GULFPORT, Miss. – Mississippi Power made its Certificated New Plant (CNP-A), its annual fuel cost and its Performance Evaluation Plan (PEP) filings with the Mississippi Public Service Commission. The net annual effect of the three filings is an 11.35 percent increase. Customer impact will vary with electricity usage.

The CNP-A filing, related to the Kemper IGCC Project, is an 11.66 percent increase, which provides for the recovery of financing costs while construction is ongoing.

“The Kemper IGCC Project is on schedule and progressing well. When completed, this plant will generate electricity for customers at a significantly lower cost than any of the alternatives,” said Vice President of Generation Development Tommy Anderson. “The recovery of financing costs during construction will save customers hundreds of millions of dollars in additional financing charges over the life of the plant.”

In addition to the CNP-A filing, Mississippi Power has requested a 2.20 percent decrease in the amount it recovers in its annual fuel filing. Mississippi Power’s fuel costs are recovered from customers on a dollar-for-dollar basis. The company does not earn a profit on the fuel used to generate electricity.

The company’s annual PEP filing (base rate) indicates an increase of 1.89 percent. In existence since 1986, PEP represents the costs the company incurs to ensure customers can continue to receive reliable electric service.

Pending approval, these changes will go into effect in 2012.

Mississippi Power, a Southern Company subsidiary, serves approximately 188,000 customers in 23 southeast Mississippi counties.         

Cautionary Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements regarding Mississippi Power’s filing with the Mississippi Public Service Commission to increase average retail rates, as well as statements regarding the estimated construction schedule, future generating costs and recovery of financing costs. Mississippi Power cautions that there are certain factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Mississippi Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Mississippi Power’s Annual Report on Form 10-K for the year ended December 31, 2010, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and other cost recovery mechanisms and the Mississippi Public Service Commission’s review of Mississippi Power’s CNP-A, annual fuel cost and PEP filings (the final outcome of which may differ materially from Mississippi Power’s proposal); the impact of recent and future federal and state regulatory changes, including legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry, implementation of the Energy Policy Act of 2005, environmental laws including regulation of water quality, coal combustion byproducts, and emissions of sulfur, nitrogen, carbon, soot, particulate matter, hazardous air pollutants, including mercury, and other substances, financial reform legislation, and also changes in tax and other laws and regulations to which Mississippi Power is subject, as well as changes in application of existing laws and regulations; variations in demand for electricity, including those relating to weather, the general economy and recovery from the recent recession, population and business growth (and declines), and the effects of energy conservation measures; available sources and costs of fuels; effects of inflation; ability to control costs and cost overruns during the development and construction of facilities; advances in technology; regulatory approvals and actions related to the Kemper County integrated coal gasification combined cycle facility, including Mississippi Public Service Commission approvals and potential U.S. Department of Energy loan guarantees; the ability of counterparties of Mississippi Power to make payments as and when due and to perform as required; interest rate fluctuations and financial market conditions and the results of financing efforts, including Mississippi Power’s credit ratings; the impacts of any potential U.S. credit rating downgrade or other sovereign financial issues, including the impacts on interest rates, access to capital markets, impacts on currency exchange rates, counterparty performance, and the economy in general, as well as potential impacts on the availability or benefits of proposed U.S. Department of Energy loan guarantees; catastrophic events such as fires, earthquakes, explosions, floods, hurricanes, droughts, pandemic health events such as influenzas, or other similar occurrences; and the direct or indirect effects on Mississippi Power’s business resulting from incidents affecting the U.S. electric grid or operation of generating resources. Mississippi Power expressly disclaims any obligation to update any forward-looking information.