JACKSON, Mississippi (AP) — Mississippi Power Company has been ordered to refund its customers for a rate increase put into effect in 2013 to begin paying for Kemper County power plant it is building.
The Mississippi Supreme Court ordered the refund Thursday. In a 5-4 ruling, the Supreme Court said the state Public Service Commission erred in granting the increase.
The PSC approved in March of 2013 an immediate 15 percent increase followed by a 3 percent increase in 2014. Atlanta-based Southern Company said it could start paying off debt related to the Kemper plant.
The Kemper project has been plagued with cost overruns. Earlier this month, Southern Co. said it will spend at least another $45 million to finish the power plant, pushing total costs to nearly $6.2 billion.