The Mississippi Public Service Commission unanimously approved Tuesday a settlement proposal for the Kemper County energy facility. This will relieve customers from paying for the multibillion-dollar coal gasification technology. Mississippi Power customers will instead be charged for the plant’s natural gas, which they have used since 2014. The commissioners stated that customers would be charged $99 million per year over an eight-year period. This figure also includes federal tax cuts. The southern commissioner of the commission, Sam Britton called the project “complex” and controversial since its inception in 2009. Britton stated that the project was an emotional and intense topic for many. At Tuesday’s meeting, Brandon Presley, chairman of the Commission, reminded the audience that he originally voted against the 582-megawatt project. Presley believes this settlement is the best possible outcome given the circumstances. Presley stated that he had tried from the beginning to find a way for ratepayers to be protected, pointing out that he was not surprised by the company’s failures and other problems. “We’ve achieved that today.” Anthony Wilson, Mississippi Power Chairman and CEO, said the decision was significant for the company, state, and customers. Wilson stated that although it was a difficult journey, he believes that the agreed upon agreement that was voted for today and signed by many parties will result in a positive outcome for customers. However, not all are happy with the outcome. Thomas Blanton, an Hattiesburg oil businessman, was the plaintiff in the state Supreme Court case in which Mississippi Power ordered it to refund its customers in 2015. Blanton said that he’s considering filing a lawsuit against the Mississippi Supreme Court for the agreement procedure initiated by the commission in July. However, he is currently discussing his options with his attorney. Blanton spoke out about the stipulation, and the process used by the commission to reach it. The commission does not have the power to make law. … The (state) code does not contain any provisions regarding amending certificates. After years of debate and concern about the 582-megawatt project, this decision was made. The plant was designed to convert lignite coal to gas, a process called gasification. It also includes a small natural-gas section to produce electricity. The Mississippi Public Service Commission demanded a $99.3 million settlement from its East and South Mississippi customers over the eight-year period. This amount will be used to pay for the natural gas portion at the Kemper County energy plant that has provided power to 23 counties since 2014. For months, the commissioners had pushed for an agreement between Mississippi Public Utilities Staff (Mississippi Power) that would prevent a rate rise and maybe even decrease for Mississippi Power customers. They demanded that Mississippi Power eliminate all ratepayer risk regarding the plant’s lignite-related operations and that the license for the plant be amended to allow it only to run on natural gas. Brandon Presley, chairman of the Commission, stated that Mississippi Power customers have collectively paid $126 million per year for the Kemper plant’s natural gas services. This was in 2015 alone. He said that this is only a small portion of the overall utility bills for these customers each year. There could be more discussion about the ripple effects of Kemper’s woes. The public service commission requested that the Tuesday decision result in a payment plan which ensures Mississippi Power customers don’t have to pay Kemper any out-of-pocket. This only affects a small portion of Mississippi Power customers’ rates. These are determined by the Public Service Commission each year through an annual performance-based process. The commission doesn’t make decisions on Mississippi Power customers overall rates until they have received a rate proposal. This is expected to happen later in the year. Presley stated Tuesday that Southern Co., Mississippi Power’s parent company, would absorb the vast majority of $6.4 billion in project cost billed to Mississippi Power for the plant’s coal gasifier tech. Customers could also experience this impact by reduced services. At a hearing by the Public Service Commission two weeks ago, Moses Feagin, Mississippi Power Vice President Treasurer and Chief Fiscal Officer, stated that the company had closed local offices and will likely use other cost-saving measures to make up the difference. In 2010, the Kemper plant was completed near DeKalb. The original plan was to convert the abundant lignite coal into a synthesis gaz; remove carbon dioxide from the gas; then transport the “cleaned” syngas through a combined cycle generating plant to produce electricity. The plant’s technology would also reduce carbon emissions compared to traditional coal technology by injecting carbon dioxide into nearby pipelines. Oil companies could then purchase the gas to inject into the fallow oil fields, bringing valuable crude oil to the surface. The cost of the plant and its nearby lignite mine was originally estimated at nearly $3 billion. It is scheduled to be fully operational by May 2014. The plant was originally expected to produce 582 megawatts (a power source capable of powering 190,000 Mississippi Power customers).