Mississippi Power Granted Emergency Rate Relief
Mississippi Power customers can expect an 18 percent rate increase on their power bills next month.
News 25’s Shelby Myers spoke with a local lawyer today who expects the increase to be re-introduced to the state Supreme Court.
It was a 2 to 1 vote; the Public Service Commission granted Mississippi Power their emergency rate relief. Now customers can expect an 18 percent increase on their bills starting next month. Mississippi Power customer Chauncey Felix said, “It’s just a way to take more money out of my pocket. I’m not in favor of that, of course.”
In previous weeks, the state Supreme Court said the monthly increases to fund the over budgeted Kemper power plant were unlawful and must be refunded to customers. So how can the Public Service Commission and Mississippi Power enforce this temporary increase?
Local lawyer Michael Cavanaugh said, “The statute allows for the Public Service Commission to approve rate hikes and there is a provision in the statute that allows for a rate hike under emergency situations.”
According to Mississippi Power, that emergency situation is an impending cash shortfall. Last week, Mississippi Power pleaded with the Public Service Commission saying that if they did not receive this rate increase, they could have no money by the end of the year. Cavanaugh believes the idea of Mississippi Power going bankrupt is almost out of the question. “It’s hard for me to imagine their parent company, the Southern Company, would allow the power company to go bankrupt. So, I believe that’s just a scare tactic.”
Mississippi Power released a statement today promising to work with the commission to develop a permanent rate recovery structure that minimizes customer rate impacts, while enabling Mississippi Power to recover costs associated with the Kemper project.
This rate increase will only be temporary until November, when a prudency hearing will be held. A final vote in December will be cast to make the rates permanent.
News 25’s Shelby Myers spoke with a local lawyer today who expects the increase to be re-introduced to the state Supreme Court.
It was a 2 to 1 vote; the Public Service Commission granted Mississippi Power their emergency rate relief. Now customers can expect an 18 percent increase on their bills starting next month. Mississippi Power customer Chauncey Felix said, “It’s just a way to take more money out of my pocket. I’m not in favor of that, of course.”
In previous weeks, the state Supreme Court said the monthly increases to fund the over budgeted Kemper power plant were unlawful and must be refunded to customers. So how can the Public Service Commission and Mississippi Power enforce this temporary increase?
Local lawyer Michael Cavanaugh said, “The statute allows for the Public Service Commission to approve rate hikes and there is a provision in the statute that allows for a rate hike under emergency situations.”
According to Mississippi Power, that emergency situation is an impending cash shortfall. Last week, Mississippi Power pleaded with the Public Service Commission saying that if they did not receive this rate increase, they could have no money by the end of the year. Cavanaugh believes the idea of Mississippi Power going bankrupt is almost out of the question. “It’s hard for me to imagine their parent company, the Southern Company, would allow the power company to go bankrupt. So, I believe that’s just a scare tactic.”
Mississippi Power released a statement today promising to work with the commission to develop a permanent rate recovery structure that minimizes customer rate impacts, while enabling Mississippi Power to recover costs associated with the Kemper project.
This rate increase will only be temporary until November, when a prudency hearing will be held. A final vote in December will be cast to make the rates permanent.
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