Electricity in South Mississippi is becoming more costly to consumersPublished 10:17pm Friday, January 10, 2014
Mississippi Power Company and Coast Electric customers should start seeing an increase in their monthly bills soon.
Last week, the Mississippi Public Service Commission voted to allow Mississippi Power to raise its rates in order to recover higher natural gas costs from 2013 and to cover higher projected costs in 2014.
Jeff Shepard, a representative for Mississippi Power, said the average residential customer would see about a 2.6 percent increase starting in February.
Coast Electric receives transmitted power through South Mississippi Electric, which purchases power from Mississippi Power, said April Lollar of Coast Electric.
Lollar explained that about 28 percent of the power Coast Electric purchases comes from Mississippi Power, which means there will be a small increase in customer’s rates.
“It’s not as not as big as for their customers because we’re only purchasing 28 percent from South Miss Power,” Lollar said.
Lollar said the new adjustment would equate to an additional $5.62 per 1,000 kwh hours used per month.
“Each year the company projects the exact amount of fuel necessary to generate electricity for customers for the upcoming year,” Shepard explained. “When the fuel price is lower than expected, the lower cost is passed on to customers the following year. When the price is higher than expected, the difference is requested to break even.”
Coast Electric customers will start seeing an increase in their January bill, Lollar said.