On January 25, 2025, the Mississippi Public Service Commission (PSC) convened to discuss significant developments regarding Mississippi Power Company's recent acquisition of Florida Power and Light's interest in Plant Daniel. This meeting highlighted the implications of the acquisition for retail rates and the operational strategy of Mississippi Power.

Mississippi Power filed a petition on November 8, 2024, seeking an accounting order that would allow it to include all assets and costs related to the operation and maintenance of Plant Daniel in its retail rates. The acquisition agreement stipulates that while Mississippi Power will take ownership of the plant, Florida Power and Light will retain certain liabilities, including legacy environmental costs. Notably, the assets being acquired will have a net book value of zero, meaning there will be no immediate financial impact on retail rates for consumers.

The commission learned that Florida Power and Light will provide Mississippi Power with up to $45 million at closing. This payment is intended to offset the costs associated with the acquisition and will be recorded in a regulatory liability account known as the Daniel Acquisition Reserve. This reserve will serve as a financial buffer to cover future costs related to the ownership of Plant Daniel, ensuring that any potential rate impacts are mitigated.

Currently, Plant Daniel's Unit 1 is only utilized during emergencies or for reliability purposes. Should Mississippi Power decide to use the unit for economic dispatch to meet new retail demands, it will need to assess the associated costs and seek the necessary approvals from the PSC.

The PSC staff reviewed Mississippi Power's filing and found the economic analysis and assumptions to be reasonable. They concluded that the proposed accounting treatment and establishment of the regulatory liability would not lead to immediate or significant rate increases for customers. Consequently, the staff recommended approval of the petition.

This meeting underscored the ongoing efforts of Mississippi Power to manage its resources effectively while ensuring that customer rates remain stable. The commission's approval of the acquisition will allow Mississippi Power to strategically position itself for future energy demands while maintaining a focus on reliability and cost management.