Calculate My Kemper Bill
February 4, 2015 - Total facility cost forecast and expected rate increase figures updated.
This web page calculates the Kemper Rate Factor charges now included in your Mississippi Power Company residential electric service bill for the Kemper County Energy Facility. The calculations are based on the current R-54 residential rate schedule posted on the Mississippi Power Company website. (Rate effective December 17, 2013, last viewed on February 4, 2015). These charges are not itemized in a standard monthly bill from Mississippi Power Company.
To use the calculator, you'll need three pieces of information from your bill: total energy usage, total current electrical service cost, and the billing month. (Click for an example bill.) Enter the total energy usage in kiloWatt-hours/month and the total current dollar amount of your bill. Select the billing month from the pull-down input. Then click the Calculate button. The amount you are being charged for the Kemper County Energy Facility is shown in the first box. The amount your bill increased as a result of that charge is shown in the second box.
A full calculation of the R-54 rate is relatively complex and deals with base monthly charges, Fuel Cost Recovery factors, miscellaneous rate adjustments, and taxes. However, calculating the Kemper cost is straightforward. The Kemper Rate Factors are applied as simple kWH adders in each of three usage brackets: <=650 kWh/mo, 651-1000 kWh/mo, and >1000 kWh/mo. The Rate Factors also vary during the year, in three periods: summer (June - September), Winter (December - March), and shoulder months (April, May, October, November.) Monthly calculations of Kemper Rate Factor charges are simply the sum of three multiplications of usage in each of the three brackets times the seasonal rate for that bracket. Portion of R-54 rate showing Kemper Rate Factors. (Opens an image of the rate extract. Use your browser's back button to return here.)
Comments and Questions
This site is operated by an individual citizen and Mississippi Power Customer with a background in applied utility rates and rate calculations. It is offered as an information service to the rate payers. Constructive comments and suggestions are sincerely welcomed. If any of the information provided on this site is confusing, please let me know. Address email to admin@MyKemperBill.com.
Background on the Kemper County Energy Facility
Construction Schedule and Startup
The plant is not yet completed, though customers are being billed now.
The Mississippi Power Company website states that the facility will be in service by the first half of 2016. The project timeline shows no milestones in 2014 or 2015 which might be used to gauge progress. Source:
http://www.mississippipower.com/pdf/timeline.pdf, both accessed February 4, 2015
A Sun Herald article on October 3, 2014 states, "Mississippi Power ... pushed back the coal gasification start-up sometime beyond the middle of next year."
I am unable to find estimated cost figures for the plant on the Mississippi Power Company website or their news website (mississippipowernews.com). Neither the Facts nor the State Economic Impact pages include cost estimates for the facility. The October 28, 2014 and February 3, 2015 press releases do not mention the overall cost of the facility. Last accessed February 4, 2015.
"The original cost estimate of the Kemper plant was $2.4 billion." Source:
Sun Herald article on February 4, 2015
Sun Herald article on February 4, 2015 states "The cost of the Kemper County power plant has risen $45 million more, Mississippi Power reported Tuesday. The latest increase brings the total project cost to $6.17 billion."
I am unable to find any information on the Mississippi Power Company website regarding the rate increases due to the Kemper plant. The following statement on the website earlier this year has been removed. "We expect overall average retail rate increases associated with the Kemper project to be approximately 22 percent through 2020 as outlined in the company’s 7-year rate plan. These costs, subject to approval by the MPSC, are expected to be recovered from customers through base rates and repayment of low-cost bonds." More recently, the Kemper County Energy Facility Facts page states, "We expect overall average retail rate increases associated with the Kemper project to be approximately 24 to 26 percent."
http://www.mississippipower.com/about-energy/plants/kemper-county-energy-facility/home.cshtml, accessed February 4, 2015
Rates for Mississippi Power customers increased in 2013 to account for the cost of the Kemper plant despite the fact that the plant is not complete. Typically, construction costs for generation plants are reflected in customer rates only after the plant is in commercial operation.
Your average cost of electricity is not the appropriate figure to use when evaluating energy saving or energy consuming measures. The average figure includes a fixed base charge which does not change with reduced or increased energy usage. Such decisions should be based on the incremental cost of power, which requires a more detailed examination of the rate and your electricity usage.
Legal Notice: This website is the independent work of an individual, offered as an information service to the public. It is not a product of Mississippi Power Company. While the information is thought to be accurate, your use and reliance on this information is entirely your decision and your responsibility. No guarantees or warranties are provided or implied. However, the author of this website will make a donation of $50 to the American Red Cross for each substantive error in the calculation results identified and described in an email to admin@MyKemperBill.com. No complaints as of February 4, 2015.
Ocean Springs, Mississippi