The Mississippi Public Service Commission announced on Thursday that it has reached a $300 million settlement with Entergy Mississippi, the largest MPSC settlement in history.
The settlement will be divided into $235 million in cash and $65 million in savings to customers. The funds will be implemented in cash payments or bill credits to Entergy Mississippi customers as well as rate reductions for bills in a volatile market.
The process for the settlement began in 2017 when the MPSC began litigation before the Federal Energy Regulatory Commission regarding the accounting and financing aspects of the Grand Gulf Nuclear Power Station operated by Entergy.
Results of the settlement include:
- Producing roughly a total of $300 million in benefits for Entergy Mississippi customers.
- $200 million will be used to offset high natural prices caused by global spikes in energy markets.
- Without infusion of this $200 million, Entergy Mississippi customers would have seen an over $15 dollar a month increase beginning in January 2023.
- The $200 million offset to Entergy Mississippi’s natural gas procurement to make electricity will also erase over $20 million in fees Entergy Mississippi’s customers would have incurred.
- $35 million will be used for a onetime bill credit or check of approximately $80 for each customer.
- The remaining $65 million in savings will provide additional benefits that will mitigate future costs to customers.
- Entergy Mississippi, at the expense of their shareholders, will incur costs of $600,000 over the next four years for an annual audit of certain financial aspects of the Grand Gulf Nuclear Power Station as directed by the Commission.
“Today’s settlement is a huge win for Entergy Mississippi customers, especially in the Central District, where nearly 70 percent of Entergy Mississippi customers reside,” Central District Commissioner Brent Bailey said. “The $80 credit for each customer, and every other dollar that we can help customers save on their electric bill, goes back into their pockets during a time that Mississippians face increasing prices on many consumer goods and services.”
MPSC plans to address and order the allocation of the settlement in the coming weeks.