BOONEVILLE, MISSISSIPPI — The Mayor and Board of Aldermen of the City of Booneville are informing the public of a gas-billing error identified during the City’s recent audit and the steps being taken to address it fairly, transparently, and in accordance with Mississippi law.

During the audit process, the City Clerk discovered a potential billing error within the Gas Department and reported that to the City Auditor. Auditors noted that revenue from gas collections was significantly lower than the prior fiscal year. This decline in collections was inconsistent with the volume of natural gas sold by the City. In fact, the volume of gas sold was equal to, and in some periods greater than, the amount sold during the preceding year, particularly due to increased demand associated with the ice storm.

As part of the City’s review, auditors determined that, from December 2024 through April 2026, City gas customers were underbilled for the gas services they received. The error affected both residential and commercial gas customers.

The review found that a former department head in the City’s Gas and Water Office had implemented a shortcut in the formula used to calculate gas rates. Incorrect information was used in that shortcut, causing the calculation to produce gas charges lower than the rates that should have been billed under the applicable rate structure. That former employee is no longer employed by the City of Booneville.

The Mayor and Board of Aldermen understand that this matter may create concern for affected customers. The City did not take this situation lightly and has worked to ensure that the facts are independently verified before proceeding.

The Mississippi Attorney General has previously issued an opinion stating that, “a utility debt may not be adjusted or forgiven when a customer has received the benefit of the utility service”. In light of that opinion, the Mayor and Board of Aldermen retained an independent accountant to conduct an additional review of the billing issue. The independent accountants’ findings were consistent with the findings of the City’s auditors. 

The independent accountant’s report, including information regarding the billing error and the affect on each customer’s account, will be available for public review at Booneville City Hall.

The City will issue bills reflecting the underbilled amounts owed for gas service received during the affected period. However, the Mayor and Board of Aldermen recognize that repayment of an accumulated balance may present a hardship for some households and businesses.

Accordingly, once the underbilling notices and corrected bills are issued, the City will work with any affected customer who requests assistance to establish an appropriate payment arrangement. Customers who need a payment plan will be encouraged to contact the City’s Gas and Water Office promptly after receiving their notice so that an individualized arrangement can be considered.

The Mayor and Board of Aldermen are committed to correcting this issue responsibly, complying with applicable law, protecting the financial integrity of the City’s utility system, and treating Booneville residents and businesses with fairness and respect throughout this process.

The City appreciates the public’s patience and understanding as it completes this correction and
implements procedures intended to prevent a similar error from occurring in the future.

For additional information or to review the independent accountant’s report, please contact or visit:

City of Booneville Gas and Water Office

200 North College Street

662-728-6259

or

Booneville City Hall

203 North Main Street

662-728-5601 ext.1