MBJ is off base when it comes to IPP highway
by For the MBJ
Published: July 4,2010
In your recent article, “Entergy agrees to give up control,” writer Amy McCullough states that some officials “believe that Entergy has neglected transmission system improvements and purposefully engaged in keeping IPPs off its energy transportation highway.”
What is left out of this point is that, in general, the independent power producers (IPPs) cannot profit by selling their power in Mississippi. Because our rates are below the national average, IPPs would prefer to use the state’s power grid to transport their power to regions where it will bring the greatest price. But maintaining the power grid costs millions of dollars, and if IPPs want to use the grid, it should not be at the expense to Mississippi ratepayers.
IPPs play an important role in meeting the state’s energy needs. But over the past two decades, too many power plants were built here on speculation and with poor planning. Now the owners of those merchant plants would have Mississippians pay for the infrastructure investments they failed to make up front and don’t want to make now.
If IPPs can provide electricity at an affordable price that will keep our rates below the national average, and are willing to bear their fair share of maintaining the state’s electric grid, then they will no doubt be welcomed to the table by all.
Glenn L. McCullough Jr.
Chairman, Advance Mississippi
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