Mississippi Power granted rate increase

Mississippi Power statement on today’s decision by the Public Service Commission granting interim rate recovery relief

Gulfport, Miss. – Mississippi Power is pleased with the Public Service Commission’s leadership to grant interim rate relief.

The Commission’s decision will help lay the groundwork for a permanent Kemper rate structure for the customers who depend on us for clean, safe, reliable and affordable electricity.

Their leadership helps provide a bridge to a stable framework that will keep customers’ Kemper rates at the pre-July 2015 level, until the In-Service Asset proposal is addressed and to provide a permanent rate plan for the project.

This interim rate relief enables Mississippi Power to continue providing the reliable service expected by the customers we are privileged to serve.

This decision restores – until a permanent solution is reached – a predictable cash flow so that our company can begin to regain needed financial stability.

We hope this action, together with a permanent solution, will demonstrate to the financial community that a positive regulatory environment exists in Mississippi.

We will continue 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.

The customer refunds ordered earlier by the Commission are not impacted by this action, and our customers will receive those refunds as directed by the PSC.

Mississippi Power, a subsidiary of Southern Company (NYSE: SO), produces safe, reliable and environmentally responsible energy for more than 186,000 customers in 23 southeast Mississippi counties. Mississippi Power has been recognized throughout the utility industry for excellence in storm restoration and recovery efforts and as a leader in safety.

Visit their websites at mississippipower.com and mississippipowernews.com for more information.

Mississippi Power Customers to Pay 18 Percent Rate Increase, Public Service Commission Will Likely Decide if Increase is Permanent at November Hearing

  Mississippi Power customers will soon be paying more for electricity. The state’s Public Service Commission voted 2 to 1 to grant Mississippi Power Company’s request for an 18 percent temporary rate increase to help offset the serious financial struggles the company has with the Kemper County plant massive overruns.

   The Commission scheduled another hearing for November 10, to be held at the Commission’s headquarters in Jackson, where the Commissioners will hear evidence and likely make a decision on whether to make the 18 percent rate increase permanent.

  The 18 percent rate increase would cost a extra $18 for every hundred dollar bill and is projected to generate an extra $159 million dollars a year for the power company.

  At that November 10 hearing, the Commission is expected to decide whether Mississippi Power is being prudent with its revenue and financial dealings, which will likely play a huge part in whether the Commission will grant the 18 percent rate increase permanently, effecting the power company’s 180,000 customers throughout the state, including thousands of people here in South Mississippi.

  Customers however, may be able to recover the extra money they’ll be paying until a final resolution is passed. The Commission has ordered Mississippi Power to put $50 million in bonds into an escrow account to re-imburse customers if the Commission finds that Mississippi Power should do so at the November hearing.

  In addition, Mississippi Power’s parent company, Southern Power, is set to incorporate $200 million into the Kemper County Power Plant project to help complete construction of the North Mississippi power plant.

  The Mississippi Supreme Court is expected to hear a similar matter regarding the power rate increases on Tuesday.

  Today’s decision will not impact the customer refunds recently issued by Mississippi Power as the result of a recent Mississippi Supreme Court hearing.

In a press release sent out around noon today, Mississippi Power officials said they’re “pleased” with the outcome of today’s hearing, adding, in part:

  “This decision restores – until a permanent solution is reached – a predictable cash flow so that our company can begin to regain needed financial stability. We hope this action, together with a permanent solution, will demonstrate to the financial community that a positive regulatory environment exists in Mississippi.  We will continue 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.