Mississippi Power will raise its rates in 2009, pending approval by the Mississippi Public Service Commission of their request for a fuel cost adjustment.

Though the cost of gasoline has decreased over the past month, Mississippi Power said the costs of coal and natural gas, the two fuels they use to generate electricity, have risen this year. The price of coal, they said, has doubled, while the price of natural gas has risen by over 50 percent.

Under Mississippi Law, the company said, their fuel costs are “recovered through a separate fuel adjustment filing with the MPSC and the company does not earn a profit on fuel burned.” The MPSC adjusts the prices of all utilities to reflect fuel costs.

Power companies use fuels like coal and natural gas to heat water. The steam from the boiling water is used to turn the turbines on electricity generators. Mississippi Power reports that, currently, more than 50 percent of an electric bill is associated with the cost of these fuels.

If the company’s adjustment request is approved, a customer using 1000 kilowatt hours per month can expect to see an overall increase of approximately 9.2 percent, or about $11 per month, starting in January.

Commercial and industrial customers, the company said, can expect to see a higher percentage increase.

Neighboring company Alabama Power, which, like Mississippi Power, is a subsidiary of Atlanta based Southern Company, will not raise its rates in 2009 – but only because they couldn’t wait that long. They raised both rates and monthly connection fees in October, reporting that they had fallen behind when they did not make-up for rising fuel costs earlier in the year, according to the Associated Press.

Mississippi Power has not applied to raise its connection fees, only to adjust its rates to cover its increased fuel costs, company representative Cindy Duvall said.

Mississippi Power is trying to find other ways to undercut fuel costs, Duvall said, particularly by finding lignite coal here in Mississippi rather than paying to have it shipped from mines that are located at a relatively great distance from generator plants.

The company is currently working to open a controversial lignite coal mine in Kemper County. Some Kemper County residents oppose the mine because they believe it will have a negative impact on local ecosystems, while others support it because they feel it will be a boon to the local economy.

According to Mississippi Power, the mine will have a minimal impact on the environment, and all land mined will be “reclaimed”, meaning that land will be left in a condition comparable or superior to its original state.

Duvall said using Mississippi lignite will cut shipping and other transportation costs associated with coal because mines and power plants can be built in close proximity to each other.



Tips for cutting your power bill





Mississippi Power has provided customers with two tools that help conserve energy and keep the power bill low even as the company raises rates.



• Energy Check-up

— Fill out Mississippi Power’s online energy check-up and receive personalized energy savings tips based on your energy usage and your check-up responses. Visit www.mississippipower.com to take the check-up.

• Energy Calculator

— Mississippi Power’s online energy calculator estimates how much energy it takes to run home electronics and appliances. What you find out may inspire you to be more prudent in your appliance and electronic use. Find the calculator at www.mississippipower.com.





Some widely used tips to energy conservation:



• Use CFL bulbs – Replace your incandescent light bulbs with compact fluorescent bulbs to use up to 2/3 less energy. These bulbs also last up to 10 times longer than traditional light bulbs.

• Unplug what you’re not using – Cell phone and laptop chargers use energy even when they’re not plugged in – keep them unplugged when you aren’t using them to conserve that energy and the money it costs you. Computers, televisions, and other electronics that are often left on even when they aren’t being used also use more energy than you may think. Turn them off when not in use.

• Get a digital thermostat – A digital thermostat can be set so that your A/C or heater turns on shortly before you get home, keeping your indoor climate comfortable for you without wasting energy while you’re away. If you can’t get a digital thermostat right now, just turn the A/C or heater down or off until you get back home.