The Mississippi Public Service Commission (MPSC) announced last week (12/19) its approval of Mississippi Power Company’s annual fuel cost adjustment, which was filed in November. A reduction of $10.8 million for fuel costs in 2002 will mean about a 2% reduction to Mississippi Power customers on their monthly bills in 2003.

Fuel costs are charged as a direct pass-through item to all Mississippi Power customers. Each year, the company is allowed to adjust those charges based on actual fuel costs for the previous year.

“An average residential customer paying about $80 per month should see a reduction of approximately $1.25,” said Kurt Brautigam, company spokesman.

“This is the second year in a row that fuel costs have decreased,” Brautigam said. “A mild summer this year contributed most to the decrease, as lower-than-expected electric usage required less fuel to meet customer needs. But we’ve also worked hard to purchase fuel at competitive prices and maintain our generating plants at maximum efficiency so that they use as little fuel as possible.

“With the addition of two new generating units at Plant Daniel a couple of years ago, our fuel mix is now about half coal and half natural gas. That also allows us a greater amount of flexibility in what we buy and what we burn.”

Mississippi Power, a subsidiary of Southern Company, serves more than 192,000 customers in 23 southeastern Mississippi counties.