Friday, February 8, 2019

PSC: CMU Ripped Off Customers

Canton Municipal Utilities overcharged customers who lived more than a mile outside of Canton. The public utility also illegally transferred surplus revenue to the city of Canton and the Canton Redevelopment Authority.  So ruled the Public Service Commission on January 25. 

CMU provides water service to Canton and customers who do not live in Canton.  The service area includes Lake Caroline and the Panther Creek Subdivision.  CMU asked the Commission to approve water service rates it was already charging to customers. Unfortunately for CMU, the Commission investigated and did not like what it found.

 The PSC ruled that CMU overcharged customers who lived more than a mile outside of Canton.  CMU would "routinely transfer" the resulting surplus to Canton's general fund and the Canton Redevelopment Authority. Such transfers violate the law as a city

municipal general fund. A municipality may not transfer surplus funds from a utility operation and maintenance fund to its general fund at first instance, but is only allowed to do so after the purposes of all utility funds have been fully carried out in the priority set forth by Miss. Code Ann.§ 21-27-61.
CMU also did not pay interest on the deposits that were owed to customers as required by law.


The Commission has not approved a water service fee increase for CMU since 1994. However, that didn't stop CMU from raising rates in 2012 although the Commission issued a temporary approval to CMU's increased rates in 2017.

The Commission did not reach a decision but instead ordered CMU to submit documents showing the decision to increase the water rates in 2012 as well as the amount of the fees charged from October 1, 2012 to January 30, 2017 that are in excess of the 1994-approved rates, the accrued interest on deposits, the average amount of interest owed per customer, and the number of customers who will receive the interest credit on water bills.  The documents must be submitted by March 1.

The findings are part of a pending order.  CMU has 15 days to dispute the recommended order.  


Kingfish note: Hmm..... signed documents......



By the way, CMU wants to place $672,000 of the overcharged revenue into escrow for infrastructure improvements outside of the city limits.    Uh-huh.





62 comments:

Anonymous said...

Canton, Mississippi ... Controlled by the Blackmons ... Corrupt to the Core

Anonymous said...

Yazoo PSC distributes big money every year to the city of Yazoo City, 38th worst place to live in the country....

Anonymous said...

The Blackmon's did start this CMU theft ring. They might have been involved later, but they by no means started this theft ring.

Anonymous said...

I don't see Dekeither tackling these types of issues if he wins the Central district.

Anonymous said...

When white folks stole money and it was Bob Montgomery....nobody cared...now there is a question about the accounting and its as if Tom raped a white girl again.....now..remember...church time is 11:00 AM Sunday ok? You fucking hypocrites if you were too stupid to understand this.

Anonymous said...

This is 9:01. I meant to say the Blackman "did not" start the CMU theft ring.

Anonymous said...

They have someone who works(ed) for CMU with the first name Jewelry? Next up we present Mr. Dodge Charger and Mr. Chrysler 300...#CAN'Ton

Anonymous said...

wtf kind of name is Jewelry??

Anonymous said...

So what else is new? Canton is a herd of sheep. Begging to be fleeced. The rest of Madison County is cattle country. This really ain't news.

Kingfish said...

I wasn't around when Honest Bob pulled his crap.

However, I did report on his Parkway EASTSOUTHNORTHBYNORTHWEST fleecing.

Problem with Canton is it resembles that town in Fistful of Dollars in too many ways, without the violence.

Anonymous said...

So when very well paid lawyers for CMU for many years have been part of the active management and many laws we not followed, what is next. Are these several different lawyers accountable for the mismanaged money? CMU was always known as a cash cow that needed a constant milking.

Man With No Name said...

@9:12 AM if you have an example of selective reporting by KF bring it forward because I've been reading here since JJ's inception and I ain't seen it.

Anonymous said...

Don't forget the Zebra Tent at the Ole Miss (Hotty Toddy) football games.

Anonymous said...

They've also been writing big checks to Canton Tourism to help pay for the lights everyone loves to see at Christmas time.

Anonymous said...

It's easy to throw Kenny Wayne Jones, the Blackmons, Truly, etc. under the bus. But if you look at the dates, you will see that a lot of the transfers to the City occurred under John Wallace. He started the illegal process. The man never cared about laws.

Tired of Being Ripped Off said...


@9:12 and @9:46:

I get it.....some white folk stole in the past...which should make it legal for us black folk to steal all we want now. Like Jackson, Canton once had class but now is sliding into chaos.

Cynical Sam said...

Y'all may want to write this down: Laws are for the white folk, just like only the little people pay taxes.

Debbie said...

What about the disbursement Of the Festival of Lights to all of the rate payers of canton?!

Anonymous said...

Rumor has it there are pending CMU indictments on the AG’s desk that he won’t prosecute because Barbara Blackmon will run against him for Governor if he does.

Anonymous said...

9:12 There is a difference between crime and organized crime. Frankly, I'll bet you would rather live in a community dominated by organized crime any day.
So would I.

Examples: crime: Jackson and Canton
organized crime: (you fill in the blank)

Anonymous said...

Mike Espy was CMU's attorney when Rudy Warnock was taking CMU for a ride.

Anonymous said...

Dang 1131, help a poor guy out. I can't find anything describing any illegality on the part of CMU that goes back to John Wallace's days. Granted, CMU was probably propping up Canton's budget back then but there is nothing I can find in this PSC order that points to those being illegal.

Please help us out and point to where you found this in the post above, or let us know if you just discerned it.

Anonymous said...

Well 12:51, we'll see if you're correct after 5:00 pm on March 1.

Anonymous said...

Yup, 12:31, CMU not only wrote big checks in the $10,000-20,000 range for the light show, but used their trucks and people to put it up at no charge.

Anonymous said...

Yup, 12:31, CMU not only wrote big checks in the $10,000-20,000 range for the light show, but used their trucks and people to put it up at no charge.

Anonymous said...

Hood will touch this or anything similar because of black vote that owns him.

Cycle of Shame said...

Canton, as a town and its municipal government went deep into the shitter the day after Sidney Runnels was run out of town. Since then, it's been nothing but a criminal enterprise set with revolving chairs and tables full of crooks, scoundrels and whores. Nothing changes but the periodic rotation of those in the chairs.

Anonymous said...

Surely all the extracurricular activities brought to light recently should impede Canton’s annexation efforts towards Gluckstadt, right?

Anonymous said...

@12:51pm. YES you are correct. Mrs Blackmon was telling a senate colleague this week that hood had been “neutralized”.

Anonymous said...

Does anyone know what CMU is going to do with this "Surplus" and what is that amount?

Anonymous said...

Hood is going to bust up that CMU crime commission after the qualifying deadline...

Anonymous said...

715, nothing illegal or wring with using the heir trucks to put up the lights - at least not according to the statute quoted in this ruling. The cash is a question depending, as the statute reads, whether the sur plus was after all utility costs had been met. Bet in the 'good old days, when CMU actually ran like a business and maintained the system rather than maintaining the board, the ED, the Mayor and Aldermen, and the attorney, they probably met the requirements whereby transferring funds to the city's economic development efforts were legal. Today, however, mainraining the infrastructure of the system appears to be a secondary activity.

Anonymous said...

WITH 9 million in reserves!!

Willing to be servicing utility of an area being possibly annexed in Gluckstadt when they haven't even provided water or sewer to areas annexed over 10 years ago!

Someone please tell me what is wrong with that situation?

Anonymous said...

Shad, low hanging fruit at CMU and its ready for the picking.

Anonymous said...

@4:52. It's not in the document kingfish posted. I had to dig deeper into other public documents. You can access other info on the PSC website for instance. It just takes time and effort.

Anonymous said...

State Auditor has made inquiries at CMU.
There is also no final audit available since 2016.

Millions also transferred for years to the City Of Canton every year until 2017. MILLIONS OF RATEPAYERS $$$ !!


Anonymous said...

I hear someone has started a petition in Lake Caroline demanding Hood do his job and prosecute the crooks at CMU. Might be a political stunt but it might grow legs and force hood out of his comfort zone. #hoodwinkedbyHOOD

Anonymous said...

@8:15pm. Barbara & Hood are working together. Don’t get fooled.

Anonymous said...

Shad knows better than to tangle with the Blackmons, 8:17. He’s not going to cross that line.

Anonymous said...

To show it started under General Wallace, this is from the Canton annexation and Gluckstadt incorporation order as filed with the Chancery Court. On page 18:

"Historically, CMU has provided the City of Canton's general fund with substantial injections of cash. Since 2000 those cash injections have totaled $22,570,015. Only recently has CMU stopped making this annual contribution."


And there is a lot more. Debt forgiveness to the city, utility bill forgiveness to the city, etc.

Anonymous said...

Since investor owned utilities pay earnings to shareholders, why shouldn't CMU pay excess earnings to the citizens of Canton, who are therefore the owners?

Anonymous said...

@10:42--what do the Zebra tent people have to do with CMU? Since christmas lights appears to be an issue, has anyone from that office spoken up to reveal truth about how they compensate CMU?

Anonymous said...

@ 11:05
YES~~ that's it!
over 22 million in transfers but ceased in 2017.
AMAZING....................

Anonymous said...

For decades, those transferred millions should have been refunded annually to subscribing customers, with a larger percentage being paid out to those westerly-residents who've been over-charged. This is going to be a shit-storm.

This would be a good time for all those MRA and St.Joe Elite parents to get their little darlings enrolled in Accounting Majors at Ole Miss. This fruit will be hanging-heavy in three years when they graduate and the kid can still live at the house and clean the pool.

Anonymous said...

225, are the 'citizens of Canton' the owners? Actually no. This is not an association owned by the ratepayers, but a city owned utility. Thus, your argument that CMU should pay any excess to the owners (who you mistake as the citizens or the ratepayers) - would support what they have been doing and you and others are bitching about.

Utility companies are some of the biggest promoters and finances of economic development, for logical reasons. More jobs, more bisinesses, especially manufacturing, helps maintain utility useage. Entergy spends massive amounts in its service area supporting such efforts. Much of the money CMU used to gI've to Canton was supporting similar activities - now, it is supporting basic city services -along with what appears to be more direct support to individuals and their causes.

What is more alarming is the pis sing away of the reserves, which yes are in the $9 million range. Before this city administration, the reserves approached $22 million. Which sounds excessive until put in perspective as to the purpose of the reserves - to deal with unexpected major disruptions. (See 1994 delta ice storm and their local utility companies.) When Katrina hit in 2005, CMU had to r ed place miles and miles of power lines and poles, which they were able to do quickly because they had adequate reserves to react wuickly.

But now this board has done all they could to suck the reserve dollars out before they put the operation on the market - at which time the city will have another bonanza with the cash infusion. Guess where those dollars will end up.

Anonymous said...

The zebra tent. That's Erin Noble. Her husband John Noble was a long time CMU con artist, I mean board member. Also affiliated with Roberts Insurance Agency.

http://onlinemadison.com/Content/Default/News/Article/CMU-insurance-mishandled-with-premiums-paid-but-not-in-effect/-3/592/38830

Combination To The Safe - said...

My bad...I assumed (wrongly) that CMU had some sort of 'investor ownership'.

Has there ever been a cash-cow that was not robbed by somebody at some point? But, if this money is finding its way into personal pants-pockets, somebody should (and will) go to jail. And if every employee, board member and city official with ties to CMU winds up with a Costco credit card, that might be a red flag.

Anonymous said...

Said it before, no one is going to jail. May be going to Disney World after all of this and the Voter Fraud crap is over. Canton is a POX to anyone trying to do anything different.

Anonymous said...

Who cares if they go to jail? If found guilty of a felony, they can no longer possess a firearm or hold elective office. That's good enough for me.

Anonymous said...

@9:33--Noble has been fleecing Canton for years either thru CMU or the gift store. Noble was appointed to the CMU board decades ago when Weems & Mosby were aldermen under Runnels. Talk about nepotism: Mosby and Noble were cousins. Canton had the opportunity of a life-time with NISSAN in their backyard. However, the self serving politicians at CMU, the Mayor/Board of Aldermen, the school board and so called chamber leaders had no clue how to come together to welcome NISSAN and grow the community. The only thing that grew were their (crooks) assets at the expense of many hardworking and deserving people in Canton. Should many go to jail over the corruption? Yes. Will they? Remains to be seen.The over-evaluated salaries/perks of these idiots need to be returned to city funds as part of any settlement for reduction of jail time. Many are correct in saying the people in Canton deserve better. It's time to end the circus and send all the clowns and zebras(crooks) to the big house with no leniency! Canton needs business leaders to step up and help end the insanity in their town. Oh wait: they no longer have business leaders or trustworthy media.

Anonymous said...

Apparently the people on this blog don't care much for that Noble guy!!!! What is the deal?

Anonymous said...

@12:52. If you knew Noble, you would know the deal. Some people just can't do things the right way.

If I lived in Lake Caroline, I would storm the gates at the Public Service Commission and demand to know why the affected customers weren't notified of all the hearings, I would want to be taken over by another adjacent water provider.

Anonymous said...

Claude Banks (Karl's son) and Terry Lovelace (Utility Construction) are buddy-buddy with Mr. Noble when they need to be.

Anonymous said...

11:55 - Jerry Lusteau, on the radio, is an island of integrity. Don't include him in your evaluation of media.

Anonymous said...

I signed the Petition today demanding Attorney General Hood act on the investigative reports State Auditor Shad furnished his office MONTHS ago. It’s time Jim Hood prosecute these criminals at CMU that Shad has clearly identified breaking the laws of the state of Mississippi. If Hood does nothing he will not be elected Governor.

Anonymous said...

"Jerry Lusteau, on the radio, is an island of integrity. Don't include him in your evaluation of media". Poor Jerry was bought awhile back. CMU is a add customer and you know how that goes. Funny, I remember when he was eager to get at this stuff. With the Voter Fraud stuff, he is cotton candy.

Anonymous said...

Canton Redevelopment corruption goes back a decade or so. Simpson lady, Wallace, Montgomery--all long-time buddies/church members-- all responsible for the $250,000 that CMU gives Redevelopment. Per former employees/patrons of that office,Simpson was out of the office more than she was in and often seen at MRA events during the days cheering on her grands or visiting in GA with other family. Simpson lady took extended personal time but never accounted for it.That office needs to be properly audited. Redevelopment office also paid insurance premiums that weren't properly processed. Simpson lady supposedly received full retirement benefits while working minimum number of hours. Major property owned by Redevelopment sold-- no one knows where money went as city continues to fund redevelopment.

Anonymous said...

@2:09 you are correct. I'm white and I'm from Canton. But I can tell you the problem in Canton. The white folks don't like the black folks lying, stealing, cheating, and being corrupt. But those same white folks don't have a problem when their white friends, church members, and neighbors are the ones lying, stealing, cheating, and being corrupt. When Kenny Wayne Jones does it he is crooked, but when John Wallace does it then all is okay. When Eric Gilkey does it he is crooked, but when Charles Weems or John Noble does it then all is okay.

Anonymous said...

@6:58 pm

What petition? Where is this petition?

Anonymous said...

@6:40pm it’s all over Twitter and Facebook

Anonymous said...

6:58 pm
I am curious about the petition mentioned.
Could you please post it here?

Anonymous said...

noble is Madison county's building inspector who inspects houses built by his brother. Enough said. Plenty of text messages posted here last year reveals more about him. Lousteau has been paid to distort news in canton//county for years-few realize it. @11:49 you are correct: Lousteau is not reporting details on cmu, the annexation or the indictments. Question many are asking: why he is so silent about these major issues? Who else is buying his silence? Canton desperate for trustworthy source of news. CMU does buy ads from him.

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