Mississippi Power Co. has made an abrupt change at the top.
Southern Co.’s board of directors voted Monday to name G. Edison “Ed” Holland the utility’s new leader. Holland replaces Ed Day, who has been president since 2010. Day has spent a total of 30 years with Southern Co.
The change will be effective immediately. Holland will be “responsible for the operations of Mississippi Power, including overseeing the continued construction of the Kemper County energy facility,” said a company press release.
Southern Co. gave no reason for Day’s departure, but it comes about a week after the Mississippi Public Service Commission learned that Day had ordered that documents containing details of when the utility knew about cost overruns at the Kemper County coal plant be withheld from regulators.
The PSC in April 2012 affirmed the project’s certificate of public convenience and necessity, after the Mississippi Supreme Court ruled that the original certificate – issued in 2010 – did not cite sufficient evidence from the record of proceedings.
In May 2012, Mississippi Power revealed that the Kemper facility would cost roughly $300 million more than it had originally estimated.
Southern District Commissioner Leonard Bentz, who counts as his constituents most of Mississippi Power’s 190,000 ratepayers, said in an interview Monday morning that regulators asked about a year ago for information that outlined when the company knew about the overrun, in response to it being revealed right after the PSC reaffirmed the project’s certificate.
Day, Bentz said, ordered that the information be withheld.
“My investigation revealed about a week ago that there was information not being given to us under the direction of Ed Day,” Bentz said. Bentz said regulators received the requested overrun information last week. He added that his office will continue to investigate the matter.
“We’re not done,” he said. “This is an absolutely ridiculous way of doing business. Corporations sometimes hide behind trying to protect the shareholders. If this is what that is, they live in a different society than what’s right. We were not fed and given the proper information. What does that do to the credibility of Mississippi Power moving forward?
“This is a culture that has kind of somewhat become acceptable in the corporate world, to put a spin on everything,” Bentz continued. “Talk straight and give me the truth. A spin is a lie to me. We are not done. We are going to protect the ratepayers. Ed Day’s departure is a direct result of us as regulators doing our jobs and protecting the ratepayers.”
Bentz said Southern Co. CEO Thomas Fanning “has done everything he said he would do” since becoming involved in the matter. “He deserves a lot of credit.”
The Kemper County coal plant is scheduled to begin production in May 2014. Mississippi Power last month revised the project’s cost estimate upward, bumping it to just over $3 billion. Per the terms of a settlement with the Mississippi Public Service Commission, the utility can charge ratepayers only for the first $2.4 billion in construction costs. Lawmakers approved in the session that ended in April up to $1 billion in bonding authority that would cover cost overruns. The bond falls outside PSC jurisdiction.
“They told us they could build this plant for $2.4 billion, and that’s what we expect them to do,” Bentz said.