Hurricane Restoration Charge reduced to $0 for Mississippi Power customers

JACKSON, Miss. (WJTV) — The state treasurer says a collaborative effort will make bills and the total debt for many southeastern Mississippians lower.

The Public Service Commission has approved to zero out the bonds related to Mississippi Power Company’s Hurricane Restoration Fund, for Hurricane Katrina.

This results in a $3.45 rate decrease per month, for Mississippi Power Company customers.

State Treasurer Lynn Fitch said this is lessening the burden for taxpayers. Below is her full statement:

“In 2006, in the wake of the devastation caused by Hurricane Katrina, it was appropriate for the State to issue bonds to help Mississippi Power ensure against damage to our energy grid and power outages, to be repaid by a small monthly charge to its ratepayers.

“But ratepayers shouldn’t pay any more than is necessary to retire these bonds. The action taken by the PSC today and by the State Bond Commission in months to come will ensure that ratepayers do not. Without this quick action, ratepayers would have overpaid by an estimated $36.4 million.

“Furthermore, as I noted when we took similar action to retire Entergy’s utility restoration bonds last year, every man, woman, and child is saddled with a $1,707-share in state debt. Every time we can clear one of these bonds off the books, we help lighten the load, and that is a very good thing.

“It has been a real honor working with the members of the PSC and with Mississippi Power Company to reduce utility bills for 186,000 ratepayers in Southeastern Mississippi. Because of this collaborative effort, not only will their bills be smaller, but the total debt resting on the shoulders of Mississippi taxpayers will be smaller, too.”

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