Mississippi Power provides electric services to about 186,680 residential, commercial, and industrial customers in the Magnolia State. The utility, operates more than 6,890 miles of transmission and distribution lines, and it generates nearly 3,160 MW of capacity from its power plants (of which 1,450 MWs are coal-fired). Mississippi Power also sells wholesale electricity to several Florida municipal and cooperative utilities, and it offers energy conservation services and sells electrical appliances. Mississippi Power is a subsidiary of utility holding firm Southern Company.
Mississippi Power operates as a vertically integrated utility providing electricity to retail customers within its traditional service area located within the State of Mississippi and to wholesale customers in the Southeast. It operates two electric generating plants with on-site coal combustion byproducts storage facilities, including both "wet" (ash ponds) and "dry" (landfill) storage facilities. In addition to on-site storage, the company also sells a portion of its coal combustion byproducts to third parties for beneficial reuse.
Mississippi Power is engaged in the generation and purchase of electricity and the transmission, distribution, and sale ofelectricity within 23 counties in southeastern Mississippi, and retail in 123 communities (including Biloxi, Gulfport, Hattiesburg, Laurel, Meridian, and Pascagoula).
The company also serve six Rural Electric Association-financed electric cooperatives (Coast EPA, Singing River EPA, Southern Pine EPA, Dixie EPA, Pearl River EPA and East Mississippi EPA) and one municipality (City of Collins) with wholesale electric power which, in turn, they resell to retail consumers in southeast Mississippi.
Sales and Marketing
Mississippi Power's Coast division, Pine Belt division, and Meridian division customers accounted for 46%, 35%, and 19%, respectively, of company's sales in 2011.
The company's revenues decreased by 3% in 2011 due to a 0.7% decrease in total retail revenues primarily as a result of lower energy sales due to closer-to-normal weather in 2011 compared to 2010, and a 5% decrease in wholesale revenues from sales to non-affiliates due to decrease in kilowatt-hour (KWH) sales. Other factors included a $2 million drop associated with lower fuel prices, and a $1.4 million decrease in capacity revenues resulting from the expiration of a power supply agreement in December 2010, and a 27% decrease in wholesale revenues from sales to affiliated companies.
Net income increased by 17% in 2011 due to a decrease in fuel expenses as the result of lower fuel prices and a drop in purchased power expenses. Other factors included a decrease in the amount of other operations and maintenance expenses primarily due to a decrease in rent expense resulting from the expiration of the initial term of the Plant Daniel Units 3 and 4 operating lease in October 2011 and drop in labor costs. There was also an increase in interest income due to the deferral of carrying costs on the Kemper County power plant.
Responding to federal and state pressure to increase its power generation capacity while reducing carbon emissions, Mississippi Power is building a 582-MW Integrated Gasification Combined Cycle (IGCC) power plant in Kemper County. This plant, scheduled to open in 2014, is the first advanced gasification generating facility with carbon capture capabilities in Mississippi, and one of the first in the US.
In 2011 the company signed agreements whereby Denbury Onshore, a subsidiary of Denbury Resources, will purchase 70% of the CO2 captured from the Kemper IGCC plant, and Midstream Services, LLC (an affiliate of Tellus Operating Group, LLC and a subsidiary of Tenrgys, LLC), 30%.
Mississippi Power was founded in 1925.