Archive

Archive for the ‘Southern Company’ Category

Kemper rate mitigation bill similar to 2009 Georgia law

January 31st, 2013 No comments

Kemper-Update-Logo_rgb-300x244Four years ago, lawmakers in Georgia’s General Assembly approved a bill designed to lessen the rate shock for Georgia Power Co. customers related to the utility’s construction of nuclear power units.

Mississippi lawmakers are considering a similar bill for Mississippi Power Co.’s Kemper County coal plant.

The Georgia legislation, which former Gov. Sonny Perdue signed in 2009, allowed Georgia Power  – which, like Mississippi Power, is a subsidiary of Southern Co. – to pass to ratepayers financing costs incurred to build two additional nuclear units at an existing generation plant in the southeastern part of the state.

Starting in January 2011, the law gave Georgia Power five years after the Georgia Public Service Commission approved the project to recover the costs. The law established the financing recovery schedule  separately from the rate base that collected construction work in progress funds. In Georgia, the recovery of CWIP is mandatory.

Georgia Co. officials said while the bill made its way through the statehouse in 2009 that paying financing costs for the $14 billion project as they were accrued would save customers in the long run. The two new units are scheduled to begin producing electricity by 2017, according to recent company projections.

A couple things separate the Georgia law and the proposed legislation here. Georgia’s rate mitigation statute established a five-year recovery window. The Mississippi plan creates a 10-year window, and prohibits the utility from filing to activate the plan until 12 months prior to the calendar year in which the qualifying facility is scheduled to begin operation.

The Kemper plant is supposed to come online in May 2014. That means Mississippi Power can request the plan if and when the law clears the Capitol and is signed by Gov. Phil Bryant.

The Georgia law established a rate schedule specifically for the recovery of financing costs, since the recovery of CWIP was already mandated. The legislation that has cleared the Mississippi Senate’s Energy and Finance committees does not restrict CWIP or financing costs from being included.

The hard cap on the Kemper costs Mississippi Power can recover through ratemaking proceedings at the Mississippi Public Service Commmission was lowered last week from $2.88 billion to $2.4 billion, as part of a rate settlement between commissioners and the utility. A bill that would permit Mississippi Power to issue bonds for overruns – up to $1 billion – sits in the Senate Energy and Finance committees.

Former Miss. Power CEO Topazi retiring from Southern Company

May 29th, 2012 No comments

Southern Co.’s latest 8k filing with the Securities and Exchange Commission contains news about former Mississippi Power Co. CEO Anthony Topazi.

Topazi, according to documents filed May 25, will retire as Southern Co.’s  executive vice president and COO effective Aug. 1.

Topazi left Mississippi Power in 2010 for its parent company. He was CEO when MPC gained PSC approval for the Kemper County coal plant. The plant is scheduled for completion in 2014, assuming the Sierra Club’s latest legal challenges are unsuccessful.

Southern Co. documents spell out a consulting agreement the company reached with Topazi. After his Aug. 1 retirement, Topazi will earn $1.7 million for consulting services rendered between then and Dec. 31, 2013, when the agreement expires.

To view the six-page filing click here.