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PSC approves Mississippi Power ad valorem tax adjustment; staff, company explain calculation and customer impact
Summary
The commission approved Mississippi Power’s ATA 2 filing, which staff said increases the factor and would raise an average 1,000-kilowatt-hour residential bill by about 79¢. Company and staff explained the projection/true-up methodology and the property-tax formula used by the state.
The Public Service Commission approved Mississippi Power Company’s annual ad valorem tax adjustment (ATA 2) after a staff presentation and extended questioning by commissioners.
Miss Meyer (presenting for staff) told the commission Mississippi Power filed the ATA 2 on June 30. Staff said the proposed factor will increase and that the monetary amount associated with the change in the ATA factor is an increase of approximately $9,500,000; staff told commissioners the proposed change would raise a typical 1,000-kilowatt-hour residential bill by approximately 79¢ per month and recommended approval.
Commissioners asked staff and the company to explain how the tax adjustment factors are calculated. Staff described the mechanism as a projection component and a true-up component that reconciles prior-period payments. A company representative identified in the record as Mr. Vance explained the property-tax assessment process used by the Department of Revenue and said the state’s calculation includes three components: an income (net-income) component (approximately 70%), a cost component (about 20%), and a market component (about 10%). "There is a formula the Department of Revenue uses," he said.
Commissioners raised questions about whether large new customers — described in the discussion as "hyperscalers" such as data centers or other high-usage facilities — will shift costs to existing ratepayers. Mr. Vance said contract pricing is used to ensure the new large customer pays enough revenue to cover any incremental costs they cause. "We're just trying to make sure that each customer is paying their share of their cost, whatever they're causing," he said.
Commissioner Stamps asked for the county-level disbursement detail for all similar agenda items so commissioners could see projected returns to their counties; the company said that list is already in its filing and agreed to provide it for the related items on the agenda. Commissioners then voted to approve the proposed order by voice vote.
The staff presentation and the company exchanges were recorded in the docket; staff verified compliance with the ATA 2 rider schedule and recommended approval.
The transcript shows no interveners in the matter and staff said the proposed factor would become effective during the first billing cycle of September if approved.
