Lower fuel costs will reduce Mississippi Power bills about $14 a month

Mississippi Power customers will save close to $14 a month next year due to lower fuel costs.

The company filled a fuel cost request Monday with the Public Service Commission that if approved would go into effect in February.

A residential customer using 1,000 kilowatt hours of electricity a month would see an average reduction each month of $13.70, Mississippi Power said in a press release.

By state law, the fuel rate is adjusted each year based on what it costs for Mississippi Power to make energy. When natural gas or other fuel costs rise, that expense is covered by the customers. Mississippi Power expects fuel costs in 2016 to be about $120 million lower, and the customers will share in the savings.

"Customers are receiving direct benefits from our ability to deliver clean, safe, reliable and affordable electricity from a flexible fuel portfolio," said Mississippi Power President Anthony Wilson.

In August the PSC approved an emergency 18 percent increase to help the company recover the cost of building the portion of the Kemper energy facility that is producing power.

Under the proposed final agreement that still has to be approved by the PSC, the increase would be reduced to 15 percent and residential customers would get a one-time credit on their bills of approximately $22 on their bills. That is the difference between an emergency rate increase collected since August and the new rates in the agreement worked out with the PSC staff.

The credit would be applied to customers' bills within 90 days of the proposal being approved by the PSC.

This story was originally published November 23, 2015 at 1:57 PM with the headline "Lower fuel costs will reduce Mississippi Power bills about $14 a month ."