State Orders Utilities to Reduce Interest Charges

By: Associated Press | WJTV
Published: March 05, 2009

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Regulators have directed Mississippi Power Co. and Entergy Mississippi to lower the interest rates they have been charging customers on utility bills. The Mississippi Public Service Commission issued the order Wednesday. The order will require the electric companies to use the prime lending rate, the benchmark rate for millions of business and onsumer loans, when calculating carrying charges. The commission says state law allows utility companies to
recover what they spend on fuel when generating electricity. The commission says using the prime lending rate, which fluctuates, is fair for the utilities and their customers.