Mississippi Power has field their annual Performance Evaluation Plan (PEP) and it includes a 4% increase to power costs and a 4.5% percent increase in fuel costs.
The PEP costs of operating and maintaining company facilities such as the poles, wires, substations, generating plants and staff.
A news release from the company stated that the rising cost of operations has led to the increase. Company CEO Anthony Wilson stated that they have done what they can to delay the increase, but the time has come.
“We have been able to provide our customers with industry-leading customer service and performance without asking for a rate increase over the last four years,” said Mississippi Power President and CEO Anthony Wilson. “While our employees have found efficiencies in our operations companywide, these filings are necessary to deliver the level of service our customers expect.”
This will be the company’s first increase since 2013, and although the price may rise, the release states it will not be a significant amount for most of their customers.
“These filings would result in a residential customer using 1,000 kWh of electricity per month seeing an increase of $11.45 per month, or less than 40 cents per day.”
Mississippi Power has reiterated that the rise in costs does not stem from the ongoing situation with the Kemper County Power Plant. The delayed and over-budget project has cost the company billions of dollars which they have absorbed. The release states that the PEP does not allow for costs from that project to be factored into any price increase for Mississippi Power customers.
“The plan is not designed to address major capital costs such as the addition of new generating plants, like the Kemper County energy facility, or major environmental control equipment.”