JACKSON, Miss. (WJTV) – A federal court hearing was held in Jackson on Wednesday to review a proposed rate increase by JXN Water.

Interim Third-Party Manager Ted Henifin proposed a 12% rate increase, which would raise the average residential bill from $9 to about $11 a month. The increase is part of a broader financial plan aimed at stabilizing Jackson’s water infrastructure, but city officials said the issue goes deeper than just raising rates.

“Our point is that we need to look at the financials of JXN Water. We have a representative who is going to make that appeal to him. The judge has indicated that he is also interested in doing a deeper dive on the financials of JXN Water. And we’ll see where the chips fall,” said Jackson Mayor John Horhn.

The mayor also raised concerns about billing and collections. He said roughly 4,000 customers are receiving water, but they’re not being billed. Only about 70% of current customers are paying their bills, putting a strain on the system.

JXN Water officials said the rate increase is necessary to ensure long-term sustainability. Aisha Carson, the Lead Communications Officer for JXN Water, said the system cannot simply survive on current revenue and that the culture around bill payment in Jackson is slowly changing.

“This rate increase is not about penalizing the people who are already paying. It’s about making sure that the water system is financially sustainable,” she said.

U.S. District Judge Henry Wingate said the hearing will resume on November 13, 2025,at 9:30 a.m. A motion is expected on how to proceed with a possible rate increase. All additional submissions must be filed by November 7, 2025.