Mississippi Power reached a settlement Jan. 24 with the state Public Service Commission that will allow the utility to request a rate recovery of financing costs for the 582 MW Kemper County integrated gasification combined-cycle power plant.
Mississippi Power, a subsidiary of Southern Co. (NYSE: SO), has requested to recover $172 million, or a 21 percent adjustment on total retail revenues. The company said in a release it anticipates the overall average rate effect of the Kemper project will be approximately 25 percent. If approved, the increase will go into effect in April 2013.
As part of the agreement, Mississippi Power also will design a rate plan for the first seven years of the plant’s operation and will limit the total rate base related to the power plant portion to $2.4 billion plus any costs determined by the PSC to be appropriate.
The Kemper plant is nearly 75 percent complete and is scheduled to begin operations in May 2014.
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