Kemper County plant decision a no-brainer

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October 3, 2009

Anonymous The Meridian Star Sat Oct 03, 2009, 11:39 PM CDT

Mississippi Power Co. officials will meet before the Mississippi Public Service Commission this week for key hearings on whether or not the proposed lignite coal gasification plant in Kemper County is needed.

This should be a no-brainer for the PSC. While there is no doubt the plant would be an economic windfall for a region in much need of a boost, the need goes well beyond that.

The project's naysayers point to the cost of the project —more than $2.2 billion — and the up-front financing. They argue about the increased rates. What they fail to mention is the fact that without the plant, rates will still go up ... and likely much more in the long run without it.

For starters, if the PSC decides to kill the project, Mississippi Power will have to spend at least $1 billion to refurbish older plants that are better off retired. The reason: stricter federal regulations. Secondly, and probably most importantly for ratepayers, without the plant the utility would have to rely more heavily on the volatile natural gas commodity for generation. They will make rates unstable at best and much higher at worst.

"It would basically be irresponsible," said Anthony Topazi, president and chief executive officer of Mississippi Power. "(Lignite gasification plant) is the best option for our customers."

The best thing about the prized resource in Kemper County: it's cheap and it's a stable commodity. The utility will be leveraging a resource that's under the soil in rural Kemper County, not on a highly unpredictable commodity like natural gas that's subject to the market.

Anything to reduce the company's reliance on gas is a good thing. Furthermore, we believe the company's new technology will be a win-win for customers, the economy and, ultimately, the state.

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Kemper County plant decision a no-brainer

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