Home Money & Business Business Mississippi’s revamped PSC focuses on nuclear energy, shows lukewarm support for renewables

Mississippi’s revamped PSC focuses on nuclear energy, shows lukewarm support for renewables

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Northern District Public Service Commissioner Chris Brown declared, “We’re open for business,” echoing this sentiment at the PSC’s “Nuclear Summit” held on Tuesday.

Brown, alongside his fellow commissioners—Central District Public Service Commissioner De’Keither Stamps and Southern District Public Service Commissioner Wayne Carr—are navigating their inaugural term after a complete overhaul of the PSC in last year’s statewide elections. The PSC tackles various public utility issues, including electric generation, power costs, and water infrastructure, among numerous other responsibilities.

With global momentum shifting toward alternative energy to meet rising demands while curbing carbon emissions, the PSC aims to position Mississippi at the forefront of this shift.

“We believe nuclear is our future,” Brown stated during a Senate hearing on Wednesday.

The “Nuclear Summit” featured various industry experts and representatives from local utility companies keen on enhancing nuclear energy production.

“Economic development is gravitating toward locations that offer dependable and cost-effective power,” Stamps remarked at the summit. “Nuclear energy stands out as one of the most reliable and affordable sources.”

Kirk Sorenson of Flibe Energy presented plans for establishing a new nuclear facility in Tishomingo County at the Yellow Creek site, previously begun but later halted by the Tennessee Valley Authority in the 1970s. Sorenson informed attendees that Flibe has been leasing the site for five years and has invested approximately $250 million in improvements. However, the timeline for developing a nuclear plant at Yellow Creek remains uncertain, as gaining approval from the U.S. Nuclear Regulatory Commission can extend up to five years, despite Congress recently passing legislation aimed at accelerating the review process.

As of 2023, natural gas accounted for 76% of Mississippi’s generated energy—significantly higher than the national average of 43%. The state’s leading energy producers are Entergy’s Grand Gulf nuclear plant in Port Gibson, and the Victor J. Daniel plant in Moss Point, operated by Mississippi Power, which employs a mix of coal and gas.

Mississippi Power had initially planned to close the coal units at Plant Daniel by 2027, a decision that was welcomed by clean energy proponents due to the facility’s excess power generation. However, this closure has been postponed to facilitate electricity sales to Georgia. Entergy also upgraded the Grand Gulf facility in 2012, enabling it to become the largest single-unit nuclear power plant in the USA, licensed to operate until 2044.

Earlier this month, state legislators expressed support for increasing nuclear energy production within the state during a Senate committee gathering. Industry representatives advised that tax incentives could serve as one method to draw more nuclear investment to Mississippi.

While nuclear power is not classified as renewable due to its reliance on finite resources like uranium, it generates energy without emitting carbon. Compared to intermittent renewable sources like wind and solar, nuclear power can operate consistently and utilizes a smaller land footprint. Nonetheless, the high initial expenses and stringent governmental regulations due to safety measures pose challenges, compounded by the absence of permanent nuclear waste disposal facilities in the United States.

During interviews, all three commissioners clarified their stance on solar energy, asserting their support for an “all of the above” energy strategy.

Brown, a former state legislator and current PSC chair, rejected claims by media and advocacy groups that label the commission as “anti-solar.”

“We’ve endorsed every solar generation facility that has come before the PSC,” he noted, emphasizing the necessity of PSC approval for electric generating infrastructures. “Just because you pose questions doesn’t equate to anti-solar sentiments. We aim to address the concerns of our constituents.”

In August, the PSC organized a “Solar Summit,” akin to previous informational sessions on various topics. However, this summit lacked participation from the solar industry, leading to considerable skepticism about solar’s potential impact in Mississippi.

State Agriculture and Commerce Commissioner Andy Gipson, lacking a background in the energy sector, raised concerns during the summit about the potential risk new solar projects could pose to farmland.

“How much solar do we need as a state?” Gipson questioned.

In 2023, solar power represented less than 1% of Mississippi’s electricity generation, contrasting with the national average of 4%. Overall, when factoring in energy sources such as wind and hydropower, renewables accounted for 21% of the country’s energy mix, compared to under 3% for Mississippi.

A significant area of contention between the PSC and solar advocates involves the topic of incentives. The prior PSC, led by former commissioners Brandon Presley and Brent Bailey, implemented incentives under the state’s net metering regulation, requiring Entergy Mississippi and Mississippi Power to compensate customers for self-generated renewable energy. Governor Tate Reeves has criticized this rule, advocating for its reversal.

This spring, just over a year after the new rule’s implementation, commissioners Brown and Carr voted to suspend incentives for schools and low-income households seeking to adopt solar energy.

Both commissioners argued that such incentives shift costs onto those without solar installations, although data reveals that Mississippi has relatively few net metering participants.

“I’ve never received anything for free in my adult life,” Carr expressed, responding to recent federal initiatives aimed at fostering solar energy growth. “I don’t believe that ‘Big Brother’ suggests we should prop up an industry; I disagree. We’re not against solar; if you want it, fund it yourself.”

Renewable advocates like Monika Gerhart countered this viewpoint. Gerhart, who leads the Gulf States Renewable Energy Industries Association, asserted that the state routinely provides economic incentives to various sectors, including recent support for Amazon and an electric vehicle battery plant.

“Mississippi has historically extended substantial economic incentives to targeted industries,” she stated. “I see no significant difference when it comes to attracting a burgeoning industry that promises future dividends.”

Stamps mentioned during the summit that the PSC intends to pursue the establishment of a standardized state law governing the approval process for solar projects, ensuring consistency across counties. At the recent Senate hearing, Brown noted that the agency would request new regulations concerning solar facilities, including decommissioning protocols.

“I view solar as a valuable asset, but it necessitates certain parameters,” he informed lawmakers.