JACKSON, Miss. – New revenues from Mississippi data centers, like Amazon’s, are a primary reason why Entergy Mississippi customers won’t see their rates increase this summer. The Mississippi Public Service Commission recently approved a rate plan that keeps Entergy Mississippi’s rates well below the national average and prevented what otherwise would have been a $4.87 per month increase in July, compared to June rates.
Eliminating this increase is an early sign of how data centers are directly benefiting customers. It also represents the first of more than $2 billion in projected savings for Mississippi customers over the next two decades, thanks to Entergy’s Fair Share Plus Pledge announced in March. As data center customers ramp up their operations, Entergy Mississippi expects to flow more benefits back to customers. For example, Entergy Mississippi recently filed for an additional $0.41 rate reduction that, if approved, would become effective in October. This decrease is related to the ad valorem tax adjustment and is due in part to data center revenue. Flattening rate increases helps offset increases in other areas, especially fuel that is tied to the price of natural gas.
“At a time when our company is having to replace half-century old power plants to keep up with the energy needs of our almost half-million customers, these data center revenues are providing enormous benefits by covering much of those costs that our other customers would otherwise have had to bear alone,” said Haley Fisackerly, Entergy Mississippi president and CEO. “And while we also work to strengthen our power grid against more extreme Mississippi weather for the long term, data center revenues are making those investments more cost-friendly for our customers, too.”
Despite the significant costs required to generate power, maintain infrastructure and provide electrical service at a time of increased residential, commercial and industrial electricity demand, Entergy Mississippi’s annual rate plan takes effect during the July billing cycle offsetting those costs and keeping rates flat this summer, when customers’ energy use is at its highest. The plan also helps us to begin delivering our Superpower Mississippi cost-saving actions that provide customers with more and better power at a lower cost, including:
- Cutting outages in half: The addition of new, large customers into our service area, such as Amazon, allows us to invest 50% more in reliability to help cut outages in half by 2030. These improvements come at no additional costs to our customers. Approximately $18 million of the incremental $300 million for reliability projects that we announced last year was included and approved in the formula rate plan.
- Modernizing our generation fleet: We’re building three combined cycle combustion turbine natural gas plants – in Greenville, Vicksburg and Ridgeland – with a combined capacity of over 2,100 megawatts. Accelerating the replacement of retired plants saves an estimated $1.3 billion in materials and equipment costs to build new power plants now, compared with building them on their original schedules. And modern natural gas plants are 40% more fuel efficient than older plants, allowing us to bring cleaner and more cost-effective power generation to Mississippi.
- Reducing projected bill impacts: Our diverse generation portfolio gives us flexibility to lessen the impact on customers’ bills if one fuel source spikes in price. By adding advanced power generation to our fleet, we expect to pass on to customers an estimated savings of $700 million in future fuel costs. Customers would have shouldered the costs to make these upgrades, but instead, expected bill increases will be lower than they otherwise would have been because Amazon and other large industrial customers are paying 100% of their own costs to be on the grid, plus bringing these added benefits for all customers.
As the summer heat rises, customers are reminded that bills are not only impacted by rates, but also energy usage. According to the U.S. Energy Information Administration, cooling costs can account for more than 20% of a typical household’s electric bill during the year — and even more during Mississippi’s hottest months. For tips on how to save money and energy, customers can visit billtoolkit.entergy.com/mississippi.
“During these months of high temperatures, securing rate stability right now is perfect timing for our residential customers, when they need it most,” Fisackerly said.
“It is important to remember this has been a team effort. These benefits our customers will see on their power bills would not have been possible without Governor Reeves’ help in recruiting one of the world’s leading technology companies to our state, the Mississippi Legislature’s review and approval of it, and the guidance and oversight of the Mississippi Public Service Commission,” Fisackerly said.
About Entergy Mississippi
Entergy Mississippi provides electricity to approximately 459,000 customers in 45 counties. Entergy Mississippi is a subsidiary of Entergy Corporation. Entergy generates, transmits and distributes electricity to power life for more than 3 million customers through our operating companies in Arkansas, Louisiana, Mississippi and Texas. We’re focused on keeping costs for our customers as low as possible while providing reliable energy that our communities count on. We’re also investing in growth for the future with a more resilient, cleaner energy system that includes modern natural gas, nuclear and renewable energy generation. As a nationally recognized leader in sustainability and corporate citizenship, we deliver more than $100 million in economic benefits each year to the communities we serve through philanthropy, volunteerism and advocacy. Entergy is a Fortune 500 company headquartered in New Orleans, Louisiana, and has approximately 12,000 employees. Learn more at EntergyMississippi.com and connect with @EntergyMS on social media.
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