GULFPORT — Mississippi Power Co. has filed documents with state regulators for a net rate increase of 11.35 percent.
The company says customer impact will vary with electricity usage.
Company spokeswoman Cindy Duvall says Mississippi Power made three separate filings late Tuesday to the Public Service Commission.
Duvall says two were for increases and one was for a decrease in fuel costs. The majority of the increase is for the coal-fired generation plant under construction in Kemper County.
The 582-megawatt plant near the Liberty community will use a process that converts coal into a synthetic gas and generates electricity with fewer emissions than existing pulverized coal power plants. The plant is expected to be in operation in 2014.
Last year, the Mississippi Public Service Commission approved the company’s proposal for the Kemper County project. Ground was broken in December. In approving the plant, the PSC set a cost cap at $2.88 billion.
A 2008 state law allows the cost of building the plant to be passed on to ratepayers in stages as it is being constructed.
“This is the financing cost while the project is under construction,” Duvall said. “These costs are being covered up front. It would be significantly higher if we waited until the plant is completed.”
The PSC will decide if and when the price increases go into effect.
“The Kemper project is on schedule and progressing well. When completed, this plant will generate electricity for customers at a significantly lower cost than any of the alternatives,” said Vice President of Generation Development Tommy Anderson.
In addition, Mississippi Power has requested a 2.20 percent decrease in the amount it recovers in its annual fuel filing. Mississippi Power’s fuel costs are recovered from customers on a dollar-for-dollar basis. The company does not earn a profit on the fuel used to generate electricity.
Pending approval, these changes will go into effect in 2012. Mississippi Power, a Southern Company subsidiary, serves approximately 188,000 customers in 23 southeast Mississippi counties.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info