It is truly mind boggling what fools the Southern Co. execs in Atlanta think Mississippians are. As the power company’s ill-conceived Kemper science project goes down the tube, it is resorting to the grossest of scare tactics. It is claiming that its subsidiary, Mississippi Power Co., will run out of cash without a major rate increase to pay for the coal gasification plant and implying the lights will go out.
What the Southern Co. conveniently fails to mention is that it is awash in cash to the tune of billions of dollars a year in profit. All Southern has to do is write a check to its subsidiary. But it would much rather let its Mississippi captive ratepayers pick up the tab for their executives’ hubris and mistakes.
This is just one more example of the self-promoting spin we have come to expect of the Southern Co. as it shovels millions of dollars into lobbying efforts and campaign contributions to curry favor with the political establishment. It is well on its way to charging twice as much for electricity as most other power companies in our state. This in itself should be a clarion call to the Mississippi Public Service Commission that something is rotten in the state.
The Southern Co. would never let Mississippi Power go under. Its monopoly position is far too valuable, especially when gaming the regulatory system in Mississippi is like taking candy from a baby. Second, the ownership structure of Mississippi Power is of no concern to Mississippi ratepayers. Even in the improbable event of bankruptcy, another utility holding company such as Entergy will acquire the assets, and consumers will notice nothing worse than lower bills. There is zero chance of one second of power interruption, and anyone familiar with the utility industry knows this.
This is the same old story. The Southern Co. laid an egg with Kemper, and now it wants a ratepayer bailout. Not only does it want an 18 percent increase now — to make up for the same size increase it lost after the state Supreme Court ruled it had been illegally enacted — it’s as much as said it will be back again early next year asking for another 22 percent on top of that. It claims that even if it gets the 18 percent hike requested, Mississippi Power will be broke again by February or March.
The Public Service Commission, when it meets Aug. 6 to consider the request, shouldn’t fall for these alligator tears. It’s a poker bluff. They are crying wolf. Just say no.
Mississippi Power running out of money? No kidding, giving the outlandish cost overruns of Kemper, which has yet to produce one kilowatt of lignite electricity. Not our problem. Time for the Southern Co. to pay for its own mistakes and bail out its own wholly-owned subsidiary.
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