Chevron, Greenleaf CO2 Solutions and the U.S. Air Force have asked the state Public Service Commission to reject or lower a rate increase sought by Mississippi Power.
The PSC on Thursday will consider an agreement between Mississippi Power and the PSC staff that calls for a 15 percent rate increase. The PSC earlier this year granted an emergency 18 percent rate increase after the state Supreme Court struck down an 18 percent emergency increase collected under a “construction work in progress” plan that would have paid part of the construction costs as the plant was being built.
Mississippi Power said without that emergency increase, the company would have run out of money by the end of the year. It wanted that increase to be permanent, but after negotiations agreed to a lesser one.
In a brief filed with the PSC last week, the “joint parties” said the PSC should wait until the entire Kemper Integrated Gasification Combined Cycle plant, which is behind schedule and costs billions more than original estimates, is in operation before considering whether spending on the plant has been prudent. Mississippi Power has asked the PSC to consider whether spending on the gas-fired portion of the plant, which is producing electricity, has been prudent and to grant a 15 percent rate increase if it has been.