PSC approves 18 percent rate hike for Ms. Power
Published 7:00 am Friday, August 14, 2015
BRINGING POWER TO COMMUNITIES: Pictured, the Mississippi Power office in Picayune. The power company was granted an 18 percent rate increase, which would cover costs associated with the construction of the Kemper County energy facility. Photo by Ashley Collins.
Thursday, the Mississippi Public Service Commission granted Mississippi Power a temporary 18 percent rate increase following the power company’s request to do so, which would recover costs associated with the construction of the Kemper County energy facility.
The commission decided to grant the request after Mississippi Power officials testified last week that the company could experience degraded credit ratings, inability to access outside financing and an impending cash shortfall unless the temporary rate increase was granted, according to previous Item coverage.
Jeff Shepard, Mississippi Power spokesman, released a statement via email saying the company is “pleased” with the commission’s decision and believes “their 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.”
Shepard also said the company’s interim rate relief will continue providing reliable service to its customers. The company plans to work with the commission to develop a permanent rate recovery system, which would minimize customer’s rates while allowing the company to recover costs associated with the Kemper project, Shepard said.
The decision won’t impact the refunds ordered by the commission to repay customers for rate increases caused by the Kemper project.
“Customers will receive those refunds as directed by the commission,” Shepard said in the release.
The refunds were due to a court ruling by the Mississippi Supreme Court declaring that a rate increase was illegal, according to previous Item coverage.
Mississippi Power customers will be able to receive refunds through bill credit or refund check, if they choose, within a 120-day period. The bill credit will automatically be placed into each customer’s account on Oct. 10. Those who opt to receive a refund check are advised to contact the power company beginning Oct. 12, the Item previously reported.
For more information, contact Mississippi Power’s media line at 228-865-5543.
