Home » NEWS » Energy » Commissioners give nod to co-op's purchase of power plant

Commissioners give nod to co-op's purchase of power plant

BATESVILLE and HATTIESBURG — The Mississippi Public Service Commission has approved the $286-million sale of bankrupt LSP Energy to South Mississippi Electric Power Association.

Commissioners voted 3-0 yesterday to give Hattiesburg-based SMEPA the right to operate the natural gas-fired power station in Batesville. The order also gives SMEPA the right to acquire any rights of way that it needs for transmission lines.

SMEPA has been buying a third of the 837-megawatt plant’s power under a long-term contract since 1998.

LSP filed for bankruptcy because one of its three power units broke down, leaving it without enough revenue to operate and make debt payments. The company owed more than $200 million to bondholders.

SMEPA generates and transmits power to 11 cooperatives in southern and western Mississippi, serving more than 400,000 customers combined.

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

About Megan Wright

Leave a Reply

Your email address will not be published. Required fields are marked *

*