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PSC approves Mississippi Power special contracts for Hood Industries, Compass Data Centers
Summary
The Public Service Commission approved special contracts allowing Mississippi Power to provide electric service to Hood Industries (Perry County) and Compass Data Centers (Lauderdale County). Staff said the contracts meet statutory special-contract requirements and should benefit other retail customers once loads return or build out.
The Public Service Commission on its February 2025 open meeting approved two special contracts filed by Mississippi Power: one with Hood Industries Inc. for service to a Perry County facility and one with Compass Data Centers for facilities planned in Lauderdale County.
Mississippi Power filed the Hood contract Nov. 25, 2024, saying the agreement qualifies as a special contract under Mississippi Code 77-335 and Rule 27 of the commission’s rules of practice and procedure. Staff recommended approval, finding the contract recovers incremental costs, contains a price competitive enough to retain the customer, and will provide contribution margin that benefits other retail customers. Commissioners were told the Hood facility was rendered inoperable by a tornado in April 2022; the contract is intended to support restoring the facility and the lost jobs and load.
For Compass Data Centers, Mississippi Power filed a notice Jan. 9 seeking special-contract authority under Mississippi Code 77-335 and Rule 29. Staff recommended approval, saying the agreement recovers incremental costs, offers competitive pricing to attract the customer, and will provide a contribution margin above incremental cost that benefits other retail customers. Commission discussion noted Compass expects to build out load over time, and Mississippi Power will respond as facilities come online. The timeline for the construction and load ramp-up was filed confidentially and not disclosed in the open meeting.
Commissioners praised the contracts for supporting economic development and restoring industrial load. “This partnership with Mississippi Power is going to benefit Mississippi greatly,” a commissioner said while welcoming Compass to the state.
Each contract was moved, seconded and approved in open session.
