GULFPORT, Miss. — Mississippi Power made its annual fuel cost adjustment and its Performance Evaluation Plan (PEP) filings today with the Mississippi Public Service Commission. These two filings indicate retail customers could see an average rate decrease of approximately 3 percent in 2011. Customer impact will vary with electricity usage.

Due to lower fuel costs in 2010, Mississippi Power has requested a 5 percent decrease in the amount it recovers for fuel used in its generating plants. Under Mississippi law, Mississippi Power’s fuel costs are recovered through a separate fuel adjustment filing. Each year the Mississippi Public Service Commission adjusts Mississippi Power’s prices up or down to reflect the fluctuating costs of the fuel used to make electricity. Mississippi Power’s fuel costs are recovered from customers on a dollar-for-dollar basis and the company does not earn a profit on the fuel used to generate electricity.

Other areas of Mississippi Power’s business, however, continue to see cost escalations to maintain a high level of reliability for customers. The company’s annual PEP filing indicates a need for a 1.9 percent increase in base rates for 2011. PEP, in existence since 1986, focuses the company’s efforts on key drivers of price, reliability and overall customer service.

If these changes are approved, customers could see a reduction in rates as early as January 2011. For instance, these recommended changes mean electric rates for retail customers have been reduced more than 14 percent and almost 10 percent for residential electric rates over the last two years.
 

Mississippi Power, headquartered in Gulfport, Miss., provides retail and wholesale electric service to approximately 190,000 customers in 23 counties from the Gulf Coast to Meridian.