Wilson

Mississippi Power Co., is seeking a rate increase of 8.5 percent for 2018.

The increase requests include 4 percent in its performance evaluation plan base-rate-review filing and 4.5 percent in its fuel-cost-adjustment filing.

The request for increases was filed Wednesday evening to the Mississippi Public Service Commission, which must approve the increases before they can go into effect.

Mississippi Power President and CEO Anthony Wilson said the rate increase is not related to the the Kemper County Power Plant.

According to a statement from the utility, the PEP filing “details the costs of operating and maintaining company facilities such as the poles, wires, substations, generating plants and staff.” This does not include major capital costs such as the Kemper plant.

Over the last 10 years, PEP increases included 1.9 percent in 2013 and 2 percent in 2007, Wilson said.

“We have been able to provide our customers with industry-leading customer service and performance without asking for a rate increase over the last four years,” Wilson said in a statement. “While our employees have found efficiencies in our operations companywide, these filings are necessary to deliver the level of service our customers expect.”

Wilson said Mississippi Power had reduced its workforce by 12 percent over the last six years and reduced maintenance. Without the requested increase, service to customers would be affected, Wilson said.

If approved, a residential customers using 1,000 kilowatt hours every month would see an increase of about $11.45 per month.

The PSC adjusts prices to reflect changes in fuel costs.

Wilson said the price of fuel is “always changing” and is what he calls a “pass-through charge,” as Mississippi Power does not profit from fuel costs.

Mississippi Power is awaiting a Dec. 4 hearing with the PSC to decide how much customers should pay for the natural gas part of the plant. This comes after Mississippi Power officials, Public Utilities Staff and other parties were unable to reach a settlement agreement on the $7.5 billion plant.

The PSC on July 6 ordered Mississippi Power and other parties to reach a settlement within 45 days. The order included relicensing the plant as a natural gas facility and ensuring that rates do not increase. The PSC also suggested that customers see a decrease in rates.

While Mississippi Power says it has complied with the PSC’s order, Public Utilities Staff maintains that the utility is asking customers to pay for $277 million more in assets than necessary.

After several months, parties were unable to reach an agreement, prompting the PSC to set the December hearing when commissioners will write an order deciding how much customers should pay.

Atlanta-based Southern Co., the parent company of Mississippi Power, announced earlier this year that it would absorb an additional $2.8 billion in losses from the Kemper County power plant’s lignite coal operation — bringing the total to nearly $6 billion in losses.

Charges recorded through May 2017 were $3.07 billion.