Home > Mississippi Power Company, Mississippi Public Service Commission > Miss. Power, new settlement in hand, files for recovery of $172 million in Kemper costs

Miss. Power, new settlement in hand, files for recovery of $172 million in Kemper costs

Thirty hours after it reached a rate settlement with the Mississippi Public Service Commission, Mississippi Power Co. announced it has filed to recover $172 million in financing costs for its Kemper County coal plant.

The $172 million was the maximum allowed for 2013 under the terms of the agreement, which solved a dispute that started when commissioners denied over the summer a 13 percent rate increase that would have generated roughly $58 million. Commissioners said then they would not consider any Kemper-related rate increase requests until the Mississippi Supreme Court has ruled on the litigation surround the project.

Should the PSC grant the recovery – and the terms of Thursday’s settlement said there was no guarantee that would happen – electricity rates for Mississippi Power’s 186,000 customers would go up an average of 21 percent. The company said in a press release that would represent an increase of less than $1 per day for the rest of 2013 for customers who use an average of 1,000 kWh per month.

With the new settlement in place, Mississippi Power anticipates the overall rate impact for the plant to hover around 25 percent.

“This is well under the increase we had anticipated and significantly lower than what opponents to the project claimed,” company CEO Ed Day said in the release, issued just after 6 Friday evening.

In a 2009 filing with the PSC, Mississippi Power said the rate increases associated with the plant would peak at 45 percent. In last spring’s PSC order granting the plant a certificate of public convenience and necessity, rate increases were expected to peak at just more than 30 percent in 2014, when the plant is scheduled to begin commercial operation, before falling.

According to the company, the plant is nearly 75 percent finished. If commissioners approve Friday’s filing for cost recovery, the rate increases would take effect in April.

Despite Thursday’s agreement between the utility and commissioners, the Mississippi Supreme Court ruled Friday afternoon that the oral argument related to the original rate dispute would proceed as scheduled Monday at 1:30 p.m.

  1. January 27th, 2013 at 16:16 | #1

    Mississippi has one of the highest elec. rate in the USA and the poorest state in the nation. Mississippi power wanted this plant let them pay for it as we would have to pay for things we want with our on money!!!!!!!

  2. Rice Legan
    January 28th, 2013 at 08:20 | #2

    Criminal. That’s the only way to describe what the Southern MS Mafia (aka MPCO) is doing to its customers on the coast. To build a multi-billion dollar power plant on the back of 186,000 customers nothing short of robbing a bank. I would venture to say that those rate payers will use only 10% of the power produced by Kemper while MPCO retails the rest across state lines. I am sure the grid needs the power otherwise is would not have been approved by FERC but considering where the power is going, I fully believe that MPCO sharholders should have to foot the bill.

    Oh btw, did you know that MPCO delivered 400 king cakes to the legislature a couple of weeks ago? I guess that’s a cheap bribe for approval of billions of dollars for an experimental coal power plant with un proven technology!

  3. Ed Clynch
    January 28th, 2013 at 19:25 | #3

    Many persons of high taxes as an impediment to economic develop. What about high electric rates.

  4. Daniel-Mississippi
    January 30th, 2013 at 19:55 | #4

    No. No No.

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