Mississippi Power filed a fuel cost request with the Mississippi Public Service Commission that would reduce the portion of customer bills related to fuel. Based on the request, a residential customer using 1,000 kWh of electricity per month could see an average savings of $13.70 on their total monthly bill.
If approved by the PSC, the lower fuel rates will go into effect in February. The total annual reduction in fuel costs in 2016 is about $120 million.
The requested decrease is being driven by the company's ability to take advantage of lower fuel prices.
"I am very pleased with the operation and reliability of all of our generating plants and the team of employees who support them," said Anthony Wilson, Mississippi Power president. "Customers are receiving direct benefits from our ability to deliver clean, safe, reliable and affordable electricity from a flexible fuel portfolio."
The cost of fuel is a separate component of customers' electricity bills. The recovery of fuel costs is allowed under Mississippi law and Mississippi Power does not earn a profit on fuel costs.