greater rate increase to sustain operations, which would ultimately harm all ratepayers.