T.McKenzie - December 2, 2024 - Water Billing Errors; Underbilled Services

550 HIGH STREET • SUITE 1200 • JACKSON, MISSISSIPPI 39201 POST OFFICE BOX 220 • JACKSON, MISSISSIPPI 39205 TELEPHONE (601) 359-3680 December 2, 2024 The Honorable Thomas G. McKenzie Selectman, Ward 1, City of McComb Post Office Box 667 McComb, Mississippi 39649 Re: Water Billing Errors; Underbilled Services Dear Mr. McKenzie: The Office of the Attorney General has received your request for an official opinion. Background According to your request, the city of McComb (“City”) discovered water billing errors and faulty water meters resulting in many underbilled utility accounts. You now seek an opinion on the appropriate course of action. Question Presented Would it be an appropriate course of action for the City to forgive the underbilled account amounts, due to billing errors, and not bill the customers responsible for the actual water/sewer used? Brief Response “[A] utility debt may not be adjusted or forgiven when a customer has received the benefits of the utility service, regardless of a municipality’s error in billing.” MS AG Op., Frieson at *1 (Sept. 7, 2018) (citing MS AG Op., Williams at *1 (Sept. 12, 2008)). Applicable Law and Discussion Article IV, Section 100 of the Mississippi Constitution states: No obligation or liability of any person, association, or corporation held or owned by this state, or levee board, or any county, city, or town thereof, shall ever be remitted, released or postponed, or in any way diminished by the Legislature, nor Mr. Thomas G. McKenzie Selectman, Ward 1, City of McComb December 2, 2024 Page 2 550 HIGH STREET • SUITE 1200 • JACKSON, MISSISSIPPI 39201 POST OFFICE BOX 220 • JACKSON, MISSISSIPPI 39205 TELEPHONE (601) 359-3680 shall such liability or obligation be extinguished except by payment thereof into the proper treasury; nor shall such liability or obligation be exchanged or transferred except upon payment of its face value. (emphasis added). This office has consistently concluded that “a utility debt may not be adjusted or forgiven when a customer has received the benefits of the utility service, regardless of a municipality’s error in billing.” MS AG Op., Frieson at *1 (citing MS AG Op., Williams at *1); see also MS AG Op., Tucker at *1 (May 24, 2024). Accordingly, it is the opinion of this office that the City must collect underbilled account amounts. Sincerely, LYNN FITCH, ATTORNEY GENERAL By: /s/ Maggie Kate Bobo Maggie Kate Bobo Special Assistant Attorney General