Mississippi Power and Entergy challenge state’s new solar energy regulations. Why?

The Public Service Commission will review the new solar energy regulations in Mississippi to determine if they are fair and will have the intended results.

The special meeting is at 10 a.m. Tuesday in Jackson.

By a 2-1 vote in July, the PSC approved rules that would provide incentives for homeowners and schools to install solar energy systems and require energy companies to buy excess power generated by the systems.

Dane Maxwell, the southern commissioner to the PSC, voted against the new regulations while commissioners Brent Bailey and Brandon Presley voted to adopt them.

In August, the PSC voted unanimously to reopen the docket, revisit the net metering rule and re-evaluate what it means and what it will cost to utility customers, Maxwell said.

“My position during this time of high electric and natural gas prices is to not take any action that will require Mississippians to take on any additional costs,” Maxwell said.

Mississippi Power Co. and Entergy, along with solar energy and real estate companies, the Sierra Club of Mississippi and Audubon filed petitions to intervene and speak at the meeting.

Maxwell and Mississippi Power declined to comment on the proceedings until after the meeting.

The new regulations

Mississippi residents have been slow to convert their homes to solar power, in part because of the high cost. While the price has come down as the efficiency of solar power increases, it’s still expensive.

The average cost of installing a solar system in Mississippi is $2.64 per watt making a typical 6000 watt (6 kW) solar system, according to Solar Review website, or $11,717 after claiming the 30% federal solar tax credit coming under the Inflation Reduction Act.

The new regulations adopted in July require Mississippi utility companies to provide $3,500 rebates to lower-income residents who install solar power.

Commissioners’ opinions

The PSC issued a press release in July detailing the new regulations.

“These new rules will make Mississippi open to business to clean energy technology developers, manufacturers and installers, and will help boost low-income opportunities, allowing Mississippians to experience the cost-saving benefits of solar energy,” said Bailey, central Mississippi commissioner.

The changes provide opportunities for homeowners and business owners to invest in solar energy to offset all or a portion of their power bill, he said.

Presley, the commissioner for northern Mississippi, said he worked for 18 months on the regulations that will create jobs in solar energy and allow homeowners and schools to generate their own electricity and save money.

Maxwell said he supports diverse energy sources for the state, but can’t support a policy that would force Entergy or Mississippi Power Company customers — who don’t want or can’t afford solar — to pay more on their electric bills to finance their neighbors’ solar system.

Supporting solar energy

Sierra Club and Audubon Delta praised Mississippi’s new solar regulations.

“The commission recently took bold action and passed a new rule that gives customers exciting, new incentives to install solar on their homes, including a $3,500 upfront rebate,” said Louie Miller, state director of the Mississippi Sierra Club Chapter.

He said Mississippi Power filed a motion with the PSC soon after the new rules passed.

Miller said, “When customers become energy independent by supplying their own power through rooftop solar instead of being forced to buy electricity from Mississippi Power, the utility considers that a major threat to its profits and its stock price.“

“Among the commission’s key provisions is that 50% of the rebate will be set aside for low-to-moderate income customers that earn up to $69,000 annually for a family of four,” said Jill Mastrototaro, Mississippi policy director of Audubon Delta.

“This incentive would bring much-needed relief in slashing high electric bills for 41% of Mississippi households,” she said. “With the remaining 50% of the rebate available for higher earning households, Mississippi is now one of the leading states in the country for advancing equitable renewable energy policy.”

Political move

Sen. Joel Carter Jr., R-Gulfport, who recently was elected chairman of the Energy Council, called Mississippi’s new net metering rule “pure politics.”

He said solar energy companies have made large campaign contributions to the PSC commissioners, while the companies that produce power with natural gas, coal or nuclear are prohibited from donating to their campaigns.

“The goal of the commission is to keep your utility bills fair and low. This will do the opposite,” he said.