Can a Mississippi city forgive water bills that customers underpaid because of a city billing error?

Plain-English summary

McComb discovered that some of its water meters were faulty and that some customer accounts had been underbilled as a result. A selectman asked whether the city could simply write off the underbilled amounts rather than chase customers for back-charges that, from the customer's perspective, came out of nowhere.

The AG said no. Article IV, Section 100 of the Mississippi Constitution forbids any obligation owed to the state, a county, a city, or a town from being remitted, released, postponed, or in any way diminished, except by payment. The AG has applied that rule to utility debts in a long line of opinions: a city may not adjust or forgive a utility debt when the customer has received the benefit of the service, regardless of whose error caused the underbilling. The customer used the water; the customer owes for the water. The city has to bill the corrected amount and collect.

The AG cited prior opinions in Frieson (2018), Williams (2008), and Tucker (2024). The doctrine has been consistent for decades.

What this means for you

For mayors, city councils, and utility billing directors

The opinion holds that the city must collect the underbilled account amounts. Under Article IV, Section 100, a utility debt may not be adjusted or forgiven when a customer has received the benefits of the utility service, regardless of the municipality's error in billing. The opinion does not address payment plans, write-off procedures, or any exception.

For city attorneys

The opinion grounds the result in Article IV, Section 100 and a consistent line of prior opinions (Frieson, Williams, Tucker): forgiveness of a utility debt where the service was received is barred regardless of who caused the billing error. It states the conclusion that the city must collect the underbilled amounts.

For affected customers

The opinion holds that a Mississippi city must collect for water and sewer service the customer actually received, even where the underbilling resulted from the city's own billing error or faulty meter. It does not address how the city must structure collection.

Common questions

Can a Mississippi city forgive water bills that customers underpaid because of a city billing error?

No. The opinion concludes the city must collect the underbilled amounts, because Article IV, Section 100 of the Mississippi Constitution bars remitting, releasing, postponing, or diminishing an obligation owed to a municipality except by payment.

Does it matter that the underbilling was the city's own fault?

No. The opinion states a utility debt may not be adjusted or forgiven when the customer received the benefit of the service, "regardless of a municipality's error in billing."

Background and statutory framework

Mississippi Constitution Article IV, Section 100 provides:

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 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.

The opinion applies this provision to utility debts. It states the office has consistently held 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. See MS AG Op., Frieson (Sept. 7, 2018); MS AG Op., Williams (Sept. 12, 2008); MS AG Op., Tucker (May 24, 2024).

Citations

• Miss. Const. art. IV, § 100 (no remission of public debts except by payment)
• MS AG Op., Frieson (Sept. 7, 2018) (utility debt cannot be adjusted or forgiven where service was received)
• MS AG Op., Williams (Sept. 12, 2008) (same)
• MS AG Op., Tucker (May 24, 2024) (same)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2024/12/T.McKenzie-December-2-2024-Water-Billing-Errors-Underbilled-Services.pdf

Original opinion text

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 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