Sierra Club Urges Public Service Commission to Apply Brakes on Mississippi Power’s Coal Plant Upgrade

Proposal would cost ratepayers tens of millions of dollars
Contact

Louie Miller, louie.miller@sierraclub.org, 601-624-3503
Vanessa Ramos, vanessa.ramos@sierraclub.org, 512-586-1853

JACKSON, MS -- Sierra Club is asking the Mississippi Public Service Commission to turn down a request by Mississippi Power to charge customers for as much as $45 million in unnecessary equipment at Plant Victor Daniel, a coal-fired power plant in Jackson County. Plant Daniel no longer has any value for customers and costs much more to operate than reliable clean alternatives. Sierra Club is encouraged that their request for a formal hearing before the Mississippi Public Service Commission has been granted, despite Mississippi Power’s effort to expedite the approval process.

Plant Daniel was built in 1977 and generates over 1,000 MW of electricity when running at maximum capacity. Due to its failing economics, the facility is only operating around 25 percent of the time, even as Mississippi Power customers are paying to keep the plant in service.

“Nearly five years ago, the Company dumped millions of dollars into the plant in a last-ditch, failed effort to extend its life,” said Louie Miller, Director of the Sierra Club Mississippi Chapter. “It's now more uneconomic than before, yet the company wants to throw good money after bad. It's time to cut these losses and move on. We urge the Commission to exercise its authority and conduct a thorough investigation into whether this is a wise, or necessary, investment before asking customers to hand over more of their hard earned dollars.”

Gulf Power, a Florida utility that owns a 50 percent share of Plant Daniel, has already announced its plans to retire its portion of the plant in the next few years. Shuttering the plant in favor of less expensive and cleaner alternatives would allow Mississippi Power ratepayers to avoid as much as $45 million in expenses for equipment at the plant.

The Commission is currently considering Mississippi Power’s request and has scheduled a formal hearing on the matter. Sierra Club has repeatedly urged the company to announce a retirement date for Plant Daniel, particularly since the company can buy power from the market much cheaper than it can produce power from Plant Daniel.

The Commission has scheduled a public hearing at 10:00 a.m. on Thursday, October 24, 2019, at the Woolfolk State Office Building to consider this matter.

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3.5 million members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.