The Public Service Commission and the Mississippi Department of Health may be forcing the City of Union to lose 175 water customers in the House community.
During a meeting last week, the Union Board of Aldermen made an offer to the Central Water Association in Neshoba County to turn over the customers that were served to the House Water Association.
Mayor Wayne Welch said during a recessed meeting on March 8 that the city was contacted by the Public Service Commission and the Department of Public Health about separate issues involving 175 House residents who receive water from Union.
The Public Service Commission said the city improperly absorbed the House Water Association into its water system back in 1989 and that those customers should be serviced by Central Water Association.
In a separate matter, the Department of Public Health also cited the city for upgrades it needs to perform to continue servicing the House water customers properly. Welch said the city would have to spend at least $500,000 to begin the upgrades that are being required by the health department.
This would include replacing the existing water lines with 8-inch water lines from Union to House, installing a new upgraded tank and water lift station in the House area. And that would be if the Public Service Commission allowed Union to continue servicing the area.
Welch and the Union Board of Aldermen agreed that probably the best move in the interests of the City of Union would be to work out an agreement with Central Water to allow them to take on the residents "at an equal trade," meaning the city wouldn't be required to pay any additional costs to turn over the House water system and its customers.
"They want them," Welch said. "And they are really good customers."
The aldermen passed a resolution upon acceptance by Central Water Authority, the Public Service Commission and Department of Public Health to turn that would turn over the customers, assets and liabilities to Central Water Association without a monetary exchange.
Welch said Central Water would have to make some upgrades to be able to take on the new customers, but he said they are willing and capable to take on the new customers. While there would be an up front cost, Welch believe Central Water could pay off the investment to take on the customers and then begin making money within a few years.
"We could spend maybe $800,000 and not make one penny on that investment while Central Water could make it back and then starting turning a profit," Welch said. "We are looking to explore all possibilities, but I think giving the customers to Central Water is the best option that we have."
Welch said former city attorney Rex Gordon was working on the issue at the time of his death last fall, but not having a city attorney for the last couple of months put the city behind schedule with their response to the Public Service Commission and Department of Public Health.
New city attorney Doug Smith, who was appointed on March 6, helped the city devise a proposal for the board during the recessed meeting on March 8.
