Mississippi Power files Kemper Refund Plan with Public Service Commission

Today, Mississippi Power filed a refund plan with the Mississippi Public Service Commission to return to customers, in the most secure and immediate way possible, approximately $350 million collected since 2013 for Kemper-related rate increases. The company made the filing in response to the PSC’s July 7 vote to require Mississippi Power to return the money in accordance with a recent ruling by the Mississippi Supreme Court.

As requested by many customers and the Commission, the company is proposing to offer customers the option to either have their refund applied as a bill credit or request a refund check following approval of the plan by the PSC. Details of the refund will be approved by the PSC following public comment and an Aug. 6 Commission hearing.

The average residential customer having a monthly usage of 1,000 kWh – who received service during the entire period since Kemper collections began in March 2013 – could receive an average of approximately $650 in refunds, but each customer’s refund will vary significantly. There will be many administrative details to sort regardless of the refund method. The company believes the safest, quickest and most efficient method of providing refunds within the 90-day period set forth by the Commission is by providing bill credits.

Although work has already commenced, Mississippi Power estimates that it will take approximately 60 days from the date of the Commission’s approval of the refund plan for the company to complete all necessary calculations and verifications. At that time, bill credits may begin and customers may elect to receive a check if that is their desired method of receiving a refund.

As we have throughout this process, Mississippi Power will meet Commission requirements and remain committed to do what’s in the best interest of all our customers. Mississippi Power employees continue to provide customers with the superior service they have come to expect and are working diligently to ensure that once PSC approval of a refund plan is received, refunds are processed in an accurate and timely manner.

Mississippi Power, a subsidiary of Southern Company (NYSE: SO), produces safe, reliable and environmentally responsible energy for more than 186,000 customers in 23 southeast Mississippi counties. Mississippi Power has been recognized throughout the utility industry for excellence in storm restoration and recovery efforts and as a leader in safety. Visit our websites at mississippipower.com and mississippipowernews.com, like us on Facebook, follow us on Twitter, LinkedIn, Google+ and YouTube.

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Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this communication is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the proposed refund of amounts collected in rates related to the integrated coal gasification combined cycle project in Kemper County, Mississippi (the “Kemper IGCC”), including Mississippi Power’s filing with the Mississippi PSC and Mississippi Power’s funding for such refund. Mississippi Power cautions that there are certain factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Mississippi Power; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Mississippi Power’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to the Mississippi PSC’s review of Mississippi Power’s filing regarding retail base rates; changes in tax and other laws and regulations to which Mississippi Power is subject as well as changes in application of existing laws and regulations; the ability to control costs and avoid cost overruns during the development and construction of facilities, which include the development and construction of generating facilities with designs that have not been finalized or previously constructed, including changes in labor costs and productivity, adverse weather conditions, shortages and inconsistent quality of equipment, materials, and labor, contractor or supplier delay, non-performance under construction or other agreements, operational readiness, including specialized operator training and required site safety programs, unforeseen engineering or design problems, start-up activities (including major equipment failure and system integration), and/or operational performance (including additional costs to satisfy any operational parameters ultimately adopted by the Mississippi Public Service Commission (“PSC”)); the ability to construct facilities in accordance with the requirements of permits and licenses, to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; advances in technology; actions related to cost recovery for the Kemper IGCC, including actions relating to proposed securitization, Mississippi PSC approval of a rate recovery plan, the ability to utilize bonus depreciation, which currently requires that assets be placed in service in 2015, and satisfaction of requirements to utilize investment tax credits and grants; the ultimate impact of the termination of the proposed sale of an interest in the Kemper IGCC to South Mississippi Electric Power Association; Mississippi PSC review of the prudence of Kemper IGCC costs; the ultimate impact of the 2015 decision of the Mississippi Supreme Court, the Mississippi PSC’s order implementing such decision and any further legal or regulatory proceedings regarding any settlement agreement between Mississippi Power and the Mississippi PSC; and the ability of counterparties of Mississippi Power to make payments as and when due and to perform as required. Mississippi Power expressly disclaims any obligation to update any forward-looking information.