JACKSON, Miss. (AP) — Mississippi Power Co. has agreed to a smaller rate increase for part of its Kemper County power plant.
If the Public Service Commission agrees, the deal would cut an 18 percent rate increase to about 15 percent, saving the typical residential customer $5 monthly.
The company would agree to accept $127 million a year, instead of $159 million it sought. The agreement also calls for the unit of Atlanta-based Southern Co. to refund about $20 to every residential customer in a bill credit.
The deal with the Public Utilities Staff was announced Tuesday at a Public Service Commission hearing. The meeting examined whether Mississippi Power has spent prudently on part of its $6.4 billion project.
The staff is separate from the PSC. Commissioners could adopt, discard or change the proposal.
The utility says it is due $159 million a year because part of the power plant has been generating electricity since August 2014, burning natural gas.