Madison loses wastewater increase fight

A nearly 30 percent hike in wastewater fees is coming to city of Madison residents after a legal challenge failed last month. 

Madison filed an emergency injunction in December challenging the Madison County Wastewater Authority’s decision to increase wastewater fees, which could see the average Madison user paying an additional $22 per month. 

Circuit Judge Brad Mills signed an order on Jan. 30, allowing the rate increase to go in effect, saying based upon the evidence it was in the scope of authority for MCWA to increase the rates.  

“For many years, MCWA’s rate for transportation and treatment of wastewater was lower than similarly situated wholesale providers and less than half of the rate charged by wholesale providers in Rankin County,” a release by MCWA in January said. “Wastewater treatment has become more expensive due to increasing energy and chemical costs, aging infrastructure needing upgrades, and the growing volume of wastewater due to population growth. 

“The treatment systems in Madison County are now more than 20 years old and it simply costs more to keep them running well,” the statement continued. “Public utilities such as MCWA must provide responsible management in their operation and not be guilty of excessive delay in providing maintenance to their facilities. Doing so could result — as happened with some municipal utilities — in a situation where facilities become inoperable, leading to much higher costs later on.”

MCWA’s statement went on to say that the increase from $1.50 to $3.72 per thousand gallons and an administrative rate of 35 cents per customer would only impact Bear Creek customers by about $5 per month, questioning how Madison came up with a $22 increase.

“We are not privy to the basis for or calculations supporting the city of Madison’s alleged increase but question the need for such a dramatic increase,” the release said.

”What is not in question, however, is the MCWA Board’s commitment to proper and diligent maintenance of critical infrastructure that is necessary for Madison County’s future economic growth and environmental health and safety.”

On Nov. 19, 2024, the authority voted to increase wastewater rates.

CMU operates the authority’s treatment plant on the Big Black River.

Madison had asked for the rate vote to be tabled to gather more information. 

The authority has a long and complex history, rife with ongoing lawsuits between current and former member entities. 

The current membership consists of the Madison County Board of Supervisors, Madison the City, Pearl River Valley Water Supply District, Bear Creek Water Association, West Madison Utility District, and Lake Lorman Utility District. 

CMU, the Town of Flora, and the city of Ridgeland were original MCWA members but have withdrawn in recent years. 

MCWA provides wastewater utilities to a large swath of the county west of I-55 and utilizes the Beattie’s Bluff Wastewater Treatment Facility on the Big Black. 

MCWA co-owned the treatment facility with CMU, but that ownership is being litigated in an ongoing circuit court case. 

CMU has been the facility operator under a contract with MCWA dating back to 2004, which was tied up in court until a settlement agreement was recently reached, removing CMU as the operator and restoring them as a member of the authority.

MCWA attempted to increase rates in 2023 and later rescinded the increase after an objection by the city and a request for a multi-year operational audit of CMU.

Madison officials contend that CMU is improperly charging MCWA and thus the increase is to offset CMU’s operating budget.

“MCWA has not obtained or provided sufficient data explaining why CMU’s proposed charge increased from $0.86 per thousand gallons to $2.39 per thousand gallons over the course of one year,” Madison’s injunction said.

“Without a full operational audit of CMU, and copies of CMU’s current contracts and quotes, MCWA cannot determine the actual cost of operating the wastewater system.

“MCWA has not provided any explanation why the rate should be based on CMU’s proposed budget when MCWA was seeking to replace CMU as the operator of its facilities, and had been in settlement discussions regarding the same,” the filing continued.

Madison argued that the city cannot force increased wastewater rates onto ratepayers without knowing the actual cost to operate and maintain the system, which MCWA has been unable to provide.  

Ridgeland sends its wastewater to Jackson as does Madison east of I-55. Wastewater on the west side of I-55, beginning roughly along the railroad, flows north toward the Big Black, and everything to the east flows south toward the Pearl and Jackson.