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Mississippi State Treasurer David McRae Mississippi State Treasurer David McRae


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Treasurer Lynn Fitch’s Statement on Mississippi Power Utility Restoration Bonds

Jackson, MSTreasurer Lynn Fitch released the following statement upon announcement that the Public Service Commission (PSC) approved an order reducing to zero ($0.00) the System Restoration Charge (SRC) paid by Mississippi Power Company ratepayers pursuant to Hurricane Katrina Electric Utility Customer Relief and Electric Utility System Restoration Act of 2006.

“In 2006, in the wake of the devastation caused by Hurricane Katrina, it was appropriate for the State to issue bonds to help Mississippi Power ensure against damage to our energy grid and power outages, to be repaid by a small monthly charge to its ratepayers. 

“But ratepayers shouldn’t pay any more than is necessary to retire these bonds.  The action taken by the PSC today and by the State Bond Commission in months to come will ensure that ratepayers do not.  Without this quick action, ratepayers would have overpaid by an estimated $36.4 million.

“Furthermore, as I noted when we took similar action to retire Entergy’s utility restoration bonds last year, every man, woman, and child is saddled with a $1,707-share in state debt.  Every time we can clear one of these bonds off the books, we help lighten the load, and that is a very good thing.

“It has been a real honor working with the members of the PSC and with Mississippi Power Company to reduce utility bills for 186,000 ratepayers in Southeastern Mississippi.  Because of this collaborative effort, not only will their bills be smaller, but the total debt resting on the shoulders of Mississippi taxpayers will be smaller, too.”