Advance Mississippi – The Operational Roles of Regulated Utilities and Independent Power Producers

JACKSON – Today, Advance Mississippi released its latest issue brief, “A Comparison: The Operational Roles of Regulated Utilities and Independent Power Producers in Mississippi.” The brief looks at how regulated utilities and independent power producers (IPPs) operate in Mississippi and the role they play in meeting the state’s energy needs.

The brief finds that:
· IPPs often oppose the construction of new baseload generation plants. When utilities build more generation plants, it means they will buy less power from IPPs. For example, some IPPs opposed the approval of Mississippi Power’s IGCC plant in Kemper County.

· Deregulation of utilities caused electric rates in some states to skyrocket compared to states who maintained a regulated utility system. Though deregulation was once a topic in Mississippi, studies conducted by the Public Service Commission showed that the current system would keep rates lower.

· IPPs rely on the existing transmission infrastructure to transport and sell their electricity, and generally seek the highest possible price, which may or may not be the local or regional market. As Mississippi’s electricity prices are below the national average, there is an incentive for IPPs to sell their power out of state.

To view the issue brief, please visit www.advancemississippi.com or click here.

Advance Mississippi publishes issue briefs and fact sheets on a regular basis to educate Mississippians on important energy issues. Past topics include renewable energy in Mississippi and nuclear energy. All of these briefs are available at www.advancemississippi.com.