The Madison County Wastewater Authority issued the following statement about the lawsuit the city of Madison filed against it:
"The Madison County Wastewater Authority or 'MCWA' provides wholesale wastewater services to retail utility providers in Madison County. As a resident or business owner, you pay a retail service provider, such as Bear Creek Water Association, the Pearl River Valley Water Supply District, or the City of Madison, for your services. Those retail service providers, among others, are members of MCWA. MCWA’s member retail providers pay MCWA to treat all wastewater in an environmentally safe and cost-effective manner. By joining together with each member paying its fair share, the resulting economies of scale allow MCWA members to charge their customers less.
"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. 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 twenty years old and it simply costs more to keep them running well. Public utilities such as MCWA must provide responsible management in their operation and not be guilty of excessive delay in providing proper maintenance to their facilities. Doing so could result – as has happened with some municipal utilities - in a situation where facilities become inoperable, leading to much higher costs later on.
"Recognizing that the rising costs of wastewater treatment would require a rate increase, MCWA’s members voted to increase rates in May 2023 and November 2024. The most recent increase adjusted the operating rate from $1.50 to $3.72 per thousand gallons of wastewater treated and increased the administrative rate by 35 cents per customer, per month. All members voted for this rate increase except for the City of Madison.
"You may have seen recent news criticizing MCWA for raising the rates charged to its members and stating that the City of Madison has filed a lawsuit against MCWA alleging a “nearly 300 percent hike” that could increase total costs by $22 per month for the average user. As a result of MCWA’s November decision to increase its rate, Bear Creek Water Association anticipates implementing a rate increase on its sewer customers of less than $5 per month. Pearl River Valley
Water Supply District anticipates not implementing any rate increase on its customers at this time.
"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. 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."
