Published: March 02, 2008 12:57 am            

Bill just 'makes sense'

Sometimes things just make good sense.

Such is the case with a bill before the Mississippi legislature (SB 2793) which will allow Mississippi's utilities — such as Mississippi Power Co. — to raise rates at the front end of projects, allowing them to build at a much more efficient level. This will, in the long run, save Mississippi customers money.

At issue: Mississippi is in need of increasing its "baseload" energy production because there is increased demand for electric power — and the smaller plants usually built, while less expensive, rely on the now volatile natural gas market and cost more to operate. Because of that, Entergy wants to build a nuclear power plant in the state — at a cost of between $5 billion and $6.5 billion — and, up the road in Kemper County, Mississippi Power hopes to build a near $2 billion clean coal lignite plant.

While these new plants will provide for more efficient energy costs in the long run, they will cost billions to build ... and these utilities companies might not be able to finance such expansions without the Legislature changing the law.

A side note: The plant planned in Kemper County would also create hundreds of high-paying jobs for East Mississippi. So the impact for our area is two-fold. Without this legislation, Mississippi Power will not be able to build the plant. And in the end, aside from the loss of jobs, East Mississippi residents will pay more for energy.

It's pretty simple: pay for the investment up front, or be stuck paying for it anyway ... and at a much higher rate.

We think this legislation is not only necessary public policy, but it just makes sense. The state has a great watchdog group — the Public Service Commission — which provides taxpayers the comfort of having someone look out for their best interests. Let's allow them to do their job — and allow utilities, such as Mississippi Power, to continue to provide the cheapest form of energy to this state.

The bill has passed the Senate; we now encourage the House to be prudent and pass the bill, and for Gov. Haley Barbour to sign the bill into law.

        

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