Rising natural gas and coal prices are likely to increase Mississippi Power Company’s bills an average of 12 percent. The company filed its annual fuel cost adjustment with the Mississippi Public Service Commission (MPSC) today.
Fuel costs account for nearly 40 percent of Mississippi Power’s total operating costs.
The typical Mississippi Power residential customer will see an overall increase of approximately 10 percent. Commercial and industrial customers will see somewhat higher increases due to their higher fuel use. On average, rates for all customer classes will increase approximately 12 percent.
Under Mississippi law, a utility’s fuel costs are recovered through a separate fuel adjustment filing with the MPSC and the company does not profit from fuel related expenditures. Each year the MPSC adjusts electricity prices up or down to reflect the fluctuating costs of the fuel used to make electricity. Once adjusted, the new rate will be effective January 2006.
“We continue to see significant increases in fuel prices from our suppliers,” said company spokesman Kurt Brautigam. “Prices for natural gas and coal have increased dramatically during the last two years. These increases directly affect the cost of our product because natural gas and coal are our two main fuel sources.”
Mississippi Power, a Southern Company subsidiary, serves customers in 23 southeast Mississippi counties.