A Landmark Deal in Mississippi Could Give a Big Boost to Utility-Scale Solar

Southern Company, which owns Mississippi Power, ranks nearly last when it comes to utilities’ use of renewable energy.  However, a settlement announced earlier this week could open up as much as 100 megawatts of solar and wind in Mississippi.

The Gulfport-based utility recently reached a settlement with the local chapter of the Sierra Club to diversify its fuel mix away from coal.  In exchange for Mississippi Power’s commitment to convert from coal to natural gas and procure more solar and wind energy, the Sierra Club has agreed to stop its legal and regulatory opposition to the Kemper coal gasification power plant.

The utility will pursue solar and wind power-purchase agreements and make “all good faith efforts to obtain an arrangement with approximately 100 MW in nameplate capacity and for a term of at least ten years.”  The power-purchase agreements can be financed through its rate base.

Mississippi Power also agreed not to oppose net metering rules for residential solar that are now being considered by the state’s Public Service Commission.  It also committed to $15 million in energy efficiency programs.

If the pieces fall into place for an RFP, it will likely attract a number of the solar developers that have been increasingly active in the Southeast to Mississippi.  Georgia Power won approval from the state public service commission to purchase 210 megawatts of solar by the end of this year.  It now has two programs -- a 100-megawatt residential solar procurement and 425 megawatts from utility-scale systems -- that are expected to be in service by the end of 2016.

A Landmark Deal in Mississippi Could Give a Big Boost to Utility-Scale Solar