Mississippi Power Co. customers will see rates fall by $3.45 a month starting with bills sent out in late February.
Regulators voted Tuesday to abolish a flat monthly charge after it paid off $121 million in government bonds. The borrowing helped pay to rebuild the company’s electrical system after 2005’s Hurricane Katrina.
Residential customers who use 1,000 kilowatt hours of electricity each month will see their monthly bills fall to $127.38 after the change.
State lawmakers borrowed the money for the unit of Atlanta-based Southern Co., aiming to hold down rates using tax-exempt financing. The Mississippi Public Service Commission’s three members, Mississippi Power President Anthony Wilson and state Treasurer Lynn Fitch all hail the effort as a success.
Similar Katrina restoration bonds for Entergy Corp. were paid off last year.